Fed: Recession Slashes American Household Wealth By Nearly A Quarter
Using numbers from the Survey of Consumer Finances, a new Federal Reserve paper looks at how the recession has affected households. The paper found that from 2007 to 2009, Americans lost 23 percent of their household wealth.
CNN Money reports that the median net worth of households dropped from $125,000 in 2007 to $96,000 in 2009. Taking an even closer look CNN reports:
Families that owned stock saw their portfolios drop by more than a third to $12,000 from $18,500, on average. The value of primary real estate holdings decreased by an average of $18,700.
And families took on more debt, pushing median total debt levels to $75,600 from $70,300. They also made less money. Media household income dropped from to $49,800 from $50,100.
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