Tuesday, June 12, 2012

welcome to the day after .....for households sitting on a lot bubble




"over the 2007-2010 period

 median net worth fell 38.8 percent"



  to a level " not seen since the 1992 survey"


boing !!

"the median for the lowest quartile of net

worth fell from $1,300 to zero—a 100 percent decline;


 the mean for the  group fell from negative $2,300 to negative $12,800.


, median net worth for the second quartile fell 43.3 percent.


. For the 75th-to-90th percentile group, the median fell 19.7 percent


  For the wealthiest decile, deline  was  6.4 percent "


yup inequality sharpened during the great contraction and stag


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"Although declines in the values of financial assets or business were

important factors for some families, the decreases in median net worth appear to have been

driven most strongly by a broad collapse in house prices"

...another lesson in the hazards of socially engineeered mushroom wealth gimmicks

much much else here worth a quick  read http://www.federalreserve.gov/pubs/bulletin/2012/pdf/scf12.pdf

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