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FBN’s Gerri Willis on how the down housing market and economy affected families’ wealth and income.
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Stunning figures out from the Federal Reserve on just how much ground we lost financially between 20072010.
The Great Recession.
Median family income fell to 45800.
Bucks -- -- -- -- from 49600.
Bucks in 2007.
That's a 3800 dollar pay cut now that hurts but it is a drop in the bucket to what happened to your overall -- 39%.
My friends that is the number the typical family sides net worth drop that much.
In just three years from a 126000.
To seven -- 7000 in 2010.
And that -- For every five dollars you put away two disappeared.
And the biggest cause of course was the housing market crash.
Three quarters of the overall wealth -- was a direct result of house prices tanking.
Median home equity plunged from a 110 that grand to 75000.
Just 75000.
In all Americans -- seven trillion dollars from home equity.
Because of the housing bust.
And the middle class had to bear the brunt of this because most of their wealth is in house.
Wealthier people had more of their money in bonds and other investments that performed better.
Poor folks in even own homes to lose money on.
And while other forms of wealth of bounced back since the crisis home prices are a whole other story this chart and that's -- PK Shiller home price index.
This isn't a trend you wanna see it picks up where the Fed report left off quarter one of two point ten.
Home price index dropping another 6%.
You know they declared the recession over 35 months ago it sure doesn't seem that way for a lot of us.
What this all means is in just a few years our economy saw losses so deep it erased nearly two decades of prosperity.
Network fell to 1992 levels 1992 you remember that.
When we take you back.
President George H.
W.
Bush was in the final year of his term getting -- that handover the reins to a little known governor from Arkansas.
Clint eastwood's -- -- took home the best picture Oscar.
And gas only cost a dollar 85 a gallon those were the days.
But if your typical American the wealthy -- sense then.
It's gone.
And while Wall Street got bailed out the middle class took the loss to -- heavier than anybody.
America supposed to be the land of opportunity right the -- of progress right moving forward.
Not a game of chutes and ladders -- and up in the same place you were in twenty years ago.
Gotta change that.
Coming --
