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Why Bank Failures Haven’t Crashed the Stock Market

Did someone forget to tell the stock market to crash? Amid a string of bank failures and bailouts this year, the S&P 500 index has somehow sneaked nearly 4% higher, not counting dividends. 

I suppose we can call that a bounce back from last year’s 20% price drop. Then again, valuations don’t look especially bounceworthy. The index trades at an ambitious 18 times the earnings projected for this year.