Dow Jones: ECONOMIC REPORT - Fed reports household net worth down 3.6% in fourth quarter

[El Pinko]

http://www.marketwatch.com/news/story/americans-poorer-year-ago-fed/story.aspx?guid=%7BC5C59CEB%2DE4A2%2D48C7%2D86CF%2D4C49ABF3A1F0%7D


ECONOMIC REPORT
Americans poorer than a year ago
Fed reports household net worth down 3.6% in fourth quarter
By Rex Nutting, MarketWatch
WASHINGTON (MarketWatch) -- Considering the impact of higher prices, a bigger debt burden and sagging home prices, Americans were poorer at the end of 2007 than they were the year before, the Federal Reserve reported Thursday.

The net worth of U.S. households fell by $533 billion, or a 3.6% annual rate, in the fourth quarter of 2007, the first time total wealth has fallen since late 2002, the Fed said.
For all of 2007, household net worth rose 3.4% to $57.7 trillion, the slowest growth in five years. After the effects of 4.1% inflation are included, real net worth fell for the year.
The Fed's flow of funds report also confirmed a sharp slowdown in borrowing by households to the slowest growth in 10 years. Household borrowing rose at a 5.6% annual rate, less than half the debt growth seen during the credit boom years in 2003 through 2005. Read the full report.
Borrowing by households for mortgages slowed to a 5% annual rate, also the lowest in 10 years. Borrowing for consumer credit -- mostly credit cards -- slowed to a 4% growth rate.

[roamer65]

1. Helicopter Ben's dream is about to come true.

Very soon he'll have no choice but to print $2T in cash and start dumping it from helicopters.

[El Pinko]

2. Good morning.

Kicking because I posted this so late.