......Who is going to buy all this crap?
U.S. Household Net Worth Hits Record High
Surging Stock Market and Rising Home Values Deliver Benefits, Especially for Affluent
Neil Shah
Updated March 6, 2014 8:09 p.m. ET
Americans' wealth reached a record-high last year thanks
to a surging stock market and rising home values. American Express
President Ed Gilligan joins the News Hub with his take on today's U.S.
consumer behavior. Photo: Getty Images.
Americans' wealth hit the highest
level ever last year, according to data released Thursday, reflecting a
surge in the value of stocks and homes that has boosted the most
affluent U.S. households.
The net worth
of U.S. households and nonprofit organizations rose 14% last year, or
almost $10 trillion, to $80.7 trillion, the highest on record, according
to a Federal Reserve report released Thursday. Even adjusted for
inflation using the Fed's preferred gauge of prices, U.S. household net
worth?the value of homes, stocks and other assets minus debts and other
liabilities?hit a fresh record.
The Fed
report shows Americans have made considerable progress repairing the
damage inflicted by the housing crash and recession, which ran from
December 2007 through June 2009 and decimated the wealth of a wide swath
of the nation. But the rebound, while powerful, has been tilted in a
way that limits the upside for the broader U.S. economy and is
increasingly leaving behind many middle- and lower-income Americans.
"Wealth
inequality has increased over time," said William Emmons, an economist
at the Federal Reserve Bank of St. Louis. "So, there seems to be a
disconnect: There are big wealth gains, but not much follow-through on
consumer spending."
.......The upshot: While American households
overall are getting wealthier, the benefits for the economy may prove
limited until such improvements reach more people.
Younger families in particular
continue to lag behind in the wealth recovery. The average young
family?led by someone under 40?has recovered only about a third of the
wealth it lost during the crisis and recession, the St. Louis Fed said
in a recent study. By contrast, the average wealth of middle-aged and
older families has recovered to roughly precrisis levels.
Wall Street Journal article
U.S. Household Net Worth Hits Record High
Surging Stock Market and Rising Home Values Deliver Benefits, Especially for Affluent
Neil Shah
Updated March 6, 2014 8:09 p.m. ET
Americans' wealth reached a record-high last year thanks
to a surging stock market and rising home values. American Express
President Ed Gilligan joins the News Hub with his take on today's U.S.
consumer behavior. Photo: Getty Images.
Americans' wealth hit the highest
level ever last year, according to data released Thursday, reflecting a
surge in the value of stocks and homes that has boosted the most
affluent U.S. households.
The net worth
of U.S. households and nonprofit organizations rose 14% last year, or
almost $10 trillion, to $80.7 trillion, the highest on record, according
to a Federal Reserve report released Thursday. Even adjusted for
inflation using the Fed's preferred gauge of prices, U.S. household net
worth?the value of homes, stocks and other assets minus debts and other
liabilities?hit a fresh record.
The Fed
report shows Americans have made considerable progress repairing the
damage inflicted by the housing crash and recession, which ran from
December 2007 through June 2009 and decimated the wealth of a wide swath
of the nation. But the rebound, while powerful, has been tilted in a
way that limits the upside for the broader U.S. economy and is
increasingly leaving behind many middle- and lower-income Americans.
"Wealth
inequality has increased over time," said William Emmons, an economist
at the Federal Reserve Bank of St. Louis. "So, there seems to be a
disconnect: There are big wealth gains, but not much follow-through on
consumer spending."
.......The upshot: While American households
overall are getting wealthier, the benefits for the economy may prove
limited until such improvements reach more people.
Younger families in particular
continue to lag behind in the wealth recovery. The average young
family?led by someone under 40?has recovered only about a third of the
wealth it lost during the crisis and recession, the St. Louis Fed said
in a recent study. By contrast, the average wealth of middle-aged and
older families has recovered to roughly precrisis levels.
Wall Street Journal article
