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Young Families Lost 59% Of Their Wealth

From the New York Post:

Young households ‘crushed’ by recession

June 19, 2012

Young US households — those aged 35-to-44 — lost a stunning 59 percent of their wealth during the recession, a government report released yesterday revealed.

That’s the stiffest hit of any age group, said the report from the US Census Bureau.

The age group — typically struggling with mortgages, tuition bills and rising tax bills — makes up the backbone of America’s middle class.

How could that have happened when Barack Obama put Joe Biden himself in charge of protecting the middle class?

The losses were mainly due to the drop in the value of their homes during the 2005 through 2010 period, the report said.

“Lower- and middle-income households got especially creamed because their biggest asset is their home, and that got crushed,” said Mark Zandi, chief economist at Moody’s Analytics.

So where is ‘Sherriff Joe’?

Though, to be fair, we now know that ‘Bite Me’ didn’t come from the lower or middle classes, after all. In fact, Biden is insulted that anyone would even think that.

Overall, the average family lost 35 percent of its household wealth, composed largely of home values and stock investments.

The plunge in real estate and securities, among other negative events, left the average family holding net assets valued now at $66,704, a steep drop from $102,844 in 2010

But the private sector is doing fine.

This article was posted by Steve on Tuesday, June 19th, 2012. Comments are currently closed.

One Response to “Young Families Lost 59% Of Their Wealth”

  1. Petronius says:

    And it’s getting worse.

    The widely held belief that real estate and stocks always rise, that they’re good for the long run, is a myth. It’s simply not true.

    There have been eleven recessions since the 1940s and in each case they ended quickly and jobs bounced back. This time it’s different.

    Based on past experience, when the economy has been this bad for so long, people always think it can’t get worse. That recovery is just around the corner. But this time they’re wrong. We haven’t hit bottom yet.

    Home prices are still falling. Stock markets are turning bearish. Unemployment is growing. The VIX (volatility index) has been rising.

    The Fed has used every tool in its kit. Interest rates are at historic lows, hitting levels last seen in the 1700s. Bond yields and bank deposits provide a negative return.

    The US government is insolvent. The President’s policies are destructive. The US dollar is showing strength, but its fundamentals are terrible. And the Chinese know this.

    We are in uncharted waters, where anything can happen.

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