The COVID-19 Crash vs. The 2008 Financial Crisis
What They Share
Both prompted the Fed to cut rates to near zero and launch large-scale asset purchases, and both led to major federal fiscal stimulus packages.
Where They Differ
The 2008 crisis built up gradually from years of risky mortgage lending and took over a year to reach its worst point, with a slow multi-year recovery. The COVID-19 crash was triggered by an abrupt external shock, crashed markets faster than any prior crisis, and saw markets recover within months — though, notably, actual job losses in 2020 were initially far larger and faster than in 2008, even as the market rebound was much quicker.