Americans have recovered only 45% of the wealth they lost during the recession, adjusted for inflation, the Federal Reserve Bank of St. Louis estimated.
The findings were released as part of the St. Louis Fed’s 2012 annual report, which was made public on Thursday. In the report, the Midwestern bank announced the launch of a new Center for Household Financial Stability, which will track the nation’s effort to dig itself out of the hole it found itself in during the financial crisis.
In the report, the bank said data shows a near complete recovery in total aggregate wealth is misleading. The analysts argue aggregate household net worth data isn’t adjusted for inflation, population growth or the nature of the wealth. They noted a lot of the recovery in net worth has been tied to the stock market, and is thus concentrated in holdings of wealthy families.
Read more...Households Still Haven’t Rebuilt Lost Wealth - Real Time Economics - WSJ
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