"Slowly, Americans are regaining their lost wealth"

[cocopea9052]

And just who are they talking about here?

Jeannine Aversa And Dave Carpenter, Ap Business Writers – Thu Mar 11, 6:25 pm ET

WASHINGTON – Americans are recovering their shrunken wealth — gradually. Household net worth rose last quarter, mainly because the healing economy boosted stock portfolios. But the gain was slight. And it was less than in the previous two quarters.

The Federal Reserve said Thursday that net worth rose 1.3 percent in the fourth quarter to $54.2 trillion. It marked the third straight quarter of gains. But economists say consumers would need a stronger and more prolonged increase in their wealth to persuade them to ratchet up spending.

Net worth had risen by a more robust 4.5 percent in the second quarter of 2009 and an even faster 5.5 percent in the third quarter. Net worth is the value of assets such as homes, checking accounts and investments minus debts like mortgages and credit cards.

Even with the gain, Americans' net worth would have to rise an additional 21 percent just to get back to its pre-recession peak of $65.9 trillion. That illustrates Americans' vast loss of wealth from the worst downturn since the 1930s.

Growth in stock portfolios delivered the biggest lift to net worth in the October-to-December period. The value of stocks rose by nearly 4 percent to $7.7 trillion. Higher home prices helped a bit. The value of real-estate holdings edged up 0.2 percent.

During the recession, which began in December 2007, household net worth had plunged as low as $48.5 trillion in the first quarter of 2009. Stock holdings and home values nose-dived. As their net worth evaporated, Americans felt less inclined to spend.

For all of last year, consumer spending dropped 0.6 percent. This year, as wealth, the economy and financial conditions slowly recover, consumer spending is projected to grow around a modest 2.2 percent, according to the National Association for Business Economics.

http://news.yahoo.com/s/ap/20100311/...8ZhyIUYNt0fNdF

[Howdy]

I don't see how you recover money lost. That money is gone.

[ToriNoell]

well, they sure aren't talking about me. I never had any wealth to begin with lol. And every year I make consistently less then the previous year. The cost of living goes up but in my line of work I never get a raise.

[Tall Timbers]

I don't see how you recover money lost. That money is gone.

Properties can raise in value, that's one way, but I don't think that's happened in too many areas of the country.

Investor's stock holdings increase in value. This is probably where most of the wealth and theoretical wealth is returning. It's only a small percentage of the population that possesses most of the wealth. Most people and families don't have anything to speak of after you take into consideration the loans that they're carrying.

[ronbo477]

Some people have really cut back and start paying off debt. This causes a slow down in consumer spending but, it increases consumer worth. State and local governments are cutting spending and streamlining themselfs to a certain extent. The problem is the massive federal debt. Sooner or later it will wreck havac with our economy.
I am wondering what would happen if people would just tithe and quit giving to every cause or agenda. We must get 30 or so solicitations a week. This must be a tremendous part of our economy.

[JY11]

No regained wealth for me. But, Lord willing, I would rather have it in Heaven!

[tooty]

Hard to pay off debt when you are unemployed, employed but underpaid, employed with reduced hours, and/or already barely making ends meet. Gas prices seem to be going up 10c per week. Summer of 2008 we had to charge our gas on credit cards just to make it to work or to the grocery store because our budget is just that close. I am concerned.

[Tall Timbers]

Hard to pay off debt when you are unemployed, employed but underpaid, employed with reduced hours, and/or already barely making ends meet. Gas prices seem to be going up 10c per week. Summer of 2008 we had to charge our gas on credit cards just to make it to work or to the grocery store because our budget is just that close. I am concerned.

I sense that with an economic recovery underway, the cost of oil will start raising again, and that will stall the recovery and either flat-line the economy or send us back into recession. Americans are still a big chunk of the world economy so when we stumble, so does just about everyone else. Extraordinary inflation over the last several years, caused by higher energy prices which led to significant price adjustments in food and other areas, have left the average American stretched very thin. We really can't afford $3 a gallon gasoline let alone anything more. High energy costs and a very weak dollar have been hard to absorb. Add high unemployment to the mix and an out of control government that keeps spending like there is no tomorrow, and both our short and long term economic outlooks don't look too well.

[Miss Isabelle]

I sense that with an economic recovery underway, the cost of oil will start raising again, and that will stall the recovery and either flat-line the economy or send us back into recession. Americans are still a big chunk of the world economy so when we stumble, so does just about everyone else. Extraordinary inflation over the last several years, caused by higher energy prices which led to significant price adjustments in food and other areas, have left the average American stretched very thin. We really can't afford $3 a gallon gasoline let alone anything more. High energy costs and a very weak dollar have been hard to absorb. Add high unemployment to the mix and an out of control government that keeps spending like there is no tomorrow, and both our short and long term economic outlooks don't look too well.

I agree with your post 100%, Timbers!

I've been laid off since the week of Thanksgiving. I was denied unemployment and have yet to find another job! It still doesn't look all that promising!

[yacoub]

That article reeks of propaganda.

[Clouds]

It just goes to prove the saying that, "Figures can lie and liars can figure."

If the value of your house drops 50% and inflation begins to make it appear that your property is starting to go up in value, that does not mean you are necessarily "regaining lost wealth".
The value of the dollar might just be decreasing since our government is allowing money to be printed in crazy volumes. This form of hidden dishonest taxation makes people think the value of their house is recovering or increasing when it is really only the value of the dollar that is decreasing.

We need to get rid of those who promote or allow such dishonesty and lying in our government.

[Holding Pattern]

So is there some place I can take my "CHANGE" and get something tangible?

[Faline]

Employed but underpaid, barely making ends meet (IF they meet)...now, that I can understand!

Hard to pay off debt when you are unemployed, employed but underpaid, employed with reduced hours, and/or already barely making ends meet. Gas prices seem to be going up 10c per week. Summer of 2008 we had to charge our gas on credit cards just to make it to work or to the grocery store because our budget is just that close. I am concerned.

[Mitsy]

They are basing these wonderful economic figures on ............

STOCK PORTFOLIO's

Yeah well I guess the majority of people struggling to meet their rent, pay off credit cards or mrotgages or education debt haven't had time to accumulate a Stock Portfolio unless they managed to inherit one from a rich Aunty.

So who has a Stock Portfolio?? I would say that it represents a small percentage of the actual American population and only these people are experiencing this wonderful phenomenon. A small increase in their shares after they plunged from their dizzy heights.

Big Whoop!

[graybeard]

I agree with your post 100%, Timbers!

I've been laid off since the week of Thanksgiving. I was denied unemployment and have yet to find another job! It still doesn't look all that promising!

Part of the "contribution" to the increase in wealth ia do to the fact the forclosed property is taken out of the debt picture, People losing their homes and businesses to foreclosure resluts in the lowering of overall debt, The article doesn't mention how much over all debt has been converted to the lost assets of many individuals. It appears that losing everything is the same as becoming debt free, and skews the true picture. Overall wealth, is the most fickle of statistics.

[Fable]

I sense that with an economic recovery underway, the cost of oil will start raising again, and that will stall the recovery and either flat-line the economy or send us back into recession. Americans are still a big chunk of the world economy so when we stumble, so does just about everyone else. Extraordinary inflation over the last several years, caused by higher energy prices which led to significant price adjustments in food and other areas, have left the average American stretched very thin. We really can't afford $3 a gallon gasoline let alone anything more. High energy costs and a very weak dollar have been hard to absorb. Add high unemployment to the mix and an out of control government that keeps spending like there is no tomorrow, and both our short and long term economic outlooks don't look too well.

I agree wholeheartedly. My 401k has rebounded and is now above the pre-recession level of 2 years ago. That being said, an increase in the price of oil will bring this recovery to a grinding halt, as well as my ability to invest more in my savings. If I have to pay more for my gas needs, I will spend less money in the stores, less money on "extras" and less money on gifts for birthdays and such. It is economics 101. It is a shame such a small percentage of people seem to actually grasp this concept. Then again, us Christians always were a bright group.

[sherrimae]

I don't see anything getting better. I've been unemployed for almost a year and have no job prospects. My family is worse off this year than last year, and last year we were worse off than the year before that. My husband has a part time job but doesn't make enough money for us to save anything. The local school district is going to lay off almost 200 teachers, and if the NASA cuts go through another 2,500 people in this area will be losing their jobs. My son's best friend said recently that both his mother and father are probably going to lose their jobs in the NASA cuts being pushed by Obama.

[Jec]

With interest rates low, gas prices staying relatively low, and unemployment only at 10%, then we should be very grateful that anyone of these categories has not tipped the scale in a negative fashion so as to cause a snow ball effect in some way or another.