Most of the Wealth Lost in Recession Still Unrecovered


Obama-money

So much for the recovery. It’s more like a recession holding pattern.

American households have rebuilt less than half of the wealth lost during the recession, according to a new analysis from the Federal Reserve, hampering the country’s economic recovery.

The research from the St. Louis Fed shows that households had accumulated net worth totaling $66 trillion at the end of last year. After adjusting for inflation and population growth, the bank found that meant families on average have only made up 45 percent of the decline in their net worth since the peak of the boom in 2007.

In addition, most of the improvement was due to gains in the stock market, according to the report, primarily benefiting wealthy families. That means the recovery for most households was even weaker.

“A conclusion that the financial damage of the crisis and recession largely has been repaired is not justified,” the report stated.

Household wealth is also an important component of the recovery. The Fed is spending $85 billion a month to lower long-term interest rates and stimulate the economy. Top officials, including Chairman Ben S. Bernanke, have pointed to the rebound in real estate and the soaring stock market as evidence of the easing program’s success. They say those factors should create a “wealth effect” that lifts consumer sentiment and, eventually, spending power.

But the report from the St. Louis Fed cites analysis by noted economists Karl Case, John Quigley and Robert Shiller that found the wealth effect was more powerful on the way down than on the way up. An unexpected 1 percent drop in housing prices caused a permanent 0.1 percent decrease in spending, that study found. But a similar 1 percent rise in housing prices boosted consumer spending by only 0.03 percent.

So much for the strategy of going bankrupt to boost a little temporary borrowing and spending.

  • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

    That picture of Obama. His ears look swollen.

    Was Reggie rough with him again?

    • IveBeen Banned

      You feign legitimacy.
      Your tag line says you are a serious mind, looking for other serious minds to exchange ideas with. Yet the above comment is the best you can do.

      • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

        So, which banned troll are you?

        And that above comment is seriously based on evidence in the public forum.
        http://theblacksphere.net/2013/02/obama-reggie-lo

        Are you one that's too cowardly to post at the Navy site?

        • IveBeen Banned

          I am not a troll. I am one of the few honest voices left. I prefer to speak the truth and stick to a topic. You have worked hard, complaining copiously to the Administrators here, and trying everything you can to ban me from posting. You, and your krewe, your clown posse are destroying this website, just as you have destroyed multiple others. One more thing, to comment on someones physical characteristics is simply way off topic. Especially for "serious minds" such as yourself. All things being equal, Obama's ears do not appear to be any larger than yours.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Do you want Israel destroyed?

          • IveBeen Banned

            The topic at hand here, is "Most of the Wealth Lost in Recession Still Unrecovered". Where in that headline, does it mention anything about israel? I am sure there are other threads relating to Israel as a topic.

            For your edification, here are the TOS for FPM:

            FPM appreciates your comments that abide by the following guidelines:

            1. Avoid profanities or foul language.
            2. Stay on topic.
            3. No ad hominem attacks.
            4. Threats are treated seriously and reported to law enforcement.
            5. Spam and advertising are not permitted in the comments area.
            6. Impersonators will be banned immediately.

            What portion of Number 2 above do you not understand?

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            The topic is wealth destroyed by this marxist president of muslim heritage.

            I went with that and took it one step farther and showed that he's not only phony in that he pretends to want us to succeed (while he doesn't) but is phone in other aspects of his life.

            Then, since I despise phony people that lie through their teeth I mocked him for it. Just as you mocked my ears, in your own lame way. (that was off topic so don't pretend to lecture me or act as if that's important to you)

            For your edification, as a banned troll you fall into one of two groups. Liberal fool, or muslim loyal fool. Either way for me to address this topic and tailor it to your own brand of stupid it helps to know how you approach this corrupt and inept administration. One simple easy question does that. And you refused to answer it.
            What part of debate don't you understand?

            And since you refused to go there, I'll answer as if you have muslim loyalties. That not only explains why you defend this failed administration but cover for him on other issues as well.
            We will never recover wealth as long as he sides with our enemies.

          • IveBeen Banned

            Project much?

            I did not mock your ears. I simply used a comparison, between yours and Obama's, pointing out your ad hominem attack. That in itself is a violation of rule number three below: 3. No ad hominem attacks.

            You could not stick to the topic at hand if your life depended on it.

            You are like an old washer-woman; always having to get the last word.

            One More Thing.
            What part of debate do I not understand?

            I understand debate quite well.

            Debate is debate.

            It is not filibustering, which is what you do.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Can't follow the terms here can you.

            You just made an ad hominem attack, since our ears are totally different.

            And you just did your best to derail the mocking references to Obama not being genuine about a thing in office. No wonder you were banned.

          • IveBeen Banned

            I can follow the terms quite well.

            It is you, the one with almost 125,000 posts, all saying nothing, that is in direct violation of the TOS.

            You threadjack a thread, then post hundreds of replies, with your "he said" "she said" nonsense.

            One More Thing, you really need to seek medical attention.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            You just violated them again.
            No wonder you were banned.

            Do you cheer this president of muslim heritage each time he cuts a little more from the wealth and ability of my country?

          • IveBeen Banned

            I'll leave you to your own devices. You are like a weevil floundering in flour. There is a word for you in Yiddish, but for the life of me, I can't remember it.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            What's wrong, are they blocking your new IP too?

          • One_More_Thing

            No the aliens are using his server to implant more junk into your brain for our entertainment.

          • IveBeen Banned

            Would you like to bet that he has his microwave wrapped in tinfoil, and is waiting for the picture to change?

          • One_More_Thing

            I'm willing to bet he's transfixed by the voices coming from it.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            You don't seem to be posting with any irish lilt.

            Could it be instead of kissing the blarney stone you kissed something that had sat on it?

          • One_More_Thing

            You're good value Roger.

          • IveBeen Banned

            Roggie, please read the rules and follow them. There must be rules in a civilized society.

            1. Avoid profanities or foul language.
            2. Stay on topic.
            3. No ad hominem attacks.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Don't you understand Irish humor?

            No wonder they banned you.

            And how did you get back if you were banned?
            And how was your comment on topic?
            And how how was your comment not an ad hominem attack?

            This really is beyond you. I'm glad that you're not posting more comments here.

          • ziggy zoggy

            I've Been Banged,

            butt hurt much?

          • patriothere

            "I went with that and took it one step farther and showed that he's not only phony in that he pretends to want us to succeed (while he doesn't) but is phone in other aspects of his life."

            Why don't you take your time when you write your opinions? I mean people will respect the fact that you take the time to use the right grammar like FURTHER, and spell the word phony correctly.

          • IveBeen Banned

            Hush.

            He is a "writer", donchaknow………

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            And you're supposed to be an editor, aren't you, or was it one of the other liberals from Ireland that deny Hitler was a socialist? It gets so confusing!

          • IveBeen Banned

            Roggie, you flit hither and yon. People in the States aren't interested in you, and folks in Ireland certainly aren't.

            Even Zebrano at the Growl has told you to shut up. Why don't you go back to Breitbart?

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Are you Zebrano? Why do you failed trolls hide your identity so carefully?

            And you were off topic and making an ad hominem attack.
            Does that mean you'll stay banned and not be able to do this any more?

          • NoZebrano

            No.
            I am not Zebrano.

            But I seriously believe that you are paranoid schizophrenic.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Ask me if I care.

            No, don't bother.

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            I did. Did it irritate your handlers? It must be hard being a 'rented mouth'.

            6 minutes ago @ Breitbart.com – Protests to greet Ahma… · 1 reply · 0 points
            I'm like jesus, I'm gonna chase you money changers out of the temple and out of town and of course out of this forum. Me and ohsoquiet and a few other REAL AMERICANS who are being PAID to be here like you Israeli PR men. I'm here to chase you filth out.

          • IveBeen Banned

            Roggie, I must bid you adieu.

            I am going to take my transistor radio and clamber down into my hidey hole and listen to the Weather Channel. It is much more interesting and exciting than conversing with you……

          • http://www.youtube.com/watch?v=nLNn2YflwNs Roger

            Good, I hope you have enough batteries for days.