Why does the stock market keep going up when the economy feels so bad? It’s the question we probably get the most and, quite frankly, it’s not a bad one. The primary reason equities seem invincible is because of the dramatic increase in the money supply over the past four decades. That explains the supply side of the equation at least. But a lot had to happen behind the scenes to allow for the money supply to be absorbed into the financial system and ultimately benefit a fraction of the population.

Resources

MacroMicro: US - M1 & M2 Money Supply

Wikipedia: Buffett indicator

CFI: Shiller P/E

Civiqs: Donald Trump: Job Approval, Second Term

Wall Street Journal: More Americans Than Ever Own Stocks 

Brookings: Rising inequality: A major issue of our time 

The Review of Economic Studies: Stock Market Participation, Inequality, and Monetary Policy

Roosevelt Institute: Our New Report: Defining Financialization

Levy Economics Institute: Have We Been Here Before? Phases of Financialization within the 20th Century in the United States

The Fed: 3. Leverage in the Financial Sector

UNFTR Resources

Stock Buybacks Surge: Another Red Flag for the U.S. Economy.

Video: Why is the stock market so good when the economy is so bad?

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Unf*cking the Republic is produced by 99 and engineered by Manny Faces Media (mannyfacesmedia.com). Original music is by Hold Fast (holdfastband.com). The show is hosted by Max and distributed by 99.

Why does the stock market keep going up when the economy feels so bad? It&rsquo;s the question we probably get the most and, quite frankly, it&rsquo;s not a bad one. The primary reason equities seem invincible is because of the dramatic increase in the money supply over the past four decades. That explains the supply side of the equation at least. But a lot had to happen behind the scenes to allow for the money supply to be absorbed into the financial system and ultimately benefit a fraction of the population.
Resources
MacroMicro: <a href="https://en.macromicro.me/charts/23858/us-m2">US - M1 &amp; M2 Money Supply</a>
Wikipedia: <a href="https://en.wikipedia.org/wiki/Buffett_indicator">Buffett indicator</a>
CFI: <a href="https://corporatefinanceinstitute.com/resources/valuation/cape-ratio/">Shiller P/E</a>
Civiqs: <a href="https://civiqs.com/results/approve_president_trump_2025?uncertainty=true&amp;zoomIn=true&amp;annotations=true&amp;party=Republican">Donald Trump: Job Approval, Second Term</a>
Wall Street Journal: <a href="https://www.wsj.com/finance/stocks/stocks-americans-own-most-ever-9f6fd963">More Americans Than Ever Own Stocks </a>
Brookings: <a href="https://www.brookings.edu/articles/rising-inequality-a-major-issue-of-our-time/">Rising inequality: A major issue of our time </a>
The Review of Economic Studies: <a href="https://academic.oup.com/restud/article/92/4/2656/7698334">Stock Market Participation, Inequality, and Monetary Policy</a>
Roosevelt Institute: <a href="https://rooseveltinstitute.org/blog/our-new-report-defining-financialization/">Our New Report: Defining Financialization</a>
Levy Economics Institute: <a href="https://www.levyinstitute.org/wp-content/uploads/2024/02/wp_869.pdf">Have We Been Here Before? Phases of Financialization within the 20th Century in the United States</a>
The Fed: <a href="https://www.federalreserve.gov/publications/november-2025-financial-stability-report-leverage-in-the-financial-sector.htm">3. Leverage in the Financial Sector</a>
UNFTR Resources
<a href="https://www.unftr.com/episodes/topical22">Stock Buybacks Surge: Another Red Flag for the U.S. Economy</a>.
Video: <a href="https://youtu.be/V57Qt-6z-_Y">Why is the stock market so good when the economy is so bad?</a>
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Become a member at <a href="https://www.unftr.com/memberships">unftr.com/memberships</a>.
Buy yourself some Unf*cking Coffee at <a href="https://shop.unftr.com/">shop.unftr.com</a>.
Visit our bookshop.org page at <a href="https://bookshop.org/shop/UNFTRpod">bookshop.org/shop/UNFTRpod</a> to find the full UNFTR book list, and find book recommendations from our Unf*ckers at <a href="https://bookshop.org/lists/unf-cker-book-recommendations">bookshop.org/lists/unf-cker-book-recommendations</a>.
Access the UNFTR Musicless feed by following the instructions at <a href="https://www.unftr.com/accessibility">unftr.com/accessibility</a>.
Unf*cking the Republic is produced by 99 and engineered by Manny Faces Media (<a href="https://www.mannyfacesmedia.com">mannyfacesmedia.com</a>). Original music is by Hold Fast (<a href="https://holdfastband.com">holdfastband.com</a>). The show is hosted by Max and distributed by 99.

Unf*cking The Republic® (UNFTR) is dedicated to progressive politics, leftist economic theories, and social justice in the United States. Join us for deep dives into socialism, labor rights, climate justice, and the fight against inequality. Whether you're curious about Marxist ideas, modern social movements, or progressive policies, UNFTR delivers thoroughly sourced critiques, analyses, and interviews with the historical context mainstream media won't provide. Subscribe for informative and unabashedly progressive coverage of the leftist political and economic landscape.

Unf*cking The Republic&reg; (UNFTR) is dedicated to progressive politics, leftist economic theories, and social justice in the United States. Join us for deep dives into socialism, labor rights, climate justice, and the fight against inequality. Whether you're curious about Marxist ideas, modern social movements, or progressive policies, UNFTR delivers thoroughly sourced critiques, analyses, and interviews with the historical context mainstream media won't provide. Subscribe for informative and unabashedly progressive coverage of the leftist political and economic landscape.