In Case You Didn’t Know
In 2007 dollars, the average family in 2001 had $700 more dollars in net worth than the average family in 2007.
That $700 was obviously my veggie budget.
Tags: The Economy
Connect
Connect with us on the following social media platforms.
Not at all surprised.
Aw shoot…grew the vegetables…but there goes chocolate (its own food group).
Further proof that Bush’s tax cuts were a failure.
Wait till 2008 figures come out, with the decline in home values and 401k`s this past year. Welcome to the newest third world nation, the super-rich are doing fine, in case you were worried, those Bush tax cuts really took the pressure off.
That is an amazing statistic when you consider that 2007 was pretty much the peak of home values.
“The gains made in net worth between 2004 and 2007 have all been erased by collapsing stock and housing prices, the study finds”
So, if the wealthy have more exposure to stocks than surely they had more losses?
The class warfare argument doesn’t work. try something new.
Anon, I received a call in 2007 from a friend who writes for Kiplinger. He wanted an outside the beltway opinion on the economy. I said it wasn’t so good.
He was quite surprised, citing the stock market and home values as a sign of a good economy.
My response was: My economy is based on how much is left in the checking account at the end of the month.
Even in 2007 the writing was on the wall.
Yes, my point was that with home values at their peak, other areas of net worth must have been dropping really fast. The housing bubble was just papering over the underlying drop in real income. My economic experience seems similar to yours. I would have told your Beltway buddy the same thing in 2007.
This week I had a client who has worked for the University as a librarian for 20 years…she is probably loosing her job, my next client had recently beed transferred, can’t sell his old house and is upside down. This is only this weeks bad news. These people all made over 100K. Every day I am hearing one depressing story after another. No one is spending, no one is buying a home, no one is buying lunch!
I won’t go out. Valentines day will be a movie with the kids. That will be big!
My advice to my clients is to continue not to spend. put away as much as they can and spend as if they don’t have a job. That is probably not the right thing to do but I think it is prudent.
Also, I am not sure if don’t sell low makes sense anymore. I told my parents that in October and at this point it seems as if they would have been better off.
A good career now would be counciling and or suicide prevention. I am encouraging yoga and foucusing on the third eye!
“..So, if the wealthy have more exposure to stocks than surely they had more losses?.”
Sure, but it doesn’t hurt them nearly as much as the little guy. and the rich are doing fine. They don’t need to figure out how to pay for veggies for their kids.
Protack, the wealthy can afford to hold onto their stocks and ride this out. Duh.