What's wrong with this stimulus package?

According to a post by Professor Elizabeth Warren (who is also a consumer rights hero), 70% of people receiving the tax rebate/stimulus check won't actually spend the money. So it's kind of a mini-bail-out of the credit card industry. Most people are using the money to pay down debts or sock it away for the next round of layoffs or medical emergencies. (click here for full post)

It makes me wonder if the money would have been better spent as a block grant to cities who are dealing with vacant, foreclosed, abandoned houses. The money could be spent on rehab and employ thousands of union, construction workers. Then, the money would have a multiplier effect on the economy and improve our housing stock as well....but, nobody asked me and it's tough for politicians in Washington DC to say no to any sort of cash to voters in an election year.