Household Net Worth Tumbles in Q3

December 26, 2014 0 Comments

US household net worth takes a dive for the first time in 11 financial quarters, after years and years of centrally induced banking viagra, also known as Quantitative Easing.

Quarterly Household Net Worth

Getting into the boring details  in simple terms, in Q3 households household debt outpaced assets. That is generally how net worth falls.  But why exactly did net worth fall? Credit Market Instruments dropped $131 billion (Corporate and Municipal Bonds) while households dump $481 billion worth in Corporate equities and $100 billion worth in mutual fund shares.

Overall, household net worth dropped $141 billion in Q3. A small bump in the road, but its not inconceivable to believe that after years of the market getting use to central banking viagra that suddenly stopping it may present some undesirable effects. If we are going to keep this welfare illusion going, the central bank needs to do all it can to further inflate housing prices and send the Dow to new milestones. Get to work Yellen!

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