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Saturday, September 18, 2010

Household wealth takes step backwards

This is more of a stock post, but households use money in these funds as a down payment to purchase homes, however mortgage debt is mention.  Plus look at the graph, it's been a roller coaster ride from 1995.

Real estate bucked the trend by growing by $46 billion, but that was only a 0.3% improvement. Of almost as great a help to household balance sheets was a cutback in debt. Mortgage loans held by consumers declined $49.3 billion, while outstanding consumer loans fell by $15.4 billion.
It's probably safe to assume to mortgage and loan debt dropped due to foreclosures and bankruptcies.  If we are in housing double dip as declared by CNBC.  It's going affect household balance sheets even more.

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