US Stock Market Losses in 2022, $30,000 Per Person

Almost $10 trillion worth of losses for the U.S. economic system so far in 2022, equating to about $30,000 per person.

Citing Federal Reserve data and several news reports along with the steady decline in NYSE stock prices since the beginning of the year, the US has been wiped out of nearly $9 trillion in investor wealth and may be close to hitting $10 trillion in total stock market losses in 2022.

As of Summer 2022, American households held an estimated $33 trillion worth of stocks and bonds, according to the latest Federal Reserve data released. But as these numbers are three months old, analysts say they expect losses of up to $9.5 trillion, pushing the overall value of household assets to below $40 trillion for the first time since 2008.

Comparing 2008 Stock Market Losses

The 2008 stock market losses were a series of large-scale declines in the U.S. and global stock markets that began on October 9, 2007, and continued through March 2009. The losses occurred during the financial crisis of 2007–08, which was caused by the subprime mortgage crisis. In addition to the United States, other major countries also experienced significant drops in their stock markets which created a global recession.

Inflation Problems Compounded The Losses

Inflation data released earlier showed prices rising faster than expected, sending shockwaves through financial markets around the world. While the Fed had hoped that moderate growth and low unemployment would lead to slower price increases, the latest figures show that inflation is accelerating.

The central bank said recently that core consumer prices rose 0.3 percent in July, compared with June's 0.1 percent gain. Economists polled by Reuters had forecast a 0.2 percent rise. The Fed also said wholesale prices increased 1.0 percent last year, topping forecasts for a 0.9 percent rise. That means inflation accelerated to 2.8 percent annually from 2.7 percent in 2016. The U.S. economy grew at a 3.2 percent annual pace in the second quarter, slowing from 4.1 percent in the January-March period.

A Growing Divide Remains

Despite the financial and economic crisis caused by the Covid-2019 pandemic, and according to an Oxfam report, there were 573 new billionaires emerging on the markets just in the past 2 years.

According to the latest Economic Confidence Index score from Gallup, August ratings represent the public's most pessimistic views of the country's economic condition since the recession ended in 2009, with 47 percent reporting pessimism with 16 percent saying things are going well.

The Dow Jones Industrial Average has lost one-fifth of its value since hitting an all-time high on January 4th. Two consecutive months have shown a decline in the economic activity of the United States. and as for the jobs situation, there seem to be fewer people working than ever before.

How Crypto Markets Have Faired

Bitcoin’s price has been hovering around $20,000, but whether it‘ll keep climbing from there remains to be seen. Volatile swings in Bitcoin’s price underscore the increased volatility that cryptocurrencies have experienced over recent months.

After the Fed raised interest rates for the third time, Bitcoin saw a brief dip in its price but has since recovered. It was down almost 4% over the last several days.

Recent price movements and interest rates through Macroeconomic events have historically been volatile for cryptocurrencies. However, they appear to be stabilizing now that the economy has become predictable.

The crypto industry has continued to grow despite market conditions. In fact, the largest asset manager, BlackRock's Coinbase partnership has opened for institutional investors to invest in cryptocurrencies. And one of the biggest financial firms, Fidelity Investments, is considering adding cryptocurrency trading options to their existing brokerage platform.