Net Worth Plummets

by Chris Sturr | March 12, 2009

The Fed reported today that household net worth has fallen for a sixth straight quarter. The latest quarterly drop was a staggering 9%, the largest quarterly drop since record-keeping began in 1951.

Household net worth has fallen 20% from its high of $64.36 trillion in the second quarter of 2007 to $51.48 trillion in the fourth quarter of 2008.

Over 4 million jobs have been lost since the recession formally began at the end of 2007.

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  1. The top ten percent probably still own over 70% of the national wealth, I’m guessing. The Survey of Consumer Finances of 2006 reported a national net worth of just over $50 trillion, so after three years (it’s a triennial report) we’ve lost the paper gains. This is an important report, I’d like to read an evaluation of it, how the median household is doing, and the bottom half who owned just 2.5% of the national wealth 3 years ago, how they have held up. Usually in hard times they spend down their savings. 30% had less than $10,000, 17% had virtually no savings. After all the jobs being lost, how are they holding up?

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