Posted on 06/11/2012 4:24:33 PM PDT by Red in Blue PA
WASHINGTON — The recent financial crisis left the median American family in 2010 with no more wealth than they had in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said Monday.
The median family, richer than half of the nation’s families and poorer than the other half, had a net worth of $77,300 in 2010, down from $126,400 in 2007, the Fed said. The crash of housing prices explained three-quarters of the loss.
This vast loss of wealth was compounded by a loss of income, as the earnings of the median family fell by 7.7 percent over the same period.
(Excerpt) Read more at finance.yahoo.com ...
It’s a depression. I can’t see any other way of “splainen” it.
“The recent financial crisis...”
Should be: The current financial crisis...
My home has lost about 160k in value but it’s paid off and I don’t care what its worth because I’m here for the duration. Now my kids and grandkids may feel a bit differently. :-)
My home has lost about 160k in value but it’s paid off and I don’t care what its worth because I’m here for the duration. Now my kids and grandkids may feel a bit differently. :-)
Yeah and the private sector is “doing just fine”.
Much as I think Obama’s been a dud, this drop in net worth is probably due to excessive spending during the internet and housing booms. People spent those stock option and home equity gains before they were realized by using credit cards and other loan vehicles and then saw their net worth plunge when stock prices and home prices cratered.
Net Worth of Households and Nonprofit Organizations(end of period).
2007 = $66.17 Trillion
2008 = $53.55 Trillion
2009 = $55.59 Trillion
2010 = $59.16 Trillion
2011 = $60.04 Trillion
I don’t like thinking about the beating my net worth has taken but I’m fortunate to be able to say it’s still well into the positive. Little in the way of prospects to build it back thus far, although I’m trying. The decline in appraised value of my primary residence has been offset by eating into the remaining principal more quickly via a ten year refi with biweekly payments, so that’s something I guess.
It’s an effort to be able to save anything much, between fuel costs, groceries, electric rate increases and health insurance increases, with no raise in close to two years. But, I’m blessed to be employed and at least holding my own, four years into this near depression. I hope I can say that after another four years have passed.
Your kids and grandkids have a safe place to go if the economy gets a lot worse... which is possible. Home paid off - that’s safety.
5 acres too. Complete with enough oak to keep warm for their lifetimes, a well with a manual pump for emergencies, deer, lots of the other white meat ( squirrel), some cleared land for growing and all the weapons and ammo they will need to hunt and defend.
Grammy and I are self sufficient types.
Not really. Taxes on property. Broke state and local government. 90% inheritance taxes.
Rats won’t be happy until the government owns everything and theres no private wealth.
All that wealth was stolen to bail out the big bankers with there corrupt schemes, The greatest transfer of wealth in all of history. But everyone go back to sleep.
Bingo.
Democrats steal the money ...
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