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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 constru
by opportune 8y 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 8y agoYes, 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.