This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wall Streets' Great Recession Cost Us All $30 Trillion

NEW YORK ( TheStreet) -- The government generally made out OK from the economic fallout of the Great Recession -- but the economy is quite another story.

With the U.S. Federal Deposit Insurance Corp.'s recently announced sale of $2.4 billion in Citigroup (C) bonds, that marks the end of Uncle Sam's investment (or "bailout") in Wall Street investment banking firms.

While the U.S. government turned a tidy profit on the Citi deal, earning almost $15.5 billion from it, the financial damage inflicted on the nation and its citizens is both staggering and historic -- but not in a good way.

In fact, Americans may want to sit down as the Dallas Federal Reserve offers a final financial loss figure from the economic collapse of 2007-09 and resulting economic stagnation of the past five years.

That tally comes in at $30 trillion once you factor in "additional costs arising from psychological consequences, skill atrophy from extended unemployment, a reduced set of economic opportunities and increased government intervention in the economy," as the American Enterprise Institute puts it.

The Dallas Fed digs deep into the numbers -- not an easy exercise given all the moving parts involved in tallying up the damage done. In an economic letter released this month, Assessing the Costs and Consequences of the 2007-2009 Financial Crisis and Its Aftermath, the Dallas Fed notes that "any estimate of the toll exacted is bound to be incomplete -- for example, there may be future expenses not yet recognized -- so it's useful to calculate a range of likely costs."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $112.12 0.00%
FB $93.24 0.00%
GOOG $643.61 0.00%
TSLA $220.69 0.00%
YHOO $32.52 0.00%


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs