4 ms·

For tech, yes. But does that mean the whole economy or tech sector goes into a recession? I.e. will the fact that Uber tanks after IPO have an effect on Apple?

• rapsey 7y ago
  2008 was a housing bubble and it cut everyone at the knees.
  • T-A 7y ago
    Housing is a huge component of the US economy. Total value in 2018: $33.3 trillion [1], 1.6x GDP (20.9 trillion) [2]. Tech is about 5% of GDP [3]. [1] https://www.housingwire.com/articles/47847-us-housing-market-value-climbs-to-333-trillion-in-2018 https://www.housingwire.com/articles/47847-us-housing-market... [2] https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-how-to-use-them-3306041 https://www.thebalance.com/u-s-gdp-5-latest-statistics-and-h... [3] http://www.ianhathaway.org/blog/2017/5/31/how-big-is-the-tech-sector http://www.ianhathaway.org/blog/2017/5/31/how-big-is-the-tec...
    • opportune 7y ago
      You're comparing the total value of all housing to GDP vs. an actual percent of GDP. That's not an apples to apples comparison. A quick lookup tells me construction is about 4% of GDP. And financing/ancillary services for that construction, if I had to estimate, might make up another 2% at most. Which is pretty close to tech
      • T-A 7y ago
        Yes, but what happened in 2008, and caused the crisis referred to by rapsey, was that housing lost a large fraction of its value. It was not a drop in construction, financing etc that tanked the economy; it was the loss of value, which left a giant hole in balance sheets. The apples-to-oranges comparison was introduced by rapsey, I merely provided the numbers.