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American household wealth surges to new record

Originally posted by: ntdz
http://www.reuters.com/printerFriendlyPopup.jhtml?type=bondsNews&storyID=7868333

Household balance sheets are worth $46.69 trillion. Good news, hopefully more good news will continue to happen. We need those gas prices down!
Click to expand...

How exactly is this good news? I see a lot of links thrown around from both side to show how good or how bad things are. How is this statistic something that is showing a positive trend in our economy? Personal debt is added into that figure, right? Or is that wrong? So if someone buys a million bucks worth of toys on credit and has yet to have them repo'd as they are still making minimum payments, they count as an asset right? If that is correct.. then again I ask, how do you see this as something that is positive for our economy or as some indication that things are good? People have always been able to borrow money for stuff, it is the paying back that some have difficulty with. And if household wealth is surging so much, why are so many more people falling below the poverty levels? Something is not right.

And yes, fvck the current gas prices.
 
Umbrella, worth usually refers to TNW (tangible net worth). Personal debt is subtracted from personal assets to arrive at this figure. Of course, if a person falls on hard times, liquidation value is what's important.
 
Originally posted by: ntdz
http://www.reuters.com/printerFriendlyPopup.jhtml?type=bondsNews&storyID=7868333

Household balance sheets are worth $46.69 trillion. Good news, hopefully more good news will continue to happen. We need those gas prices down!
Click to expand...

Topic Title: American household wealth surges to new record

For 2004 as a whole, the Fed said debt incurred by households, non-financial businesses and the federal and local governments rose 8.5 percent compared with 8.0 percent in 2003.

That should be the correct thread Title.

Only reasons balance sheet went up was because pf skyrocketing Real Estate and the Wealthy getting Wealthier.

This does nothing for the Middle and poor of America, it is more of a further sign of overall decline exceot if you are Rich. Of course the Rich in here love this :| :roll:
 
Originally posted by: Riprorin
Originally posted by: OS
this news is kind of offset by a rise in consumer debt;

U.S. debt rises at fastest pace in 16 years

Although the figure is net worth, I wonder how much of that is fueled by regional real estate bubbles.
Click to expand...

Mine's being fuel by bonuses and rasises. Real estate is flat in my area.

I'll get a 5K bonus next month and another 5 - 6K raise this year.
Click to expand...

and the Rich in here have a need to brag :roll: :roll: :roll: :roll:

 
Originally posted by: ciba
Umbrella, worth usually refers to TNW (tangible net worth). Personal debt is subtracted from personal assets to arrive at this figure. Of course, if a person falls on hard times, liquidation value is what's important.
Click to expand...

Thanks for the info. So then if someone does borrow to buy a car it is not part of their net worth until it is paid for because there is the debt for that loan hanging out there. Makes sense.

I am still struck by this news considering what myself and others have mentioned regarding poverty levels, personal debt, and bankruptcies on the rise.
 
It's called growth of inequality, Umbrella39.

Let's say that 10 guys have $100 each, making their average net worth $100, obviously, and the median the same... total worth being $1000.

Now distribute the money differently- say that 4 guys have zero, 5 have $100, and the tenth has $500... average net worth, median and and total net worth remain the same.... If that tenth guy gets another $1000, average and total net worth double, but the median remains at $100....

A few very large numbers can totally skew totals and averages- adding the Walton heirs and Bill Gates into almost any net worth equation will definitely have that effect... even a lot of small negative numbers can be overcome if a few very large numbers are large enough...

And debt? One man's debt is another man's asset...
 
Originally posted by: Riprorin
Originally posted by: OS
this news is kind of offset by a rise in consumer debt;

U.S. debt rises at fastest pace in 16 years

Although the figure is net worth, I wonder how much of that is fueled by regional real estate bubbles.
Click to expand...

Mine's being fuel by bonuses and rasises. Real estate is flat in my area.

I'll get a 5K bonus next month and another 5 - 6K raise this year.
Click to expand...

Gains in real estate are much, much larger than the collective raises and bonuses you see. Makes it easier to prop up the numbers.
 
Originally posted by: dmcowen674
Originally posted by: ntdz
http://www.reuters.com/printerFriendlyPopup.jhtml?type=bondsNews&storyID=7868333

Household balance sheets are worth $46.69 trillion. Good news, hopefully more good news will continue to happen. We need those gas prices down!
Click to expand...

Topic Title: American household wealth surges to new record

For 2004 as a whole, the Fed said debt incurred by households, non-financial businesses and the federal and local governments rose 8.5 percent compared with 8.0 percent in 2003.

That should be the correct thread Title.

Only reasons balance sheet went up was because pf skyrocketing Real Estate and the Wealthy getting Wealthier.

This does nothing for the Middle and poor of America, it is more of a further sign of overall decline exceot if you are Rich. Of course the Rich in here love this :| :roll:
Click to expand...

I want to be as poor as possible so the rich will get much richer
/sarcasm
Somebody turn me into a homeless person so I'd would know what its like to be super poor
/thanks so much for wonderful blessing, in god we trust

Another humor 🙂

The more poor I want to be the richer I become, why is that???

Guess what?

Rich as in knowledge not in wealth... OOPS 😀



 
Wait a minute, income has been down for about 6 years, savings have been falling for at least a decade, yet Net Worth is up? Something's fishy.

Higher values for real estate, equities and mutual funds led the fourth quarter net worth jump, the Fed said. Pension fund reserves and Treasury securities also posted big gains.
Click to expand...

There we go. Looks like the wealthy got wealthier. Good for them.
 
Originally posted by: Kibbo
Wait a minute, income has been down for about 6 years, savings have been falling for at least a decade, yet Net Worth is up? Something's fishy.

Higher values for real estate, equities and mutual funds led the fourth quarter net worth jump, the Fed said. Pension fund reserves and Treasury securities also posted big gains.
Click to expand...

There we go. Looks like the wealthy got wealthier. Good for them.
Click to expand...

Don't we have record home ownership right now? If so, then everyone who owns a home, or nearly everyone, should be benefiting from the real estate boom, not just rich people. Even middle class people own stocks and invest in mutual funds, it's not just rich people.
 
Originally posted by: Riprorin
How do you define "wealthy".

My net worth keeps going up but I'm not rich.
Click to expand...

Originally posted by: Riprorin

Mine's being fuel by bonuses and rasises. Real estate is flat in my area.

I'll get a 5K bonus next month and another 5 - 6K raise this year.
Click to expand...

That pretty much sums it up.

Odd though. What is going on or not going on with Real Estate in your area when the rest of the Country teters on a real Estate bubble???




 
You guys, wealth does not buy you happiness! This I've been taught by Warren Buffett- or was it Donald Trump? I forget now..
 
Originally posted by: dmcowen674
Originally posted by: Riprorin
How do you define "wealthy".

My net worth keeps going up but I'm not rich.
Click to expand...

Originally posted by: Riprorin

Mine's being fuel by bonuses and rasises. Real estate is flat in my area.

I'll get a 5K bonus next month and another 5 - 6K raise this year.
Click to expand...

That pretty much sums it up.

Odd though. What is going on or not going on with Real Estate in your area when the rest of the Country teters on a real Estate bubble???
Click to expand...

I live in Western NY. Companies are fleeing NY State because the taxes are too high.
 
Originally posted by: Riprorin


I live in Western NY. Companies are fleeing NY State because the taxes are too high.
Click to expand...

Can I convince you to move down here by me, in the suburbs of NYC? Let's see, some of the houses on my block were around $450k 3 years ago, now they're approaching $900k... come and get 'em while the bubble hasn't yet burst!
 
Originally posted by: Riprorin
How do you define "wealthy".

My net worth keeps going up but I'm not rich.
Click to expand...

Wealthy is when you have enough money to live in peace
At least in this country where how much money you have defines everything about your life
 
I have a lot of friends in San Francisco . . . big surprise. Anyway, one couple moved to a condo (900sq ft) SOMA 2 years or so ago. They paid 420k and then spent another 40k fixing it up. They sold it in October for 650k and moved to a Edwardian close to Golden Gate Park that cost 980k (fixer upper of course). They were a power couple in 2001 but he's a programmer so you can guess where is income as gone. Fortunately, the wife still makes decent cheddar.

I seriously doubt the SF real estate bubble will burst b/c there's always going to be more people (with bank) wanting to live in SF than available real estate. But the market for "working class" people is going to go in the tank. IMO, it's only a matter of time before we experience a major economic tumble as the low - low/middle income families get crunched by their debt loads. In the meantime, I expect sales of Porsche Cayennes and the new 6-series to be smoking.

 
Originally posted by: lozina
Originally posted by: Riprorin


I live in Western NY. Companies are fleeing NY State because the taxes are too high.
Click to expand...

Can I convince you to move down here by me, in the suburbs of NYC? Let's see, some of the houses on my block were around $450k 3 years ago, now they're approaching $900k... come and get 'em while the bubble hasn't yet burst!
Click to expand...

First, I want to point out that real estate bubbles are not a national phenomenon, they are regional. For example, Seattle is overpriced, but Spokane is underpriced.

Another thing you'll want to look at is the cause of the current bubbles. Right now, real estate inventories are incredibly low. In King County (seattle), current inventory is equal to 1.7 months worth of sales. In a typical market, inventory is approximately 6 months worth of sales.

Originally posted by: umbrella39


Thanks for the info. So then if someone does borrow to buy a car it is not part of their net worth until it is paid for because there is the debt for that loan hanging out there. Makes sense.
Click to expand...

Not quite. If you buy a car worth $25,000 and finance $15,000, it has a $10,000 contribution to your net worth. Conversely, if you finance $25,000 and it is worth $15,000 it will subtract $10,000 from your net worth.
 
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