How did the subprime crisis affect US household Savings and Investment Portfolios: Observations from 2007-2009

This article provides a brief overview of the subprime mortgage crisis and its impact on the financial economy of American households, then introduces the theoretical perspectives on household savings and investment behavior during the financial crisis, and then reviews the impact of the subprime mortgage crisis on American household savings and investment portfolios The empirical literature on other financial crises is discussed, policy implications and recommendations are outlined, and the main findings, limitations, and recommendations of the paper are summarized at the end.