With so much hoopla around the health care reform and climate change bills that the Obama administration has been pushing for over the past few months, it’s no surprise that rumors around a second economic stimulus package have been less pronounced. But industry observers say the possibility it still there. It would be counterintuitive to think that such actions would be taken unless 1) things start improving drastically, and 2) the government spends all the money from the current stimulus package. Without those two pre-requisites, a second stimulus would be politically and economically unpalatable.

Besides, where would the money for a second stimulus package go? There would probably be some funds funneled through to the states; additional allocations for transportation construction and road improvements; and new monies for smart grid enhancements. But even with those new initiatives, the financial markets would continue to suffer, lending would still be problematic, and programs like the first-time home buyer’s tax credit and the “cash for clunkers” car trade-in program would still need their own bailout to continue. It’s a tricky world we live in, and a second stimulus package won’t make it any less complicated.