household debt

The Bogus Flow of Funds Q2 Report Shows $3 Trillion in Addtional Net Household Worth Which Doesn't Exist

The Q2 2013 Federal Reserve's flow of funds report shows household net worth increased $1.5 trillion to $74.8 trillion in Q2 2013 and hit another record high.  The thing is, magically household net worth was boosted up by unfunded pension funds.  Nice huh, to have an increase in wealth that Americans do not actually have?

Q1 2013 Flow of Funds Shows Corporate Cash at Record High

The Q1 2013 Federal Reserve's flow of funds report, released June 6th, shows a select few gained handsomely in wealth and corporate cash is once again at record highs.   Household wealth , increased $3 trillion to $70.35 trillion in Q1 2013.  This is a 19% annualized increase from Q4, above 2007 levels and a record high.

Flow of Funds Report - Corporate Cash at Record Highs While Households Slash Mortgage Debt for Q3 2012

The Q3 2012 Federal Reserve's flow of funds report shows a select few gained handsomely in wealth. Household wealth increased $1.7 trillion to $62.67 trillion in Q2 2012. The gains were in stocks, $524.4 billion worth, mutual funds by $282 billion and real estate values increased.

Q2 2012 Flow of Funds Overview - Household Net Worth Declined, Corporate Cash Still High

The Q2 2012 Federal Reserve's flow of funds report was released last Thursday. Household wealth decreased $321.9 billion to $62.67 trillion in Q2 2012. The losses were in stocks, mutual funds while real estate values increased. Below is a graph of annual household net worth and notice the Great Recession wealth wipe out in the below graph.

 

Q1 2012 Flow of Funds Shows Some Strange Revisions

The Q1 2012 Federal Reserve's flow of funds report was released last Thursday with significant revisions. Household wealth increased $2.82 trillion to $62.87 trillion in Q1 2012. The gains were in stocks, mutual funds so the average Joe without portfolios, basically didn't see anything. Below is a graph of annual household net worth.

 

Q4 2011 Flow of Funds Shows Corporate Cash is King

The Q4 2011 Federal Reserve's flow of funds report is more bad news for Americans, plus holds some obscene statistics from corporate America. Household wealth increased $1.191 trillion to $58.455 trillion in Q4 2011, but is down by $369 billion, from Q4, 2010, or -0.63%. In comparison to the end of 2007, household wealth is still down -$6.743 trillion, or -10.34%. Below is a graph of annual household net worth.

Americans More Broke by -0.3% in Q2 - Flow of Funds Report Says

Within the Q2 2011 Federal Reserve's flow of funds is more bad news for Americans, we're broker...er.

Household net worth—the difference between the value of assets and liabilities—was $58.5 trillion at the end of the second quarter, about $150 billion less than at the end of the previous quarter.

 

"A Painful Recovery"

I am not sure where I came across this article. If it was on EP, I apologize for not giving credit but it may have been Calculated Risk. This article has some sombering graphs.

The article titled "US Household Deleveraging and Future Consumption Growth", by Reuven Glick and Kevin Lansing, articulates (much better than I can) why future economic growth may be relatively weak or anemic. The article suggests that U.S. households may continue to "deleverage" which may result in less consumption. It concludes that this "deleveraging" will not be painless.

U.S. household leverage, as measured by the ratio
of debt to personal disposable income, increased modestly from 55% in 1960 to 65% by the mid-1980s. Then, over the next two decades, leverage proceeded to more than double, reaching an all-time high of 133% in 2007. That dramatic rise in