Asian-based asset management firm, Brentwood Group, believe that the US government may sanction the provision of yet more tax
rebates to consumers in an effort to boost the flagging economy.
An individual familiar with analysts at Brentwood Group suggested that the measure would provide short-term relief but would
impact negatively on the Federal Government’s fiscal deficit.
The US economy has continued to falter as the general slump in the availability of credit to businesses and consumers, growing
unemployment and a moribund housing market have weighed heavily on confidence. A stimulus package of $168 billion was signed into
law earlier in 2008 and, for some months, had a positive effect on the economy.
The Brentwood source suggested that a second stimulus would probably be larger than its predecessor but the US consumer was, to
all intents and purposes, simply over-indebted.
