Household net worth reaches record $83 trillion
Last edited Thu Mar 12, 2015, 10:26 PM - Edit history (1)
Source: AP
WASHINGTON (AP) Fueled by higher stock and home values, Americans' net worth reached a record high in the final three months of 2014.
The Federal Reserve says household wealth rose 1.9% during the October-December quarter to nearly $83 trillion.
Americans' stock and mutual fund portfolios increased $742 billion, while the value of their homes rose $356 billion.
The typical household didn't benefit much, though. Most of the wealth remains concentrated among richer families.
Still, greater wealth could help lift spending and economic growth. Higher stock and home values can make people feel more financially secure and more willing to spend.
The Fed's figures aren't adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit cards and other debts.
Read more: http://www.usatoday.com/story/money/personalfinance/2015/03/12/household-net-worth/70219592/
But RWers whine that we're broke! Free community college for $6 billion a yr? WHERE are we going to get the money? Boo-hoo.
That last part sounds awful trickle down to me.
msongs
(67,465 posts)AngryDem001
(684 posts)get ahead, now can we?
Noooooo, that would mean less money for the rich to spend on luxury cars and private jets!
And that's just UN-AMERICAN!!
father founding
(619 posts)How come it trickles down, but explodes up.
Scuba
(53,475 posts)Thor_MN
(11,843 posts)blackspade
(10,056 posts)The typical household didn't benefit much, though. Most of the wealth remains concentrated among richer families.
This is the story, not that some rich assholes might buy a new car...
jtuck004
(15,882 posts)others.
With their consent.
Fred Sanders
(23,946 posts)Warpy
(111,405 posts)it might be worth something. It's just a stupid number right now. Money only works when it's moving and most of those households are simply hoarding it.
ErikJ
(6,335 posts)B-b-b-but where we going to get the money? boo-hhoo
Igel
(35,382 posts)It's "wealth."
It's created by nothing but paper valuation. And, like what happened in 2008/09, it can be destroyed by paper valuation. Without a dollar changing hands, even a virtual dollar. My parents' house went from $160k in 1996 to $280k in 2007. Oddly, not a $ changed hands. Then in 2008 the valuation went down to $165k, and my mother screamed that somebody had to have taken her money.
And yet people act like somehow a higher appraisal for real property or liquid investments somehow sucks money out of other's accounts. It doesn't, at least not until they fork the money over for inflated investments. Last one holding the overvalued asset is the one who was snookered, even if it may not be obvious for a while.
Nye Bevan
(25,406 posts)while ignoring the fact that by this logic she first stole $120k. In reality, you're right, and the people who really squawk are those who unwisely "unlocked their equity" (i.e. took out a second mortgage because they wanted to buy stuff).
Warpy
(111,405 posts)and natural resource development. We've lost the manufacturing and we're exporting the natural resources.
This is not a wealthy country any more because the wealth is gone. All we have is a few fat cats sitting on big numbers that are so huge as to have become utterly meaningless.
There will be a next crash, of course, that is likely to take everything. With nothing left, not even numbers, maybe their stranglehold will be broken.
sakabatou
(42,189 posts)AngryDem001
(684 posts)DeSwiss
(27,137 posts)...this ''news'' is meaningless to all but the investment bankers. When the value of money is dictated by the money supplier and not by the relative and actual demand for that currency in the marketplace then you can say whatever the monetary value is that suits your needs. That's how we've technically avoided an economic ''Depression'' by printing as much money for the Masters of the Universe of Wall Street as they say they need (i.e. Quantitative Easing).
Of course allowing a market with free-flowing currency can be problematic as well. Especially with the bizarre income distributions this country's always had and as it is with all monetary systems, in-general. It's how we can technically be in a so-called ''economic recovery'' and yet have about the same level of poverty and unemployment as before, if not more.
And with the banks not issuing any loans to any real persons to speak of (just corporate persons), any asset value increases due to a rising stock market are useless to most of us plebes if it can't be translated into something of value, preferably permanent in nature. On the other hand, doing the Loan-Asset-Cashout Mambo, was the dance we were doing before and what got us to where we are now.
But the built-in hierarchical stratum of this monetary system is a required component of all monetary systems. For those of us fortunate to live in the US -- since everyone else's currency is fiat money too -- (and weaker than our own) -- we've become king of all the fiat money trash heaps, by default......
- Good news everyone!
ErikJ
(6,335 posts)they need to print lots of it to compensate. That and our big trade deficit.
DeSwiss
(27,137 posts)They have been for a while but have been juicing the numbers like any good Wall Street Investment firm would. Except they're a country. Of course we do it too. As do they all. The numbers won't work at all otherwise. But they've been the engine driving this train and now it's just coasting.
However, they also want to convinced the world that they're the new go-to world currency. But with real demand for their goods and products slumping precipitously (always use Baltic Dry as the real measure) and all those freakish sovereign fiat bonds floating on the high financial seas like so many mines floating out-of-view of the horizon, it's just a matter of time before one of them hits an iceberg.
- Except in this case, we're all in the water and only those with life-jacket$ or who can tread water --- indefinitely, will be saved.....
DesertDiamond
(1,616 posts)ErikJ
(6,335 posts)all 300 million or whatever.
Javaman
(62,534 posts)we are left with pocket change.