Household wealth dropped by $13.5 trillion from January to September, second-worst destruction on record
(Worthy News) – American households lost about $6.8 trillion in wealth over the first three quarters of 2022 as the stock market shed more than 25% of its value, the Federal Reserve reported Friday in the government’s quarterly financial accounts.
Nominal net worth fell 4.6% to $143.3 trillion, as the market value of assets fell by $6 trillion and liabilities rose by about $900 billion. Households’ balance sheets -assets minus liabilities—were propped up by a 10% increase in home equity, which is the greatest source of wealth for most American families.
But the loss in real wealth from January through September was about twice as large as the nominal loss — $13.5 trillion in current dollars—after accounting for the rapid inflation experienced this year. Inflation makes both debts and liabilities worth less in terms of purchasing power. [ Source: MarketWatch (Read More…) ]
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