It's clear that President Barack Obama's $787-billion stimulus hasn't worked as advertised, but some economists are worried it could backfire and cause something much worse.

According to a new study by economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute and endorsed by Nobel laureate James Buchanan, the Keynesian tactics employed by Obama "will ultimately hamper the long-term growth potential of the U.S. economy and may risk delaying full economic recovery by several years." The study accuses the president of making Depression-era mistakes.

Stephen Moore, member of the Wall Street Journal editorial board and senior economics writer, explained the study on Fox News "On the Record" Sept. 7 and said that the stimulus certainly hasn't lived up to its billing.

It's one of the few times one can wish the reporting by NBC News was right and CNBC was wrong.

A segment on the July 21 "NBC Nightly News" pointed out some of the key points of a budget deal reached between California Gov. Arnold Schwarzenegger and leaders of the state legislature. The deal means some service cuts - but also includes the possibility of exploration and drilling for oil off the California coast.

"California is our biggest state in terms of population and it long ago ran out of money," "Nightly News" anchor Brian Williams said. "They got nothing to pay the vendors they owe and now they have struck a deal for more cuts, and these are going to hurt. They're going to allow offshore drilling for the money it will bring in. The LA Times reports tens of thousands of seniors and children would lose access to health care. Prisoners will spend less time in prison. And the governor is going to sell cars and furniture and office supplies and autograph some of it, he says, to raise more money. It's an unbelievable turn of events."

While many on the left are reveling in the downfall of South Carolina Gov. Mark Sanford after he disclosed his affair with a woman in Argentina, there's a sympathetic figure being overlooked that might have the necessary background to fill the void left by the governor should he resign.

On CNBC's June 30 "The Kudlow Report," Wall Street Journal senior economics writer Steve Moore explained his close relationship with the Sanfords and raised a new political possibility.

"This is such a tough thing for me Larry, because as you know Mark Sanford has been a long-time friend of mine," Moore said. "This story truly breaks my heart." Moore suggested that South Carolina First Lady Jenny Sanford run for her husband's seat - as he called her "the brains of the operation."