In the 2007 crash, declines in house prices cut household net worth by $7tn (50 per cent of GDP),

 and 

 the amount of money homeowners pulled out of their homes through equity loans dropped by an amazing 14 per cent of disposable household income. 

 The resulting damage to consumption explained the onset of recession in 2008. 
Gavyn Davies FT 11 November 11, 2018


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