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 — …

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The Financial Vulnerability of Americans

Excessive household debt was crucial in explaining the severity of the Great Recession. So where are we now? Have households strengthened their financial position since 2009? Are household balance sheets strong enough to prevent another massive pull back in spending if there are significant job losses? To answer to these questions, we look at evidence from the 2012 …

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