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| Economy |
| Household Wealth in U.S. Decreased by $1.3 Trillion |
| 2009-06-12 |
| (Bloomberg) -- U.S. household wealth fell in the first quarter by $1.3 trillion, extending the biggest slump on record, as home and stock prices dropped. Net worth for households and non-profit groups decreased to $50.4 trillion, the lowest level since 2004, from $51.7 trillion in the fourth quarter, according to the Federal Reserve's Flow of Funds report today. The government began keeping quarterly records in 1952. Americans are cutting back on spending as unemployment surges, home prices continue to drop and wealth evaporates, signaling any economic recovery will be slow to develop. The drop in net worth is one reason Americans are boosting savings, blunting the effect of the tax breaks and income supplements from the Obama administration's stimulus plan. "It's going to be very difficult to have any recovery in consumer spending without jobs and incomes recovering first," said Christopher Low, chief economist at FTN Financial in New York. "The probability of a debt-financed consumer spending binge like we saw in the last expansion is essentially nil." Retail sales rose in May for the first time in three months, an increase driven almost solely by U.S. shoppers returning to automobile showrooms seeking bargains and the rising cost of gasoline, a report today from the Commerce Department showed. |
| Posted by: |
| #9 O.B.A.M.A. One Big Assed Mistake America! |
| Posted by: NoMoreBS 2009-06-12 16:31 |
| #8 "The probability of a debt-financed consumer spending binge like we saw in the last expansion is essentially nil." When consumers do it, it's priming the pump. When the government does it [debt-financed spending binge], it's pumping the well dry. |
| Posted by: Procopius2k 2009-06-12 15:21 |
| #7 "It's going to be very difficult to have any recovery in consumer spending without jobs and incomes recovering first," said Christopher Low, chief economist at FTN Financial in New York. "The probability of a debt-financed consumer spending binge like we saw in the last expansion is essentially nil." But, but, Oblahblah says we're seeing signs of recovery... employment is a lagging indicator... All is well... as God is my withness we will see a debt-financed consumer spending binge among the funemployed before midterm elections! |
| Posted by: regular joe 2009-06-12 14:38 |
| #6 America: Now $8-to-$14 Trillion Poorer |
| Posted by: ed 2009-06-12 14:12 |
| #5 So bad at my house, we'll simply NEVER be able to buy another GM vehicle. I mean NEVER! |
| Posted by: Besoeker 2009-06-12 07:57 |
| #4 Household Wealth in U.S. Decreased by $1.3 Trillion I would have like to have had even a fraction of that amount to lose. |
| Posted by: Jumbo Slinerong5015 2009-06-12 04:26 |
| #3 If you have ammo you don't need canned food |
| Posted by: European Conservative 2009-06-12 02:12 |
| #2 Thanks, heartless plutocrats! At least you guys did well during this whole thing. And Goldman is back bidding up the price of oil again, the happy days are almost back! |
| Posted by: gromky 2009-06-12 02:05 |
| #1 But that ammo and canned food is lookin' like a good investment about now... |
| Posted by: M. Murcek 2009-06-12 00:29 |