The state of U.S. household net worth is dismal, as this chart (thumbnail) shows, with the country falling back to levels last seen in the late 1980s and early 1990s. This collapse happened once prior, after the deflation of the dotcom bubble. But now, as a result of the housing bubble collapsing, household net worth has fallen even lower. The rebound after the dotcom collapse was dramatic. The rise from 2009 lows has been less pronounced, with it clearly slowing in 2010. We are only back to levels first reached in the early 1990s.

So after two major bubbles created after the Regan revolution and the contract with America (Newt Gingrich), we are right back where we started. Except, the wealth gap between rich and poor have widen, so this picture looks even worse for the average American. In addition, we have a huge debt burdens and a ruined economy. Its been nothing more than a scam. I still don’t understand why these teaparty people want to go back to these failed policies, … they want Republicans back in to finish the job?

Market view: