Few don't need extra money as household wealth drops

The recent proclamation of the recession being over seems dubious at best, as many sectors are still depressed. Though recessions are technically over when economic contractions stop, but the depressed state of employment, family prosperity and real estate would seem to contradict this idea. Net worth, or household wealth, is the amount of debt owed subtracted from the amount of assets. For instance, the value of a home an individual or family owns or investments held are assets. The total of all charge cards, personal loans, or debt is subtracted from the total value of assets. It’s not exactly advanced calculus. However, recent economic data has just a little to say about this. Net worth for Americans is at a particularly low point.

Bad news for family prosperity

The last couple of years have been an economic roller coaster. Household wealth has been via those ups and downs too. This summer was dismal, as household wealth over all fell through the floor. Household wealth, as outlined by CNN, dropped 2.8 percent. The data is compiled by the Federal Reserve. That amounted to $1.5 trillion of instant money down the drain. Negative effects were mostly felt by the stock market, though mutual funds and retirement savings were also hit. The bulk of losses occurred in stock markets. Individual stocks overall lost $912 billion over the summer.

Property is really a plucky field

There are two huge problem areas within the recession. Real estate, where it all started, and employment. After a near nuclear winter, real estate is starting to slowly improve. There is actually a little more value in real estate overall. Housing added $46 billion over the summer. However, this is an improvement of .3 percent. Overall, the real estate industry lost $17 trillion between mid 2007 to the end of 2009. It seems housing and employment are the areas that really need additional money, however those statistics have not seemed to benefit at all from the money advanced from stimulus programs.

Recuperation is taking place

Some good news has come out of all this, though. The stock markets are already rallying, according to USA Today. A double dip recession does not seem likely, as slow but steady recovery is expected.

Discover more details on this subject

CNN

money.cnn.com/2010/09/17/news/economy/household_net_worth/index.htm

USA Today

usatoday.com/money/economy/2010-09-17-net-worth_N.htm