Maybe what the MARKET is saying, is that it has a MIND OF IT”S OWN, and needs to NOT be tampered with by politicians who cohort with power bankers to bring the rest of us into slavery. Leave it alone, it will right itself out in the storm when it finds the REAL level of what the dollar is ACTUALLY worth.
I think that a major component of the "bad economic news" is due to emotion, rather than any fundamental technical issues. Right now, the traders are operating in a cycle of fear and hope, applied to a time horizon measured in days or even hours. (In fact, I think the whole mess began because of this mindset.) I think the same dynamic helps to explain the volatility in oil prices.
It's like trying to steer your car by watching the center line as it disappears under the hood -- you're always going to be caught by surprise when the road curves, and you end up comtinually over-correcting.
Throwing massive amounts of money and/or regulations against the markets is just delaying the inevitable and perhaps making it worse for the future.