Fed: Americans’ wealth dropped 40 percent

[cynatnite]

The Great Recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with middle-class families bearing the brunt of the decline.

The Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.

On Recession Road:?Photocasting across America with Michael S. Williamson: A Washington Post photojournalist has spent the year traveling around the country, meeting people whose lives have been altered by the flattened economy.

The biggest drops occurred among middle-income Americans, whose wealth was inextricably linked to the housing market boom and bust. Meanwhile, the wealthiest families actually saw their median income rise slightly.

The data represents one of the most detailed looks so far how Americans’ finances have weathered the economic downturn. It underscores both the depth of the wounds of the financial crisis and how far many families remain from healing.

http://www.washingtonpost.com/business/economy/fed-americans-wealth-dropped-40-percent/2012/06/11/gJQAlIsCVV_story.html

[pnwmom]

1. Twenty years worth of gains wiped out in just a few. It shows how fragile the whole system is. nt

[Quantess]

2. People are blaming Obama for it.

Yes, Americans have short memories of how the problems all started.

[NNN0LHI]

3. Been saying this recession dug deeper into the upper middle class than I have ever seen before

I know a lot of people who were never bothered by the past recessions who are hurting this time around. Even when the unemployment rate hit 11.8% in the 1980's they were doing fine. They never thought a downturn would ever effect them. Well, this time it did.

And they weren't prepared for it and had no idea how to deal with it.

Don

[PoliticAverse]

4. The Fed confuses paper 'wealth' with real wealth. n/t

[banned from Kos]

5. bahhh! people with a house or 401K down 40% are not confused.

I say you are.

[Bake]

6. How much of it vanished and how much transferred over to the 1%?

Every recession has winners (a few) as well as losers (a lot).

Bake

[high density]

7. On to the next housing bubble!

The one in 2007 was so much fun. We can do it again everybody!

It underscores both the depth of the wounds of the financial crisis and how far many families remain from healing.

It primarily underscores how ridiculous home prices were a few years ago.