A 39% plunge in the median net worth of U.S. families is a credit negative for state and local governments and higher education institutions, according to Moody’s Investors Service.

The Board of Governors of the Federal Reserve reported the 39% decline from 2007 to 2010 in a bulletin published June 11. The percent decline for net worth is inflation-adjusted. The decline in net worth was primarily due to declines in house and stock prices, according to the Fed.

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