Harvey’s economic impact will be like the housing bubble popping, says Austan Goolsbee

Austan Goolsbee, former chairman of the Council of Economic Advisers under the Obama Administration, on Thursday compared the housing market crash, which began in 2007, to the economic damages Hurricane Harvey is set to cause the state of Texas. “What’s different here than in a lot of these cases is much of the multi-millions of people, a decent fraction of them do not have flood insurance, they are not in a flood zone. So that makes it in some ways like the housing bubble popping. So if you lost your home but the insurance isn’t going to cover it, you could see spending go down pretty substantially on a regional basis,” he told FOX Business’ Ashley Webster on “Risk & Reward.”

Source: Fox Business

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