In teaching economics this semester, I have gone over the bailout several times. I think historically, this plan will be viewed as a colossal failure. The main problem with using fiscal policy is the time lag. The current recession started in December 2007. Just now in March/April 2009 has the stimulus money started to reach the designated agencies. This means the economy was a year and half into the recession before this money even reached the initial groups. Historically, most recessions only last a year or two anyways.
There's a good chance a large chunk of the stimulus spending will be wasted or used inappropriately. Whatever jobs are created will be limited in number as well.
When the stimulus was passed, it said it would be "successful" if it created jobs and kept unemployment below 10%. Good luck. It's already at 8.9% and rising. My prediction is that it will top 10% either late this year or early next year.
