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Bernanke: Obama stimulus would lift economy
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The government needs to stop this spending spree, and I agree people won't begin buying again until they feel the government is doing the same.
I doubt though that Obama will downsize the bureaucracy, because some of them have probably contributed to the current Obama presidency. However if we did do that (and he hasn't the courage to do it either and neither does Congress who wants their own slice of the pie) and until then C is right, we will keep buying essentials unless an appliance breaks or a car needs too many repairs.
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Since the public doesn't trust politicians anymore, it will take A LOT to make people start spending like they have the last 40 years. The economy WILL NOT pickup just because politicians tell us to start spending money, the economy MAY pick up when Wall Street starts back up again, (although I doubt that also).
My opinion is that the economy won't pick up and people WILL NOT start buying again until they see the government cut back on spending and start to downsize the federal bureaucracy, something that is a long ways off!
Try all the 'economic stimulus' plans, and bailout plans that you want but unless and until the Am. public gets confidence in ITS GOVERNMENT the publics' spending will be only for essentials.