U.S. household wealth suffers record drop in second quarter Sept 9 (Reuters) - U.S. household wealth fell by a record $6.1 trillion in the second quarter to its lowest in a year as a bear market in stocks far outweighed further gains in real estate values, a Federal Reserve report showed on Friday. Household net worth tumbled to $143.8 trillion at the end of June from $149.9 trillion at the end of March, its second consecutive quarterly decline, the Fed's quarterly snapshot of the national balance sheet showed. Through June, Americans' collective wealth had fallen by more than $6.2 trillion from a record $150 trillion at the end of 2021. The net drop in wealth in the second quarter was about $30 billion larger than the previous record decline notched two years earlier, as the onset of the COVID-19 pandemic upended financial markets. That decline - in the second quarter of 2020 - still stands as the largest on a percentage basis at 5.2% versus 4.1% in the most recent report. The latest fall was led by a $7.7 trillion decline in stock market values as equities slid into a bear market in the first half of the year on worries about surging inflation and the Fed's aggressive response with interest rate increases. The equity market drop outstripped a $1.4 trillion gain in real estate values.
doesnt surprise me...look at cost of goods. I know someone in the heat and air business seeing upwards of 400% increase on certain repair items. Freon (not sure which) and thermostat wire are a few he mentioned as being incredibly outrageous. Groceries, fuel, electric bill etc...everything is way up. For low to moderate income families these things hurt, bad. All sparked by a narrative that Covid is a neo bubonic plague...horse shit. Big pharma currently owns DC as the largest lobbying industry in the country...no vaccine for cancer, diabetes, HIV, etc...but looky here we gots one for Covid just months after the first infection...money plzzzzz. Its super duper effective...even though you can still catch covid again (many people i know report feeling worse with covid post vaccine), and transmit it just the same a the unvaxxed. and the cherry on top is sending billions (taxed from poor people in america), to rich people in Ukraine. schweeeeet!
tRump (who wants the vaccine named after him) would have just dropped a nuke on uk and be done with it. Come on, got a round of golf to play, where's the red button?
Trump is a Clownish ass and everyone knows it...but at least he speaks in complete sentences lol...this current guy...
I think that's great news! Where do you think that inflation comes from? Too much gov money, too much speculative stock money, too high paychecks... As long as all that extra money is in the hands of too many people prices will continue to rise. Supply and demand, remember? There will come a time soon when businesses are going to be stuck with inventories paid at a premium. Either they will discount and survive or they will go out of business. Either way, there will be job losses and unemployment, all necessary to bring the inflation down to our favorite 2%.
Actually, the headline is true. Household Assets and US Total National Assets have been in decline since the third week in December of 2021. From the week ending October 15, 2020, to the week ending December 18, 2021, HA and USTNA surged an eye popping 77% and 64%, respectively. A prime example of incredibly reckless spending. Since Dec. 18, 2021, HA and USNTA values have dropped 13.5% and 10.5%, respectively. Even with these drops in value, affordability is still an enormous problem for a majority of the population. Right now, the Fed is in the driver seat and trying to back up the bus so it doesn't fall of the cliff. Only time will tell if they are successful.
Let me know how much USA household wealth will tumble, in Gold ounces, or barrels of Oil , not in USD, when rest of the world will no longer use USD, buy usa debt, etc. My bet is 80-90%.