A decade after the start of the global financial crisis (GFC), some are of the view that history may be about to repeat itself, given the similarly-high valuations of equities and corporate bonds in the US. However, the valuation of housing there is nowhere near as stretched, which is a key reason why house prices are far less likely to collapse. This is important because it is their collapse which triggered the GFC and in its wake the deepest recession since the Great Depression of the 1930s.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services