The stimulus was a joke. Bail outs were a joke.
Really, what has either done except cost us money we did not have and/or reward bad behavior?
Please tell us how many credits you have in economics.
My degree is in business administration. I also have the equivalent of a minor in economics because I took so many electives in economics. Under the Keynesian theory of economics, which is widely accepted and which I understand, the economy can be boosted via deficit spending and increasing the money supply, which is exactly what has been done.
Japan had a sluggish economy for about ten years. It finally recovered when deficit spending accompanied with an increased money supply was used to stimulate it. Although that is not absolute proof that Japan's economy recovered because of monetary and fiscal policy, the evidence strongly suggested that the method worked. Because economics is not an exact science (there are too many variables to make total understanding possible), we can rarely be certain of anything, but it would make no sense to ignore the evidence.
Obviously there is a down side because when the national debt is high, it costs money to pay the interest. So, the debt should be reduced as quickly as possible without endangering the recovery.
Although I would agree that to a certain degree bad behavior was rewarded, what would you do? Sacrifice the entire economy and make millions of people suffer to punish a low percentage of people who behaved badly? That would make no sense.
Let us find ways to prevent the the abuses which caused this severe recession.