It seems another stimulus package is in the works. I am not sure if it would help the markets and we still have to see if the bailout package passed by the congress earlier has any effect on the economy.

Federal Reserve Chairman Ben S. Bernanke endorsed consideration of a fiscal stimulus package, citing the chance of a “protracted slowdown” and a “weak” outlook for the U.S. economy into next year

Lawmakers “should consider including measures to help improve access to credit by consumers, homebuyers, businesses and other borrowers,” Bernanke said in testimony to the House Budget Committee. “Such actions might be particularly effective at promoting economic growth and job creation,” he said, calling consideration of a stimulus “appropriate.”

Bernanke’s remarks differ with the Bush administration’s position and may give momentum to legislation being proposed by House Democrats; in January Bernanke told the same panel a stimulus “could be helpful” and urged lawmakers to act “quickly.” The impact of that $168 billion measure faded by July, and economists anticipate the economy will contract in the current quarter.

The Bush administration has been cool to the prospect of another stimulus. Press Secretary Dana Perino, responding to reporters’ questions Oct. 16, said that “a lot of conversations about a second stimulus took place just last month” with Congress, but “we didn’t think” the proposals put forward “would help bring money into the economy.”

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