The stimulus should be (and ultimately will be) about $2 trillion. A deflation death spiral like the one in the 30′s will put a lot more of us in the poor house. Simply put, the nominal amount of debt will continue to grow despite deleveraging if the government makes no effort to reinflate.

This is not to say that a lot of the “stimulus” package isn’t misdirected. It is. We are not going to “green energize” our way out of this. The stimulus should have been 2/3 tax cuts aimed at small business owners – the real drivers of job growth.