Can the media harm the economy?

This is an important question: is the media hurting the economy? Can it do such a thing? All the negative stories in the media certainly must affect our confidence in the economy. I really like Ted Nelson's quote: "We live in media as fish live in water." Good water, good media, good economy, good society. Is that the way it works? If the media were more positive, and wrote more positive things about the economy, would that get us back on track? I've been posting some "holy-shit" reports about the economy over the past three months. But I've also started to post some good news about companies that are doing well. Clearly, the media does play a role in the health of our economy but how much? Is it reporting on reality, or is its neagtivity harming the health of the economy? - - - Please see some of my negative and positive posts:

- Japan's King Kong And Godzilla Scale of Industry Destruction

The Size of Derivatives Bubble = $190K Per Person on Planet

Better:

- Tibco: Wrapping Metal Around Software

- Boom Not Gloom: IT Search Firm Splunk