Skip to main content

Report: 2008 Crash Cost Each Person $70K

Phil Hall
Aug 14, 2018
The Federal Reserve Bank of San Francisco has looked back at the 2008 financial crisis and estimated the economic collapse cost the average person a total of $70,000 in lifetime income

The Federal Reserve Bank of San Francisco has looked back at the 2008 financial crisis and estimated the economic collapse cost the average person a total of $70,000 in lifetime income.
 
In a new report titled “The Financial Crisis at 10: Will We Ever Recover?” the San Francisco Fed also stated the 2008 crash also damaged the size of the economy as measured by the inflation-adjusted gross domestic product (GDP), adding that the impact is still being felt at this late date.
 
“The size of the U.S. economy, as measured by GDP adjusted for inflation, is well below the level implied by the growth rates that prevailed before the financial crisis and Great Recession a decade ago,” said the San Francisco Fed. “Without the large adverse financial shocks experienced in 2007 and 2008, the behavior of GDP would have been very different. It would most likely resemble the less severe 1991 recession, with GDP declining by only 1.5 percent and reverting to close to its pre-crisis trend level in a few years. This behavior is in stark contrast to actual GDP, which has not reverted to its pre-crisis trend level.”

 
Published
Aug 14, 2018
CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Sep 19, 2023
Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Sep 18, 2023
FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Sep 11, 2023
Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Sep 11, 2023
If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities

Sep 07, 2023
Investors May Be Losing Interest In The Single-Family Rental Market

Rise in interest rates, drop in values have them pulling back in certain regions

Sep 07, 2023