American Personal Wealth UP $2 Trillion since January

Discussion in 'Politics' started by rightwinger, Sep 17, 2009.

  1. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    After losing $10 Trillion in personal wealth in the last year of Bush, surging economy has already regained $2 Trillion

    Americans' net worth up for first time since 2007 - Sep. 17, 2009

    NEW YORK (CNNMoney.com) -- Finally!

    After nearly two years of declines, the net worth of Americans rose by $2 trillion to an estimated $53.1 trillion in the second quarter compared with the first three months of the year.

    The soaring stock market accounted for much of the gain. Stock holdings rose by 22% to $6.3 trillion, while mutual funds' value jumped 15% to $3.7 trillion, according to a Federal Reserve report released Thursday.

    To be sure, these are not exactly flush times for many people. Unemployment stands at 9.7%, the highest level in 26 years. And many people have yet to see their home values and portfolios recover from their recent trouncing.

    Since only half of Americans own stocks, with even fewer having significant holdings, only a narrow group of people benefited from Wall Street's springtime gains. The Dow Jones industrial average and the Nasdaq had their best performances since 2003 and the broader S&P 500 since 1998.

    Homeowners, who make up about two-thirds of the population, also saw a little relief. Real estate rose in value for the first time since the end of 2006, climbing 2% to $18.3 trillion.
    Still, Americans have a long way to go before they recover the wealth they once had. U.S. net worth peaked at $65.3 trillion in the third quarter of 2007. That's 18.7% higher than the current level.
    Much of the nation's wealth had been tied to the recent booms in the housing market and on Wall Street. At the end of 2006, Americans' homes were valued at nearly $22 trillion.

    And in the following year, their stock holdings topped out at $10.2 trillion and their mutual fund portfolio at $4.9 trillion.

    Thursday's report is not likely to prompt consumers to resume spending, said Scott Hoyt, senior director of consumer economics at Moody's Economy.com. Wealth is still down $12 trillion from its peak and many people may see the recent increase as a blip.

    "Consumers are still focused on how much wealth they've lost," Hoyt said. "They still likely see themselves in a good-size hole."

    Less debt
    At the same time, consumers continue to pay off their bills. Household debt shrunk by an annual rate of 1.7% in the second quarter, the fourth consecutive decline. Debt loads had never contracted until the current downturn.

    Businesses are also pulling back on the debt they carry. Debt contracted at an annual rate of 1.8%, the second decline in a row.

    Governments, however, are loading up on debt as they try to prop up the economy. Federal government debt ballooned 28.2%, the fourth straight increase, while state and local governments increased their debt levels by 8.3%.
     
    Last edited: Sep 17, 2009
  2. xsited1
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    xsited1 Agent P

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    While everyone is lowering their debt, the Federal government debt ballooned 28.2%, the fourth straight increase. Typical.
     
  3. oreo
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    oreo Gold Member Supporting Member

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    Yep--funny how winger won't do a chart on the soaring deficit--OR the personal debt that Americans have racked up over the last year--in order to make ends meet. But--hey according to winger--we are in full recovery in the stock market--LOL--According to this CNN, "of course" report Americans are 2 TRILLION dollars richer since January--even though they have lost their jobs, their savings & in many cases their homes. This while economists are predicting a JOBLESS recovery---But to this administration--call it a recovery anyway--:lol:

    Winger doesn't seem to understand that of course business is making a little profit right now. After all they have cut back on their number 1 expenditure--(payroll through millions of lay-offs--henceforth the stock market goes up--even though business gross sales are still in the tank.) The only thing that is expanding in leaps & bounds is the federal government--of which their tax collections are in the tank--because we have 6.2 MILLION people who are jobless & are not paying any federal income tax.

    This is wingers recovery--:lol: Enjoy it while it lasts--sshhh--lets not burst wingers economic bubble brain--about talking about hyper inflation with all this government spending either.

    $credit-sharks-wpcbe090424.gif
     
    Last edited: Sep 17, 2009
  4. Oscar Wao
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    Oscar Wao Victory is Mine

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    Yeah...and what happened at the end of the Roaring Twenties, class?
     
  5. PatekPhilippe
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    PatekPhilippe Senior Member

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    Looks like the Bush Administration's T.A.R.P. was a resounding success!!!! Too bad Obama's Stimulus Package has been a dismal failure thus far.
     
  6. Zander
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    Zander Platinum Member

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    An $8 trillion dollar haircut is no reason to applaud.....

    Methinks that after this dead cat bounce is over and deflation sets in, $8 trillion will look like a pittance.:(
     
  7. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    The issue is we need to look at the big picture.

    In a year and a half long recession, Americans lost $13 Trillion in their personal wealth. That is larger than the national debt that has accrued in the last 20 years. It is not just the wealthy that took that hit but anyone who owns a home or has money in a $401K.
    Borrowing $2 Trillion to reverse a recession is a good investment. As much as the right wing whined about TARP bailouts....they worked
    The $800 in stimulus funds still have not kicked in.

    But personal wealth has gone up $2 Trillion. Anyone who questions it only has to read their most recent 401K statement or look at local real estate prices.
     
  8. rdean
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    rdean rddean

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    It's probably not that "wealth" has increased, I suspect it's because people are paying off their debt.
     
  9. nodoginnafight
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    nodoginnafight No Party Affiliation

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    The haters just can't stand good news - especially since they've bet their political future on failure.

    this news has GOT TO LEAVE A MARK ... ewwwwww
     
  10. xsited1
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    The 401(K) statement is just fine. When the Democrats took control of Congress in 2007, I took all my money out of the stock market. After the porkulus bill was passed, I put my money back in because free money will improve the market. The problem is you have a terrible price to pay later which is why I'll be taking my money out of the market before this happens.
     

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