the wealth and also the net wealth in the uS is increasing according to the last statistics. the reasons are (mainly) increasing house values in many parts of the US.
1. What i want to say is that the increasing net wealth does not make the article wrong or change any argument that is used in the article. just the opposite someone could say that the reason for this increasing net wealth is part of the politics mentioned in the article.
2. a different topic would be the question are americans richer now and what would happen to their wealth if they want to realize it.
Your point was that (many) americans do not have to save money because they are richer than they were five, ten .. years ago. That is correct if someone sells the house and realize the gains now. This guy can compare the new price with the price he payed years ago.
The point is many americans stopped saving because of low rates and increasing values of their houses. They refinanced their mortgages payed a little bit back of their credit card debt and bought a little bit on top because of their increasing new wealth or other reasons and so we saw a very healthy growth based on consumption in the US during the last years. But also a negative saving rate a huge trade deficit and a huge current account deficit because many amercicans like japanese cars and chinese clothes toys or whatever ( or if they are a little bit richer and like well designed cars BMW Porsche Audi) .
But nobody believes or better should not believe that this can go on forever. You don´t have to be a fan of these doom scenarios that you can find everywhere or a scientist to realize that this is not a new paradise or a source of endless growth.
...what would happen to their wealth if they want to realize it. Your point was that (many) americans do not have to save money because they are richer... ....nobody believes or better should not believe that this can go on forever.....
What I'm getting from you is that household private assets have value on paper but everyone sells their home then home values will fall. They won't, but even if they did they'd only take a hit with about a third of private wealth ($21 trillion-- the break down came from page 102 of this fed report).
Same with bank deposits ($12 trillion). If everyone spent all their money all on the same day then the money wouldn't be worth as much.
Check out items 23 through 29 -- they're all based on stocks and they total more than homes and deposits combined.
Most companies with stocks are in the service sector. These companies make stuff like software, building designs, songs, invention patents, books, etc. The value of a stock depends on the ability of a company to create products.
So you're right --it can't go on forever. Everyone knows that in about 5 billion years the sun's going to explode and end all life on the planet.
