Saturday, September 18, 2010
Americans' Net Worth Falls Along With Stocks
Things are not looking bright for the average US household. Average wealth declined even further despite the fact that the market has been doing better in the recent past. Its also surprising because the average household has also been saving a lot more money lately. The average households have been saving up to 6 % this year, compared to 2007, where citizens were saving only 2 %. However, the Fed reported yesterday, that the household net worth has decreased to 53.5 billion dollars; a decrease of 2.8 % since last quarter. This can be attributed to the recent unexpected decline in stock investments, which came at a time when the markets were doing well. The problem lies in the uncertainty of the markets. People are not spending as much because of the erratic financial conditions and which in turn is pulling the economy down south even further.
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i was really interested in seeing all of these numbers. what stroke me is that despite the effort of increasig govt spending, people are quite neglect and scare of spending more. I would be very interested to see another report following this, e.g. predicting what will the current situation lead to.
ReplyDeletei think its interesting that people are saving more since interest rates are really low. This makes sense though since banks are not willing to lend money out and from fear in the economy people dont want to spend.
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