Household Wealth Plunges During Recession

Washington, DC, June 12, 2012 -- Household net worth declined 38.8 percent between 2007-2010, mostly due to a plunge in house prices, according to the Federal Reserve.

The Fed study showed that the financial crisis pushed median net worth down to $77,300 in 2010, the lowest since 1992, from $126,400 in 2007.

Nearly every demographic group experienced losses, Fed economists said in the report.

One consequence is that consumer spending, which makes up 70% of the economy, has been held back.