American Households Regain Wealth Lost in Great Recession

  • Posted on: 9 December 2015
  • By: admin

American Households Regain Wealth Lost in Great Recession

According to the U.S. Federal Reserve, after 5.5 years, American households have regained 98% of the $16 trillion in wealth lost during the Great Recession. You can read the story at http://www.huffingtonpost.com/2013/03/07/household-wealth-recession_n_2829980.html

 

Why You Should Care

It may not feel like it, but household wealth in the United States has seen strong growth since bottoming at $51.4 trillion in 2009. Thanks to a stock market that is up over 120% since the march 2009 lows, the beginning of a recovery in home prices, and a steadily improving job market, American household wealth now stands at $66.1 trillion, which is just over $1 trillion shy of the peak.

The wealth effect is a powerful thing, and the easy money policies of the U.S. Federal Reserve and other central banks around the world have helped asset prices recover, which in turn leads to heightened economic activity. Throw in a U.S. government that is now looking to tackle spending cuts to reign in runaway deficits and debt, and the picture in the U.S. looks brighter than at any time during the last 5+ years.