Fed Releases Z1 Statement…..Wealth Report

Posted By on December 9, 2010

From the looks of this, it understates the actual wealth loss by about 2-4%

This from todays Federal Reserve Z1 report……”business debt increased to an all time record high of $7,351 billion, an $82 billion increase in the quarter”…..so yes I know corporate cash is very high, but so is corporate debt…….they’re borrowing to put cash on the books, not using it to expand business.  I agree, its probably better to have the cash on the books and debt at low rates, but it’s a two edged sword here…..consumers are deleveraging from the highs (down 3.5%) but slower then the amount assets have fallen (18%).  The average net worth is now down about 18% from the highs in 2007.  Net worth was down about 26% at the lows.  

Summary Consumer Balance Sheet:

Change In Household Debt:

Change In Corporate/Business Debt:

 

Change In Government/State And Local

Source: Z.1

www.zerohedge.com

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