From my vantage point, it doesn't seem like the government can stimulate the economy much more than it already has, without quite literally flooding the streets with money. Additionally, with the downgrade of US credit, it is hard to see there being the borrowing that we have historically ben used to. Yet, on the flip side, it doesn't seem as if they can cut off the Keynesian spending binge by pulling trillions of dollars out of the economy- printed, borrowed, or otherwise, without some pretty disastrous effects.
Lost decade? Take a look at a chart for the S&P: we have lost the better part of 15 years. That said, Dell and Microsoft trading at single multiples of earnings should make for a nice bull case. Individually, there are a ton of really nice stocks out there.
Disclosure: None. This is not advice or a recommendation of any kind. Always do a ton of your own research in regard to anything that I say, do, write, or so much as even think about.