Middle Class Serfdom – More Debt, More Job Losses, Housing Values Down By 30 Percent But Total Household Debt Only Down By 2 Percent.
Posted By thestatedtruth.com on August 10, 2010
A deflationary debt spiral is the killer of the American middle class.  Little equity is left because the debt level has stayed basically the same, while most or all their assets including retirement are falling in value.Â
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In total, roughly $7 trillion in U.S. residential real estate values have been lost in the last few years according to the Case Shiller data and the Fed flow of Funds report. However, the amount of debt of working and middle class Americans has not adjusted accordingly.
While actual real estate values have fallen by close to 30 percent household debt has only moved lower by 2 percent! Any wonder why so many Americans are underwater and defaulting in mass on their loan obligations. The middle class is slowly being taken apart.
More at:Â www.mybudget360.com
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