This threefold response helped avoid a complete meltdown of the financial system and cushioned the blow to our economy. Nonetheless, it was not enough to stave off a severe recession or the myriad factors hindering the recovery. The financial crisis dealt a devastating blow to household wealth—a full $6.5 trillion of housing wealth was lost. Combined with a deeply depressed stock market, this sent spending off a cliff. That went for all aspects of spending, including—or, I should say, especially—home construction and household goods. This was a particular problem, because those areas of spending have typically spurred recoveries in the past. The situation was exacerbated by especially tight credit, bringing lending to a virtual standstill.