The American Dream is turning into a horrible nightmare as new statistics reveal that the average net worth of a household has dropped by 40% from 2007-2010.
The survey conducted by Federal Reserve has brought out these shocking numbers. The decline in the average net worth of a U.S. households from 2007 to 2010.
According to the report, which adjusted figures for inflation, the average American family saw their net worth drop 40% in that three-year time period from $126,400 to $77,300.
Three-quarters of the loss, not surprisingly, is due in large part to falling home prices, which have seen no reprieve since the housing bubble began to burst in 2007. The average homeowner saw their net worth fall more than $70,000 from roughly $250,000 in 2007 to $175,000 in 2010.
But wait, there is more! This is not going to stop here, further decline is evident and is expected to be more horrible.
Fact 1: In 3-years, 18-years of saving have been wiped off for the majority of the country.
Fact 2: The average income fell from about $50,00 in 2007 to $46,000 in 2010.
While this has been the fate of hard-working American family, the rich have continued to grow rich in fact their net worth just can’t stop growing.