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US Household Net Worth Hits Record: Rises By $33.3 Billion On Each Day In The First Quarter
Earlier today the Fed released its quarterly Flow of Funds report for the first quarter of 2013, widely used to calculate the level of US household net worth. For those whose wealth is primarily in the form of various financial assets (about 1% of the population) it was a good, quarter, actually the best ever: following a $2.1 trillion increase in financial assets, coupled with a $0.8 trillion rise in tangible assets (including real estate), total household net worth rose from $67.3 trillion to $70.3 trillion, which is the new record high number, surpassing the $68.1 trillion record in Q3 2007. What is curious is that back in 2007, tangible assets amounted to $29 trillion compared to $26 trillion now, which means the bulk of asset creation has come thanks to the Fed reflating its final bubble and leading to all time highs in all assets that are directly correlated with the size of the Fed's balance sheet.
And a summary snapshot of how the US household balance sheet looks like: of $83.7 trillion in total assets, financial assets represented $57.7 trillion, with $26 trillion left for tangibles. This was offset by $13.4 trillion in liabilities - a number that declined from Q4 2012.
To summarize: total household assets rose by $3 trillion even as liabilities declined. This means $1 trillion in net worth created each month, which means $33.333 billion in net worth was created every single day in the first quarter of the year.
Or rather, this is the net worth that was created for 1% of the US population. Every one else: better luck next time.
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Oh thank goodness I was running a bit low
i have precious metals in the 8th at belmont...
edit:...fuck
Economists believe that the key to a stable economy is steadily rising house prices, and I tend to agree. For most Americans, a home is their most valuable asset, and thier home equity allows them to finance their day to day expenses with low interest loans.
Your "Economist" can kiss my asset.
Deep Thoughts by MDB
HAHAHAHAHA nice. Damn near spit my coffee out after reading his asinine post. He's probably confusing the housing market and reality by being full of all that HOPEIUM on a future Alien invasion just like Paulette Kruglemonsters.
"Even a faked war of the worlds scare might help, he suggested."
Guys- go ahead and take out that mortgage, if you want. I'm not sure it's going to matter in a few years.
Over breakfast this morning I had the chance to speak with a real inside-the-beltway guy. I'm not going to out him (or myself, because he'll likely remember the conversation so soon after having it). He's been on the hill since the 80s and he knows how stuff works. If you're an inside-the-beltway guy, you know him. He's currently running a PAC (of the moderate to conservative variety, but industry-related), so, of course, he has an agenda. I won't bore you with the industry issues or details because what he had to say about DC and Congress was much more interesting and BONE CHILLING,
I will cut to the chase about how DC is now operating:
Almost everyone is an idealogue and works at a "tribal" level of functioning.
Almost nobody in Congress knows how anything in the country works AT ALL. But they know they want to change it to their vision of how it should be done. The congressmen don't know and their 25 year old staffers are all "an inch deep and a mile wide" and have their own idealogical perceptions that can not be altered by stupid things like logic.
Worse- they are WILLFULLY IGNORANT. They don't WANT to know how it works. They care only about their ideology and all answers are pre-known and pre-determined. There is no thought, no debate, no education, no logical discussion on the issues either between memeber or within their own offices.
Almost all officials are only concerned with getting power. They know they are "elected kings" and so whoever is in power gets to do things how they want. It's only a question of who's in power, but both sides are equally bad in their own ways.
No passage of legislation is really possible at this point. The only want things will pass is when there is a crisis that must be acted upon. At that point you better (as a lobbyist) have all your troops and spies in place because that's when all the real issues get hung on a larger "emergency" bill and passes. In other words, full-defensive (and back room) legislating.
Guys, I'm telling you, this was a DC lobbyist and insider who's worked the Hill for DECADES who just told me he doesn't think he can have any effect on where this train is heading (he'll still take your contributions "just in case," though!).
HE TALKED LIKE HE WAS ONE OF THE TYLERS! (And yes, he damned well knew all about ZH).
I'm still chilled from the conversation. He didn't use the word "doomed" but he didn't deny it, either. With leadership like this, do not expect anything good from government anytime soon. Not from this administration/congress, and not from the one that replaces it. The whole culture is, basically, thugs. We are going to make a lot of mistakes moving forward and we are going to break a lot more stuff that didn't need to be broken. In many cases, willfully. And yes, it is ACTUALLY worse than in the past. It's not a perception problem, it's a REAL problem.
Not that I don't appreciate your insight, but, all of this is very obvious once you realize that government is NOTHING but a con-game and all decisions are political (read: power-based).
I found it interesting that a DC "insider" lobbyist/campaign manager/policy wonk saw things in a way that most ZH'ers would instantly recoginze and probably find a lot to agree with.
What was kind of unspoken was that I think he was recoginzing that his position formerly allowed him to influence things (for better or worse) but now he's got very little influence (power). The power is all flowing to the top and even guys who were used to having a say in things are feeling like it's out of control, even at their level.
Perhaps not so interesting, but I thought it was worth sharing.
Thanks for sharing that.
People can choose to believe it or not. One would think that there has to be at least a few insiders in Vichy DC that can see.
It seems reasonable that most of these would be among those who'd been there the longest. They'd be able to compare the current environment with the old days, which were just as corrupt yet somewhat less insane.
Nodebt..let me ask in all seriousness..What fucking planet are you from?
Since we're going to go ahead and have Pentagon Papers 2013 redux, I will add this morsel: It appears, Reps and Dems are no different! It's just BS to make you think there's freedom!
Damn! What a Great day! Truth everywhere. BBerg 6-6-2013...to help protect us, and now the inside scoop. I knew it was all going to work out for us all! Forward!
I'm from the planet where real world confirmation of the stuff you read and speculate about on ZH turns out not to be so "fringe" after all. In fact, we may all be too optimistic about the future here.
An activity I thought might be of interest to the board. You are, of course, free to ignore my posts or report me to the Tylers if you so choose.
Just get that damned pizza to my front door in under 30 minutes or I'm witholding the generous $2.15 tip I planned on giving you. Remember- extra cheese, pepperoni, onions and no spit. Cause I'll know.
Every time it rains, it rains Bennies from heaven.
The Bernank's dark clouds contain Bennies from heaven.
Your fortune's fallin' on his side of town,
Your house and life are both upside down.
you sir tend to be a moron, of the super type of course!
"...and thier home equity allows them to finance their day to day expenses with low interest loans."
You are an advocate of perpetual debt slavery. You are also a big douche. Debt enslavement is a means to counter peoples yearnings for freedom and "legally" bypasses their godgiven (natural) and protected rights.
Personally, I finance my day to day expenses by WORKing.
Better for those lending money to have collateral (e.g. your house) than unsecured debt like ceredit cards.
Of course the morons using debt to live on are doomed to a life of indentured servitude. What ever happened to living within your means and SAVING? oh yeah....... dropping wages and 0% interst on savings.... with guaranteed inflation I suppose it makes perverse sense to actually be as far in debt as possible....
At least it's creative trolling.
Um no this is retarded trolling, and everyone knows you don't go full retard.
This is creative trolling. (All be warned its hilarious)
http://www.pistonheads.com/gassing/topic.asp?h=0&f=210&t=1017090&mid=19567&i=0&nmt=How%20to%20troll%20a%20dating%20website
Bwaaa ha ha ha ha! :)
MDB I have a white bunny here that has been asking about ya.
"...home equity allows them to finance their day to day expenses..."
MDB, you are a true master of dead-panning. I bow before your glory.
Yes, I know that we're suppose to feel wealthier as Americans but when I look at my accounts I only see heavy losses and savings vaporizing away. Sadly, I don't own a piece of America's most valuable asset, the ATM called a home. Given that I'm an unskilled investor in the most modern and free market in the history of mankind, I now have to agree with you and agree with our most brilliant economists and hope that one day I too may be privileged to partake in the American Dream of home ownership and by default, a steadily rising housing market and automatic wealth. I must now spend some money to purchase a portrait of our great economist, Saint Paul Krugman, to hang in my room.
- From my mom's basement to your mom's basement!
Let's just print up some more Net Worth. I think I'll have me a heaping helping of it.
You have to be joking. You're supposed to end a commnet like that with {sarc on}...
So you give no value to a constantly dropping house price so people can afford to own, maintain a home and spend their income with NO financing? Why do we need financing? I don't use any.
Why not just post the whole address instead of pussy footing around?
I'm going to pen a hand-written letter to Ben, asking for money. Seriously. This world is crazy enough that he might just cut me a check.
I was wondering where this billion dollars I found in between the couch cushions had come from...all makes sense now.
Crap, the best I could come up with was a couple used pizza crusts.
Thank you Bubbles Bernanke for reinflating the stock and real estate markets! Keep blowing baby!
Don't forget to wear your Pope-Hat.
Rumor has it the FED Chairsatan has a cluster of blistery sores on his blow hole.
Where are the intangibles in the household balance sheet?
There must be around $10 trillion of hope.
Wow!!! I've never felt MOARicher!
Well you're doing better than I am then; although I don't feel one way or the other; as far as the actual numbersa are concerned, I'm paddling as fast as I can to keep from going backwards.
Hint: throw all that fucking silver overboard and you'll scoot right along ;)
what are the #s excluding banker and politician households
I didn't get jack shit of that $33.3B per month.
+1 ($33.33 Billion per day)
@denverdolomte
Oh, now I'm really pissed. Oh, well, it's Miller Time.
Agreed.
hey... you didn't show up the window... so I kept your part.
maybe next time okay?
same here in my coúntry :)
on average every citizen added 7100 euro in the first 5 months to their savings acoount.
now... I find that pretty damn hard to believe. that's like 1400 plus euro's a month... where the average joe makes 1500 euro's....
And when bubble pops or deflates then household wealth ..............
I'll take life insurance premiums increase as due to a high volume of payouts on existing policies for $2.1 trillion Alex.
If it would just stop raining I could go outside and break some windows...
What can you buy with the 70T$ compared to the 68T$ in 2007 dollars? Gasolene? Hot dogs? a doctors vist? it's a deception. your household wealth went down; not up. and as for the people who don't have stock portfolios and positive equity in their houses; well, the less said the better.
Have to admit, looks pretty good. That's the advantage of reporting Median Net Worth rather than Average Net Worth.
Converted to real terms (i.e. inflation adjusted), the new figure is not a record.
Exactly; give that man a jelly bean.
"That's quite a view"
Sargeant Horvath, Saving Private Ryan
Remove the top 10% of households and I'd bet dollars for dougnuts all the numbers turn negative
Dollars for doughnuts is an even bet these days.
household net worth............
....soon households wont be worth a net...........................
Thanks MDB for providing the Admin/FED happy meme laugh of the day for the 99%.
yes the household net worth for the idiots that caused this mess to begin with in which we have to pay for!
Now try and find a buyer for all that so you can sell. Oh shit, you mean that the suckers were the only buyer? That happens with every bubble.
"Or rather, this is the net worth that was created for 1% of the US population. Every one else: better luck next time."
this is based on what? your warped view of reality?
how's that accounting certificate comin along?
http://www.cbsnews.com/8301-505123_162-57587033/wealth-of-most-americans...
I'm fairly certain the "Goodwill" portion of the balance sheet is quite negative.
http://www.zerohedge.com/news/2013-05-02/22-facts-prove-bottom-90-americ...
"financial assets represented $57.7 trillion"
Doesn't total U.S. debt equal about the same amount? What is total net worth after total debt is subtracted?
Depends if you use a calculator from the FED or one from your house.
Paper value based on bogus valuations.
Let me repeat this again:
Federal reserve data = Propaganda.
They make them up.
waiting for the bubble to burst.W
so chocolate rations have been increased? Always a day late and a dollar short, dammit!
Yeah right... let's take away financial products made out of puffed air and calculate this in inflation adjusted dollars.
1) Collapse
2) Wealth = Poof !
3) SHTF
The homeless, jobless, poor, and starving should be truly gratified to learn this.
exactly this is why there has to be a reduction of the worth of assets, like in cyprus, but now for the wealthy.