And I heard a voice from among the four living beings say, “A loaf of wheat bread or three loaves of barley will cost a day’s pay. And don’t waste the olive oil and wine.” — Revelation 6:6
According to Democrats, it is the Republicans who only care about the rich. And of course it is Republican policies that are disastrous for the poor and the middle class.
Of course, Democrats are liars without shame, without honor, without integrity and without decency. So you can pretty much roundfile their bullcrap. The facts prove the exact OPPOSITE.
What you find is that, after five years of Obama, we’ve gained less than half the wealth that was lost since 2007 (after Democrats blew up the economy and demagogued their sabotage). And what you find is of that 45% of wealth that was regained (let’s just forget the 55% of the wealth that Obama lost for America), fully two-thirds of it was recouped by the stock market. And what you find is that 80% of the stock market is owned by one-percenters.
Obama and his godawful Obamanomics crushed the poor into tiny bits of meat and spoon-fed that meat to über-rich like George Soros and Warren Buffet.
Average U.S. household has regained just 45% of wealth lost during recession, St. Louis Fed analysis finds
The Associated Press
Published: 31 May 2013 01:22 AM
Updated: 31 May 2013 01:22 AM
WASHINGTON — American households have rebuilt less than half of the wealth lost during the recession, leaving them without the spending power to fuel a robust economic recovery, according to a new analysis from the Federal Reserve.
From the peak of the boom to the bottom of the bust, households watched $16 trillion in wealth disappear amid sinking stock prices and the rubble of the real estate market. Since then, Americans have been able to recapture only 45 percent of that amount on average, after adjusting for inflation and population growth, according to the St. Louis Fed report, released Thursday.
A separate Federal Reserve report in March calculated that Americans as a whole had regained 91 percent of their losses.
Household wealth plunged $16 trillion from the third quarter of 2007 through the first quarter of 2009. By the final three months of 2012, American households as a group had regained $14.7 trillion.
Yet once those figures are adjusted for inflation and averaged across the U.S. population, the picture doesn’t look so bright: The average household has recovered only 45 percent of its wealth, the St. Louis Fed concluded. That suggests that consumer spending could remain modest as many Americans try to rebuild their wealth by saving more and paying off debts.
The number of U.S. households grew by 3.8 million to 115 million from the third quarter of 2007 through the final three months of last year, the report said.
As a result, the rebound in wealth has been spread across more people, reducing the average for each household.
In addition, though inflation has averaged just 2 percent over the past five years, it has eroded some of the purchasing power of Americans’ regained wealth.
The report showed most of the improvement was due to stock market gains, which primarily benefit wealthy families. That means the recovery for other households has been even weaker
“A conclusion that the financial damage of the crisis and recession largely has been repaired is not justified,” the report stated.
The study is part of a growing body of research on the role of household wealth — or its lack — in amplifying the impact of the recession and slowing the recovery. Traditionally, economists and policymakers have focused on the effects of employment and income. But the report from the St. Louis Fed argued that swings in household balance sheets — which include home values, stock prices, savings and debt — were critical in determining which families weathered the financial storm and which got swept away.
The report found that the most fragile households were less educated, relatively young, black or Hispanic, or some combination of those characteristics. Those families tended to have low savings combined with high debt and accrued much of their wealth through housing.
How those households respond to the changes in wealth is a critical component of the recovery. Top officials, including Fed Chairman Ben Bernanke, have pointed to the rebound in real estate and the soaring stock market as evidence of the success of the central bank’s policies.
The Fed is spending $85 billion a month to lower long-term interest rates and stimulate the economy. It has also kept short-term interest rates near zero. That has helped push stock markets to record highs, while home prices have jumped by the most in seven years. Consumer confidence is at its highest point since February 2008. Officials hope those factors will eventually result in more consumer spending power.
“I think we’re at an inflection point,” said Beth Ann Bovino, senior economist at Standard & Poor’s. “We’re seeing things turn around. And that’s where the optimism comes in among households.”
The fear factor
But research by noted economists Karl Case, John Quigley and Robert Shiller found the households were more powerfully affected by declines in wealth than increases.
An unexpected 1 percent drop in housing prices caused a permanent 0.1 percent decrease in spending, that study found.
But a similar 1 percent rise in housing prices boosted consumer spending by only 0.03 percent.
“Rising wealth is gratifying, but the loss of wealth is terrifying,” said Mark Zandi, chief economist at Moodys.com. “Households spend somewhat more freely as their nest eggs grow, but they slash their spending when their nest eggs shrink.”
William Emmons, chief economist at the St. Louis Fed’s new Center for Household Financial Stability, said that many of the most vulnerable households began to treat credit as another form of income during the boom. After the bust, they were forced to dramatically rethink their finances, resulting in more cautious spending.
Emmons said many families have not experienced any recovery — or are even still losing wealth. Young Americans, those with few skills or the unemployed may not have been able to rebuild any wealth.
Emmons noted that although the number of foreclosures has dropped significantly, it is still more than double the pre-crisis amount.
Meanwhile, he estimated that recent gains in the stock market mean the recovery of wealth is nearly complete for white and Asian households and older Americans.
Wealth accumulation affects not only families’ current financial status but also their prospects. The St. Louis Fed report points to studies that connect savings to the likelihood of attending and completing college and to economic mobility.
The average household had a net worth of $539,500 at the end of last year, according to a separate paper the St. Louis Fed released Thursday. That was up from $469,900 in the first quarter of 2009 but sharply below the peak of $641,000 in the first quarter of 2007.
The Washington Post, The Associated Press
The overwhelming evidence of history reveals that every single time America has suffered a serious recession, it has exploded out of it at a rate that equaled the descent into said recession. The difference now is that Barack Obama has been undermining and outright destroying the American economy and the entire American way of life.
Economically, Obama has been THE WORST PRESIDENT EVER.
And so what has happened? Obama has actually INCREASED the gulf between the rich and the poor, increased the gulf between blacks and whites and basically has made life harder and more difficult with fewer opportunities for all the very groups of people that Obama falsely promised he cared about and would help.
Democrats are dishonest. They are liars. They say one thing and then they do the exact opposite time and time again. They don’t give a flying DAMN about the poor or the middle class; they want more government power. They want to be able to decide – I’ll use the word “dictate” – who wins and who loses, who gets rewarded and who gets punished, who gets taxed and who gets exemptions, who gets a free ride and who pays out the wazoo, and even who lives and who dies as the same biased Obama IRS that targeted and punished conservative political and religious groups will begin doing the same thing as they sharpen their knives to cut into their role in the ObamaCare holocaust.
You can’t borrow and spend your way out of bankruptcy. You just can’t. You can’t keep printing money when you’re broke and never find yourself standing on the cliff that just fell away leaving you standing with your feet firmly planted in midair. You just can’t. You can’t allow the Democrats to keep parasitically taxing the producers to redistribute wealth to the slackers in exchange for their vote and not see a radical decline in America. You just can’t.
Friday will be an interesting day. That is the day that the job numbers come out for the month of May. Here’s what’s funny: if we have a good report and hear that the job market is opening up, the stock market will plunge. Why? Because the rich people who populate the stock market want to keep sucking on the Obama tit of endless Federal Reserve “stimulus” via quantitative easing, QE1, QE2, QE3, Operation Twist and now QE Forever. The Fed has indicated that if the economy is performing better that they will begin to look to get out of the massive purchase of American debt (where we literally create more money by adding zeroes to the Fed computers). That candy is ONLY available to the rich, and the poor be damned as their small fixed incomes become worth less and less as the mega-poor interest rates creates severe devaluation of the dollars they are desperately trying to save. As for the big businesses and the mega-rich who invest in those businesses, they want to continue receiving Obama’s “stimulus” in the form of super-low interest loans (that none of the rest of us can ever hope to get) that will allow them to keep making more and more and more money.
It’s right out of the economy that the Book of Revelation talks about. And it’s OBAMA’s economy.