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| Economy |
| A $5 Trillion ‘Wealth Shock' Is Cracking Americans' Nest Eggs |
| 2022-05-23 |
| [Bloomberg] The world’s richest nation is waking up to an unpleasant and unfamiliar sensation: It’s getting poorer. Americans’ collective net worth had been climbing at a dizzying rate for the past two years, even as families and businesses contended with the ravages of Covid-19. Households piled up an extra $38.5 trillion from early 2020 to the end of last year, bringing their collective net worth to a record $142 trillion, the Federal Reserve estimates. Just as the US is learning to live with the virus and spending shifts back toward pre-pandemic normal, it faces a new scary threat: A plunge in wealth since the start of 2022 that JPMorgan Chase & Co. estimates totals at least $5 trillion -- and could reach $9 trillion by year-end. So far, the richest Americans have borne the brunt, with US billionaire fortunes down almost $800 billion since their peak amid the sharp losses in stocks, crypto and other financial assets. But surging interest rates are also starting to rattle the housing market, where middle- and working-class families have the bulk of their wealth. It all adds up to the sudden removal of a major prop to confidence: ever-bigger nest eggs. And it’s by design. To stamp out the highest inflation in decades, the Fed needs Americans to curb their spending, even if it requires an economic slowdown to get there. |
| Posted by:Besoeker |
| #4 Briefly. |
| Posted by: Skidmark 2022-05-23 16:52 |
| #3 When I can no longer pay the mortgage and someone comes to kick my family out can I treat them as home invaders? |
| Posted by: Griter Sninens2879 2022-05-23 11:55 |
| #2 So does that include how much we are spending on government in the form of taxes? We could just send in a note instead of Quarterly filings telling them we are trying to do our part to curb spending? |
| Posted by: NoMoreBS 2022-05-23 11:49 |
| #1 "To stamp out the highest inflation in decades, the Fed needs Americans to curb their spending, even if it requires an economic slowdown to get there." Curb our spending? Hell Inflation already has us paying more and buying less and less. Question: Bloomberg should we the people just Starve and Walk? Or should the DC Swamp Critters stop their constant $TRILLION annual budget deficit spending? |
| Posted by: NN2N1 2022-05-23 07:09 |