Surprise! Americans are poorer

Well, to be honest, this is only a surprise to the Political class, the Government class and the Obama Steno Pool. The rest of us have seen our earnings heading into the dumpster for some time now.

Interestingly, it really seems to have gotten worse since the Progressive Liberal Democrat Idiots took control of the Government. (Not that the RINO’s were any better) Well, now CBS Moneywatch seems to have noticed this problem.

Increasing housing prices and the stock market”s posting all-time highs haven’t helped the plight most Americans. The average U.S. household has recovered only 45 percent of the wealth they lost during the recession, according to a report released yesterday from the Federal Reserve Bank of St. Louis.

It’s rather difficult to invest in the stock market when you don’t have any extra cash laying around, or buy a new home when you lost the last one to foreclosure.

This finding is a very different picture than one painted in a report earlier this year by the Fed that calculated Americans as a whole had regained 91 percent of their losses. The writers of the report released yesterday point out that the earlier number is based on aggregate household-net-worth data. However, this isn’t adjusted for inflation, population growth or the nature of the wealth. Further, they say much of recovery in net worth is because of the stock market, which means most of the improvement has been a boon only to wealthy families.

“Clearly, the 91 percent recovery of wealth losses portrayed by the aggregate nominal measure paints a different picture than the 45 percent recovery of wealth losses indicated by the average inflation-adjusted household measure,” the report said. “Considering the uneven recovery of wealth across households, a conclusion that the financial damage of the crisis and recession largely has been repaired is not justified,” the researchers said.

In other words, it was a made up number. Now I will be honest and say that I personally didn’t take to much damage when the economy tanked in 2008, and my personal investments have recovered and moved up a bit. However, the Anger Central Primary Residence is still not worth what I paid for it. (Luckily the mortgage didn’t flip and I’m not underwater)

As the article indicates, it was only the rich who are actually improving, and most of them are Obama cronies. Here is the reality for the rest of us.

Household wealth plunged $16 trillion from the top of the real estate bubble in the third quarter of 2007 to the bottom of the bust in the first quarter of 2009. By the last three months of 2012, American households as a group had regained $14.7 trillion.

But…

The report says almost two-thirds of the increase in aggregate household wealth is due to rising stock prices. This has disproportionately benefited the richest households: About 80 percent of stocks are held by the wealthiest 10 percent of the population.

And for the rest of us peons?

Much of the total wealth of middle- and lower-income households is based on home values, not stocks. Even though home prices have increased nearly 11 percent in the past year, they remain about 30 percent below their peak.

That would include me. My house is still below what I paid for it. As I mentioned above, the only reason my mortgage didn’t flip and go underwater is my habit of paying more on the principle each month. This also has the benefit of reducing the number of overall payments I will be making.

While Americans continue to pay down their debt, the report says debt levels and problems with rebuilding net worth are the main reasons the recovery has been so slow. Also, the people who bore the brunt of the recession through job losses and reduced income were the ones who had borrowed the most.

The is not an accurate statement. The reason the economy is not improving is Obama and the regulatory state he and the Progressive Liberal Democrats, (And big Government RINO’s), have created. Progressives hate capitalism and the free markets. They like crony capitalism where their friends benefit and give them bribes campaign contributions.

The report found that members of the households that suffered the most financially were less educated, relatively young or black or Hispanic, or some combination of these factors. Those families tended to have low savings and high debt, with much of their wealth based on housing.

That would be all those morons who voted for Obama and the Progressive Liberal Democrats. All they saw was “Free Obamaphone! Free Healthcare! Free Birth control!” These fools are to stupid to understand that there IS NO FREE ANYTHING! The money has to come from somewhere. Right now, Obama and his minions have been borrowing it and the Federal Reserve is in the process of burning out the printing presses making new money. The problem with this, you utter morons, is that one day those loans China has been making are going to come due and thanks to Bernanke and the Fed, the dollar is all but worthless.

Enjoy the coming collapse!

Thatisall

~The Angry Webmaster~

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