As someone who believes the school of thought that government action is needed in times of economic crisis I am glad that the stimulus bill is finally through Congress. It does not signal a short-term recovery, however. As noted in today’s WSJ,
The latest version of the economic-stimulus package is expected to provide less near-term support for the economy and make it less likely that the economy will pull itself out of recession before late this year.
The stimulus bill could have done a couple of nice things: provide short-term stimulus or provide a psychological boost to the markets. It will do neither. On the other hand, I believe it will help keep us out of an extended recession/depression.
Recovery this year, or perhaps even early, next seems overly optimistic at this point. A Japan Scenario is the real fear I have and this bill may help us avoid that.