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Thread: Net Woth Hit 43-Year Low

  1. #1
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    Net Woth Hit 43-Year Low

    Guess what!? You're poor!

    According to this study, which verified a few others released over the past few months, shows how if you are in the bottom 80% you basically have no money and a lot of debt. Study is linked and I'll point out a few disturbing trends:

    Paper: The Asset Price Meltdown and the Wealth of the Middle Class (2012 APPAM Fall Research Conference (November 8 - 10, 2012))

    Table 8 shows Debt/Equity and Debt/Income from 1983 and 2010 for the middle class.

    In 1983 D/E ratio was 37% and in 2010 is 71.5%! D/I ratio went up from 66.9% to 134.5%. Holy sh*t. Honestly, I didn't even realize it was this bad. My next question was what assets declined...which is also Table 8.

    Residence for middle class was 62% of assets held in 83 and 67% now. This is not a good sign because home values suck. More telling, LIQUID ASSETS went from 21.4% to 5.9%. WOW. So people in the middle class literally have no money, lots of debt, and basically are only worth what their house is worth.

    It should also be noted that pensions increased a lot. I'm not sure what to make of this. Hopefully it's a good thing. The study indicates that much of the liquid assets went into pension funds (401k, etc).

    Thoughts?

  2. #2
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    Quote Originally Posted by Steeeeve View Post
    Guess what!? You're poor!

    According to this study, which verified a few others released over the past few months, shows how if you are in the bottom 80% you basically have no money and a lot of debt. Study is linked and I'll point out a few disturbing trends:

    Paper: The Asset Price Meltdown and the Wealth of the Middle Class (2012 APPAM Fall Research Conference (November 8 - 10, 2012))

    Table 8 shows Debt/Equity and Debt/Income from 1983 and 2010 for the middle class.

    In 1983 D/E ratio was 37% and in 2010 is 71.5%! D/I ratio went up from 66.9% to 134.5%. Holy sh*t. Honestly, I didn't even realize it was this bad. My next question was what assets declined...which is also Table 8.

    Residence for middle class was 62% of assets held in 83 and 67% now. This is not a good sign because home values suck. More telling, LIQUID ASSETS went from 21.4% to 5.9%. WOW. So people in the middle class literally have no money, lots of debt, and basically are only worth what their house is worth.

    It should also be noted that pensions increased a lot. I'm not sure what to make of this. Hopefully it's a good thing. The study indicates that much of the liquid assets went into pension funds (401k, etc).

    Thoughts?
    It's called getting screwed by the republicans.

  3. #3
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    Quote Originally Posted by Accipiter View Post
    It's called getting screwed by the republicans.
    There is no correlation with a republican controlled congress or presidency. More intelligent responses would be appreciated.

  4. #4
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    Quote Originally Posted by Steeeeve View Post
    Guess what!? You're poor!

    According to this study, which verified a few others released over the past few months, shows how if you are in the bottom 80% you basically have no money and a lot of debt. Study is linked and I'll point out a few disturbing trends:

    Paper: The Asset Price Meltdown and the Wealth of the Middle Class (2012 APPAM Fall Research Conference (November 8 - 10, 2012))

    Table 8 shows Debt/Equity and Debt/Income from 1983 and 2010 for the middle class.

    In 1983 D/E ratio was 37% and in 2010 is 71.5%! D/I ratio went up from 66.9% to 134.5%. Holy sh*t. Honestly, I didn't even realize it was this bad. My next question was what assets declined...which is also Table 8.

    Residence for middle class was 62% of assets held in 83 and 67% now. This is not a good sign because home values suck. More telling, LIQUID ASSETS went from 21.4% to 5.9%. WOW. So people in the middle class literally have no money, lots of debt, and basically are only worth what their house is worth.

    It should also be noted that pensions increased a lot. I'm not sure what to make of this. Hopefully it's a good thing. The study indicates that much of the liquid assets went into pension funds (401k, etc).

    Thoughts?

    For the middle class, debt free is the new rich.
    IMO, this is the big problem with trying to increase taxes on the middle class. What are they going to pay it with?

    I think it is also worth noting that numbers like this make the odds of home values increasing virtually nill, and the odds of a long term decrease a virtual certainty. The federal reserve helped slow the decline by basically offering to buy every piece of MBS paper on the market, but that is essentially just a holding strategy, and one with an expiration date.

    I have trouble understanding how anybody can look at the distribution of wealth we have today and not immediately realize that we have a SERIOUS problem. You cannot run a mass market economy if you consumers are broke. It just does not work. That is why we are never going to see the prosperous economy of our past return unless and until we see some SERIOUS wealth migrating out of the upper class and ending up in the lower and middle classes.

    Welcome to Argentina.
    If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen. —Samuel Adams

  5. #5
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    Quote Originally Posted by Steeeeve View Post
    There is no correlation with a republican controlled congress or presidency. More intelligent responses would be appreciated.
    California Teachers Union Socialist Brainwashing - Tax The Rich - Brainwashing For Students - YouTube

  6. #6
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    Are you admitting to being brainwashed?
    Morals are a religious Myth.. - Xcaliber
    How is Evil Immoral? - Xcaliber
    I am right until you prove otherwise - Xcaliber

  7. #7
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    Quote Originally Posted by Freedom View Post
    Are you admitting to being brainwashed?
    I can not be brainwashed I have something called skepticism.

  8. #8
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    Quote Originally Posted by Accipiter View Post
    I can not be brainwashed I have something called skepticism.
    I'm skeptical of your intelligence.
    Morals are a religious Myth.. - Xcaliber
    How is Evil Immoral? - Xcaliber
    I am right until you prove otherwise - Xcaliber

  9. #9
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  10. #10
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    Quote Originally Posted by Steeeeve View Post
    Don't hijack threads please.
    Your thread is dead so what's the difference?

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