Goldman Sachs: Second Stimulus Package Needed

The debate about the stimulus package reminds me of a line from the film "Ed Wood" about the world's worst movie maker: "Really? Worst film you ever saw. Well, my next one will be better."

You don't like the Obama plan, America? Well, we will probably get another one next year. Here is what Goldman Sach's analysis of the Obama stimulus package (House version) found (bold is mine):

The program’s maximum effect on real GDP growth would probably occur in the second and third quarters of 2009, when we estimate it would add about 3 percentage points to the annualized growth rate ... thereafter, the contribution to growth would fade gradually ... turning negative by the fourth quarter of 2010 ... the magnitude and timing of these effects was not substantially different relative to what we felt was implicitly contained in our forecast to warrant a change to our forecast that the US economy will stabilize around mid-2090, following a sharp further contraction this quarter, and grow at a below-trend pace through 2010. ...  The key point, about which we are confident, is that the bill as passed in the House is unlikely to do much more than stabilize the US economy in the near term. Unless recovery in the private sector proves to be much stronger than we expect over the next two years, we think more stimulus will be needed before the end of 2010.