House Poor: Proof of Shrinking Wealth in America

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Aug. 27 (Bloomberg) -- On “Single Best Chart,” Scarlet Fu examines the median value of assets owned by American households. She speaks on “Bloomberg Surveillance.” (Source: Bloomberg)

Wealth.

We have been -- it is on american shrinking wealth.

This is taken from the assets owned by different u.s. households.

Starting want to thousand one, american families but increasing amount of wealth and housing.

They took on more debt.

That came at the expense of other kind of investments.

If you look at what happened since, the peak was 2007. in 2000 and -- 2010, the value of the housing market has dropped off.

What is so important there on the right side of the chart, you see the decline in the yellow bar which is the pain and agony on housing.

What is far more important is the decline on the two blue bars over to the right.

That is the equity markets.

Brendan greeley, if you went to cash in 2009, you cannot catch up if you are over a certain age.

You keep talking as if i have any cash to do anything with.

[laughter] see that highest yellow bar, that is one about a house.

The reason this is important is because this affects the middle class the most.

Disproportionately.

If you are rich, you have lots of money to diversify assets.

If you are poor, you are much less likely to have a house.

The second you have some money to invest, you stock it in real estate and you put your whole portfolio in one asset.

This does come over to the tax differentials here versus europe.

You mentioned this in europe.

There is a lot less homeownership in europe.

In germany it is 44%. here it is higher than 70%. but we are not that exceptional to other countries compared to homeownership to rid is this

This text has been automatically generated. It may not be 100% accurate.

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