Why the Housing Bubble Tanked the Economy And the Tech Bubble Didn’t

We answer this question in our post for Fivethirtyeight.com. Here’s an extract.

In 2000, the dot-com bubble burst, destroying $6.2 trillion in household wealth over the next two years.

Five years later, the housing market crashed, and from 2007 to 2009, the value of real estate owned by U.S. households fell by nearly the same amount — $6 trillion.1

Despite seeing similar nominal dollar losses, the housing crash led to the Great Recession, while the dot-com crash led to a mild recession. …

You can read the full post here.

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