American household wealth declined 23% in 2 years. Thanks guys.

Discussion in 'Economics' started by Grandluxe, Mar 25, 2011.

  1. Household wealth down 23% in 2 years - Fed

    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.

    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.
  2. I bet it doesn't take into account the decline in the value of paper vs real things, either.
  3. FCCT


    Wealth = houses, cars, food etc
    Money = perceived wealth
    Stocks = perceived money