Recession schmrecession

Steven Landsburg is an economics professor at the University of Rochester (that's upstate New York). He just wrote a column in the Washington Post on why the fiscal stimulus package proposed by Bush is stupid. I had read his book "The armchair economist" and thought that he was a bit annoying about the environment and religion. But wow this article is clear and easy to understand and convincing. As he explains, "to stimulate spending, tax cuts have to make people feel richer -- but the richer people feel, the slower they'll be to rejoin the workforce. The more effective the tax cuts, the longer they threaten to prolong the expected recession".

He is a die-hard right-wing but sometime he's right. He's even joined by "The Coalition against Fiscal Stimulus". But what about the Fed that is cutting interest rates like crazy as James Cramer proposes to save the economy? Aren't we gonna experience inflation and a recession simultaneously? I never believed in the power of a Central Bank anyway, now I have doubts about fiscal policy too...sorry Keynes. Anyhow, why is everybody panicking right now? What is not going well? What do you think, macroeconomists?