Household Wealth and Median Income Fell

This week, the Federal Reserve dropped two bombshells—the news that from 2007 to 2010 household wealth dropped 39% to a level last seen in 1992 and the smaller but perhaps more fraught headline that median income fell 8% in those three years.

The fall of median family net worth to $77,300 from $126,400 is mostly a real estate phenomenon; homeowners certainly feel less wealthy and the statistic reminds Americans that happy days have yet to return.