YOUNG AMERICANS IN TROUBLE – AT 8:52 A.M. ET:  Many don't realize how severely the recession has impacted younger Americans.  For many, it's been a catastrophe.

Young US households — those aged 35-to-44 — lost a stunning 59 percent of their wealth during the recession, a government report released yesterday revealed.

That’s the stiffest hit of any age group, said the report from the US Census Bureau.

The age group — typically struggling with mortgages, tuition bills and rising tax bills — makes up the backbone of America’s middle class.

The losses were mainly due to the drop in the value of their homes during the 2005 through 2010 period, the report said.

“Lower- and middle-income households got especially creamed because their biggest asset is their home, and that got crushed,” said Mark Zandi, chief economist at Moody’s Analytics.

Overall, the average family lost 35 percent of its household wealth, composed largely of home values and stock investments.

The plunge in real estate and securities, among other negative events, left the average family holding net assets valued now at $66,704, a steep drop from $102,844 in 2010.

COMMENT:   Ah, hope and change.  It's very hard to know exactly how this will play out politically.  Discerning voters will see that the economic policies of the Obama administration are getting them nowhere.  At the same time, it's been pounded into their heads that the recession started under BUSH (!!) and CHENEY (!!!!!).  That is only partly true.  One of the engines behind the recession was the irresponsible home-mortgage policy of liberal federal agencies like Fannie Mae.  At the same time, we fully concede that some slick operators on Wall Street contributed mightily.

I suspect most people in the affected age group will realize that we can't go on the way we've been going, and will vote for change in November.  Will there be enough of them?  Pray.

June 19, 2012