If Bernanke wants to stimulate the economy, he should give $30 billion to one of the banks taken over by the FDIC, and use it to refinance credit card debt. If people can refinance a 28% loan into a 10% loan, it will free up money for consumer spending.
While I am against all bailouts, if the Feds had taken all of the bailout money and applied it pro rata to every mortgage in America, with a similar reduction in the monthly payment, we would be in better shape. The banks still would have received the money. Many of the toxic mortgages would have become viable again. Homeowners would have more equity in their homes thereby reducing the incentive to walk away. And, the reduction in the monthly payments would have been an immediate boost for the economy. Finally, those of who work and pay for all of this would have, at least got something for our money.