Family Wealth has Plunged in the Last 10 Years

I guess this might be a reason why families are freaking out and feel like there is actually a recession on instead of a recovery.

A new study published by the Russell Sage foundation helps explain why many families feel like they’re falling behind: They actually are. The study, which measures the average wealth of U.S. households by income level, reveals a startling decline in wealth nationwide. The median household in 2013 had a net worth of just $56,335 -- 43% lower than the median wealth level right before the recession began in 2007, and 36% lower than a decade ago. “There are very few signs of significant recovery from the losses in wealth suffered by American families during the Great Recession,” the study concludes.

Most of this is due to housing prices being low and real inflation (food and energy) cutting into their purchasing power as their wages stay stagnate. I would be apoplectic if I was down 30% in net worth in just 10 years.

What also sucks for those families is that I bet they were gun-shy of the stock market after 2008 and kept their money in cash and T-bonds. If they had bought stocks like I did they would be up huge right now and actually feeling a little better about things. Instead they have anemic savings rates from "stimulus" and have to dip into the market after missing the huge upward move. I think another train might hit them if they aren't careful.