Family Wealth has Plunged in the Last 10 Years

I guess this might be a reason why families are freaking out and feel like there is actually a recession on instead of a recovery.

A new study published by the Russell Sage foundation helps explain why many families feel like they�re falling behind: They actually are. The study, which measures the average wealth of U.S. households by income level, reveals a startling decline in wealth nationwide. The median household in 2013 had a net worth of just $56,335 -- 43% lower than the median wealth level right before the recession began in 2007, and 36% lower than a decade ago. �There are very few signs of significant recovery from the losses in wealth suffered by American families during the Great Recession,� the study concludes.

Most of this is due to housing prices being low and real inflation (food and energy) cutting into their purchasing power as their wages stay stagnate. I would be apoplectic if I was down 30% in net worth in just 10 years.

What also sucks for those families is that I bet they were gun-shy of the stock market after 2008 and kept their money in cash and T-bonds. If they had bought stocks like I did they would be up huge right now and actually feeling a little better about things. Instead they have anemic savings rates from "stimulus" and have to dip into the market after missing the huge upward move. I think another train might hit them if they aren't careful.