Average American Family Lost Nearly A Quarter of Their Net Worth in 2008
The average American household has seen 22.7% of their net worth evaporate since the beginning of the recession, a Federal Reserve economist said earlier today.
The Fed economist went on to say that the impact was most felt in the wealthiest households and those "between the ages of 55 and 64", due to the fact that net worth "tends to peak" within this bracket.
The current recession (which is believed to have started in December of 2007) has negatively affected nearly every type of asset imaginable.
Business values have fallen.
Stock prices have crashed.
Home values have plummeted.
All of the gains in average net worth from 2004 to 2007 (17.7%) were wiped out in one year.
These numbers will not come as a shock to anyone. If you own a home or have any type of position in the stock market, then you surely know just how bad things have been over the past 14-15 months.
Everyone knows that the average American family took a beating in 2008. The two big questions are:
1. How much more damage will there be?
2. When will things start to turn around?
Source: Yahoo! - Fed: Americans' Net Worth Hammered by Recession
Filed under: The Economic Meltdown