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Household Wealth Fell 23% In Two Years

From CNN’s Money.Com:

Household wealth down 23% in 2 years – Fed

March 24, 2011

NEW YORK (CNNMoney) — The average American family’s household net worth declined 23% between 2007 and 2009, the Federal Reserve said Thursday.

A rare survey of U.S. households, first performed in 2007 but repeated in 2009 in order to gauge the effects of the recession, reveals the median net worth of households fell from $125,000 in 2007 to $96,000 in 2009.

Titled "Surveying the Aftermath of the Storm," the report offers a broad look at how the financial crisis impacted individual households.

Are we in the "aftermath"? It sure feels like we are still in the ‘math.’ (In any case, it’s no wonder everyone hates math.)

It is widely known that the 2008 financial crisis resulted in the vaporization of trillions of dollars in household wealth. But Federal Reserve officials said Thursday the new report offers a look at exactly how hard the recession hit families, and how they reacted.

The numbers paint a stark picture.

Families that owned stock saw their portfolios drop by more than a third to $12,000 from $18,500, on average. The value of primary real estate holdings decreased by an average of $18,700.

And families took on more debt, pushing median total debt levels to $75,600 from $70,300. They also made less money. Media household income dropped from to $49,800 from $50,100.

The Democrat plan to win the Congress in 2006 and the White House in 2008 sure has cost Americans a lot. 

If we had a free press, there would never be another Democrat elected in a hundred years.

Interestingly, families below the median national income in 2007 actually saw their earnings increase by 2009. Meanwhile, families that started above the national average in 2007 saw their incomes decline.

Families in the top 10% of net worth in 2007 saw their incomes decline by 13% on average, a phenomenon the Fed attributed to large declines in capital gains and in business, farm or self-employment income…

This is also no accident. It’s what the Democrats call "social justice."

The report’s authors also make the point that Americans appear to be reacting to the recession in a counterproductive way.

"[F]amilies’ behavior may act in some ways as a brake on reviving the economy in the short run," the report says.

The data shows that Americans have increased their savings rate across the board, regardless of how they are weathering the storm. That means less money is being pumped into the economy.

Isn’t it funny how when our media masters were trying to talk us into a recession, back in 2005 – 2008, we were endlessly hectored for not saving enough. But now that they are desperately trying to ‘get the car out of the ditch,’ we are chided for saving too much.

Will we never learn?

By the way, Mr. Bernanke has just announced that the Federal Reserve is going to break its longtime tradition and actually going to start speaking to the media four times a year. So we can expect more and more good news like this.

This article was posted by Steve on Friday, March 25th, 2011. Comments are currently closed.

9 Responses to “Household Wealth Fell 23% In Two Years”

  1. wardmama4 says:

    Yeah and the munchkin moron Robert Reich said that this is not the time to cut the Federal Budget – because yes the deficit is bad . . . but that’s long term and right now you might get hungry?!?

    So meanwhile the country goes down the tubes while everyone in DC wheels and deals to get their pet program, earmark and/or pork into the next budget while screeding about the elderly, healthcare, education and of course – THE CHILDREN.

    Sadly when the system collapses – everyone is going to get hungry – NO MIGHTS ABOUT IT. MORONS. And intentionally doing nothing to insure that the system does collapse. May they all rot in hell.

    So we are all going to starve to death – while Dear Reader piddles on.

  2. heykev says:

    I know that what our Dear Leader has done since in office has contributed to my over 50% reduction in household income.

    Something I may never be able to make up given the state of the US economy now.

    • proreason says:

      The article uses 2007, which of course is another lie.

      Between the end of 2007 and the end of August 2008, household wealth may have declined a bit, but not much. 95% to 100% of the catastrophic drop in American’s wealth and well-being happened after the marxists engineered the financial crisis that started Sept 8, 2008 in order to elect the least qualified person in any room and most dangerous person on the planet since Stalin and Mao died, Barack Obama.

  3. proreason says:

    Rush talked yesterday about this ex-SEIU Lerner guy who was caught on tape talking about how to implode the entire financial system. This was the part that interests me:

    “Could it work? That’s what everybody’s been asking me. Could a strategy designed to bring down Wall Street — to destroy the wealth of individuals there, to destroy the banking business for the effective purpose of taking $17 trillion they have and redistributing it back to people that this Lerner guy thinks have had it stolen from them — could it work?

    You might say that this was tried in 2008. Do we really know what precipitated it? We have the subprime mortgage crisis, and what was that? The subprime mortgage crisis, if I may be blunt and honest, was a series of government directives to lending institutions demanding that they loan money to people who could not pay it back — under the guise of affordable housing, fairness, making things equal in the country or what have you. But if you are going to use the power of the government to tell banks, “You’ve gotta give these people money essentially; they’re not gonna be able to pay it back,” what are you doing to them? Are you not launching an assault on them as is?

    Well, it led in 2008 to a financial crisis that we were told could collapse the world financial system if we didn’t bail out the banks with TARP in 24 hours. So you ask yourself: Has it been tried, maybe, on a much more sophisticated level than this renegade SEIU guy, Stephen Lerner? You need to ask George Soros. If there’s a guy who would love to see this happen, it would be George Soros. Let’s find him. Could George Soros do it? He brought down the British pound. Could it happen?”.

    Just a reminder…the 2008 financial catastophe started 56 days before the Nov 4 election, the VERY DAY that McLame took his first lead in the Gallup poll. By Nov 4, about $10 trillion dollars had been sucked out of the stock market, the price of oil had fallen 50% (which negated McLame’s biggest issue), and people on fixed incomes or with substantial savings had been permanently busted. The anger and fear that was generated is the principle reason that Obamy was elected…as they planned.

    It looks like they are planning the sequel now.

    • tranquil.night says:

      “It looks like they are planning the sequel now.”

      The climactic finale really given what’s already been endured.

      To paraphrase Al Toad, America and the world’s got a disease called Liberalism.

      And it works much like HIV/AIDS:

      – First it infects and incubates in your core fundamental institutions.
      – For a period of time the host is asymptomatic.
      – Overwhelmed essential nodes and tissues finally begin to weaken and waste away while the virus strengthens, mutates, and invades more regions. At some point the host is unable to fund its immune system with healthy cells.
      – Symptoms and illnesses that otherwise could’ve been prevented happen with increased frequency and result with worse consequences and more accelerated degredation.
      – Death by everything from cancer, bacterial infection, fungus, dehydration.. basically anything and everything you can catch.

  4. JohnMG says:

    ……..” a phenomenon the Fed attributed to large declines in capital gains and in business, farm or self-employment income…….”

    Ya think????!!!

    I actually applaud the increase in the savings rate even though, as a small contractor it has caused me much grief and a considerable loss of income. People have no confidence in government (another no-brainer) doing the right thing.

    Being in business is such a lucrative venture that I’d recommend it to everyone. Should your business fail (not that it might), due to oppressive government regulation and itervention, you can follow Bernanke’s model and print more money. So I say let’s cut out the middle man and issue us all our own printing presses. Then we can ALL be millionaires. Not just us ultra-rich business types.


  5. Deserat says:

    Talk about old news – heck, whenever I go to my Vanguard page, I see the dip – 25-35% drop. It has rebounded, but sheesh – this to me isn’t news. AND, the reasons for the dip have been well documented. The fact there has been a rebound is amazing as all of the government intervention that has occurred and/or been enacted just adds even more uncertainty for a business and less money in the pockets of the citizens. The dithering going on with the budget is asinine – this administration is such a complete and utter failure on every level that a government could act.

    So, with that, of course people are going to hang onto more of their assets. Right now, with the track record of this administration, you don’t know where the next salvo against solvent citizens is coming from. Frankly, the more the citizens hail this government with the universal single finger salute, the better. 2012 cannot come soon enough. I think the slogan should be ABO – Anyone but Obama.

    • proreason says:

      You may be an exception, but a typical person’s vanguard page is just a part of it, particularly since the market has been engineered up to give Soros and GS even more unearned wealth.

      For most, the bigger factors will be:
      a. the value of their home (dramatically down)
      b. their earning capability (for most, dramatically down. For some cataclysmically down)
      c. the savings that they have extracted to survive.

      And c has many dimensions, not just a decline in savings. Have you postponed that reaplacement car you need? sliced back on entertainment or eating out? told johnny or suzy that they will be attending a community college instead of out-of-state U? started doing the yard yourself? did mom start working part-time? are you shaving taxes more than you ever had before? did a relative move in with you? are the lines of credit piling up? and on and on.

      The 23% includes a lot of people who are exactly as wealthy or better off than they were in Aug 2008…welfare recipients, CEO’s of industries favored by the facists, Goldman Sachs, small-time criminals, politicians, unions, government commissars….so average people are generally much worse off than 23% down. The resistibution has been massive, both downward to the Obamy’s “people”, and upwards to Goldman Sachs and Jeffrey Imhelt.

      And oh yes, are you aware the politicians portfolios are significantly UP. Gee, what a coincicdence THAT is.

  6. Liberals Demise says:

    The math they are using is bullshiite!
    This is exactly what they wanted and got.
    To all the ‘Joe the Plumbers’ out there…….”Wealth redistribution has its’ cost”.
    Hows that for ‘Hope and Change’?

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