Fed. Res.: We are $2T richer in 2nd quarter!Submitted by SteveMT on Thu, 09/17/2009 - 19:56
At least the smoke and mirrors being used are real.
Fed Reports Americans' Worth Grew By $2 Trillion
September 17, 2009 5:10 p.m. EST
Melvin Baker - AHN Reporter
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.
(NOT yet found on Fed. Res. website)
Household Net Worth in U.S. Increases by $2 Trillion (Update3)
By Bob Willis
Sept. 17 (Bloomberg) -- Household wealth in the U.S. increased by $2 trillion in the second quarter, bringing an end to the biggest slump on record.
Net worth for households and non-profit groups climbed to $53.1 trillion from $51.1 trillion in the first quarter, marking the first gain since the third quarter of 2007, according to the Federal Reserve’s Flow of Funds report today in Washington. The government began keeping quarterly records in 1952.
The advance reflected the biggest quarterly jump in stock prices since 1998 and the first increase in home values in more than two years. Together with increased savings and less debt, the gain in wealth is part of the mending process consumers will undergo in coming years before spending can gain speed.
“We’ve clawed back some of the previous losses,” said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. “Households are less willing to use credit and it will be a long slog to rebuild the wealth” lost during the recession.
Supplemented by federal stimulus measures such as the cash- for-clunkers program, tax credits and extended jobless benefits, consumer spending this quarter has started to improve following the biggest slump since 1980.
The Standard and Poor’s 500 Index, which showed the biggest quarterly gain since 1998 in the second quarter, has continued to climb since June 30. The gauge closed down 0.3 percent at 1,065.49 today in New York, retreating for just the second time in 10 days.