Economy -- Ben Bernanke Bearish: In testimony before the Senate Banking Committee yesterday, Fed Chair Ben Bernanke offered a bearish outloook on the economy... Asked about how to assess the efficacy of the recently-signed $152 billion stimulus package, Bernanke said it would be "a warning bell" if financial markets or credit conditions were to worsen... On his prediction of a "sluggish" economy over the next six months, the Dow dropped 200 points in afternoon trading. Budget -- Ways & Means & Views & Estimates: The House Ways and Means Committee has cionveyed its official "Views & Estimates" letter to the House Budget Committee outlining its preparatory to the drafting of a budget resolution.... The panel's letter signals its intent to finance legislation in compliance with the House's PAYGO budgeting rules... Many doubt how much progress Congress will make this year on an FY09 budget, doubts expressed this way by House Appropriatations chair David Obey (D-WI): We don't have a whole lot that we agree with in terms of the administration's budget policies. That was demonstrated by the fact that the president vetoed the bill produced by this subcommittee last year... I don't particularly see any sense in chewing the same cud twice, as we say in farm country, so I really regard this year and our actions during it as being preparatory to the new administration, whichever party it is. Earmarks -- The ire of the anti-earmark associates in the House was provoked by Minority Leader John Boehner's award of an Appropriations Committee seat to Rep. Jo Bonner (R-AL). Bonner is regarded an able enabler of earmark lucre for Alabama.... the seat assignment must still be confirmed by the entire GOP House conference, probably soon after next week's recess.