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-- so much.
Well we -- just getting figures from a new Federal Reserve report on the estimated cost of the financial crisis and the recession.
Up to fourteen trillion dollars lost from 2002009.
Is also amounts.
Believe it or not the average output of the entire US economy over one year sandy Lincoln -- BMO -- It says it could have been worse he joins me now from Chicago.
City happy you say -- much worse than fourteen.
From the financial crisis it's a staggering number that this report.
-- reveals to us today's.
It is a staggering number you have to remember it's a theoretical number -- I've looked at the summary of the of the work that was done I haven't really seen a granular thirty of the work.
But having said that when you think about what we went through and this work tries to capture not only the economic impact.
But the actor feed it occurred in skill levels for workers in the after he had fantasies which is equally important.
And I think it is a staggering number whether the number should be seven trillion or whether it should be fourteen trillion or whatever the actual number was in terms of a more holistic view it was a very huge consequence -- I guess is he gets I'd hate to see that stay for the depression right.
Well -- -- -- -- Internet he has done one that in the back in the day when he was at -- And -- bring back right where I want to show this to our viewers again that give a sense of what did this federal committee was talking -- this -- three that presents the put this together.
And they -- first it was -- huge loss of economic output.
Paired up financial wealth we know that billions were lost in financial wealth across this country.
And then skill atrophy from extended unemployment that second what I think is interesting the psychological.
The financial crisis sandy we just found out thanks to bank -- that one and four Americans say that very catch.
-- wouldn't trade in the markets and -- -- us are pretty gross state are we under playing at this point the financial effect of what we've been through as a nation.
Well I think we I think we are at the same time I think this historical precedent is there if you look back at the depression and you look at investor reactions.
Post that Great Depression.
It was a very similar -- that people were very scarred by that experience it was a much longer experience for sure.
My dad for example was a young adults in the depression he never quit talking about it the rest of his entire life.
So I wonder how much of this risk aversion that we're seeing term investors -- on the story did yesterday.
On how conservatively positioned they are is in fact a result of the inhibitions they feel as a result of the scarring they got during that.
Era and unfortunately I think it's largely misplaced at this point but it's very hard to change those attitudes and get that rotation back -- risk going.
We -- we got we got July consumer confidence data out today that was down.
We're waiting on estimates on GDP at me what we're saying is that the stock market which has been -- by Ben Bernanke is doing fabulous.
But the average consumer the average American is still concerned -- -- not saying.
What they need to see to be confident the market and you mentioned your father my grandmother was a kid of the depression and about and -- the day she got she also it.
Any different she also was in the stock market until the day she died -- -- adult and she had filling toughest jobs in her portfolio.
So what do you say that that difference I mean what are we need to do here to change the psychology to get people to trust.
Investing again -- to trust the stock market.
Well I think a couple of things are going on Cheryl in general one is I think the template around the world is getting better it's gradual it's slow it's not as fast as we would like.
That's a part of it the other thing is personalities are just different.
Your grandmother had the experience of getting -- my dad didn't like -- my mother did like stocks and I.
-- some individual differences but in general I think investors are starting to get more comfortable they're starting to see.
One thing is where's the alternative cash is giving you an incredibly low yield.
The bond market looks a little more if -- right now.
Stock valuations aren't unreasonable consumer confidence while down in the current reading is -- five or six year highs.
Auto sales are decent housing the housing prices which we sought a day were.
Up 12% year over year so I think there's a case here Cheryl.
It's just going to take some time for individuals to gradually progress from this -- stage to gaining a little bit more confident it's gonna take a little more data and evidence is the Fed talks about.
Better employment numbers better GDP numbers for people to -- and.
You know standing corporate have to leave -- -- -- one thing that that you haven't in your vice -- viewers as.
Look before you're late and I think that's just a great solid way told you this interview with you -- Lincoln sandy thank you some experts on that.
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