You call that a stimulus?

The goal of the stimulus package seems relativly clear. Stimulate the economy. There is little doubt that in the short run there will be some effect of a $787 Billion dollar spending package on the economy. But whether or not the uses that this money has been earmarked for will be the most effective way of spending the money is the real question. The major expenditures of the package are not focused on new investments in the classical keynesian sense nor is the stimulus a Republican measure. We have a massivly complicated spending bill that earmarks funding for different things but does not even attempt to solve the housing problems that lead to the current problems along with the overleveraging of banks. Today the stock market droped below 7,000 points at least in part due to the uncertainty that the increased activity of the government in market interactions. Rick Santelli of CNBC today made a case for an organized bankruptcy of AIG which insured far to many assets without enough reserves. This seems like the way to approach these institutions that were to large to fail. Let them deflate and then fall.