Who Needs Stimulating

Updated below:

Krugman is not happy with the current proposed economic stimulus plan and it is clear from the two graphs he has posted why. Why can't these people just admit that they have screwed up the economy and take the appropriate steps to fix it? Because they have no gumption we will probably have a much longer and painful downturn. As far as I can see there are not enough bullets in the Fed's pistol to make a difference.

Update: Krugman has more with help from the Tax Policy center.

Here is the breakdown of how the tax rebates will be distributed:
Quintile Share
Lowest 6.5
Second 14.3
Third 21.0
Fourth 31.0
Highest 27.1

"I’d guess that the top two quintiles are unlikely to be liquidity-constrained, so the rebate will have little effect on their spending. But they get 58% of the money. The bottom two quintiles, which are the place you’d most expect to have an impact, get only 21% of the money. Split the difference on the middle quintile, and you’ve got a plan where around 2/3 of the outlay is likely to be ineffective."

I am inclined to think that maybe we would be better off if they just scrapped the whole idea if this is anything like its final form. This is not going to help and just adds to an already crippling deficit.