Noah Smith, Columnist

Stock Markets That Never Fall Are Up to No Good

A federal backstop for equities will lead to distortions that weigh on growth.

April 27, 2020 at 10:30 AM UTC

Noah Smith is a former Bloomberg Opinion columnist. He was an assistant professor of finance at Stony Brook University, and he blogs at Noahpinion.

At least somebody’s happy.
Photographer: Don Emmert/AFP

How easy or hard was it to use Bloomberg.com today?

Share feedback

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE

This article is for subscribers only.

Unemployment is rising at a record rate. Businesses are vanishing in huge numbers. Much of the economy is on life support as fear of a pandemic keeps Americans at home. Global trade and investment are collapsing. The economy is looking at the possibility of a long-lasting depression.

So why is the stock market doing so well? The S&P 500 Index is down for the year, but it has recovered by half from its March low point:

Before it’s here, it’s on the Bloomberg Terminal

LEARN MORE