Median Family Net Worth Below 1989 Level: Debt-To-Money Worst Since '62

Authored by Mike Shedlock via www.themaven.net/mishtalk,

As the stock market soars to new highs, here's some sobering statistics to consider.

The stock market is at an all-time high but Americans Owe More, Save Less, and are Poorer Than in Decades.

Negative Wealth Percentage On the Rise

 

https://www.zerohedge.com/sites/default/files/inline-images/20180108_debt1.png

Net Worth Going Nowhere

 

https://www.zerohedge.com/sites/default/files/inline-images/20180108_debt2.png

Sobering Stats

  1. A greater share of Americans have more debt than money in the bank than at any point since 1962, according to Deutsche Bank economist Torsten Slok.
  2. 30.4% of US families have negative net worth despite the recovery in housing and the stock market.
  3. Median net worth is below where it was in 1989.

But perhaps the most shocking stat of all is that, on an inflation adjusted basis, net worth may be the worst in history.

$78,000 is not worth what it was in 1989, to say the least.

Comments

pods bshirley1968 Tue, 01/09/2018 - 09:30 Permalink

Just a coincidence there is an opiod crisis and people spend all day on Fakebook.  

Remember when you were a kid and thought about all the great things you would be able to do when you got older and started to work?  When people realize that they were just daydreaming it hits pretty hard.

pods

In reply to by bshirley1968

whackedinflorida pods Tue, 01/09/2018 - 10:06 Permalink

Close to 15% of the US population is foreign born.  While I'm sure there are various high earning computer types working at the big tech companies, how many of these foreign born people have no money?  Plus, how many foreign born people would disclose their wealth?  If I am a retired drug lord from mexico, a Chinese family where the husband still works in China, a crypto billionaire from Ukraine, no one gathering these bogus statistics in the US will have any idea what the real story is.  Indeed, many foreign born workers send all of their earnings back home.  The worker here would look broke to any person gathering the statistics. 

Even for the US born, because government benefits are dependent on having no wealth and no income, you have to assume that huge numbers of people are lying or hiding their wealth.  Watching the playoffs this weekend, I noticed one player who had all gold teeth.  He kept smiling to show us his teeth.  While I thought they were quite nice, who reports their gold teeth on a government disclosure form? 

In reply to by pods

Bes whackedinflorida Tue, 01/09/2018 - 10:08 Permalink

hail Trump and the GOP

for giving Americans about 1%-4% in tax reductions

that pathetic amount won't even keep up for inflation (aka: hush money)

and the shit people would have bought with this paltry amount used to have a lot of deductible sales tax attached

not any more.

meanwhile 0.1-1% of the population get 15%+ kickbacks to buy a new Gulfstream and get to write it off on their taxes

I guess this is how we #MAGA

hahahahahahaha!!!

In reply to by whackedinflorida

Son of Loki Bes Tue, 01/09/2018 - 10:30 Permalink

There's tons of unreported Loot still flooding in from overseas as you say, Russia, China and the drug lords and looted in South America.

 

I saw some Chinese developer bought a 100-200 acre area in north Texas and is offering houses at starting price of $2 million to Mainlanders. That's odd since i read Mainlanders are allowed to only move < $50,000 out of China. And yet they are buying multi-million dollar houses all over the world including even north texas now, evidently.

In reply to by Bes

Angelo Misterioso pods Tue, 01/09/2018 - 10:07 Permalink

lower middle class is living a version of American Psycho! They think they are doing all these great things because they see them on Snapchat and Facebook and they are drinking a Starbucks and when they wake up they realize they did not do any of it and they are still sitting in mom's basement and they have a 10k visa bill and a stack of bills....

In reply to by pods

aardvarkk pods Tue, 01/09/2018 - 12:17 Permalink

I have a rescue dog that originally came from a meat farm in Korea and was rescued by the ASPCA, along with a bunch of others.  I got her after 3 months of being fattened up, and she was still emaciated, and still kind of is 3 months later (and has had constant access to food for that time).  No idea how they planned to slaughter her for meat when you could see every rib.

The vet was amused and bemused though...her vet history was in Korean.

In reply to by pods

Kidbuck Tue, 01/09/2018 - 09:26 Permalink

No shit. The Fed either favors you with free bucks or fucks you by stealing your purchasing power. That's all a central banker can do.

Easyp Tue, 01/09/2018 - 09:26 Permalink

There will be a great human cost to this misery of debt and after the great bust those responsible will be safely holed up in their moated palaces protected by private guards.

MusicIsYou Tue, 01/09/2018 - 09:28 Permalink

Yeah but the mega rich have a lot of electronic digits they can count. The world will be a big dump but hey the rich have a long electronic number that says they have a lot of money.

silverer Tue, 01/09/2018 - 09:30 Permalink

The engine of US productivity moved overseas for the benefit of a few. Government regulations passed to keep domestic competitors out of those businesses. That's called crony capitalism, or even Facism. All sanctioned by the criminals in Washington. You get what you vote for, the worst of it starting around 1983.

itstippy Tue, 01/09/2018 - 09:31 Permalink

What really sucks is that the middle class and lower middle class working-man's future earnings are stagnant or declining.  Earning power in the form of wages is the working-man's greatest financial asset.  They don't have a pile of financial assets to live off of.  When financial assets go up and wages go down the working-man takes it in the shorts.

MusicIsYou Tue, 01/09/2018 - 09:31 Permalink

Here's the life the mega rich will have in a decade; sitting in a little hitech shelter with a security team on a few acres they're afraid to travel away from and they'll sit there counting all their money. Sounds like quite a wonderful existence.