http-equiv='refresh'/> Consfearacynewz: Americans’ wealth dropped 40 percent in three years

Tuesday, June 19, 2012

Americans’ wealth dropped 40 percent in three years
Americans’ wealth dropped 40 percent in three years - 6/11/2012

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.

Americans saw wealth plummet 40 percent from 2007 to 2010, Federal Reserve says


related - this happened in 2009:
More than 40 Percent of World Wealth Wiped Out By Crunch
by Hopenow | January 28, 2009 at 11:48 am

If you are feeling poorer because of the credit crunch, it is for a reason: 40 percent of the world's wealth has been wiped out so far and it is predicted to only get worse.

Speaking at the World Economic Forum in Davos, Switzerland, Steve Schwarzman, chariman of private equity giant Blackstone, said an "almost incomprehensible" amount of cash has been vapourised by the crunch.

Also at the talk, global media mogul Rupert Murdoch had this to say: "The crisis is getting worse. It's going to take drastic action to turn it around, if it can be turned around, quickly. I believe it will take a long time."

Sir Howard Davies, director of the London School of Economics and a former Bank of England policymaker said: "The outlook is pretty grim. Things are not good and business surveys are coming out showing they're getting even worse."

In 2006, the global market for the financial instruments called derivatives more than doubled to US $29 trillion, according to the Bank for International Settlements (BIS). The total amount of over-the-counter contracts whose value is derived from price changes of bonds, currencies, commodities and stocks, or events like interest rates or the weather, rose 39.5 percent to US $415 trillion, the biggest jump since the BIS began compiling the data.

What this means in layman's terms is this: the entire global economy is based on speculated figures. When the confidence and economic instruments underpinning this enormous bubble of wealth disappear, then it quickly falls apart. While it is true the sun still shines and the rain still comes, such an implosion has very serious consequences for all economic decisions. Many people have based their whole concept of wealth on this bubble, and it will take a long time for them to get to grips with a dramatic reduction in the wealth they believe they have.

The respected Market Oracle blog has an article contemplating the US entering a period of stagnation lasting two decades. It believes the weight of debt is so great, and consumers feeling so burned by what has happened, people will not fall for the government's attempts to make them consume more, and get further into debt. The consequence will be increasing savings and dropping prices. It also postulates that if the government does press ahead with trying to stimulate more consumption and debt (which it does look like it wants to do), then the end result will be an enormous hyperinflationary crisis along the lines of what is happening today in Zimbabwe. Or happened with the Weimar Republic in Germany prior to World War II.

Fits with what Bernanke said years ago and also how the NWO is intentionally lowering the "standard of living" of every American:
 Alan Greenspan on Income Inequality
Alan Greenspan on Income Inequality, as part of his discussion on his recently published book, "The Age of Turbulence."
Greenspan Says Flooding the US labor market with Foreign Labor will Solve the Housing Crisis

"The number of new households in the U.S. is increasing at a rate of about 800,000 a year, of which about a third are immigrants. Perhaps 150,000 of those are loosely classified as skilled. A double or tripling of this number would markedly accelerate the absorption of unsold housing inventory for sale — and hence help stabilize prices."

Here is a blog piece, with a video clip of Greenspan talking about repressing US workers wages:

Greenspan Recommends Wiping out the Middle Class:

Alan Greenspan claims that the answer to solving social inequality is to make everyone poor! (except for those few elites right?) and then tries to suggest that all societies are some sort of sociopathic pecking order!
By Bloomberg News | March 14, 2007

WASHINGTON — Former Federal Reserve chairman Alan Greenspan said allowing more skilled immigrants to work in the United States would help keep the income gap from widening.

Inequality of incomes is the “critical area where capitalist systems are most vulnerable,” Greenspan said yesterday in Washington at a conference on maintaining the competitiveness of US capital markets convened by Treasury Secretary Henry Paulson. “You cannot have a system that we have unless the people who participate in it believe it is just.”

Allowing more skilled workers into the country would bring down the salaries of top earners in the United States, easing tensions over the mounting wage gap, Greenspan said.

“Our skilled wages are higher than anywhere in the world,” he said. “If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income.”
Americans hang on after recession claims wealth
Set back 2 decades, Americans try to hold on to the wealth not claimed by recession
By Adam Geller, AP National Writer | Associated Press – Sun, Jun 17, 2012.

Looking back, the financial lives many Americans enjoyed until just a few years ago can seem like a mirage.

On a suburban cul-de-sac northwest of Atlanta, Michael and Patricia Jackson are struggling to keep a house worth $100,000 less than they owe. In a small town in West Virginia, Michael Bobic, who last year lost his job as a college professor, sells Star Trek collectibles on eBay to get by
Most of the wealth was lost to the mortgage crisis and the drop in home values, wiping out equity many families counted on. But incomes and stock-based retirement accounts fell, too. In the 18 months since the Fed completed its survey, home prices have continued to fall in many cities, while stocks rose and then fell back to nearly the same level.
Americans "were told they were much wealthier than they really were and they believed it," says Robert Manning, author of the book "Credit Card Nation" and an expert on consumer finance. "Now they're kind of hearing they're a lot less wealthy then they believed — and they're in denial."
[   Blah Blah Blah - we're broke and in a financial tailspin ....  ]
"We're scared. We don't know what's going to happen," Michael says. "Right now, our main thing is to hold on to what we have. I mean, we're holding. But the mortgage company, they have a grip on us."
Bobic's retirement account is gone. He cashed it out to buy a house in 2008 when he quit a 10-year job at Georgia's Emmanuel College and moved to Fairmont so wife Jennifer could be near family.

Until he lands a job, Jennifer is funding their retirement, putting aside money from her job with the Social Security Administration.
The family was forced to dip into savings to cover living expenses and the drop in stock prices took more from their nest egg. "We've lost one kid's college money," she says. So two years ago, when her older son was half-way through Illinois State University, Miller and her husband told him he'd have to pay for his last two years of school. They told their younger son he would also have to pay for his last two years.

Add it up now, Miller says, and her net worth is just half what it used to be.

"All of a sudden, you wake up and on paper, it's completely different," she says.
Even working 65 to 75 hours a week, Mike is bringing in less than he did last year. They have little saved for their children's college.

But they hold on to hopes, if not for themselves, then at least for their kids.

"I think it will get better," Mike says. "It's just going to take time."
 Americans are poorer because many like to remain ignorant about economics and how the FED really works.

The American Dream Film-Full Length

The Money Masters.

People are waking up, cut and paste and wake even more people up. 

No comments:

Post a Comment

Don't Troll, if you can't add anything helpful, don't post.