Household Net Worth Statistics
Posted By thestatedtruth.com on September 17, 2010
Key words here: Households managed to pare down their debts for the ninth-straight quarter, largely by defaulting on mortgages and credit-card debts.
The Federal Reserve reported Friday that household net worth—stocks, bonds, homes and other assets, minus mortgages and other debts—fell 2.8% to $53.5 trillion in the second quarter, driven by a sharp decline in the value of stock investments.
Households managed to pare down their debts for the ninth-straight quarter, largely by defaulting on mortgages and credit-card debts. Total household debt outstanding fell $77 billion to $13.5 trillion in the second quarter. That’s just barely more than the value of mortgage and credit-card debt that banks and other investors wrote off after borrowers defaulted. Commercial-bank records suggest such write-offs amounted to more than $70 billion.
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