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View Diary: New Study Finds Median Wealth of Black Women Is $5 (176 comments)

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  •  I'm guessing (4+ / 0-)
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    Odysseus, puzzled, Cassandra Waites, tari

    That means 'wealth' and not 'income.'  Which would be somewhere in the middle of paying off a mortgage on a house.

    You know someone named Arsenio Billingham? No.

    by Mikey on Fri Mar 12, 2010 at 05:17:44 PM PST

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    •  You're correct. (2+ / 0-)
      Recommended by:
      Cassandra Waites, erush1345

      The chart definitely says "net worth" and for the majority of American households, almost all their net worth consists of equity in their homes. Only a small percentage of American households have a significant amount of their net worth in financial instruments.

      Facts are sweet, but some people are factose intolerant

      by ebohlman on Fri Mar 12, 2010 at 05:30:58 PM PST

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      •  So yeah (1+ / 0-)
        Recommended by:
        Cassandra Waites

        In the context of a recession which knocked all the equity out of homes, people lost almost all of their net worth.

        So if you figure that when this survey was done, you had people above the median mostly owning a house more valuable than their mortgage, and people below renting and having more in student/credit card/car debt than personal property.

        Now take a bunch of people out of the top category and toss them in the bottom category.  There's no way this number is currently positive.  And that's before we get into the big drops in income that tend to force more debts.

        You know someone named Arsenio Billingham? No.

        by Mikey on Fri Mar 12, 2010 at 05:34:02 PM PST

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    •  Or already owning property. (3+ / 0-)
      Recommended by:
      Odysseus, Deoliver47, princss6

      One of the long-term after-effects of redlining in housing loans is that families with roughly equal incomes ended up with vastly different net worths simply because of who lived in the minority area where it was hard to get a home loan and who lived in the white area where it was easy to get a home loan.

      Can't build home equity when the bank says you can't be trusted with a mortgage payment equal to your current rent payment.

      Hoping and praying that the empty chairs and empty tables in Iran when all is said and done are as few as possible.

      by Cassandra Waites on Fri Mar 12, 2010 at 05:47:25 PM PST

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