Does ailing US economy need more cash? … New face of US dollar bill.

Ben Bernanke told a group of U.S. representatives that Congress should look closely at passing a new stimulus package as a way of restoring confidence in the nearly moribund world banking system.

“With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate,” Bernanke said in testimony before the House budget committee on Monday.

Congress currently is looking at whether to use more taxpayers’ money to help out ailing banks and other financial institutions, perhaps as much as $150 billion US, according to some reports.

So far, Congress has ponied up $700 billion in fiscal assistance to buy back almost-worthless mortgage-backed securities and invest directly in bank stocks.

Still, “we are in a serious slowdown,” Bernanke said in response to a committee question.

As per the following chart taken from U.S. Department of Labor website, United States economy is in serious trouble. And as world economy is affected by U.S. economy, most of our investments including overseas investments if any are in trouble, my suggestion - hold on to what you have, dont sell any of your investments, wait for better times (I am no economist but at least that is what I am doing).

United States Monhtly Data - Click to enlarge.  (Source - U.S. Department of Labor website)

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