Household Net Worth Plunges By Most Since Q4 2008, As Government Borrowing Surges

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Fri, 09/17/2010 - 12:51 | 588073 GoldSilverDoc
GoldSilverDoc's picture

Wanna bet the calculation for "household net worth" is complete and utter BS?  And that the real "market value" net worth is, oh, 60% (generous) of the reported number?

Fri, 09/17/2010 - 13:05 | 588116 subqtaneous
subqtaneous's picture

Probably so, but fudged numbers or not, it's one more admission that the great Black Hole of anti-consumption is busily swallowing up every pseudo-dollar created over the past 15 years or so.


Gird your loins, kids.


Fri, 09/17/2010 - 13:33 | 588175 bigdumbnugly
bigdumbnugly's picture

"And possibly the most important data point: the change in borrowings, confirmed that everyone is deleveraging except for the government..."

the old 'do as i say and not as i do' model, ay?...

Fri, 09/17/2010 - 14:14 | 588253 NOTW777
NOTW777's picture

LOL - but liesman is explaining "it could be worse"


the results of "hope and change" are in and its not pretty

Fri, 09/17/2010 - 13:02 | 588075 hedgeless_horseman
hedgeless_horseman's picture

Borrowings by Sector ($TN)

The charts were all purple
They were spending money everywhere
Tryin' to run from the destruction
You know I didn't even care

They say two thousand zero, zero,
Party over,
Oops, out of time!
So tonight I'm gonna party like it's 1999!


Fri, 09/17/2010 - 13:09 | 588127 NotApplicable
NotApplicable's picture

Meanwhile they spin the purple into the ever lovable Barney.

I love you
You love me
Lets go spend some free money
Without a care in the USA
Let's go spend it all today!

Fri, 09/17/2010 - 12:52 | 588077 idea_hamster
idea_hamster's picture

Thank you, and good night.

Fri, 09/17/2010 - 12:55 | 588089 Spitzer
Spitzer's picture

now the deflationists can pour over this data in an attempt to find what is inflating and what is deflating and all that bullshit, even though they dont know where inflation incipient hyperinflation comes from.

Fri, 09/17/2010 - 13:40 | 588186 MachoMan
MachoMan's picture

Being a deflationist and hyperinflationist is not inconsistent as the terms are not mutually exclusive, they merely represent different points on the same timeline... 

Do hyperinflationists believe it persists in perpetuity?  Why require that of the other side?

Fri, 09/17/2010 - 15:36 | 588410 ColonelCooper
ColonelCooper's picture

+1.  Can't one precede the other?

Fri, 09/17/2010 - 16:14 | 588492 Glaucus
Glaucus's picture

"Another consideration is that sometimes there is a "deflationary 
head-fake" right before the onset of hyperinflation as the private bank credit money disappears...

With these charts [charts would not translate; see original article below] I am not saying it always looks exactly the same. I am only observing that the common deflationary metrics can fall while credit collapses, but then be immediately followed by a confidence collapse in the currency itself. Deflationists don't see this because they are viewing the economy as if it were a machine. And machines don't flip 180 degrees on a dime like this." --
Fri, 09/17/2010 - 17:00 | 588580 MachoMan
MachoMan's picture

In other words, hyperinflationists rule and deflationists can suck it?  Gotcha...

I'll say it again for good measure.  The two positions are only mutually exclusive at the exact same point in time... 

To put it in question format, exactly what do hyperinflationists believe while they are waiting on being right?  What is the vehicle that gets us to hyperinflation?

Fri, 09/17/2010 - 17:16 | 588621 ColonelCooper
ColonelCooper's picture

Bueller????   Bueller???? 

Fri, 09/17/2010 - 19:39 | 588815 Spitzer
Spitzer's picture

It should have happened in 2008 but, the inflationists over estimated the intelligence of the investment community. People ran toward the blast instead of away from it. Buying the dollar was the dumbest move ever in 2008 but when everyone is equally as dumb, it makes it look like a smart move.

If people where smart, we would not be having this debate, we would have had hyperinflation by May of 09.

Sat, 09/18/2010 - 00:25 | 589177 MachoMan
MachoMan's picture

By that logic, we should have bailed from the dollar 80 years ago... 

Fri, 09/17/2010 - 12:56 | 588090 sbenard
sbenard's picture

Household wealth and government debt! Both metrics moving in the WRONG direction!

Fri, 09/17/2010 - 13:00 | 588101 carbonmutant
carbonmutant's picture

We should send a copy of this to CNBC along with their Nielsen numbers.


Fri, 09/17/2010 - 13:13 | 588134 FASB 666
FASB 666's picture

Kill Your Television ( Friggin Now !)

Fri, 09/17/2010 - 13:05 | 588111 Gordon Freeman
Gordon Freeman's picture

The Fed will never accurately value the RE component--it would be too catastrophic, and expose the sham of even talking about U.S. "assets"...

Fri, 09/17/2010 - 13:05 | 588112 HedgeFun
HedgeFun's picture

Should the goverment bar color be like red rather than purple.

Fri, 09/17/2010 - 13:06 | 588118 midtowng
midtowng's picture

I'd be interested as to the breakdown of household net worth by income group. I bet that the working class is getting poorer at a much faster rate.

Fri, 09/17/2010 - 13:06 | 588119 mophead
Fri, 09/17/2010 - 13:23 | 588156 crosey
crosey's picture

nice rack.

Fri, 09/17/2010 - 17:20 | 588628 kathy.chamberli...'s picture

Oh I just had a juvenile blue jay come to my suet feeder.

Fri, 09/17/2010 - 17:39 | 588664 RockyRacoon
RockyRacoon's picture

Is that your "tweet" of the day?

Fri, 09/17/2010 - 18:25 | 588723 kathy.chamberli...'s picture

maybe, that is ok isn't it rocky. i haven't had one suet eating bird all summer. i had all kinds of birds in my woody creek house. peckers, jay's, flickers oh it was wonderful. so this little guy was adorable, and he has a funny bird song. just been getting seed eaters.

Fri, 09/17/2010 - 13:06 | 588120 imapopulistnow
imapopulistnow's picture

So, what happened after the Democrats regain power?

Fri, 09/17/2010 - 13:59 | 588222 carbonmutant
carbonmutant's picture

They squandered it on cheap propaganda and expensive bills...

Fri, 09/17/2010 - 14:15 | 588260 doolittlegeorge
doolittlegeorge's picture

Johnny Walker Black?  Unfortunately probably not.

Fri, 09/17/2010 - 14:21 | 588270 carbonmutant
carbonmutant's picture

a wee dram of Black Bush...

Fri, 09/17/2010 - 13:08 | 588123 Eureka Springs
Eureka Springs's picture

SO Frank does just what most in these comments want... manages the worst fall in prices yet... and all y'all want is someone who will use a flamethrowing bulldozer to do it faster.

I bet most of you are writing checks to and voting for the Barney's on the ballot at every opportunity. If not, given your expressed hopes (total destruction), you should be.

Fri, 09/17/2010 - 15:44 | 588428 ColonelCooper
ColonelCooper's picture

I see it like this.  If I'm going to fall off the roof of a building and die, I'd rather it be 3 stories than 300. 

I do not think that most people here WANT total collapse, they have just accepted it as inevitable.  I myself, like many here express and you seem to misinterpret, believe that we have passed the point of repairing this, and need to rebuild it.  In order to rebuild an engine it has to be shut down.  We act as though an infinite supply of Marvel Mystery Oil and STP Injector Cleaner will keep it running forever.

Fri, 09/17/2010 - 17:29 | 588646 kathy.chamberli...'s picture

excellent analogy, colon. I learned so much about life when I pulled my chevy small block out. learned sooooooo much and I have more to talk about with people. I could even replace my belt on my washing machine. problem with the V8 I didn't know how to put it back in. that is OK though, I realized it and wasn't in denial and needed to ask for help cause that part you want to have precision.

Fri, 09/17/2010 - 19:57 | 588839 ColonelCooper
ColonelCooper's picture

Based on your last few posts Kathy, it would seem that the last bag of reindeer dust you picked up hasn't been stepped on too hard.

Fri, 09/17/2010 - 20:06 | 588854 kathy.chamberli...'s picture

colon, every day i think i would be a lot better is cheeky would come back and post again. i know he is still alive and well. why doesn't he come back into my life again. i really miss his wit, mostly and his stories.

Fri, 09/17/2010 - 20:28 | 588894 ColonelCooper
ColonelCooper's picture

I miss reading CB as well.  I didn't start posting here till shortly before he kind of catted out, but I was a lurker for a long time and always appreciated his shit. 

I think maybe he got sick of people who didn't have the faintest fucking clue what they were talking about jumping all over his shit.  (The old not suffering fools gladly)  I don't mean a classic keynes/austrian type argument or honest difference of opinion, but just plain ass dumbshits.

You have to admit that this place has changed a LOT in the last year.  Not better or worse, just different.

Fri, 09/17/2010 - 22:12 | 589038 kathy.chamberli...'s picture

well come on, this is fight club, cheeks†

Fri, 09/17/2010 - 13:09 | 588124 phat tails
phat tails's picture

It looks like the insidious plan to march America down the path toward collectivism is working. The banking cartel, a.k.a. the Federal Reserve, needs to be abolished ASAP, along with the IMF and Worldbank. Restore mark-to-market and send these profligate bastards to their graves.

Fri, 09/17/2010 - 13:43 | 588190 MachoMan
MachoMan's picture

Quite the opposite...  we are at the point of reckoning for our collectivist endeavors...  the point where isolationism and individualism attempt to reign supreme.

Fri, 09/17/2010 - 14:21 | 588273 buzlightening
buzlightening's picture


Sat, 09/18/2010 - 10:32 | 589471 Incubus
Incubus's picture

The unwashed masses are droning, "one of of us..." as they hold out their welcoming arms.

It's encouraged all through the educational system and life, peer feedback, group interdependence--anything on the basis of requiring others to form an individual's thoughts.  So, we've ended up as a great population of crippled people, there is no "me," or "I": only what others perceive me as.

That is the new American ethos, the America of ironic narcissism.

When the house of cards collapses, a majority of the population will inevitably perish because they cannot hold the hand of their peers while they suckle one-anothers' teats.



Fri, 09/17/2010 - 13:11 | 588129 williambanzai7
williambanzai7's picture

I don't know who or how this stuff is cooked up, but I suspect its the same people who calculate your taxes.

Fri, 09/17/2010 - 14:02 | 588229 carbonmutant
carbonmutant's picture

 I think they're moonlighting from the BLS.

Fri, 09/17/2010 - 13:18 | 588142 tahoebumsmith
tahoebumsmith's picture

This whole ponzi reminds me of Enron...Remember the front page of magazine covers?...Ken Lay...Man of the year? Corporate outings on the range in Africa, employees getting paid in stocks that doubled every month? Employees skipping their heels as they entered the tower with pride and joy? New Mc Mansions being bought everywhere by employees whose wealth ticked up by the minute? Then came Oct 2001 and reality set in.... when everybody lost everything.... and they all marched out of the tower crying with nothing but cardboard boxes in their hands! OVERNIGHT!

Fri, 09/17/2010 - 13:56 | 588219 Caviar Emptor
Caviar Emptor's picture

One of the few times I'll outright recommend watching CNBC: watch "Enron: The smartest guys in the room" if you haven't done so already. Lots of original source materials like incriminating phone recordings between energy traders as they engineered the California energy crisis. 

Fri, 09/17/2010 - 14:29 | 588293 Bob
Bob's picture

Compelling and damning video--widely available on DVD, btw. 

Fri, 09/17/2010 - 22:21 | 589046 Serenity Now
Serenity Now's picture

+1 on the recommendation.  I just watched it a couple of weeks ago, and it was great.  The phone recordings were eye-opening (and sickening).  And it was very interesting that a female journalist (from Fortune magazine, I think) had figured out something major was wrong with Enron, but no-one would pay attention.

Fri, 09/17/2010 - 17:35 | 588659 kathy.chamberli...'s picture

Lay had 3 houses in Aspen right downtown on the roaring fork river. scoudrel and greedy bastard.

Fri, 09/17/2010 - 13:19 | 588143 papaswamp
papaswamp's picture

Depression biotchez!

Fri, 09/17/2010 - 13:19 | 588144 Comrade de Chaos
Comrade de Chaos's picture

Absent growth in business expenditures - check.

Absent growth in the consumer and business credit outstanding - check.

A recovery that is only in the minds of limited and falling number of beholders & none carbon based life forms - double check.


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