Coronavirus surprises keep getting nastier, costlier

[Bloomberg]( Follow Us //link.mail.bloombergbusiness.com/click/19533770.61701/aHR0cHM6Ly90d2l0dGVyLmNvbS9ib3Bpbmlvbg/582c8673566a94262a8b49bdB674af96a This is Bloomberg Opinion Today, a burrida of Bloomberg Opinion’s opinions. [Sign up here](. Today’s Agenda - The coronavirus is [spreading wider and faster]( than expected. - Interest rates can [always just keep falling](. - There’s no good reason to [release Bernie Madoff early](. - E*Trade is a [diversity booster]( for Morgan Stanley. The stock market was a sea of red. Photographer: JOHANNES EISELE/AFP/Getty Images Coronavirus Still Full of Surprises Just a couple of weeks ago, this newsletter [said]( that the coronavirus kept finding ways to surprise and that markets weren’t taking it seriously enough. Well, surprise! They’re taking it seriously now. Stocks fell a whole [bunch]( today, with the Dow clocking a rare thousand-point loss, partly on news Covid-19 is [spreading]( too quickly for comfort in Italy and elsewhere. It seems [efforts to contain the virus have failed](, and we could just be seeing the tip of the iceberg, writes David Fickling. This keeps edging toward becoming a global pandemic. [Italy’s cases are especially worrisome](, as their origin isn’t exactly clear, writes Ferdinando Giugliano. It’s possible the disease was spreading undetected for weeks before we noticed — not great for pandemic-avoidance. The illness hasn’t really come to the U.S. yet, as far as we know. But it’s never too soon to get our [chronically underfunded health-care system ready](, writes Max Nisen. That will involve spending more money, for starters, particularly on diagnostic testing. Just before today, markets were [kind of bopping along on hopes]( China and various central banks would offer enough stimulus to offset whatever disruption the virus caused, writes Clara Ferreira Marques. They also seemed to expect a quick rebound of global commerce, rather than a prolonged illness. Markets might be starting to sort of back away from such foolish views now. This would also be a [good time for economic policy makers]( in Europe and elsewhere to awaken, have a stretch and maybe take some action, writes Ferdinando Giugliano. Even before the virus hit, Germany was adamantly not spending despite an economy in the doldrums, while the ECB was bizarrely optimistic. Coronavirus should change that. The Fed has been a little more cautious, but Narayana Kocherlakota argues it should [do an emergency rate cut right now](, of 25 or 50 basis points, to get ahead of any trouble. That would be one of those, whattyacallit, “good” surprises, which have been rare lately. Further Virus-Impact Reading: - Iran’s [botched handling of the coronavirus](is the latest example of the regime’s self-harm. — Bobby Ghosh - This is a blow not only to oil prices but also to the [already shaky finances of oil and gas]( producers. — Liam Denning - This would seem to be a [boon toonline education companies](, but they’re not profitable. — Tim Culpan Interest Rates: The Quest for the Negative Zone Investors scrambled for safe havens, especially U.S. Treasury debt, pushing the [yield]( on the 10-year note close to a record low. The market might briefly resist busting through that limit, the once-unthinkable 1.36%, but as long as coronavirus still seems to be running rampant, [no interest-rate record is safe](, writes Brian Chappatta. It doesn’t help that rates in the other major developed economies of Europe and Japan are already wallowing in negative territory and seem likely to wade in even deeper, writes Marcus Ashworth. This creates [a sucking interest-rate vortex]( whereby any demand for havens only drags U.S. rates toward zero, no matter how well the economy seems to be doing. Why Should Bernie Madoff Get Special Treatment? You’re almost certainly familiar with Bernie Madoff, perpetrator of history’s biggest Ponzi scheme, which cost investors billions of dollars. You’re probably less familiar with Albert Ernest Fisher III, perpetrator of a much, much smaller financial crime, topping $2 million. Back in 2017, Fisher was sentenced to prison despite being in gravely poor health and died soon after arrival. Madoff, meanwhile, is pleading to be released from prison early, after serving nearly 11 years of a 150-year sentence, so he can die comfortably at home in the next 18 months or so. But Ian Fisher, a Bloomberg editor and Albert Fisher’s son, wonders [why Madoff should get such consideration]( when his father did not. “I’ve learned some unsettling things about the sins of the fathers,” Ian writes. “In Madoff’s case, I’d say they should be paid in full.” Read the [whole thing](. Morgan Stanley Buys a Diversity Booster Shot Morgan Stanley’s $13 billion purchase of E*Trade Financial Corp. gives the white-shoe firm access to a younger, more-online client base. Maybe more important, Morgan Stanley will also take possession of [a company loaded with talented women]( in positions of leadership, writes Tara Lachapelle. This has never exactly been Wall Street’s strong suit, despite mountains of evidence that women make better leaders, investors, people, etc. Morgan Stanley shouldn’t bobble this opportunity for cultural renewal. Telltale Charts Once upon a time, tailors from [Russia flat-out hoodwinked the Emperor of OPEC](, writes Julian Lee, in a fable that involves no nudity but lots of imaginary oil-production cuts. Warren Buffett is [definitely in the “urgent zone” these days](, on Berkshire Hathaway Inc. succession, the need for a deal and the need to write down its Kraft Heinz investment, writes Tara Lachapelle. Further Reading Nevada caucuses pushed [Bernie Sanders closer to the Democratic nomination](, boosted Joe Biden and disappointed pretty much everybody else. — Jonathan Bernstein Relatively conservative black voters pull the lever for Democrats [mainly because of peer pressure](, a study has shown. — Stephen Carter Turns out living in [states where the NRA sets gun policy]( is more likely to get you killed. — Francis Wilkinson No, the [stock market is not in a bubble](. — Barry Ritholtz All over Europe, [banks are full of drama and scandal](, a sign corporate boards are asleep. — Elisa Martinuzzi Too much foreign aid [goes right into elites’ Swiss accounts](. — Noah Smith [Resumes don’t tell you nearly enough]( about a candidate’s skills and can lead to discrimination. — Cassidy Leventhal ICYMI Harvey [Weinstein was convicted]( of rape. Kobe Bryant’s [widow sued the helicopter operator]( involved in his crash. Mike [Pence’s 2024 presidential campaign]( has begun. Kickers Literal [hole in wall rises]( in TripAdvisor rankings. (h/t Scott Kominers) How deep is the [deepest hole in the world](? Divers [recover artifacts from the HMS Erebus](, which sank while seeking the Northwest Passage. RIP to NASA mathematician and “Hidden Figures” figure [Katherine Johnson](. Note: Please send artifacts and complaints to Mark Gongloff at mgongloff1@bloomberg.net. [Sign up here]( and follow us on [Twitter]( and [Facebook](.  Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](.  You received this message because you are subscribed to Bloomberg's Bloomberg Opinion Today newsletter. [Unsubscribe]( | [Bloomberg.com]( | [Contact Us]( Bloomberg L.P. 731 Lexington, New York, NY, 10022