median household wealth popped in the bubble and collapsed in the bust, as housing prices fell by 30 to 40 percent in the worst-hit metros, in California, Nevada, and Florida. In 2007, barely half of families surveyed by the Federal Reserve reported savings. Just as the boom made families feel richer, the financial shock made families feel poorer. And so falling housing prices led to falling wealth, which led to falling spending, which led to falling private sector revenue, which led to massive job cuts, which dragged down housing prices even further, and around and around we go.