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With only 10% of the Stimulus Bill being spent, it has to be considered that the economy is recovering on its own merits. The sell off in the SM was a reaction of panic to the impending implosion of financial sector of the economy.

Much can be said about the psychological effect of taking ACTION. to right the situation. It almost doesn't matter what that action is. It is the perception of that action that counts. That is where Keynes went wrong. Keynes felt it was govts role to stimulate or use govt resources to stimulate an economy when all else fails. It is not the money but the perception of action that something anything is being done.

FDR was not a Keynesain. FDR came into office when things looked very bleak in 1933. Keynes wrote his theoryin 1936, which was after the fact. He modeled his theories on what FDR did. FDR used the tool that was at his disposal or what he was in control of and that was govt. FDR understood it was action and not just govt money. It was the psychological affect of doing something that restored a confidence that everything would turn out all right.