Where Has All the Money Gone?

A friend and I were discussing the (just awful) economy yesterday.  This item 'splains a lot.

Income for American families declined more in the years following the economic recession than it did during the official recession itself, a new study shows.

During the recession, which economists say lasted from Dec. 2007 to June 2009, the median annual household income fell by 3.2 percent, from $55,309 to $53,518, according to a report authored by two former U.S. Census Bureau officials. But in the post-recession period from June 2009 to June 2011, the figure fell by 6.7 percent, from $53,518 in June 2009 to $49,909 in June 2011. …HotAir quoting Politico

IOW, it's worse--by far--now than it was just after Bear/AIG (etc.)

It's even worse than that (!!!) if you lost your job; you can expect a 17% negative hit to your earnings when (and if) you get a new position.

So it's not just losing 10-20% of the value of your home; it's not just reducing spending on goods to effect larger debt-reduction.  It's also that there's a significant deterioration in household income.

Graphic from BigPicture: