here's a good question how much money
did a great recession cost
a new study is out from the Dallas Fed
that says a conservative estimate is
one year's worth above us. economic
output
so the total cost of the Great Recession
is one year's worth
love US economic output in other words
they cost
14 trillion dollars
that number hurts just saying it
now a just to put that in perspective
when all is said and done with the war
in Iraq by the year 2050 3 after all the
money we borrowed in the interest
payments on and things like that it will
cost
7 trillion dollars this is the whole
the war in Iraq of what a monumental
mistake this was
now they say the number is based on how
much
output was lost during the crisis and
Great Recession
all along with all the damage done to
potential future economic growth
and there's a great live from the
article on this they say quote this is a
fact worth keeping in mind the next time
bank lobbyists and flax
warned as they have actually do their
new rules and regulations could slow the
US economy
will rules to safeguard the economy
vaporize $14 trillion in GDP
no then they're probably worth doing
couldn't agree more now
keep in mind also other studies on this
same topic have determine the cost to be
one said thirteen trillion another
$17 trillion and a third 20
tune trillion I don't really care which
number is correct because
all them are so incredibly devastating
and
by the way how do you avoid the next
economic downturn
it's actually pretty simple you bring
back
intelligent regulations so you limit the
amount
that banks can leverage which means that
you say hey you can have a ridiculous
ratio
like betting a hundred dollars for every
one dollar you actually have in cash
reserves
that's ridiculous that's setting
yourself up for failure right you also
bring back glass steagle which Elizabeth
Warren John McCain try to do
unfortunately it has no chance of
passing
which is ridiculous when you really
think about it cuz that's one of the
main things I could've avoided this
whole mess in the first place
but our congressmen are still like yeah
no still want to do it
sorry so stupid but while questing old
is it made sure that when you put your
money
in your local bank wherever you go that
money cannot be used for
ridiculous casino capitalist bess that
are incredibly risky
in 1999 under clinton one glass steagle
was repeater
repealed all the Sun investment banking
commercial banks merged and
your money which was supposed to be safe
was being but in absurd ways
of course they should also ban predatory
lending practices like adjustable-rate
mortgages
which helped lead to the recession in
the first place
so the way we work is I want these
financial institutions
yeah somebody would say hey boss look I
did a great job I sold this adjustable
rate mortgage
we're gonna make roughly on average
about 14 percent honest that but what
they don't realize is here the
people are gonna be able to pay it back
their rate is 2 percent now but in two
years a fist 20 percent
they're gonna go belly-up so they made
short term profit
but it was at the long-term X expense
well the economy the economy isn't
viable long-term because it's a house a
car general blows up
and the welcome back to rates so most
people who push those would get promoted
because they look what I did good on
paper
but america's it all blow up anyway it
was a real well
and look the sad thing is that even if
you do all the right things you still
can guarantee
avoiding another downturns gonna happen
at some point because we have so many
other huge issues as well
I mean a student loan debt recently
surpassed $2 trillion dollars
it surpassed credit card debt I mean
it's ridiculous to think about
the war on the middle class I can send
it into another recession because
so many people have lost purchasing
power in the US in the economy can grow
into a hole
also the recovery has been fake largely
we just three inflated the bubble
not to mention the derivatives market
$600 trillion dollars
over $600 trillion dollars again bound
for failure
bottom line it's time we started
substantively addressing these issues
