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Notes to myself, possibly of interest to others.
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Wednesday, June 1, 2011

The Great Recession vs. The Great Depression. Worse now?

Excellent post by Ritholtz on the differences between the GR and the GD. Some of the highlights:
How does the Great Recession compare to the Great Depression? Some data points we have:
  1. Home ownership in 1930 was 47.8% versus 66.2% in 2000, and near 70% in 2006. (Census Bureau)
  2. Unemployment was 25% at its Depression peak; the 2007-09 Recession never saw U3 Unemployment get over 12%. (BLS)
  3. GDP lost 30% in the Great Depression; During the Great Recession, we lost 6% of GDP. (BEA)
  4. Following the 1929 crash, broad stock market losses were more than 75% (Peak to trough Dow losses were 89%). 2007-09 stock losses were 50-57%.
  5. Industrial production, which plummeted 75% around the 1929 Crash, has actually thrived during the Great Recession. Fed action and a weak dollar has helped US Manufacturers.

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