I don’t know about you, but I certainly don’t find surprising the triennial study released by the Federal Reserve this week, which tracked a nearly 40 percent drop in our average net worth.
The three-year study, called the Survey of Consumer Finances, is the only longterm study that factors in details on savings, income, debt, as well as assets and investments owned by American families. The drop in median net worth reflects a plummet from $126,400 in 2007 to $77,300 in 2010, according to the study. (Median net worth is the value of assets minus debt.)
Much of that was due to the sharp decline in housing prices, thanks to the collapse of the housing market five years ago, which fueled the recession in the first place.
What’s it all mean? Pretty much what those of us in the trenches already know. The recession hit hard and we are still recovering. Slowly. Very slowly.
You can read the report by clicking here.