Median Family Net Worth Under 1989 Level: Debt-to-Money Worst Since 62

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

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.
  4. Inflation adjusted, net worth may be the worst in history. $78,000 is not worth what it was in 1989, to say the least.

Mike "Mish" Shedlock

Comments (22)
No. 1-22
Stuki
Stuki

The Feudal societies America was founded to get away from, worked the same way: The serfs nominally had to work off “their” debts, or “pay rent” to farm someone elses poppeti. Ditto corporate towns/gulags.

Which supposedly justified simple slavery. At least in the minds of simple idiots.

Things are never different this time, no matter how loudly the progressive indoctrinati have been told to support “their” assigned “leaders”, by dutifully chanting they always are.

JanNL
JanNL

When did American parents stop teaching their children that debt for consumption is BAD, BAD, BAD. Must have been 50 years ago when the banks started pushing credit cards and the babyboomers allowed themselves to be hooked. As a foreigner I remember being amazed decades ago with all the toys people gathered in their double garages.

Sechel
Sechel

the stock market is not the economy. when i hear that america is fixing the economy and the example pointed to is the stock market i cringe. and the stock market can't solve the indebtedness of the average american when the mean balance is under $100,000 but more importantly the median at roughly $26,000.

Sechel
Sechel

@JanNL The savings behavior is something associated with people who grew in the great depression or were born of the holocaust. that's a generation that is no longer part of the american experience. Banks may be facilitating the behavior, but they are not the cause.

JonSellers
JonSellers

Map productivity increases to median wage increases over that period and you will find the problem.