Americans' Net Worth Rose in 2nd Quarter

(AP)  Americans' wealth rose this spring for the first time in nearly two years, with stocks and home values gaining as the recession faded.

Still, household net worth remains about 19 percent below its peak in the third quarter of 2007, before the recession began.

The Federal Reserve said net worth grew by $2 trillion to $53.1 trillion in the April-to-June quarter. Net worth, or the value of assets such as homes, checking accounts and investments minus debts like mortgages and credit cards, rose nearly 4 percent from the first quarter, the Fed said.

Even with the gain, Americans' net worth stands well below the $65.3 trillion it reached two years ago.

The second quarter increase in net worth was the first since wealth peaked. According to the Fed report, the pickup was led by gains in stock portfolios. The value of Americans' stock holdings rose 21.6 percent from the first quarter.

Net worth in the second quarter also was boosted by higher home prices. The value of real-estate holdings rose 1.8 percent, according to the Fed report.

This week, Fed Chairman Ben Bernanke said the worst recession since the 1930s probably is over. Most analysts say the U.S. economy is growing in the current quarter, which ends Sept. 30, at an annual rate of 3 to 4 percent. The economy shrank at a 1 percent pace in the second quarter, much slower than in previous quarters.

Bernanke warned that the pace of recovery probably won't be brisk enough to generate solid job growth and keep the unemployment rate - now at a 26-year high of 9.7 percent - from rising.

Collectively, homeowners had 43.1 percent equity in their homes in the second quarter, according to the Fed report. That was up only slightly from 41.9 percent in the first quarter.

[reality42]

How can that be when the USA just said 11 months ago that they are now in a ression? I love the way the numbers are always worked in favor to what the media wants to postfor the goverment.

[spiritwalk]

So, I guess I am just hallucinating when I think I see all these families sleeping in their cars at night in the Walmart parking lot.

[tonyatq]

Wonder will Glenn Beck and O'Reily report that.

[cbsblogger]

How about giving us net worth MINUS US Government liabilities?

That's a much more accurate picture of where America and Americans are headed. Provide it by median amount, and by quartiles, not average, which distorts it because it includes the mega rich who have gained so much at the expense of most Americans.

That's the fallacy of such a report. Most of the trillions in debt that the corrupt Wall Street gang accumulated with went on the books of every American thanks to the Fed and Congress.

[Orlandojon]

I can't believe some you will just take everything the fringe media says as gospel. You don't have to be a genius to find big holes in this story. The average citizen with a portfolio owns a house, a couple cars and maybe some stock and a 401K. Both the house and 401K lost nearly 50% in value over the past year. Stocks took an even bigger hit. It doesn't add up...

[reveal5]

Anybody who thinks CBS is fringe, is themself fringe.

[Orlandojon]

I can't believe some you will just take everything the fringe media says as gospel. You don't have to be a genius to find big holes in this story. The average citizen with a portfolio owns a house, a couple cars and maybe some stock and a 401K. Both the house and 401K lost nearly 50% in value over the past year. Stocks took an even bigger hit. It doesn't add up...

[tonyatq]

You take everything Fox News, Rush and Sarah Palin say as gospel.

[inketolstoy]

Does anyone know how many unemployed factory workers it takes to eliminate the positive effect of bank exec. bonuses on our national net worth? The rich are getting richer while the middle class is sinking into poverty.

[ibsteve2u]

"The Federal Reserve said net worth grew by $2 trillion to $53.1 trillion in the April-to-June quarter."

Ummmm...now if the Federal Reserve considered America to be a democracy, they'd split those oh-so-cheerful numbers out by income quintile.

[DaVicar6]

Our net worth is only two quarters?

[stuart-johns]

LOL That was funny now.

[jtdev1]

It's mostly that the people have been paying off their debt. That increases your net worth...