robert reich has a good post over on his blog about the effectiveness of the stimulus plan in the works. he concludes with the inconvenient truth that what the united states needs is for the rest of the world to bail us out. i liked this analogy:
The problem is, people have different views about what’s going wrong. Wall Street sees it as a credit crisis — a mess that seems never to reach bottom because nobody on Wall Street has any idea how many bad loans are out there. Therefore, nobody knows how big the losses are likely to be when the bottom is finally reached. And precisely because nobody knows, nobody wants to lend any more money. A rate cut won’t change this. It’s like offering a 10-pound lobster to someone so constipated he can’t take in another mouthful.