<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The major stock indexes rallied on Monday as some states took steps to reopen their economies, recapturing market momentum that has helped equities recoup some of the early losses incurred by the coronavirus outbreak.” data-reactid=”16″>The major stock indexes rallied on Monday as some states took steps to reopen their economies, recapturing market momentum that has helped equities recoup some of the early losses incurred by the coronavirus outbreak.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="But the resilient stock market, buoyed by fiscal and monetary stimulus, conceals the severity of damage wrought upon the nuts-and-bolts economy on which everyday Americans rely, said Niall Ferguson, an author, historian, and fellow at the conservative-leaning Hoover Institution at Stanford University.” data-reactid=”17″>But the resilient stock market, buoyed by fiscal and monetary stimulus, conceals the severity of damage wrought upon the nuts-and-bolts economy on which everyday Americans rely, said Niall Ferguson, an author, historian, and fellow at the conservative-leaning Hoover Institution at Stanford University.

“At some level, the signals we’re getting from financial markets are distorted by the scale of the intervention” from Congress and the Federal Reserve, Ferguson told Yahoo Finance Editor-in-Chief Andy Serwer on Friday.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“You've got to look past the financial to the real economy, and recognize that we are actually in a much bigger, real economic shock than we were in 2009,” adds Ferguson, the author of 15 books including “The Ascent of Money: A Financial History of the World.”” data-reactid=”19″>“You’ve got to look past the financial to the real economy, and recognize that we are actually in a much bigger, real economic shock than we were in 2009,” adds Ferguson, the author of 15 books including “The Ascent of Money: A Financial History of the World.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="After reaching a low on March 23, the&nbsp;S&amp;P 500 added 637 points or 28.5% by the close last Friday, April 17, recovering more than half of its drop from the record high of mid-February.&nbsp;The S&amp;P 500 dropped 1.3% overall last week but on Monday continued an upward trend that began last Friday.” data-reactid=”20″>After reaching a low on March 23, the S&P 500 added 637 points or 28.5% by the close last Friday, April 17, recovering more than half of its drop from the record high of mid-February. The S&P 500 dropped 1.3% overall last week but on Monday continued an upward trend that began last Friday.

Hoover Institution Scholar Niall Ferguson appears on Yahoo Finance's "The Final Round." Hoover Institution Scholar Niall Ferguson appears on Yahoo Finance's "The Final Round."
Hoover Institution Scholar Niall Ferguson appears on Yahoo Finance’s “The Final Round.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The turn of fortune has left some market watchers&nbsp;worried about an overpriced market&nbsp;detached from a reeling economy with&nbsp;over 26 million newly unemployed.” data-reactid=”32″>The turn of fortune has left some market watchers worried about an overpriced market detached from a reeling economy with over 26 million newly unemployed.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Monetary and fiscal stimulus — which includes about $3 trillion in total relief enacted by Congress since last month — has mollified stock traders but can only soften the economic blow of the crisis for a short time, Ferguson said, eventually giving way to even more severe effects on the business and employment landscape.” data-reactid=”33″>Monetary and fiscal stimulus — which includes about $3 trillion in total relief enacted by Congress since last month — has mollified stock traders but can only soften the economic blow of the crisis for a short time, Ferguson said, eventually giving way to even more severe effects on the business and employment landscape.

“These are relief measures that Congress has passed and that the Fed is financing,” says Ferguson. “And they can only be sustained for a relatively short period of time before problems of liquidity become problems of solvency, and small businesses just begin to throw in the towel.”

Yahoo Finance's "All Markets Summit" will take place in New York City on Oct. 26.Yahoo Finance's "All Markets Summit" will take place in New York City on Oct. 26.
Yahoo Finance’s “All Markets Summit” will take place in New York City on Oct. 26.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Ferguson spoke to Yahoo Finance’s “Final Round” as part of special segment that previews the “All Markets Summit,” a businesses and financial conference that will take place in New York City on Oct. 26. The conference will take up the issue of “Generational Opportunities” — how leaders are building and refining new relationships in a time of profound generational, cultural, and economic change.” data-reactid=”48″>Ferguson spoke to Yahoo Finance’s “Final Round” as part of special segment that previews the “All Markets Summit,” a businesses and financial conference that will take place in New York City on Oct. 26. The conference will take up the issue of “Generational Opportunities” — how leaders are building and refining new relationships in a time of profound generational, cultural, and economic change.

Ferguson said the coronavirus outbreak has heightened intergenerational conflict, noting that the elderly are at greater health risk than their younger counterparts.

“The really striking feature of this pandemic is that unlike most pandemics in history, it is very ageist,” Ferguson says. “It is much more likely to kill people over the age of around 60.”

The effect on relations across generational lines is the opposite of past upheavals, like the 1960s unrest over the Vietnam War, in which young people expressed frustration with older political leaders putting young people in harm’s way, Ferguson added.

“In the periods of the 20th century’s greatest upheavals, it was mostly young men going to war,” he says. “And the generational conflict tended to be between those younger people and the old men who were perceived to be ‘The Man,’ sending kids off to war.”

“Now it’s kind of turned on its head, that the vulnerable people in the pandemic are the elderly, and the frustrated people who feel that they should be allowed to go back to work are the young,” he adds.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Read more:” data-reactid=”54″>Read more: