This piece by Brad DeLong is essential reading on the current economic situation.  Paragraphs 8-10 are the key ones.

I don't necessarily agree, however, that until the Fed and the Congressional centrists thrash out an understanding of whether we're in a liquidity trap or not, there's no point in a jobs summit.  Anything that keeps it in people's consciousness that something needs to be done about unemployment, is probably good.  Perhaps the administration and Congress will decide to do something more.  "More stimulus" talk seems to be in the air, despite widespread claims that it won't fly.  Sometimes things sneak back onto the agenda.