Americans Feel a Little More Rich

Daily Real Estate News  |  March 11, 2011  |    Share
Americans Feel a Little More Rich
Americans are getting wealthier: Americans’ wealth increased 3.8 percent in the final three months of 2010, the Associated Press reports. Most of the growth is attributed to gains in stock portfolios.

Overall, household net worth increased to $56.8 trillion last quarter, despite a drop of 1.6 percent in real estate holdings, the Federal Reserve reported Thursday. Net worth–which is the value of assets such as homes, checking accounts, and investments, but minus debts such as mortgages and credit cards–has increased two consecutive quarters after dropping last spring.

More gains in wealth could prompt Americans to spend more and strengthen the overall economy, experts say.

Meanwhile, companies are also starting to feel a little more rich. The boost to companies’ cash-flow is expected to bring about a boost to job hiring in the coming months.

Source: “Fed: Stock Gains Boosted Amercians’ Wealth Last Quarter; Corporate Cash Reaches New High,” Associated Press (March 10, 2011)