What do you get, when you cross loose monetary policy from the Federal Reserve with government sanctioned success? A big ass bubble! And that’s exactly what happened to us in 2008. The cards came crashing down, and all the players responsible blamed everyone but themselves for this disaster. Here is a report from one of the instigators of our economic crisis, as reported by the Washington Post:The recent recession wiped out nearly two decades of Americans’ wealth, according to government data released Monday, with middle-class families bearing the brunt of the decline.
The Federal Reserve said the median net worth of families plunged by 39 percent in just three years, from $126,400 in 2007 to $77,300 in 2010. That puts Americans roughly on par with where they were in 1992.
The data represent one of the most detailed looks at how the economic downturn altered the landscape of family finance. Over a span of three years, Americans watched progress that took almost a generation to accumulate evaporate. The promise of retirement built on the inevitable rise of the stock market proved illusory for most. Homeownership, once heralded as a pathway to wealth, became an albatross.
Americans are back to 1992 status? That’s weird. Wasn’t it in 1993, when Bill Clinton and the Democrats started their housing initiatives? Isn’t that around the time James Johnson of Fannie Mae fame began his schemes with that G.S.E.? Could this just be a coincidence?
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