I recognize that in difficult economic times, the public expect the government to act. And it would be appropriate for the government to act but clearly not all actions are beneficial.
Firstly, bailing out any commercial entities because they are "too big to fail" is just ridiculous. Spending money, even tax payer money, should be seen as an economic investment for success. Investing money in failing companies is just absurd. I understand the reason is to minimize job lost but in this is a horrible way to achieve this. When you give money to large companies, the company executives are more likely to see the money than the average worker. The government would be better off increasing the money available to unemployment than to give it to failing companies. In addition, by bailing out failing companies, their legacy actions for continued failure delay their necessary demise so that other, smaller companies with better vision and ability can rise. If anything, it should be the ascendant companies that receive federal funds (in terms of tax breaks rather than hand-outs) rather than the descendant companies.
Secondly, the best way to stimulate the economy is to get more money into the economy for circulation. I believe that this is best achieved by giving more money to the tax payers hand. This can be done as either a tax rebate or as unemployment benefits. The individuals are the one best position to decide how to spend money, not the government, and especially not failing companies that are too big to fail.
Thirdly, if the government feels that it is necessary to direct some of the spending themselves, the money would be best spent toward projects that is not likely to cause dependency. Infrastructure projects, while they may be both necessary and desirable, will require long term commitment for upkeep and maintenance. I suggest a combination of small business grants in new scientific or technology fields, as well as education grants as scholarships for students and research grants.