An article came out last Friday written by Dave Carpenter and Jeannine Aversa, business writers for the Associated Press entitled, "Slowly, Americans are Regaining Their Lost Wealth ".On the surface, this seems like a ray of hope moving beyond this economic downturn... the worst since the Great Depression of the 1930's. It is fairly inconceivable that American Household net worth that had soared to a pre-recession peak of $65.9 trillion had fallen to its low of $48.5 trillion in the first quarter of 2009. "Net worth is the value of assets such as homes, checking accounts and investments minus debts like mortgages and credit cards." That is a 26.4% drop or over a quarter of each American family's net worth over that 2 year period! To recoup to pre-recession times, the net worth would have to climb over 21% from its latest 2009 4th quarter level of $54.2 trillion.
We have seen rebounds from previous recessions spurred on by consumer confidence and therefore more spending. Americans, in general, have had the wind knocked out of their sails during the last 2 years and are naturally cautious. However, what makes us strong as a nation is that we are a land of hope, entrepreneurism and determination to make things better. That is what will pull us out of this slump and lead us forward into a new period of prosperity.
It is a little like watching the impact of this long stretch of cold weather we have experienced the last 2 months on our beautiful palm trees here in Tampa Bay. They looked so brown and bleak from the cold. Now that our beautiful weather has returned, there are new bright green sprouts reflecting the new life and beauty just around the corner.
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