Taking the largest dip since the 2008 recession began the Federal Reserve on Thursday announced $2.2 trillion in lost household wealth, a dip of 4.1%.
The overall decline is a loss of nearly $7,800 per household and brings the overall value of wealth in the United States to $57.4 trillion.
The loss is still far less than the $5.6 trillion loss of 2008 but still shows a troubling market as stocks held directly and indirectly lost $3.2 trillion (17%).
While numbers are down for the year-over-year wealth total it’s important to remember that markets are rebounding in the third quarter with the S&P500 rebounding by 10.1% so far.
In the report researchers also found that the value of real estate took a tumble, falling by $98 billion (0.6% of market) while homeowner equity also took a $44.6 billion tumble as homeowners attempt to pay down debt owed on their properties.
When combined from 2007 to the first quarter of 2009 household wealth had plunged by $16.3 trillion but has been on a rebound since that time although net worth is still $9.4 trillion (14% below 2007 numbers).
Do you think paying down debts on home values will help us climb out of our economic situation or do Americans need to continue the fueling of our economy through debt?
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