What is going to turn this horrible economy around?

The government never has the answer. The economy will turn around when business becomes confident that government is going to stop pursuing so many anti-growth policies -- e.g. Sarbanes-Oxley, the highest corporate income tax in the world.

The government has proposed many things,such as the tax increase for the rich, the end of Bush tax cut,the revise of job market,the new way of budget cut. It depends on the Congress.It is still dramatized,politically.

Nothing soon.

If it weren't for Congressional opposition, a large stimulus would do the job:
http://voices.washingtonpost.com/ezra-klein/2010/10/infrastructure_the_best_deal_i.html
http://capitalgainsandgames.com/blog/andrew-samwick/2237/it-may-be-broken-record-sound-still-best
http://delong.typepad.com/sdj/2010/06/we-need-bigger-deficits-now.html

But the jobs bill is much too small and even it won't get passed.
http://www.nytimes.com/2011/09/09/opinion/setting-their-hair-on-fire.html?
http://www.businessinsider.com/goldman-obama-jobs-plan-would-provide-125-gdp-bump-in-2012-but-its-not-passing-2011-9
http://krugman.blogs.nytimes.com/2011/09/05/on-the-inadequacy-of-the-stimulus/