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We can split the difference of this time frame in the White House between Bush and Obama, but during that entire period, as far as Congress goes, it’s all on Nancy & Harry:

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.

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.

Couple this ongoing gutting of middle class wealth with rising prices for food, gas, etc, and we’ve got real problems.

But don’t let that fool you… the private sector is doing just fine.

Obama’s recent jaw-dropper reminded me of back when Barney Frank said Fannie & Freddie were doing fine too. And you remember what happened after that.

Comments

26 Responses to “Fed: From 2007 to 2010 Americans Lost 40 Percent of Their Wealth”

  1. SignPainterGuy on June 11th, 2012 9:17 pm

    So far, mine hasn`t lost any, but grows almost as fast as my fingernails with the low int. rates. The real estate bubble burst halved my Sister`s retirement though.

  2. Truesoldier__ on June 11th, 2012 9:17 pm

    And if that isn't enough, then check this out:

    Under Obama, Fed’s Holdings of U.S. Debt Have Jumped 452%

    http://cnsnews.com/news/article/top-customer-unde

  3. SignPainterGuy on June 11th, 2012 9:21 pm

    Why isn`t that in a Romney ad yet ?

  4. Truesoldier__ on June 11th, 2012 9:26 pm

    We took advantage of the housing market and economy taking a downturn and did a bunch of renovations in our home over the past couple of years. We figured that we might as well get the work done while the costs are cheap and then watch the value increase after the market comes back.

  5. clu seatoe on June 11th, 2012 9:55 pm

    Don’t you mean, “After the conservatives come back?”

  6. clu seatoe on June 11th, 2012 9:58 pm

    Those bigoted, nasty, racist fed holdings. How dare they?

  7. clu seatoe on June 11th, 2012 10:42 pm

    “…wealth was inextricably linked…”

    I’ve never owned real property and always thought that if one is INEXTRICABLY linked to anything then it owns you and not the other way around.

    Therefore, the only thing I intend on being INEXTRICABLY linked to is my death when the time comes.

    It’s just one person’s opinion and I’m not interested in debating.

  8. Doug on June 11th, 2012 11:22 pm

    Speaking of the Fed report, here's one from the world of news stories we'll never see: "Fed: Sorry about printing all that money and devaluing your shit"

  9. Doug on June 11th, 2012 11:24 pm

    Same thing here. Quite a few home improvements in the past two or three years at much less than I'd have expected ten years ago. Used the five hundred dollars we saved on the home improvements to buy a gallon of milk at the Hope & Change Market.

  10. SignPainterGuy on June 11th, 2012 11:40 pm

    Everything`s cool; it`s just like having plenty of checks in the checkbook, right ?

  11. jeffythequick on June 11th, 2012 11:41 pm

    I can't use it as fertilizer anymore?

    The feces, but the money will soon follow.

  12. jeffythequick on June 11th, 2012 11:43 pm

    Give the guy a break. Imagine being the guy that has to coordinate all the gaffes into commercials.

    Obama – 20-30 jobs created
    Big Sis – 20-30 jobs created
    Congressional Democrats – 20-30 jobs created
    Biden – 20-30 jobs created per hour.

    Oh, and SPG, try the me at jeffythequick dot com and put SPG in the subject line. I got the DNS and junk filtering fixed (I hope)

  13. SignPainterGuy on June 12th, 2012 12:24 am

    A reader wrote in to the local fishwrap saying more jobs created under dems than reps. I thought, if he`s talking about NC state dem control, well yeah, `cause there`s only been dem control for the last 104 years or so and the VAST majority of the rest of the time, so how could there be ANY rep. job creation ? But no, he`s claiming it on the nat`l level ! I`ve been so aghast, I haven`t managed to respond to that loonacy !

  14. jeffythequick on June 12th, 2012 12:36 am

    You know the former (not the current) Mrs. thequick?

  15. SignPainterGuy on June 12th, 2012 1:11 am

    Seems to be a commonality among EXs ! Heh ….

    Mine would KNOW for certain that I had ONLY $70., watch me spend $60. and then get mad at me because I didn`t still have $50. left. I am not joking !

  16. jeffythequick on June 12th, 2012 1:16 am

    Posted in the wrong thread… Doug, sorry for the re-post:

    How, exactly does the public sector do badly?

    I mean, do they not make a profit on enough driver licenses? Did the property owners send the taxes to a different state?

    If a private sector business, let's call them "Jetflix" does badly, their stock falls and investors lose out. The customers go to a competing business. How does this lunacy even affect the public sector?

    THAT is the comment that should be investigated and put on the Romney ads. not the "private sector is doing well".

    As soon as public has to compete with the private sector, and not do it at the point of a gun, then we can talk about the public sector doing badly.

  17. jeffythequick on June 12th, 2012 1:25 am

    As for the vasectomy jokes over on MM, when the doc was cauterizing mine, I asked, "what's cooking doc?" (saw Bugs Bunny on some of his office decor).

    He laughed, and said, "for most guys, it smells like chicken, but I'll give you a pass"

    You don't really want to laugh too hard with a soldering iron sealing up the wounds.

  18. SignPainterGuy on June 12th, 2012 1:51 am

    We "smell like chicken" ? Hmmmm, in a couple documentaries I`ve seen in the last year on cannibalism, they say we "taste like pork" !

  19. jeffythequick on June 12th, 2012 4:24 am

    Play on words… guys being chicken, but as a verb, I don't mind the other…

  20. Marshall_Will on June 12th, 2012 11:48 am

    Clu,

    Nor should you feel compelled to do so. We sold our boat anchor and closed on the last day of 2003. Noted investor Sir John Templeton once famously said; "I made all my money selling early!"

    Virtually ALL of the upside came from market & market 'timing'. Six mos. later I took the closing doc's out of the door. After ten, 10! years of making payments, we'd reduced the balance by all of $6,000? Since all of the int. is "front loaded" into the loan, you're fighting a losing battle from Day 1.

  21. Marshall_Will on June 12th, 2012 11:50 am

    As bubble bloggers we always referred to The Fed as "Buyer of Last Resort". They've become nothing more than a clearing house of bad debt.

  22. Marshall_Will on June 12th, 2012 11:54 am

    And that's the only way you can look at it.

    When we sold our primary residence in 2003, our Schedule A collapsed! We had no MID ( Mortgage Int. Deduction ) to offset income. Since you can only hold your breath so long, in short order ( even while one of us was self-employed ) we wound up owing the IRS. Bigtime!

    Our whole tax code is structured around home ownership. Without it, your filing gets stood on its ear. We need to go back to the old system: A (1) Time Exemption for Cap Gains and allowing home owners to deduct expenses for improvements!

    Noticed how "curb appeal" has gotten, well, thrown to the curb?

  23. clu seatoe on June 12th, 2012 12:40 pm

    Years ago I got involved in a conversation with two co-workers at a break table that really made an impression on me for some reason. One older fellow and one younger fellow. It came out in the conversation that the elder fellow’s monthly mortgage payment was only a few dollars more than the younger’s monthly utilities bill. Something I’ve never forgotten.

  24. Marshall_Will on June 12th, 2012 2:40 pm

    We've had our share of fun w/ the snip-snip jokes, but I have my regrets. Firstly, as Doug once posted; Al Gore, while preaching conservation to US had a family portrait w/ like 5 kids!

    I recall reading MM has (2) children and I've never heard Doug mention "enough for a softball team!" In hoping for a son, everyone I know wound up w/ 3rd daughter. I'm outnumbered as IS.

    Secondly and more importantly, I wonder/worry about T-levels. Perhaps a coincidence but MINE fell off a cliff shortly after the operation. I've struggled since. Making great improvements but it's an effort. A DAILY one. Left untreated Low-T leads to a great many health issues that aren't addressed in TV commercials. Lots of them..!

  25. Marshall_Will on June 12th, 2012 3:51 pm

    Clu,

    Most of us have been BOTH of those guys! One of our ( Mrs. Will & I ) greatest regrets is buying into the whole "move up" trap. When I first got off active duty military we bought a modest house for $67k.

    We were very happy there nearly doubling our money in just a few short years ( it had been a repo ) THEN the trouble all began, we bought my folks house and it quickly became altogether too big for us. Even though our daughters were still in HS, let me tell ya' HS kids are -seldom- home!

    Wanting out we sold pre-bust but still made fair coin. We resolved to RENT until this all blew over. But "bubble-sitting" wasn't easy. We'd had (2) rentals sold out from under us and were looking at a third. More or less FORCED to "buy". Our biggest regret YET.

  26. ChapBix on June 12th, 2012 8:45 pm

    "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."

    Remind me again: Who ran Congress from 2007-2010? Prime material for an ad to run against Democrats this summer and fall.

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