Where is the second stimulus?

About one year ago, there were a lot of talks about calling for a second stimulus. I extracted this one-year old article talked about the need of a second stimulus.

(ABC News July 9, 2009)"I think that a second one may well be called for," Warren Buffett , the CEO of Berkshire Hathaway, told "Good Morning America" today. But, he added, "you hope it doesn't get watered down in many ways."

Buffett cautioned that a second stimulus package, like the first, won't be "a panacea," because stimulus packages take time to work. He criticized lawmakers' work on the first stimulus package, which contained $787 billion in spending.

"Our first stimulus bill ... was sort of like taking half a tablet of Viagra and having also a bunch of candy mixed in ... as if everybody was putting in enough for their own constituents," he said. "It doesn't have really quite the wall that might have been anticipated there."

http://abcnews.go.com/Business/story?id=8039651&page=1

Well they had better act fast as the market participants are almost entering the lost world.

(MoneyCNN)With the S&P 500 down more than 15% from the highs of late April and all three major indexes at more than 6-month lows, a bigger selloff could be brewing.

"By year-end we could be roughly where we are now, but between now and then, we could be substantially lower," said Karl Mills, president and chief investment officer at Jurika Mills & Keifer.

Going back to World War II, a decline of 15% off the highs has often turned a correction into a bear market -- a drop of 20% to 30% -- according to Standard & Poor's chief investment strategist Sam Stovall.

Late Wednesday, S&P cut its 12-month price target for the S&P 500 to 1,190 from 1,270, citing the "intensifying headwinds."

The Dow is down 7.6% year-to-date, with most of the losses coming in the past two months when the Dow lost more than 10% on worries that the European debt crisis and signs of slowing in Asia will send the U.S. economy back into recession.

"What we saw in May and June was investors trying to understand that it's going to be a tepid recovery at best," said Alan B. Lancz, president at Alan B. Lancz & Associates.

http://money.cnn.com/2010/06/30/markets/markets_halfyear/index.htm