Great point solvegas. Exactly what Paul Krugman said in his blog last week.
Krugman did a quick calculation based on historical Fed Reserve reactions to bad economic news (obviously, Fed lowers the interest rate to spur the economy in bad times).
According to Krugman's calculations, for the Fed to respond as it has done historically, it would have to lower the interest rate to -6%.
That's NEGATIVE six percent. Obviously, not possible.
Which is why Obama should do massive work projects like FDR, mainly in two areas. (1) Building alternative energy sources, windmills, solar panels, etc. (2) Creating millions of office jobs in a massive, unprecedented attempt to create a national healthcare history database.
Also, he should legalize pot. It would save BILLIONS in prison and law enforcement costs while simultaneously creating BILLIONS in tax revenue.
Just some wacky ideas.