Posted on 09/17/2009 4:01:10 PM PDT by Diana in Wisconsin
Washington, D.C (AHN) - Americans were $2 trillion richer at the end of June than they were three months earlier, the Federal Reserve reported Thursday.
Household wealth increased to $53.1 trillion in the second quarter of the year, a 17 percent annual rate, the agency said in its Flow of Funds report. It was the first increase since the second quarter of 2007, although net worth is down $12.2 trillion from that point.
The majority of the increase is pegged to improvements on Wall Street, where corporate equity rose $1.04 trillion. Real estate wealth rose by $139 billon.
Household debt fell to $13.7 trillion, a 1.7 percent annual rate, the fourth consecutive quarter of decline. Mortgage debt fell 1.4 percent annualized to $10.4 trillion.
The full report can be read at federalreserve.gov/releases/z1/default.
Some one missed a few zeroes or decimal places.
Wow!
Double Plus Good!
But government debt expanded by some $5T. So net, you’re behind.
Lies and then there are really whoppers.
Most Americans have most of their net-worth tied up in their home equity. And I sure don’t see that going up these days.
And Øbama and his jack-booted thugs are Grade A liars.
And $12 trillion in debt... for a net loss of $10 trillion.
NAFC.
My brokerage account is up $150K since March.
If there are 13,333,333 investors exactly like me, it is certainly possible.
But I think there are some bigger fish out there, so you really don’t need that many.
Wait, just exactly WHO got richer here? Certainly not the average American.
I-N-F-L-A-T-I-O-N. That can happen to the numerator when you change the denominator.
First, the ‘increase’ in wealth is simply us clawing back a bit at the losses in our stock and real estate holdings. GE, which I own, fell from $37 to $6 and is not at $16. The fed thinks I made a fortune recently while I feel like I lost a ton. Same with real estate prices. My house is not worth less than it was but more than it was a couple months ago — yea!
The evaporating debt is more smoke and mirrors. Interest rates are down, so adjustable rates are down so people are paying more on their debt. People are also refinancing. Again, lower rates means more coming off the debt. Finally, people are working out deals and going bankrupt — again reducing debt.
I do think people are so scared right now they are spending less. This is driving down prices for the rest of us, so those who *are* financing purchases are financing less.
None of this has anything to do with a good economy. In fact, all are symptons if a faltering economy.
Still, in the long run, all these things are good for consumers.
Our net worth dropped 6 trillion before it grew by 2. Factor in the dollar’s weakness and future inflation we are probably in the hole 10 trillion.
Since we started practicing Zimbabwean economics this might be true. Hope they put Obama on the new 1000000 dollar note
I’m RICH! Woopee! I got a $2 trillion dollar note that can buy me a chewing gum if I’m quick
Yep, and are they sure that’s not debt they are talking about?
| From the desk of cc2k: |
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