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.