This is a specific taunt against Babylon. While it is tempting to see the "stirreth up the dead for thee" as a reference to resurrection, the context does not allow it. The important part of the reference to the dead is contained in their question to Babylon in verse 10; "Art thou become like unto us?"
Hell, or better Sheol, the Hebrew conception rather than the Christian one, is the place for the souls of the dead. These dead have existence, but no substance. They are (or were) kings and powerful men, but now have no power as they are spirits only. When they ask if Babylon is now like they are, the question underlines Babylon's powerlessness. Babylon, like the disembodied shades of the dead, has form but no substance, memories or glory, but no power.