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Another Quarter, Another Record High In 1%er Household Net Worth

household net worth
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EDITOR'S NOTE: The pandemic wiped out $8 trillion in household net worth, representing the biggest drop in history. With the Fed's easy monetary policy and government stimulus, though, household net worth has not only recovered, it's setting records. This number has not hit a new all-time high of $144.7 trillion after six quarters of growth, totaling $34 trillion. While this sounds like great news, a deeper dive by Zero Hedge shows that these numbers aren't as great for the average American as they may seem. “Since the bulk of this wealth goes to a fraction of the wealthiest 1%,” Zero Hedge notes. “It means that the pandemic has been the biggest wealth transfer in history, making America's richest even richer.” Meanwhile, while the rich get richer thanks to the government and the Fed, household debt (which disproportionately affects the bottom 50% of Americans in terms of wealth) is up to $17.6 trillion. 

Another quarter, another record high in (1%er) household net worth.

The Fed's latest Flow of Funds report released at noon today showed the latest snapshot of the US "household" sector as of Sept 30  2021, which confirmed that one year after the biggest drop in household net worth on record when $8 trillion was wiped out in Q1, 2020, in the 3rd quarter of 2021 the net worth of US households soared by another $2.362 trillion (a slowdown from the $6.140 trillion in Q2), or 1.7%, rising to a new all time high of $144.7 trillion.

As has traditionally been the case, real estate ($36.8 trillion) and directly and indirectly held corporate equities ($46.7 trillion) were the largest components of household net worth. Meanwhile, household debt was $17.6 trillion.

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All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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