Average U.S. family's wealth plunged 40% in recession, Fed says

WASHINGTON (Reuters) - Americans suffered a record decline in wealth between 2007 and 2010 as home values tumbled, according to a Federal Reserve report on Monday that underscored the severity of the recent recession. The median family's net worth dropped 38.8 percent during the three-year period, the Fed said in its latest report on changes in U.S. Family Finances, derived from a survey of consumer finances. Fed economists told reporters that this was the biggest drop in net worth since the survey started in 1989. The median net worth, which is the value of assets minus debt, plunged to $77.

All The Wealth We Lost And Regained Since Recession Started

WASHINGTON (AP) -- The Great Recession shrank Americans' wealth so much that in 2010 median family net worth was no more than it had been in 1992 after adjusting for inflation, the Federal Reserve reported Monday....

A Federal Reserve survey has found that the Great Recession shrank Americans' wealth so much that in 2010 median family net worth was no more than it had been in 1992 after adjusting for inflation.

This is an unedited version of my Sunday Times column from May 16, 2013

The Great Recession took such a heavy toll on the economy that the typical American family lost nearly 40% of its wealth from 2007 to 2010, shaving the median net worth to a level not seen since the early 1990s.

By Bear Fight:The financial crisis has done lasting demand to U.S. households. According to the Federal Reserve's Survey of Consumer Finance, the financial crisis wiped out 18 years of gains for the median U.S. household net worth, with a 38.8 percent decline from 2007 to 2010 that was led by the collapse in home prices.