For Richer of Poorer
And right now it's mostly poorer:
US household wealth on the decline, by Krishna Guha, Financial Times: American households are getting poorer for the first time in more than five years, Federal Reserve figures revealed on Thursday. Data showed total household wealth fell $533bn to $57,718bn in the fourth quarter, as falling share prices added to the damage from dropping house prices.
The decline will heighten fears that households could pull back from spending as they become poorer and less able to tap sources of credit, potentially tipping the US economy over the brink into recession. ...
Tim Geithner, president of the New York Fed, said the US central bank would use interest rates and liquidity tools “proactively” to contain the risks to the economy, and said rates “may have to remain accommodative for some time”. ...
Posted by Mark Thoma on Thursday, March 6, 2008 at 01:37 PM in Economics, Housing |
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