Financial Crisis: IMF says US households more vulnerable to equity price shocks - UK and Eurozone households to house price shocks
Jun 25 2009 Finfacts
The International Monetary Fund (IMF) says its research shows that US households have been more vulnerable to equity price shocks and UK and Eurozone households to house price shocks.
The IMF says the financial crisis has erased a considerable amount of household wealth in many advanced economies. The precipitous fall in asset prices - - across equity, bond, and housing markets - - has eroded the value of financial and housing assets and the net worth of households, according to the Fund's research.
During the first three quarters of 2008 alone, the value of household financial assets decreased by about 8 percent in the United States and the UK, by close to 6 percent in the Eurozone, and by 5 percent in Japan. As global equity markets plunged in the last quarter of 2008, household financial wealth declined further—for example, by an additional 10 percent in the United States. At the same time, the value of housing assets also deteriorated in line with falling house prices, especially in the United States and the United Kingdom.
http://www.finfacts.ie/irishfinancenews/article_1017009.shtml
25
June
Financial Crisis: IMF says US households more vulnerable to equity price shocks - UK and Eurozone households to house price shocks
Jun 25 2009 Finfacts
The International Monetary Fund (IMF) says its research shows that US households have been more vulnerable to equity price shocks and UK and Eurozone households to house price shocks.
The IMF says the financial crisis has erased a considerable amount of household wealth in many advanced economies. The precipitous fall in asset prices - - across equity, bond, and housing markets - - has eroded the value of financial and housing assets and the net worth of households, according to the Fund's research.
During the first three quarters of 2008 alone, the value of household financial assets decreased by about 8 percent in the United States and the UK, by close to 6 percent in the Eurozone, and by 5 percent in Japan. As global equity markets plunged in the last quarter of 2008, household financial wealth declined further—for example, by an additional 10 percent in the United States. At the same time, the value of housing assets also deteriorated in line with falling house prices, especially in the United States and the United Kingdom.
http://www.finfacts.ie/irishfinancenews/article_1017009.shtml