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Study: 2008 Crash Cost Each U.S. Household $104,350

Wednesday, 02 Jun 2010 09:17 AM

The 2008 financial crisis reportedly cost each U.S. household $104,350, a figure that includes lost income, government bailouts, and value losses in homes and stocks.

The difference between the economic forecast from the Congressional Budget Office (CBO) made in September 2008 and the actual performance of the economy from September 2008 through the end of 2009 cost $648 billion because of slower economic growth — about $5,800 in lost income for each U.S. household, a report from the Pew Charitable Trusts says.

The CBO says that federal government spending to mitigate the financial crisis through the Troubled Asset Relief Program (TARP) will result in a net cost to taxpayers of $73 billion, about $2,050 per U.S. household on average.

According to the Federal Reserve, the U.S. lost $3.4 trillion in real estate wealth from July 2008 to March 2009, about $30,300 per U.S. household.

The U.S. lost $7.4 trillion in stock wealth from July 2008 to March 2009, according to the Federal Reserve — roughly $66,200 on average per U.S. household.

About 5.5 million more American jobs were lost due to slower economic growth during the financial crisis above and beyond the September 2008 CBO forecast.

A recent Treasury department statement said it now expects the TARP cost will be about $105.4 billion, $11.5 billion less than originally projected, Reuters reports.

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The 2008 financial crisis reportedly cost each U.S. household $104,350, a figure that includes lost income, government bailouts, and value losses in homes and stocks. The difference between the economic forecast from the Congressional Budget Office (CBO) made in September...
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2010-17-02
Wednesday, 02 Jun 2010 09:17 AM
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