re: What's 38 trillion dollars? She Guverra calls it an "externality"

I also love how CNN is bashed here as being "Fake News" but they put her on the spot suddenly the interview is golden.

quote:

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The term "externality" has a precise definition in economics and she used it correctly, believe it or not.

I'm not saying that I agree with her agenda, am just noting that she is using the correct language to describe her point. I doubt many know what a market externality is exactly, so maybe this will help.

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Actually, no, she didn't. Those economic effects to which she referred can be (and are) fairly precisely factored into things like mortgage rates and other instruments of financial risk assessment.

She's thinks she's referring to distorted opportunity cost, but she did not fully flesh out her answer, and it's not necessarily distorted in the current environment.