>Ray Dalio wrote a book about the different kind of debt cycles. Just because 2007 was bad, doesn't mean this recession will be equally bad. Our response to 20

>Ray Dalio wrote a book about the different kind of debt cycles. Just because 2007 was bad, doesn't mean this recession will be equally bad. Our response to 2007 was functionally just stopping the bleeding and tying a tourniquet. We never actually managed to push through many of the substantive economic reforms we needed, so we're functionally in an even worse position now to address a future contraction. We didn't replace the steady jobs, we replaced them with contractor and gig work which will fall away much more rapidly if the economy slows down. The deficit is higher and the tax base is lower, meaning we have less room to do spending programs to give the economy a boost. We didn't address the massive pile of consumer debt, and we now sit on a $1 Trillion+ student loan bomb coupled with unsustainably high rents and home values in most of the largest job markets. This means much of the working class has limited savings and no cushion for when a crisis hits. At this point the risks of a recession aren't just losing investment value. We're risking pretty serious cases of social breakdown. I would expect rioting in the streets.