DiabloViejo
06-12-2012, 01:37 PM
FED: BUSH ECONOMIC CRISIS “WIPED OUT NEARLY TWO DECADES OF AMERICANS’ WEALTH”
June 12, 2012
Class Warfare Exists (http://www.classwarfareexists.com/fed-bush-economic-crisis-wiped-out-nearly-two-decades-of-americans-wealth/)
http://www.classwarfareexists.com/wp-content/uploads/2012/06/Chart-income-and-net-worth-changes.jpg
<span style="color: #000099">“It’s hard to overstate how serious the collapse in the economy was. We were in free fall.”
~Mark Zandi, chief economist for Moody’s Analytics </span>
The Federal Reserve put out an 80 page report on wealth and income and the impact of the Bush economic crisis on Monday. In summary – everyone was affected in a negative way when you compare incomes and net worth in 2010 vs. 2001 except for the net worth of the top 10% of Americans. And … you can be sure the vast, vast majority of that wealth creation came among the 1% wealthiest households. After the Bush economic crisis hit – Americans wealth were back on par with where they were in 1992 … almost 2 decades behind. That’s pretty serious.
The Washington Post has the story HERE (http://www.washingtonpost.com/business/economy/fed-americans-wealth-dropped-40-percent/2012/06/11/gJQAlIsCVV_story.html) :
<span style="color: #000099">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 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.</span>
Binyamin Applebaum from Economix points out HERE (http://economix.blogs.nytimes.com/2012/06/11/where-wealth-declined-most-and-an-income-riddle/) :
<span style="color: #000099"><u>The middle 60 percent of American families had a larger decline in wealth and income on a percentage basis than the very wealthy or the very poor.</u>
The explanation for the disproportionate loss of wealth is relatively straightforward. As I wrote in my article about the new data, the middle class puts wealth in housing, and the median amount of home equity dropped to $75,000 in 2010 from $110,000 in 2007. While other investments have recovered much of the value lost in the depths of the crisis, housing prices have hardly budged.</span>
http://graphics8.nytimes.com/images/2012/06/11/business/economy/11economix-fed/11economix-fed-blog480-v2.jpg
You can find the FED report HERE (http://www.federalreserve.gov/pubs/bulletin/2012/PDF/scf12.pdf) – an excerpt:
<span style="color: #000099">"Overall, both median and mean net worth also fell dramatically over this period—38.8 percent and 14.7 percent, respectively. Changes in housing wealth and business equity were key drivers in those wealth changes. The preceding three years had seen only small changes in median and mean income and in median net worth, but a sizable gain in mean net worth." </span>
Source for above chart HERE (http://www.motherjones.com/kevin-drum/2012/06/fed-income-and-wealth-have-plummeted)
June 12, 2012
Class Warfare Exists (http://www.classwarfareexists.com/fed-bush-economic-crisis-wiped-out-nearly-two-decades-of-americans-wealth/)
http://www.classwarfareexists.com/wp-content/uploads/2012/06/Chart-income-and-net-worth-changes.jpg
<span style="color: #000099">“It’s hard to overstate how serious the collapse in the economy was. We were in free fall.”
~Mark Zandi, chief economist for Moody’s Analytics </span>
The Federal Reserve put out an 80 page report on wealth and income and the impact of the Bush economic crisis on Monday. In summary – everyone was affected in a negative way when you compare incomes and net worth in 2010 vs. 2001 except for the net worth of the top 10% of Americans. And … you can be sure the vast, vast majority of that wealth creation came among the 1% wealthiest households. After the Bush economic crisis hit – Americans wealth were back on par with where they were in 1992 … almost 2 decades behind. That’s pretty serious.
The Washington Post has the story HERE (http://www.washingtonpost.com/business/economy/fed-americans-wealth-dropped-40-percent/2012/06/11/gJQAlIsCVV_story.html) :
<span style="color: #000099">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 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.</span>
Binyamin Applebaum from Economix points out HERE (http://economix.blogs.nytimes.com/2012/06/11/where-wealth-declined-most-and-an-income-riddle/) :
<span style="color: #000099"><u>The middle 60 percent of American families had a larger decline in wealth and income on a percentage basis than the very wealthy or the very poor.</u>
The explanation for the disproportionate loss of wealth is relatively straightforward. As I wrote in my article about the new data, the middle class puts wealth in housing, and the median amount of home equity dropped to $75,000 in 2010 from $110,000 in 2007. While other investments have recovered much of the value lost in the depths of the crisis, housing prices have hardly budged.</span>
http://graphics8.nytimes.com/images/2012/06/11/business/economy/11economix-fed/11economix-fed-blog480-v2.jpg
You can find the FED report HERE (http://www.federalreserve.gov/pubs/bulletin/2012/PDF/scf12.pdf) – an excerpt:
<span style="color: #000099">"Overall, both median and mean net worth also fell dramatically over this period—38.8 percent and 14.7 percent, respectively. Changes in housing wealth and business equity were key drivers in those wealth changes. The preceding three years had seen only small changes in median and mean income and in median net worth, but a sizable gain in mean net worth." </span>
Source for above chart HERE (http://www.motherjones.com/kevin-drum/2012/06/fed-income-and-wealth-have-plummeted)