Bloomberg Lesson 101: Don't Ignore Fed Gusher

EDITOR NOTE: If there’s anything you can learn from the most recent market crash and recovery--both the strongest on record--it’s a basic lesson about the effects of artificial economic measures. Zombie companies are rallying (when they’re supposed to be falling, according to Economics 101). Large companies with strong balance sheets are getting stronger. When the large buys up the small, that in itself, a natural “consequence,” what we end up with is a non-competitive market. What we have less of is, strangely, healthy capitalism.

Round trip has been completed. The fastest stock market collapse on record has been followed by the fastest recovery. As of the close of trading Monday in New York, the S&P 500 is, just, in positive territory for the year.

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