How can it be that a company that employs 250,000 filing for bankruptcy is actually good for the stock market and makes the DJIA rally so strongly? The easy answer is the stock market no longer reflects the economic reality on main street. 
Or is it that stock markets today are being used to hide the usury on Wall Street: hedge fund manipulation  the plunge protection team  tax haven secrecy  transfer pricing (organised balance sheet losses)  global monopoly capitalism, looting .
There's a good article by Dr Housing Bubble" on 'Stock Market Dissonance, though his national economy comparison with China is now alarmingly obsolete.
 Stock Market Dissonance: Why the Stock Market no Longer Reflects Main Street Economics. The Dow Jones Industrial Average. June 3rd, 2009
 Hedge Funds and Stock Market Manipulation. Friday, March 24, 2006
 Bush convenes Plunge Protection Team By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 12:05am GMT 08/01/2008
 British Tax Haven’s Safety, Secrecy Face Brown, Obama Challenge
By Simon Clark. 16th January 2009
 Transfer Pricing Tax System and Its Development in China
State Administration of Taxation (.pdf)
People’s Republic of China
Looting and How It Came to Pass
Naked Capitalism. 4th June 2009