The Wall Street Journal reports that economic conditions have become so dire that President-elect Barack Obama's economic advisers now think a two-year stimulus of between $700 billion and $1 trillion is needed to jump start the economy:
"President-elect Barack Obama's economic team is considering an economic-stimulus program that will be far larger than the two-year, half-trillion-dollar plan under consideration two weeks ago, according to people familiar with the team's thinking...
With the unemployment rate now expected to hit 9% without aggressive intervention, Obama aides and advisers have set $600 billion over two years as "a very low-end estimate," one person familiar with the matter said. The final number is expected to be significantly higher, possibly between $700 billion and $1 trillion over two years."
The article is linked.