I'll raise you a dip and make it a full three dips.
Things will be twice as bad as the little man predicts. Just wait until more states start going bankrupt. They are at a disadvantage that the feds don't have .. the states can't print money like the feds can.
Until jobs outside the federal govt are being created things won't turn around .. it took WWII to get out of the last 'great' depression. There is still the impact to the south from the oil damage that needs to be played out and that isn't going to be pretty. WWIII would be very bleak with nuclear capability by many more countries.
What we need is a little WWII era patriotism where our elected leaders put the country first and partisan politics second. That is unlikely to happen in this day and age.
It is depressing to see so many politicians, on both sides of the aisle, insist that the solution to our current problems is the same one that created the problem in the first place. 
The two party system has been essentially merged into the same party. Same old story, same old people, Meet the new Boss mentality.
Don't blame me .. I voted for Ron Paul.
raz-00
It'll go the full two dips. Tax revenue is down, and state and municipal budgets are screwed. A lot of the financial burden in many states is due to the burden of unfunded federal mandates.
The result will be a reduction in government spending and employment. Given the percentage of people employed by government and government contractors, you will be seeing a serious hit to the economy lagging behind the initial hit by an extended period due in large part to how bailout money was allocated.