Obama's Stimulus Plan Is No Quick Fix

In contrast to the Bush administration's Economic Stimulus Act in February, which sent $300 to $1,200 rebates to a majority of American households, Obama is seeking to reduce the tax burden for consumers and businesses. The hope is that tax cuts will sustain spending over a longer period of time, rather than acting as quick booster shot as the last rebate checks did.

"Perhaps 40% was spent from the last fiscal stimulus package, as people paid down debt and put money into savings," Bethune said. "This time, they want to make it permanent. But one of the problems in going through the tax-credit route is that it can't impact the economy quickly. A tax credit comes usually when you file your income taxes the following year."

Therein lies the problem, say observers who believe the Obama recovery package doesn't quickly target the major problems facing the U.S. economy, namely the housing crisis, tight credit markets and the struggling automotive industry.

Citigroup chief U.S. strategist Tobias Levkovich says that the stimulus package "should be successful in stemming some of the bleeding associated with credit restraint and its effect on corporate investment in human, physical and working capital," although he's unsure of the long-term effect on the stock market.

"[Some] early excitement, which may help pump up stock prices temporarily, will likely fade as the news flow around the underlying economic picture continues to be less than constructive," Levkovich wrote in a research note early Monday.

Others are concerned that Obama's plan throws more money blindly at the economic problem. Obama's plan is valued on par with the $700 billion bailout passed in October that promised to prop up financial markets. The oft-criticized bailout has seen increased scrutiny recently for its lack of oversight for funds given to companies such as Citigroup (C Quote), Goldman Sachs (GS Quote) and JPMorgan Chase (JPM Quote). Many are frustrated that the positive effects promised by the bailout's architects have yet to trickle down to individuals.