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Fed survey: Median net worth fell 40% during recession

A new report out from the Federal Reserve this week confirmed something most of us already know: The last few years have taken a hatchet to our finances. Americans have lost 40 percent of their net worth.

And most of that happened to middle-class families. Know where that puts us? Back to the year Whitney Houston's "I Will Always Love You" spent 14 weeks at the top of the charts. 1992. In other words, 18 years worth of wealth gains lost between 2007-2010.

The Fed's survey broke down the data by factors such as education level, regions and employment type. One of the puzzling findings was that the net worth of people with college degrees fell by a greater percentage than people who didn't have a college degree.

Listen to the audio above to hear reporter Sarah Gardner discuss the details of the Fed's report.

About the author

Sarah Gardner is a reporter on the Marketplace sustainability desk covering sustainability news spots and features.
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It is a ridiculous to value one's assets at the pinnacle of the housing bubble. From 2000 through 2006 the value of my house more than doubled. The value of my house has been going down from 2007 on. Houses were way overvalued in 2006 and the market is trying to find a more valid equilibrium. In reality, any net worth based on home values in 2006 were illusions. People who bought houses at the height of the bubble, now live in the house of pain. A more accurate measure of personnel assets should start before the housing market took off and run until the housing markets stops falling.

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