[ItisaReligionofPeace]

Asset inflation. i.e. housing and land prices.

[Mase]

Asset inflation. i.e. housing and land prices.

According to David Malpass, conservative Chief Economist at Bear Stearns:

On a per capita basis, counting mortgages but not houses, net financial assets total$89,800 in the U.S. versus $76,900 in No. 2 saver, Japan.

Only about 21% of our total household net worth comes from home equity. We own a lot of liquid assets which means our wealth is rapidly increasing even when home equity isn't considered.

Federal Reserve Flow of Funds (page 110 of 124) pdf.

To achieve this incredible wealth we have to be saving and investing. The problem is with how the government calculates the rate of savings.