Fed chief gives nod to more government stimulus

WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke says a
new round of government stimulus is a good idea, with an economy
that could remain weak for some time.
He tells the House Budget Committee the economy will "likely"
stay weak for several quarters. His testimony marks his first
endorsement of another round of stimulus, which Democrats on
Capitol Hill have been advocating. The Bush administration has been
cool to the suggestion.
Bernanke says any stimulus package would need to kick in quickly
to help boost consumer and business spending. He also says a
package should include provisions to help break through the credit
clog.
The Fed chief also mentions that the measure should limit
longer-term effects on the budget deficit. The deficit hit a record
high in the recently ended budget year.
When pressed for his idea on the size of such a package, he said
it should be "significant."

White House says Bush open to second stimulus
ABOARD AIR FORCE ONE (AP) - The White House says President Bush
is open to the idea of a second government stimulus to further
boost the U.S. economy amid the financial crisis.
Press secretary Dana Perino told reporters on Air Force One as
the president flew to Louisiana on Monday for an economic event
that the White House will have to see what kind of package Congress
crafts. Perino says the administration has concerns that what has
been put forward so far by Democratic leaders in Congress would not
actually stimulate the economy.
Earlier in the day, Federal Reserve Chairman Ben Bernanke gave
the same message to Congress. It was the first time that Bernanke
endorsed a second stimulus for the economy, which he says will be
weak for several quarters.

Paulson says stock purchases should make money
WASHINGTON (AP) - Treasury Secretary Henry Paulson says
government purchases of stock in banks represent an investment that
should eventually make money for taxpayers.
Paulson said today the government will own shares in the banks
that should be paid back with a reasonable return and the
government will also receive warrants for common shares in the
banks.
He made his comments as he announced a streamlined application
process that banks can follow to apply to sell shares to the
government by a deadline of Nov. 14.

Stocks rise
NEW YORK (AP) - Stock prices are higher at midday on Wall
Street.
Credit conditions among banks have improved for a sixth
consecutive business day. That's particularly the case in the U.S.,
as confidence in the financial sector appears to be improving after
the rescue measures announced in recent weeks by central banks and
governments.
The Conference Board's Index of Leading Economic Indicators rose
for the first time in five months, up 0.3 percent. However,
economists say it was distorted by a jump in the money supply.