Part of the problem is that there is an assumption that the stock market = the economy. It doesn't and as far as I can tell hasn't for a very long time. The stock market = the financial industry. For most people, the economy has nothing to do with trading virtual chunks of businesses with virtual money and has more to do with things like housing, gas prices, how easy it is to find a job. How well that job pays. How affordable their standard of living is.
The economy is crap and has been since at least the start of covid and probably much longer. And all the while the stock market numbers have gone up and up. Just like the last recession when we found out that investment banks lived in lala land. We will again.
I'm not exactly sure what you are supposed to do to fix all of this long term. I'm not really qualified to say. But basing policy around getting wall street back in sync with the real world seems like a good start.
