Americans saw wealth plummet 40 percent from 2007 to 2010, Federal Reserve says
The recent recession wiped out nearly two decades of Americans’ wealth, according togovernment 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 downturnaltered 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.”
Are you feeling this drop in wealth?
We are also doing better than we were in 2007.
I'm about to take a pay cut since I have to student teaching and then I'm having a baby, BUT I only make between 10,000/20,000 a year.
DH has had promotions and as a result, we are doing well.
It's about the same for me, but I don't have "wealth." I have income, which is different, and that doesn't go as far as it used to either. My friends who actully have assets like a house (I rent) and money in the market have found themselves less wealthy.
It's because hubby got a promotion that involved a pay increase though...
Our income dropped down significantly. In 2007 we were OK, now we are 'not so OK". I hope we don't fall to "NOT OK at all" phase in near future :(
Yes, I know I am. Being a single mom of five I am just so blessed that I still have a job but I also teach Excel and Quickbooks on the side to help supplement my income. It helps a little and I know it helps other moms like me trying to update their skills so they can get a better job. It is so much competition out there now a days you have to try to stay ahead.
We're making more money than we were in 2007, but we're on a tighter budget now than we were then.
Holder to investigate....Holder
- stormcris
on Jun. 18, 2012 at 1:33 PM