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View Full Version : Americas Net Worth Plummets 1.5 Trillion Dollars!!



Sev
09-21-2010, 05:20 PM
And according to Obama we are going in the right direction.

http://www.cnbc.com/id/39233593

U.S. household net worth drops
Published: Friday, 17 Sep 2010 | 12:51 PM ET


WASHINGTON - U.S. household wealth fell by $1.5 trillion in the second quarter, according to Federal Reserve data on Friday that showed the strain a slow-paced recovery and high unemployment are putting on Americans.

Household net worth fell to $53.5 trillion, well below the $64.2 trillion it had reached at the end of 2007 when the recession officially began, according to the central bank's quarterly flow of funds report.

Declines in the value of financial assets -- especially in stocks and mutual funds -- accounted for much of the decline in second-quarter net worth. Stocks alone were down $1.9 trillion to $14.9 trillion, more than offsetting small gains in other areas like state and local government retirement funds.

Consumers pared debt at a seasonally adjusted annual rate of 2.3 percent, the ninth consecutive quarter in which they did so. Home mortgage debt fell at an annual rate of 2-1/4 percent after a 4-1/4 percent drop in the first three months this year.

During the financial crisis that wracked the country from 2007 to 2009, trillions of dollars in housing and financial market wealth was wiped out and heavy household and financial sector indebtedness was exposed.

The government has stepped in with increased spending and stimulus programs to try to spur recovery but the unemployment rate in August edged up to 9.6 percent and housing markets are still in distress.

Federal government debt expanded during the second quarter at a hefty 24.4 percent annual rate after a 20.5 percent increase in the first quarter. By contrast, state and local government debt shrank 1.3 percent during the second quarter.

Business debt excluding financial companies was up a slim 0.1 percent following a 0.5 percent rise in the first quarter.

Data issued on Thursday by the U.S. Census Bureau similarly underlined the extent to which the financial crisis and ensuing recession has hurt household incomes.

The Census Bureau's annual look at U.S. living standards -- once the envy of the world because of the upward mobility Americans could tap into -- found the poverty rate at a 15-year high of 14.3 percent in 2009, up from 13.2 percent in 2008.

Sev
09-21-2010, 05:22 PM
http://all247news.com/household-net-worth-fell-by-1-5-trillion-from-last-quarter/5397/

Federal Reserve data showed a drop of $1.5 Trillion in the household net worth of Americans in the second quarter of 2010 compared to the first quarter of this year. This was attributed to declined value of stocks, mutual bonds, real estate property and the increasing unemployment rate.

Total household net worth was recorded at $53.5 trillion. This is $4.7 trillion higher than the lowest recorded recession data of $48.8 trillion for the first quarter of 2009. It is still way below the highest recorded pre-recession amount of $65.8 trillion.

There has been a slight yet steady rise in household wealth for the past 4 quarters. However, the surge in unemployment rate of 9.6 per cent this August greatly affected whatever gains recorded the previous quarters.

Economists predict that it may take anywhere from 5 to 10 years before any significant surge in the numbers will be seen.

Government stimulus packages, especially those that involved mortgages, have slightly helped in controlling what could have been a further drop in household net worth. Since most of the assets rely on property values, even a mere 0.3 percent is treated as welcome news.

In pre-recession 2007, the highest average household wealth recorded was $563,438. This yearís second quarter data revealed that wealth is down to $455,173.

There was also a decline in household expenditures. Lack of faith in the countryís economic stability led Americans to limit spendings for their disposable income. Most would rather place them in reliable banks thus savings percentile increased to 6.1 during the period April to June. More Americans prioritize debt payment over luxury expenditures such as vacations. Studies show that the total debt of an average American reaches $43,000 which includes mortgage, credit cards and other loans.

Some say that the recession has ended or that it is nearing its end. If so, then there should be an increase in consumer spending. But spending has not soared yet. Does this mean that the recession isnít over and that there will be further decline in household net worth in the next quarters? This remains to be seen.

LWW
09-22-2010, 03:08 AM
And according to Imam Hussein Obama we are heading in the right direction ... away from prosperity and liberty and towards dependency and the soft (Initially.) tyranny of the state welfare system.

LWW

Qtec
09-22-2010, 04:49 AM
http://billpitkin.files.wordpress.com/2009/09/poverty-in-the-us.jpg

Number of people in poverty went down under Clinton and UP with Bush. When Obama took over the rate was still climbing. He is NOT the Magic Negro.

Q

Sev
09-22-2010, 06:52 AM
And he is proving he is not a magic Negro every day.

pooltchr
09-22-2010, 07:49 AM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body">
Number of people in poverty went down under Clinton and UP with Bush. When Obama took over the rate was still climbing. He is NOT the Magic Negro.

Q </div></div>

Nice chart, Q.

Notice how the trend since the early 70s has been moving higher and higher, and at the same time, moving farther away from the poverty level.

Now, refresh my memory. When did we start that "War on Poverty"?

Steve

LWW
09-22-2010, 01:54 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Qtec</div><div class="ubbcode-body"> http://billpitkin.files.wordpress.com/2009/09/poverty-in-the-us.jpg

Number of people in poverty went down under Clinton and UP with Bush. When Obama took over the rate was still climbing. He is NOT the Magic Negro.

Q </div></div>

Can you even read?

The poverty rate started up inder Carter and then leveled off and fell back some under Reagan.

It started back north under Bush I and continued rising until the Gingrich revolt, and then turned back down.

It started rising again following the Marxist regime takeover in 2006.

Some day you will wake up to the fact that I slay allof your assumptions with your own links.

LWW

Deeman3
09-22-2010, 02:56 PM
[quote=pooltchrNow, refresh my memory. When did we start that "War on Poverty"?

Steve [/quote]

<span style="color: #FF0000"> Best question I have seen all day!</span>

Sev
09-22-2010, 05:41 PM
I think I heard something hit the floor.

cushioncrawler
09-22-2010, 07:35 PM
U.S. household wealth fell.....
IF EVERY HOUSEHOLD WOZ WEALTHY, THEN NO HOUSEHOLD WOULD BE WEALTHY -- DUZ ANYONE HERE UNDERSTAND THIS ?????
FURTHERMORE -- WHAT IZ WEALTH?????

Household net worth fell.....
HAV THEY GOT A PERMIT FOR THAT NET ??????
INSTEAD OF WORTH, READ "WORTH" -- BUT WHAT IZ WORTH WORTH ?????


Declines in the value of financial assets....
IF EVERYONE HAD FINANCIAL ASSETS THEN THEMS ASSETS WOULD HAV ZERO VALUE.
INSTEAD OF VALUE, READ "PRICE".

During the financial crisis that wracked the country from 2007 to 2009, trillions of dollars in housing and financial market wealth was wiped out....
HEY, EVERYONE, THE CAKE IN THE SHOP WINDOW IZNT A CAKE UNTILL I/WE PUT A PRICE ON IT.
INSTEAD OF WEALTH, READ "PRICE".

The Census Bureau's annual look at U.S. living standards.....
WHERE DO THEY LOOK ?????
WOULD THEY KNOW ONE IF THEY FELL OVER IT ??????
mac.