Americans Lost $1.3 Trillion In Net Worth

American households lost $1.33 trillion of their wealth in the first three months of the year as the recession took a bite out of stock portfolios and dragged down home prices.

The Federal Reserve reported Thursday that household net worth fell to $50.38 trillion in the January-March quarter, the lowest level since the third quarter of 2004.

The first-quarter figure marked a decline of 2.6 percent, or $1.33 trillion, from the final quarter of 2008.

Net worth represents total assets such as homes and checking accounts, minus liabilities like mortgages and credit card debt.

The damage to wealth in the first quarter came from the sinking stock market. The value of Americans' stock holdings dropped 5.8 percent from the final quarter of last year.

Another hit came from falling house prices. The value of household real-estate holdings fell 2.4 percent. Collectively, homeowners had 41.4 percent equity in their homes in the first quarter. That was down from 42.9 percent in the fourth quarter.

The latest snapshot of Americans' balance sheets was contained in the Fed's quarterly report called the flow of funds.

Despite the drop, the speed at which net worth has shrunk has slowed. During the recession's deepest point in the October-December period, Americans' net worth fell 8.6 percent, according to revised figures.

With wealth declining and unemployment rising, there are questions about how consumers - the lifeblood of the economy - will behave in the coming months.

If they continue to spend, even at a subdued pace, the recession likely will end this year as predicted by Fed Chairman Ben Bernanke and other economists.

However, if consumers hunker down and cut spending again, that could delay any recovery.

In the final quarter of last year, Americans slashed spending at an annual rate of 4.3 percent, the most in 28 years.

[the74blaster]

Again I say...Stellar work on the economy, President Obama.
Posted by randomlybanned at 7:39 PM : Jun 11, 2009

Now I see how you right wing extreamist thnk. When a democrat is elected all the problems the previous republican present are suddenly caused by the incoming democratic president on January 20th.

Well I guess coming from a priviledged childhood you folks never understood what being accountable or responsible for your own actions mean.

Well let me offer a clue. The economic problems and the market crash started in September of 2008 and Obama was not president in 2008!

i guess you need to go back to you rose colored sun glasses and start up on the koolaid again. As an independent, I know better so blaming the democrats for your heros mess is not going to work!

In fact have you folks thought about your political line of attack if Obamas policies actually cause an economic recovery?

If nothing else I hope they do work just to watch the scambling by the GOP in 2010 and 2012.

[randomlybanned]

Again I say...Stellar work on the economy, President Obama.

[omega39-2009]

Canada's healthcare spending is expected to reach $171.9 billion, or $5,170 per person, in 2008. Health expenditures are expected to be 10.7% of the gross domestic product. Hospitals account for the largest segment in spending at $48.1 billion, however, this amount is declining. According to the OECD, spending was second amongst other countries, behind the United States and ahead of Norway, Switzerland and Luxembourg[3].
Posted by enriquieGonzales

And they will still spend less per capita than the US while ensuring EVERY Canadian has access to preventive as well as emergency care.

[omega39-2009]

Was that a racist remark esse. I have not once made racist remarks, just dissent from our current president and its socialist democrats. The last laugh will be yours bendaho, your turning this once great country into Mexico. I dont consider Mexico my home poppy. Say something a little more intelligent. Maybe you should go back to school.
Posted by enriquieGonzales at 6:

So you disagree that Mexico is a capitalist utopia? You're a fool!

[omega39-2009]

I would laugh if it wasnt such a nightmare. Just tonight I was talking with my wife and she wants to move to CANADA. I came to this country thru a green card back in the 60's. I worked hard washing dishes and worked my way up to owning my own restraunt. But now because of Obama we are considering leaving the country we loved for so long. USA - RIP. Maybe someday I will comback with the Iraq Army and liberate America from its Huessain.
Posted by enriquieGonzales

Oh good lord!!! Do you realize that Canada has *GASP* single payer universal healthcare? SOCIALISM ALERT-SOCIALISM ALERT!!!!

[grabandgo]

Seems our current government is the problem.
We were promised change by the inexperienced senator and he did us in.
Like a runaway train.

[omega39-2009]

Posted by enriquieGonzales at 5:36 PM : Jun 11, 2009
------------------------------------------------------------------------------------------

The Democrats stood up and clapped with joy at their master Obama. The Master said --I will give you everything from cradle to grave--The Democrats yelled --GIVE US MORE--Master said --I give you health care--And the democrats yelled--GIVE US MORE--The Master said --I will pay your mortgage--And the democrats yelled --GIVE US MORE--Master said go get a job--And the Democrats yelled --WHY, YOU GAVE US EVERYTHING.
Posted by BornFreeorDie

The beauty of this country is that if you don't like it you are free to pack your belongings and moooove-on....When will you and enriquie be moving to that capitalist utopia otherwise known as Mexico?

[platteman]

Just wait, you won't have any trillions to lose in the future. Turn out the lights, Obama is going to take it all away, so hang on, what you had is going and will soon be gone.

[rlsutter]

Republican: It's Obama's fault.

Democrat: It's Bush's fault.

That's it. No need to debate it. Conversation over.

[velma179]

enrique...

Have you ever had an ORIGINAL thought?