Without a doubt a large part of the problem is the economy, lack of jobs, people owing more money on a house than what it's worth....etc However the biggest problem is our collective mindset that things aren't going to get better.
In fact the reason why the stock market often moves up or down is based upon what investors "think will happen" and not what is actually taking place in the moment. As the old saying goes: "Perception is reality".
According to economic teachings a recession is over once the nation shows growth for 2 quarters. We have accomplished this already. However if everyone chooses not believe we have turned the corner consumers will not spend, businesses will not invest, banks will not lend, and no jobs will be created.
One of two things will eventually happen. Either we will get tired of holding back and start spending and investing again or someone/something will inspire us to really believe better days are on the horizon.