U.S. Household Wealth Takes Biggest Hit Since 2008...

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  1. paulitician
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    paulitician Platinum Member Supporting Member

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    Americans' wealth last summer suffered its biggest quarterly loss in more than two years as stocks, pension funds and home values lost value.
    At the same time, corporations increased their cash stockpiles to record levels.

    Household net worth fell 4 percent to $57.4 trillion in the July-September quarter, according to a Federal Reserve report released Thursday. It was the sharpest drop since the October-December quarter of 2008 and was the second straight quarterly decline.

    Household wealth, or net worth, is the value of assets like homes, bank accounts and stocks, minus debts like mortgages and credit cards.

    The value of Americans' stock portfolios fell 5.2 percent last quarter. Home values dropped 0.6 percent.

    Lower net worth can hurt the economy. When people feel poorer, they spend less. That slows growth. Businesses typically then cut back on hiring and expansion.

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    US household wealth takes biggest hit since 2008
     

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