The Federal Reserve released the Q3 2011 Flow of Funds report today: Flow of Funds.
The Fed estimated that household net worth declined $2.4 trillion in Q3. Household net worth peaked at $66.8 trillion in Q2 2007, and then net worth fell to $50.4 trillion in Q1 2009 (a loss of $16.4 trillion). Household net worth was at $57.4 trillion in Q3 2011 (up $7.0 trillion from the trough, but down $2.4 trillion in Q3).
The Fed estimated that the value of household real estate fell $98 billion to $16.1 trillion in Q3 2011. The value of household real estate has fallen $6.6 trillion from the peak - and is still falling in 2011.Read the rest at Calculated Risk
Q3 Flow of Funds: Household Net Worth declines $2.4 Trillion in Q3
The US economy is limping along to gradually improving owing to government deficits, but housing remains a major drag.
And it looks like it is not over yet.
Assets prices, as a percent of GDP, have fallen significantly and are only slightly above historical levels. However household mortgage debt, as a percent of GDP, is still historically very high, suggesting more deleveraging ahead for households.
this is another example of Mike Norman's toolbox of invariants :
ReplyDeletei = f ( Gs )
investment is a function of government spending
investment being funds on hand in the RReal economy
Tom,
ReplyDeleteRamanan has a related kick ass post up:
http://www.concertedaction.com/2011/12/08/z-1-q3-2011/
R is really starting to roll over there.... must visit blog imo...
Resp,