2008 vs. 2020
The last significant financial crisis occurred in 2008-2009 when the collapsing banking sector, impacted by an overbought housing market, plunged the US economy into disarray. The financial wreckage from that crisis was significant and caused a huge downturn in capital markets. The S&P 500 from peak to trough fell by over 50%. For many, it was reminiscent of the collapse of the Y2K internet bubble as well as the Great Depression.
In 2009, the government took action to address the financial challenges and a stimulus program was in put in place designed to help the economy stabilize and bounce back. It was controversial for the government to be so active in intervening in the economy. In retrospect, it's clear the dramatic stimulus program that was put in place in 2008 saved the economy from a deeper downturn.
And now here we are today in 2020 facing a pandemic crisis resulting in incredible economic damage. The federal government has moved forward with an aggressive stimulus plan that is likely only halfway implemented. In this week’s update, we will review the differences between 2008 and 2020 and the resulting governmental stimulus programs.
In this update we will cover the following:
2020 Virus Economic Crisis: How Does It Compare To 2008?
- Previous Economic Troubled Times
- 2008 Crisis
- 2008 Governmental response
- 2020 Crisis
- 2020 Governmental response
- What Comes next?
You can watch this week’s video here:
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We will continue to keep you posted on our thoughts about the economy and markets. We all remain here working for you full-time.
Be safe and be well.