MSN Money today, or at least two of their columnists, attributed the 413-point gain (4.6%) on the Dow today to Ben Bernanke’s endorsement of a potential Pelosi stimulus package.

The Democrats are also taking Bernanake’s words out of context to promote their “stimulus” plan, essentially a plan to further mortgage the future to generate welfare checks.

Stocks soared today as higher oil prices set off a big rally in energy stocks and as Federal Reserve Chairman Ben Bernanke endorsed the idea of a second economic stimulus package from Congress.

This based on an out-of-context snippet of Bernanke testimony today…

“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”

“Consideration” is not an endorsement. Unless of course you are a liberal looking for corroboration of your failed economic policies.

Here are excerpts from the full transcript in context (emphasis mine):

I understand that the Congress is evaluating the desirability of a second fiscal package.  Any fiscal action inevitably involves tradeoffs, not only among current needs and objectives but also–because commitments of resources today can burden future generations and constrain future policy options–between the present and the future.  Such tradeoffs inevitably involve value judgments that can properly be made only by our elected officials.  Moreover, with the outlook exceptionally uncertain, the optimal timing, scale, and composition of any fiscal package are unclear.  All that being said, 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.

Should the Congress choose to undertake fiscal action, certain design principles may be helpful.  To best achieve its goals, any fiscal package should be structured so that its peak effects on aggregate spending and economic activity are felt when they are most needed, namely, during the period in which economic activity would otherwise be expected to be weak.  Any fiscal package should be well-targeted, in the sense of attempting to maximize the beneficial effects on spending and activity per dollar of increased federal expenditure or lost revenue; at the same time, it should go without saying that the Congress must be vigilant in ensuring that any allocated funds are used effectively and responsibly.  Any program should be designed, to the extent possible, to limit longer-term effects on the federal government’s structural budget deficit.

Finally, in the ideal case, a fiscal package would not only boost overall spending and economic activity but would also be aimed at redressing specific factors that have the potential to extend or deepen the economic slowdown.  As I discussed earlier, the extraordinary tightening in credit conditions has played a central role in the slowdown thus far and could be an important factor delaying the recovery.  If the Congress proceeds with a fiscal package, it should consider including measures to help improve access to credit by consumers, homebuyers, businesses, and other borrowers.  Such actions might be particularly effective at promoting economic growth and job creation.

He’s not ruling it out, but it’s not an endorsement of Liberal welfare stimulus checks. He warns of any plan’s detrimental impact on our future (read national debt), and seems more concerned with job growth (read tax cuts) and less so on putting cash in consumer’s hands (liberal stimulus packages).

…and yes, I am well aware of the fact that the last (also failed) stimulus package was pressed into service by a liberal by the name of George W. Bush.

So why did the last one fail? The same reason the next one will. The same reason Obama’s Marxist “spread the wealth around” policies will fail.

Because our economy is hyper-sensitized to job growth and job security. Right now small businesses are freezing new hires and new expenditures until they see who occupies the Oval Office, what happens in the credit markets, and what is in store for tax and fiscal policy.

As a result, consumers are deferring discretionary purchases; especially big-ticket items manufactured in America. Putting a few hundred dollars in their pockets won’t assuage the insecurity they feel about their jobs and cash flow for the foreseeable future.

Bernanke is convinced that the goverment needs to do something to loosen frozen credit markets and stimulate job growth. Hence the relevance of Joe the Plumber of late. Americans are realizing what a hero Joe and other small business owners are in times like these. They create jobs. Right now they need to be incented, not penalized for doing so.

Barack Obama’s policies play into the worst fears of those who hold in their power the ability to grow our economy. I suspect that has a lot to do with the tightening of the race for the White House.

Question is…is there still time enough for the American people to realize which of the two candidates is most likely to take actions, based on their records, that will address the challenges our economy faces?

PS: So why did the stock market go up today? Because there were more buyers than sellers.