US household wealth reaches new high of $85.7 trillion

msn ^ | 9-18-2015 | Christopher S. Rugaber, Canadian Press

[Citizen Zed]

Rising home values drove a modest increase in Americans' household wealth to a new high of $85.7 trillion in the April-June quarter.

The Federal Reserve says Americans' stock portfolios climbed $61 billion in value, while housing wealth increased $499 billion.

Americans also stepped up borrowing, a sign of confidence in the economy.

Total mortgage debt grew at the fastest level since the recession ended in 2009. Overall household debt, which includes mortgages, student loans, auto loans and credit card debt, increased at the fastest pace in a year.

The Fed's figures aren't adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks and other assets minus mortgages, credit cards and other debts.

[Citizen Zed]

A trillion here, a trillion there, give or take.

[glorgau]

Is that gross or net?

I.e. Does it count all the public debt?

[The Ghost of FReepers Past]

Isn’t that meaningless if they are just talking about appreciation? It is not an increase of wealth unless you have more. If your house appreciates on the one hand while in a way it depreciates because things must constantly be repaired and replaced, how is that in increase in wealth?

Which doesn’t even count the constant boat anchor known as property tax.

[EvilCapitalist]

“American’s stock portfolios climbed $61 billion in value”

Quantative easing will do that.

[aMorePerfectUnion]

Almost all tertiary wealth that will disappear in a financial crisis as fast as it was created...

[eggman]

Note that this is looking at Q2 (April-June). We are rapidly approaching the end of Q3 which saw virtually all of the stock gains of the past year evaporate into thin air.

I happened to catch part of the national news the week of the market contraction about a month ago saying how strong the economy was, that real estate was still booming, and it was just a market correction. Today I heard them say the bad market results today are due to a slowing global economy but the US economy is still growing.

The bubble is deflating and the media hype isn't enough to pump the air back into it. Time to revise the old figures down to make it look like the economy is still doing okay.