How can this stimulus work? If you break down the spending, 85% of it basically goes to fund local and state units of government in a manner consistent with what they were spending before. In other words, it went for salaries for teachers, road officials, firefighters, law enforcement, water and sewer departments, city planning departments, etc. If the bill hadn't been passed, there'd be mass layoffs at your local city, township and village halls, and at your state levels (more so than now). It wasn't a stimulus bill. It was a state and local government bailout bill. And when the money runs out, what will they then do?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aOO5mCwHvU.A&refer=home An indication of where the market really is, looks like some very big losses still to come.