Tuesday, July 7, 2009

Wall Street wilts as new stimulus talk stokes fears

http://finance.yahoo.com/news/Wall-S...sset= &ccode=


U.S. stocks fell on Tuesday as talk of a second government stimulus plan stirred fears that the economy is far from well, raising the specter of an anemic second quarter earnings season.

A member of the Obama administration's economic advisory panel said the United States should plan to possibly provide a second round of stimulus funds to prop up the economy, implying that recovery is still far off.

"I think it's insane, the first stimulus package has not even been spent yet," said Andre Weisbrod, president & chief executive of Staar Financial Advisors in Pittsburgh.

"They are creating what I would call the government bubble ... When that bursts we are in huge trouble."