Page 1 of 3 123 LastLast
Results 1 to 10 of 26

Thread: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

  1. #1
    Noblesse oblige
    Ockham's Avatar
    Join Date
    Oct 2009
    Location
    New Jersey
    Last Seen
    01-27-17 @ 07:23 PM
    Gender
    Lean
    Libertarian - Right
    Posts
    23,909
    Blog Entries
    4

    Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by Washington Post
    By Ylan Q. Mui, Published: June 11 The Washington Post

    The recent 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.


    The data represent one of the most detailed looks at how the economic downturn altered the landscape of family finance. Over a span of three years, Americans watched progress that took almost a generation to accumulate evaporate. The promise of retirement built on the inevitable rise of the stock market proved illusory for most. Homeownership, once heralded as a pathway to wealth, became an albatross.
    The findings underscore the depth of the wounds of the financial crisis and how far many families remain from healing. If the recession set Americans back 20 years, economists say, the road forward is sure to be a long one. And so far, the country has seen only a halting recovery.
    “It’s hard to overstate how serious the collapse in the economy was,” said Mark Zandi, chief economist for Moody’s Analytics. “We were in free fall.”
    The recession caused the greatest upheaval among the middle class. Only roughly half of middle*-class Americans remained on the same economic rung during the downturn, the Fed found. Their median net worth — the value of assets such as homes, automobiles and stocks minus any debt — suffered the biggest drops. By contrast, the wealthiest families’ median net worth rose slightly.
    http://www.washingtonpost.com/busine...CVV_story.html

    So what are the issues here - certainly the recession is part of this. I think that people realized that they had to pay down some of their debt so some of their wealth went into that. The next issue is the REAL unemployment numbers which is around 14% because some have dropped out of the job market and no longer collect unemployment. Next is the housing down turn - wealth inevitably also includes assets... and since the housing market down turn and foreclosures have over the past 4 years been very high, that wealth also takes a hit there. We needed a leader to address jobs and the economy in 2008; we didn't get that. Damn you hindsight for being 20/20.
    Last edited by Ockham; 06-12-12 at 11:45 AM. Reason: Added story link
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


  2. #2
    Sage
    AdamT's Avatar
    Join Date
    Jul 2011
    Last Seen
    02-13-13 @ 04:09 PM
    Gender
    Lean
    Undisclosed
    Posts
    17,773

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Correction: we needed a leader from 2000 - 2008.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

  3. #3
    Sage
    ksu_aviator's Avatar
    Join Date
    Nov 2010
    Location
    Fort Worth Texas
    Last Seen
    Today @ 10:19 AM
    Gender
    Lean
    Very Conservative
    Posts
    6,686
    Blog Entries
    10

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    QE1 and QE2 certainly played their part as well as a stock market that has under performed and pension plans that have just disappeared. But, it is a recession, that's what happens in a recession.
    You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh; rather, serve one another humbly in love.For the entire law is fulfilled in keeping this one command: “Love your neighbor as yourself.”

  4. #4
    Noblesse oblige
    Ockham's Avatar
    Join Date
    Oct 2009
    Location
    New Jersey
    Last Seen
    01-27-17 @ 07:23 PM
    Gender
    Lean
    Libertarian - Right
    Posts
    23,909
    Blog Entries
    4

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by AdamT View Post
    Correction: we needed a leader from 2000 - 2008.
    How much did American's wealth plummet from 2000-2008?

    We still need a leader - unlike the failure we have now.
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


  5. #5
    Sage
    ksu_aviator's Avatar
    Join Date
    Nov 2010
    Location
    Fort Worth Texas
    Last Seen
    Today @ 10:19 AM
    Gender
    Lean
    Very Conservative
    Posts
    6,686
    Blog Entries
    10

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by Ockham View Post
    How much did American's wealth plummet from 2000-2008?

    We still need a leader - unlike the failure we have now.
    He's not a failure, he's a follower. He's following Greece and Spain into the depths of government failure...ok so he's both a failure and a follower.
    You, my brothers and sisters, were called to be free. But do not use your freedom to indulge the flesh; rather, serve one another humbly in love.For the entire law is fulfilled in keeping this one command: “Love your neighbor as yourself.”

  6. #6
    Sage
    AdamT's Avatar
    Join Date
    Jul 2011
    Last Seen
    02-13-13 @ 04:09 PM
    Gender
    Lean
    Undisclosed
    Posts
    17,773

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by Ockham View Post
    How much did American's wealth plummet from 2000-2008?

    We still need a leader - unlike the failure we have now.
    The vast majority of the damage was done from '07 through the first few months of '09.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

  7. #7
    Guru
    Samhain's Avatar
    Join Date
    Sep 2011
    Location
    Northern Ohio
    Last Seen
    Yesterday @ 05:15 PM
    Lean
    Libertarian
    Posts
    3,887

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    I would suspect that the majority, if not all, of the lost wealth from 07-10 is from 401ks and home values.

  8. #8
    User TornadoSiren's Avatar
    Join Date
    Jun 2012
    Location
    Pennsylvania
    Last Seen
    06-29-12 @ 03:12 PM
    Gender
    Lean
    Very Liberal
    Posts
    16

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by Samhain View Post
    I would suspect that the majority, if not all, of the lost wealth from 07-10 is from 401ks and home values.
    The crazy housing bubble caused an enormous amount of damage. 30 years ago my parents bought the home I grew up in for 15k. 10 years ago, that home was valued at almost 120k. That is an 800% return in only 20 years. Anyone who does not think this is likely over-valuation has a seriously warped idea of value. Any time you have this kind of inflated values, it is going to be ugly when it readjusts. The whole boom and bust thing, however, is a natural cycle in the market. The less control and regulation, the greater the swings. Certainly it is a shame that so many Americans ended up underwater because of this particular bust, but it is far from the first time. The biggest problem with this particular bust cycle, is that it hit home values extra hard, and that is where so many middle income Americans have a good portion of their wealth. The home I grew up in, btw, is now valued at approx 75k. Definitely a bad drop from its high of 120k, but still not a bad return on the original 15k.
    If you can't bite, don't growl.

  9. #9
    Noblesse oblige
    Ockham's Avatar
    Join Date
    Oct 2009
    Location
    New Jersey
    Last Seen
    01-27-17 @ 07:23 PM
    Gender
    Lean
    Libertarian - Right
    Posts
    23,909
    Blog Entries
    4

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    Quote Originally Posted by AdamT View Post
    The vast majority of the damage was done from '07 through the first few months of '09.
    And your evidence to support your opinion?
    “I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.


  10. #10
    Guru
    Samhain's Avatar
    Join Date
    Sep 2011
    Location
    Northern Ohio
    Last Seen
    Yesterday @ 05:15 PM
    Lean
    Libertarian
    Posts
    3,887

    Re: Americans saw wealth plummet 40% from 2007 to 2010, Federal Reserve says

    FRB: Survey of Consumer Finances

    The report referenced for the OP article is only available every ~3 years. 2001->04 was 6% gain 04->07 was 17% gain.

    Internals for the latest report, 07->10, wont be available for general consumption until late June.

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •