If Banks Tank, Stimulus Won't Work

According to the the Time:

The stakes for the Obama administration’s bank bailout proposal are high, economists say. Regardless of the specifics of the differing economic plans pending in Congress, no spending stimulus is likely to have much long-term effect unless the bank bailout works.

“The simple truth is that a self-sustaining expansion in a capitalist economy absolutely requires a functioning banking system,” said Robert Barbera, the chief economist of ITG, an investment advisory firm. There is a general agreement that previous efforts have yet to succeed.

So if this is the case, isn't it a fact that this stimulus package probably won't work? Outside of the handful of C.E.O.s who seem to be doing pretty well after holding up the National Treasury, the bank system seems on the brink of total meltdown.