You know that if the New York Times is publishing this article, underscoring that 94% of Households have “LOST” 1/3 of Household Net Worth that things must not be going so well for the economy. I have a close friend that has a corporate position at the largest retail music rquipment store chain in the country (which I will not mention by name to protect the innocent), he told me today that the company’s income is off a dramatic 20%.
And, of course that the corporate powers that be are “very unhappy”, and very “uptight”. Who wouldn’t be 20% represents the difference between the ink being “Red” verses “Black” in most business’s bottom lines. Which in turn means potential PINK SLIPS must be in discussions in the corporate board rooms. We also have a close family member that works for a “major” national title insurance company in their retail escrow division, (title insurance companies insure real estate sales transactions). No real estate transaction is going to close without a policy of title insurance. This title company has now instituted “mandatory” furlough days for the employees in her division each month. Everyone has to take 3 days off without pay. The company is not implementing this policy because they are overwhelmed with new sales orders.
Now we read this article in the New York Times with this STUNNING headline, that 94% of households have lost 1/3 of their overall net worth in the past ten years. Not just property value, but the value of their entire household’s estate. Which leaves me asking this question; Can more Foreclosures be far behind? Lord let’s hope not, but there is obviously a huge “disconnect” between what the MSM and govt. continuously tout about the state of the economy, and what all of this is saying about economic conditions. Fasten your safety belts, the Captain has turned on the “Turbulence Ahead” sign!
Here are some quotes from this disturbingly informative article;
“Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.
The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.”
CLICK HERE to read the entire source article by Anna Bernasek.