Americans' Net Worth Grows For 2nd Straight Quarter, But Still Far Below Pre-Recession Peak

[Purveyor]

Source: Associated Press

WASHINGTON - Americans got wealthier for a second straight quarter in the fall, as the economic recovery again boosted home values and investments.

Net worth — the value of assets such as homes, bank accounts and investments, minus debts like mortgages and credit cards — rose 5 percent from the second quarter to $53.4 trillion, the Federal Reserve said Thursday.

Even with the gain, Americans' net worth remains far below the peak of $65.3 trillion reached before the recession began, underscoring the vast loss of wealth over the past two years. Their net worth would need to rise an additional 22 percent just to return to its pre-recession peak.

Investments provided the biggest boost in the July-September period. The value of corporate equities jumped $1.04 trillion, slightly less than the previous quarter's rise.

That increase mirrored the stock market's powerful showing. The Standard & Poor's 500 index, a barometer of the market, rose 15 percent during the third quarter. But it still remained 32 percent off the peak of October 2007.

Read more: http://tinyurl.com/yg3mro5

[marmar]

1. That imaginary, "on paper" net worth is what got us into trouble in the first place.....

nt

[FormerDittoHead]

2. Yes. Note #2 - these stats don't account for distribution of the gain. (I'm thinking UPward) n/t

[Techn0Girl]

3. PLEASE EDIT THE ATTRIBUTION - NOT THE WASHINGTON POST

The URL points to the Minneapolis Star Tribune - please edit - FYI :)

[ret5hd]

4. whut?

[No Elephants]

8. It's not attributed to the Washington Post. It's attributed to AP, dateline Washington.

The Minnespolis Star Tribune simply carried the AP story.

[hughee99]

5. I've never heard this used as a standard that things are improving before...

Admittedly, they throw out a lot of other numbers that don't really tell the story either (housing values, the stock market, etc...), but this is the first time I've heard this one.

Could this increase in net worth be explained by inflation? Things people own become worth more, just because the money we measure it with is worth less?

[Igel]

13. It goes to consumer confidence.

If you have a lot of wealth, even if it's just on paper, you feel like you can buy more stuff, esp. luxury stuff.

Having houses lose equity and having stocks plummet makes people feel poor and slow spending; it also makes them cranky. Have you see the "right track/wrong track" poll numbers recently?

[WriteDown]

6. We're back baby! nt

[Techn0Girl]

7. The upper 1% is back. Jobless claims are up however. Homes are still being forclosed. Hmmmm....

Anyone here at DU feeling the happiness because I'm not.

[jpak]

12. Sorry - the economy is on the mend, thanks to Obama

no DOOM for you

:thumbsdown:

[Dr.Phool]

9. It sure the fuck ain't me. or anybody I know.

Oh, that's it. The value of corporate equities jumped. I ain't got none of them.

[Deja Q]

11. Corporate personhood. Let's all become corporations; our own little LLCs?

[Ghost Dog]

10. Oh, for Christ's sake.

(Corrupt) statistics be damned. And AP too.

:puke:

[showpan]

14. The top 3% obtained more wealth

Gee, that's great news. How much of that wealth was made buying the foreclosed homes out from under the jobless? The Obama plan has produced nothing but more wealth for the wealthy....WTF,,,and the AP is owned by those same wealthy fucks, just follow the money.