WASHINGTON (AP) – The Federal Reserve says the recession has cut many Americans’ net worth by about 20 percent as the value of homes, stock portfolios and businesses plummet.
The Fed says the average net worth of American households plunged 22.7 percent since the recession began in December 2007 through October, when the report was prepared. The median net worth, or the midpoint between the wealthiest and poorest, fell 17.8 percent.
The Fed report says if the value of second homes and businesses are excluded, the average household net worth fell 12 percent, which reflects that such assets are “relatively concentrated among wealthier families.”
Feb 12 03:03 PM US/Eastern
By CHRISTOPHER S. RUGABER
AP Economics Writer