Stocks, small credit growth
the Federal Reserve is reporting that the 2nd quarter US net worth grew to $118.9 trillion. That is up $7.61 trillion in the 2nd quarter. The household net worth is a record
- Real estate value gained $0.5 trillion
- federal debt rose by record 59% in the 2nd quarter
- biggest drop ever in consumer credit outstanding
- consumer credit fell by 6-6.8%
- mortgage debt rose by 3%
- biggest quarterly gain ever and household net worth
- equity values rose by $5.7 trillion
That's the good news. The not so good news is that the gains in the 2nd quarter offset Covid 19 related losses in the 1st quarter putting households slightly above end of 2019 levels. Also not so great is that the debt grew at 58.9% annualized rate. That is triple the growth rate seen in the 2007 – 2009 recession.
