Bernanke stumps for bailout again

WASHINGTON, Sept. 24 (UPI) -- U.S. Federal Reserve Chairman Ben Bernanke in Washington Wednesday repeated his call for support of a massive bailout plan for financial firms.

As he told the Senate Banking Committee Tuesday, Bernanke told the Joint Economic Committee Wednesday "global financial markets remain under extraordinary stress."

"Action by the Congress is urgently required to stabilize the situation," he said.

In prepared remarks, Bernanke outlined a sweeping evaluation of the state of the economy, which has shown little to brag about in recent months.

Tighter credit conditions have led to difficulty finding loans for homes and dropping home equity has cut into other lines of credit, he said. Consumer spending dropped in both June and July, outlays for business equipment "appear poised to slow in the second half of this year," and commercial building activity has hit "a considerable slowdown," he said.

The economy could turn upward based on lower commodity prices, stability in mortgage and housing and "the natural recuperative powers of our economy," Bernanke said.

"However, stabilization of our financial system is an essential precondition for economic recovery," he said.