COVID-19, 2008 / 2020 Crisis Comparison, Staley-Pinnacle Rock Capital

Many will argue a collapse is a collapse and as a result, we’ll see job loss, mortgage defaults and home value declines.This may be true, but there are 4 major differences today then in 2008.

• The first is that FHA is a much larger percentage of the mortgage market than in 2008.
• Second the fed cannot cut rates further unless we go negative
• Third, any fiscal stimulus will add to an already gigantic deficit.
• And Fourth, everyone will be dealing with a large healthcare crisis on top of a recession.

Joining the podcast to discuss the comparison of the 2008 and 2020 financial crisis is Brad Staley, Managing Member of Pinnacle Rock Capital.  Brad is also the author of a white paper title “2008 Subprime Mortgage Crisis vs. the 2020 COVID-19 Economic Collapse.