https://www.biggerpockets.com/blog/5-reasons-2020-recession-completely-2008?utm_source=newsletter
In this article, the author posits 5 reasons why there will be a post-COVID19 recession that will be worse than the 2008 recession.
His reasons are:
1. Statistics From 2008 do not Compare to 2020 YTD
The national debt is much higher than it was in 2008, unemployment is high, interest rates were cut to 0 up front, and there is unlimited quantitative easing.
2. Unlimited Quantitative Easing
With unlimited quantitative easing, there is a risk of hyperinflation and decline in the value of the dollar.
3. 2020 compared to the 1929 Great Depression
There is a large wealth gap between the rich and poor, larger than in 1929; the stock market increased four times in the previous decade, like it did in the 1920s; market cap to GDP ratio is 141% like it was in 1929; and the dow jones industrial average dropped more than it did in 1929.
4. Baby boomer represent 20% of the American public
In ten years, baby boomers will be retiring, downsizing, and liquidating their real estate. Within two decades, more than a quarter of current owner-occupied homes in the U.S. will become available.
5. Additional factors
Many economists predict that, for 3-5 months after the shutdown, thanks to unemployment insurance and stimulus payouts, we may see a brief spike in the economy. This could be called a dead cat bounce.
The author predicts a lengthy economic decline after that.
Read the article and decide for yourself.