Americans net worth down $1.3 Trillion in FIRST QTR.

[PocketProtector]

Yeppers...Change ya can believe in.


http://www.foxnews.com/politics/2009...llion-quarter/

Americans' Net Worth Shrinks $1.33 Trillion in First Quarter
The Federal Reserve reported Thursday that household net worth fell to $50.38 trillion in the January-March quarter, the lowest level since the third quarter of 2004.

AP

Thursday, June 11, 2009

American households lost $1.33 trillion of their wealth in the first three months of the year as the recession took a bite out of stock portfolios and dragged down home prices.

The Federal Reserve reported Thursday that household net worth fell to $50.38 trillion in the January-March quarter, the lowest level since the third quarter of 2004.

The first-quarter figure marked a decline of 2.6 percent, or $1.33 trillion, from the final quarter of 2008.

Net worth represents total assets such as homes and checking accounts, minus liabilities like mortgages and credit card debt.

The damage to wealth in the first quarter came from the sinking stock market. The value of Americans' stock holdings dropped 5.8 percent from the final quarter of last year.

Another hit came from falling house prices. The value of household real-estate holdings fell 2.4 percent. Collectively, homeowners had 41.4 percent equity in their homes in the first quarter. That was down from 42.9 percent in the fourth quarter.

The latest snapshot of Americans' balance sheets was contained in the Fed's quarterly report called the flow of funds.

Despite the drop, the speed at which net worth has shrunk has slowed. During the recession's deepest point in the October-December period, Americans' net worth fell 8.6 percent, according to revised figures.

With wealth declining and unemployment rising, there are questions about how consumers -- the lifeblood of the economy -- will behave in the coming months.

If they continue to spend, even at a subdued pace, the recession likely will end this year as predicted by Fed Chairman Ben Bernanke and other economists.

However, if consumers hunker down and cut spending again, that could delay any recovery.

In the final quarter of last year, Americans slashed spending at an annual rate of 4.3 percent, the most in 28 years.

[camper]

camper

[leeam]

How can americans be down $1.33T when the fed has pumped far more than that into the market? HAVE BEEN LET DOWN BY MY GOVERNMENT!?

[PocketProtector]

How can americans be down $1.33T when the fed has pumped far more than that into the market? HAVE BEEN LET DOWN BY MY GOVERNMENT!?

Hmmmm ...........follow the money trail.

[dc dalton]

So let's see, we are going to blame Obama for the real estate and stock market crashes now?

Funny it seems to me all this started WAY before he even got elected.

ANYONE that is stupid enough to believe bringing in a new president in the MIDDLE of an economic mess like this is going to reverse the entire thing really needs a grip on reality, including those here and seeing as how He was only president for approximately 2/3 of the first quarter of this year the comments become even more asinine.

Time to face facts and stop playing boogeyman with Obama every time a headline hits.

[crlovel]

Just remember, the quicker the collapse comes, the quicker we can start rebuilding the whole sorry mess.

[camper]

ANYONE that is stupid enough to believe bringing in a new president in the MIDDLE of an economic mess like this is going to reverse the entire thing really needs a grip on reality, including those here and seeing as how He was only president for approximately 2/3 of the first quarter of this year the comments become even more asinine.

Agreed, but it's more a slap at his supporters who said that he would fix the mess by pumping massive money into the economy--despite people on both sides of the aisle saying it wouldn't work.

Still...increasing federal debt certainly plays into the value of american households, because federal debt is private debt in the form of taxes that has yet to be paid. More federal debt equals more taxes, more taxes equals less money for those being taxed. And less money for those who are taxed equals less retirement, less savings, less personal private debt paid, etc. Less overall wealth in general, to be specific.

camper

[PocketProtector]

O has accellerated the Progressive agenda under the guise of fixing things. Look no further than Rahm's infamous quote and what has ensued since.

A few years down the road, people will be asking "Why didn't someone warn us??" They themselves are warning you if you pay attention.

[dc dalton]

Just remember, the quicker the collapse comes, the quicker we can start rebuilding the whole sorry mess.

Yuppers but ALL the politicians and so-called government economists just don't get it.

[adymond]

Yuppers but ALL the politicians and so-called government economists just don't get it.

Oh, I think they get it. But doing anything but furthering the debt and prolonging the crash is counter to their agenda.