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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 366.09-0.1%4:00 PM EST
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To: TobagoJack who wrote (92931)7/26/2012 5:36:04 PM
From: KyrosL2 Recommendations  Read Replies (1) of 217550
 
Median is the point which divides people in half. Half have more than the median, half less. This graph simply points out that wealth in America is distributed in a very lopsided way compared to other developed countries. This can also be seen in the Gini index which is much higher in America than other developed countries. Now, if you take AVERAGE wealth per person, America will most probably be near the top among large developed countries.

The median person in America has most of their wealth as home equity. Homes in the US are typically much bigger than homes in other countries. That home was used as an ATM via cash out refinancing in the years before the great recession. Since then it has lost some 30% of its value and as a result the equity owned by the median person has plunged.

Other countries have that problem. For example, the Dutch also have very high home prices and carry huge mortgages. As home prices are falling, Dutch median wealth is also falling rapidly, because home equity is vanishing, even though Holland is one of the richest countries in the world.

Australia, on the other hand has a much more equal wealth distribution, since a lot of its population is relatively recent immigrants, plus its government follows social democratic policies. Also, the housing in Australia has not yet crashed, though it has stalled.
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