Stimulus plan

Though most Americans wish that Congress would rein in excessive pay on Wall Street, that won't happen while the huge campaign contributions keep flowing. And the financial industry's big money shell game drains away something more precious from our society than money -- it siphons off talent.

The tax cut compromise between Obama and the GOP is now being touted as a back-door stimulus plan, one that some economists predict will create or save 3.1 million jobs. Unfortunately, the model on which those forecasts are based makes some flawed assumptions.

The Federal Reserve bought $7.3 billion worth of U.S. Treasuries Friday as it started a second round of quantitative easing meant to stimulate the nation's economy, media reports indicate. The QE2 plan, designed to boost job creation and prevent deflation, has been highly criticized.

Some of the best reads for investors from around the Web, including posts evaluating how consumers spend their money, whether Google could be considered a monopoly and the debate about the Fed's policy on quantitative easing.

Some of the best reads for investors from around the Web, including posts on a misunderstanding about kickbacks at Foursquare, the second stimulus plan and the latest in Google perks: servants for its employees.

Asian markets closed higher Friday. In Japan the Nikkei 225 Index climbed 1.5% after Prime Minister Naoto Kan announced a new $11 billion stimulus plan designed to promote job creation, coax shoppers back into stores, and stem the surge in the value of the yen. In China the Shanghai Composite Index inched up 0.3% and Hong Kong's Hang Seng Index added 0.4%.

Speaking in Cleveland, President Obama laid out the details of his plan to boost the economic recovery: $50 billion for infrastructure spending; a $100 billion R&D tax credit; and $200 billion to induce U.S. companies to make capital improvements now rather than later.

President Barack Obama wants to expand tax relief for businesses and boost federal spending on transportation systems to help spur the economy, and is expected this week to announce an expanded tax incentive to encourage business investment, according to Bloomberg, citing unnamed sources. Obama...

Economists say the Obama administration's stimulus program actually saved the country's economy from plunging into the Great Depression 2.0. Yet that news will likely fail to sway voters who believe the current administration didn't do enough to support the economy.

With the Fed adopting a more a pessimistic view, the revival has been swift in calls for the federal government to do more to help spur growth. But what can Washington do, and would it be counterproductive?