Mark Zandi: Too early to tell
It's premature to conclude we need another round of stimulus. I think the current stimulus is working pretty close to script. That doesn't mean policymakers shouldn't be planning something. The odds are high we will need another set of policy efforts to shore up the economy in 2010. But there's a balance that needs to be struck.
There's a concern among global investors that we're running these very large deficits. If they revolt, then interest rates rise, and you negate any benefit from another stimulus. It's just more prudent to wait another three, six months to see how things go.
We should actually be more focused on foreclosure mitigation. The president's put forward a pretty aggressive plan and it doesn't appear to be working. And if house prices are falling, the economy's not going anywhere.
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