Devin has a great post on the economy. You should read the whole thing.
There is one area in which I strongly disagree with him. He says:
The stimulus was actually much too small. The stimulus size should reflect the size of the fall in the net paper wealth. A stimulus of $15 trillion would have jolted the economy back to life quite quickly. . . .
The optimal path to a quick recovery would be to pass a law that multiplies the face value of every FDIC backed account, every money market fund account, and every treasury bill, by 50%. So that you’re not just benefiting the wealthy, maybe also mail a check to every American for $15K.
I believe that the stimulus prolongs the economic pain. As Carlyle said, "Great is Bankruptcy: the great bottomless gulf into which all Falsehoods, public and private, do sink, disappearing; whither, from the first origin of them, they were all doomed." A huge stimulus prolongs the falsehoods by keeping the bankrupt in operation. This is precisely the opposite of what we need to occur if we are going to "recover" in any meaningful sense of the word.