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Median Net Worth Now Lowest In 20 Years

From Bloomberg:

Fed Says U.S. Wealth Fell 38.8% in 2007-2010 on Housing

By Jeff Kearns – Jun 12, 2012

The financial crisis wiped out 18 years of gains for the median U.S. household net worth, with a 38.8 percent plunge from 2007 to 2010 that was led by the collapse in home prices, a Federal Reserve study showed.

Lest we forget, the Democrats took a veto-proof control of both houses of Congress starting in 2007. Though, to be fair, their undermining of the economy had begun some time before then.

In fact, they won control of Congress in 2006 by campaigning on the lie that we were already in a recession. (Since the success of the ‘surge’ in Iraq had taken that issue away from them.)

Median net worth declined to $77,300 in 2010, the lowest since 1992, from $126,400 in 2007, the Fed said in its Survey of Consumer Finances. Mean net worth fell 14.7 percent to a nine-year low of $498,800 from $584,600, the central bank said yesterday in Washington. Almost every demographic group experienced losses, which may hurt retirement prospects for middle-income families, Fed economists said in the report.

“The impact has been a massive destruction of wealth all across the board,” said Lance Roberts, who oversees $500 million as chief executive officer of Streettalk Advisors LLC in Houston. “What you see is an economy that’s really very, very stressed for the bottom 60 to 70 percent of the population that’s struggling just to make ends meet.”

And yet Mr. Obama says that the private sector is ‘doing fine.’

The declines in household wealth in the course of the longest and deepest recession since the Great Depression have held back the consumer spending that makes up about 70 percent of the economy. Fed policy makers led by Chairman Ben S. Bernanke meet next week to consider whether the central bank needs to add to its record stimulus after employment grew at the slowest pace in a year in May

Mr. Bernanke is more of a tease than Gypsy Rose Lee. In fact, he is only waiting for the time that he thinks will help Obama’s re-election chances the most to do a third round of ‘quantitative easing.’

“Although declines in the values of financial assets or business were important factors for some families, the decreases in median net worth appear to have been driven most strongly by a broad collapse in house prices,” the Fed economists wrote.

The S&P/Case-Shiller U.S. Home Price Index fell 23 percent in the three years through December 2010. The Standard & Poor’s 500 Index (SPX) lost 14 percent in the same period

The stock market losses were still pretty damn severe.

And look what little detail is buried near the bottom of this article:

Declines in average income were greatest in the wealthiest 10 percent families and for higher education or wealth groups, the survey showed

Where is the outrage? And, lest we forget, these are the same people who Obama and the Democrats want to punish further with additional and new taxes.

But, apparently, this is what Obama means when he says that ‘the private sector is doing fine.’

This article was posted by Steve on Tuesday, June 12th, 2012. Comments are currently closed.

2 Responses to “Median Net Worth Now Lowest In 20 Years”

  1. But President Divisive has slowed the ocean’s rise and healed the planet, so, you know, it’s all good.

  2. AcornsRNutz says:

    I am SO glad the president had what in a sane world would be his “Read my lips…No new taxes” moment with this private sector is fine comment. The media will never do to him what they did to the hapless Bush Sr., despite the fact that obama had no opposition from congress for his agenda and Bush got hoodwinked in his taxes deal. However I don’t think the media can downplay this one enough in the modern media era. I really think that one comment alone, repeated every time this kind of story is published, will be his downfall politically.


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