Economic stimulus package - gearing to recovery

With Economic stimulus package being put in place, Fed chairman Ben Bermanke is optimistic that recovery start next year. Though there are still some obstacles that has to be met, the groundwork for recovery are being laid to counter recession. In an interview, Bermanke pointed out that key to full recovery is the stabilization of bank. The Economic stimulus package includes extending of bail-outs to failing banks but in the case of the Lehman Brothers which the government failed to bail-out yet saved the giant insurance (AIG) American international group from total bankruptcy. Between Lehman Brothers and AIG, the government chose to save the giant insurance because of its sufficient assets to post as collateral. It has a huge insurance operation that they can sell off to repay the government

This Monday, banks show bounce of stocks an indicative that Bermanke optimism propelled the flow of stock market. Though it is still on the volatile stage, where stocks slipped for one day and recharged the following day. Overall , more positive analysis of the situation could boost further the continues climb of stock market. This is something the people would want to see and wait as big companies and government find ways to avoid recession.