Thursday, February 12, 2009
You don't have to look very far in the Federal Reserve's most recent bulletin on U.S. family finances before you find something quite interesting - the very first chart is a graphic depiction of how skewed changes in income were during the housing and credit bubble.
Anytime you get a huge difference between the mean and the median, you know there's been a big shift in the data. In this case, much larger increases at the high-end managed to push the average up a full 8.5 percent but the mid-point of all samples stayed put.
Translation: Those making a lot of money made a lot more, those who weren't made even less.