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Old 06-20-2012, 07:57 PM
 
837 posts, read 1,680,817 times
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Quote:
Originally Posted by Ron. View Post
Who cares?


I'm only concerned about my own net worth, increasing.
Callous, but honest. Deserves a +1 for gutsy post if nothing else.
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Old 06-21-2012, 02:20 AM
 
748 posts, read 692,536 times
Reputation: 676
Quote:
Originally Posted by Ron. View Post
Who cares?


I'm only concerned about my own net worth, increasing.
I can't fault you for the sentiment, but consider this: Wealth these days is more about disparity than prosperity. Personally I feel whats good for the guy down the street is good for me. If he can't make it, he is more likely to not maintain his property, commit a crime, etc. Which becomes a problem for me. I'm not much of a leftist, but I can see this point.

Perhaps you live in a gated community, surrounded by other rich people. Well then you should be good for awhile, but if everybody's net worth keeps decreasing soon it will everybody's problem. Not just the poor or middle class, if we see civil unrest.
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Old 06-21-2012, 07:11 AM
 
Location: Great State of Texas
86,068 posts, read 76,653,322 times
Reputation: 27647
Quote:
Originally Posted by tickyul View Post
Is that wealth partially tied to the value of housing??? I assume it is....in that case the number is overinflated anyways.


The government LOVES to make Amerit***s look a lot richer than they are by artificially inflating the housing market......see Fannie & Freddie.
I agree. Alot of that was tied to housing. The boom in housing allowed people to borrow and spend without much concern because "real estate" always goes up..right ?

Housing and stocks. Both crashed. And if people had a lot of debt then their net worth would of course drop. The value of their assets shrunk while their debt didn't.

It's just simple logic and math.
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Old 06-21-2012, 07:52 AM
 
5,409 posts, read 10,333,582 times
Reputation: 4478
Quote:
Originally Posted by concept_fusion View Post

Perhaps you live in a gated community, surrounded by other rich people. Well then you should be good for awhile, but if everybody's net worth keeps decreasing soon it will everybody's problem. Not just the poor or middle class, if we see civil unrest.
What? WHAT? It is not just all about me? Me First? Me Only?

You must be a commienutz.
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Old 06-21-2012, 08:04 AM
 
Location: Londonderry, NH
41,478 posts, read 54,169,711 times
Reputation: 24730
We bought a condo well before the boom with an adjustable rate mortgage (reasonable as I had just started a new job) and refinanced into a shorter term fixed rate when interest rated dropped below four percent. At that time we were offered a loan five times as large as the initial mortgage based on my increased income. I politely declined. We watched our home more than double in price but kept it anyway. Now it is worth about what we paid for it in inflation adjusted dollars. In less than a year the mortgage will be paid off. I figure our net worth is not very much but it is still positive.

We are still in the condo because I do not like maintaining the lawn and house. These are not entertaining and our condo fee is just about as much as I would have to spend maintaining a house without the time involved.

We may not have a lot of assets but we will have a decent pension to take care of most needs. I'll figure out something to do for the rest.
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Old 06-22-2012, 08:37 AM
 
Location: San Diego California
6,797 posts, read 6,627,816 times
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Quote:
Originally Posted by chicagotodc View Post
Callous, but honest. Deserves a +1 for gutsy post if nothing else.
It is a stupid sentiment; a falling tide lowers all boats. If you think there is such thing as immunity, you are deluding yourself.
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Old 08-08-2012, 04:36 AM
 
85,439 posts, read 82,934,353 times
Reputation: 61184
Quote:
Originally Posted by jimhcom View Post
Fed: Americans’ wealth dropped 40 percent - The Washington Post


This article states that the wealth of the average American has fallen back to 1992 levels. The real problem with that is that what a dollar would buy back in 1992 now takes $1.65.
these studies are filled with more holes than the titanic. the current net worth report looked at 2007 to 2010. net worth fell 38% according to the study.

the study was 6400 people surveyed in a country of a few hundred million. while normally i would say thats enough folks to draw a conclusion i feel not here.

not when have you an infinite answer like net worth i dont believe its nearly enough people.

why do i think that?

while the recent media headlines were running with the 38% drop story i bet few saw the flow of funds report from the fed for first quarter 2012.

net worth they now said bounced back to less then 5% below where it was pre recession levels in 2007 in only 18 months .

REALLY?

Lets see what bounced back over 35% .

case shiller index says homes fell 4.5%, the markets rose 15%, wages were stagnant, unemployment steady , and another fed statistic says less than 1/2 of america even own equites .

so if the first study was accurate then how did we all gain 34% in net worth back?


i sure didnt and i bet most of you didnt either.

these gov't releases of information are just bull. i wouldnt believe any of them as rarely do the numbers add up. either the first report on the 38% drop wasnt accurate or the 2nd report was inaccurate but the numbers dont add up.

Last edited by mathjak107; 08-08-2012 at 04:51 AM..
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Old 08-08-2012, 05:04 AM
 
Location: Los Angeles, Ca
2,884 posts, read 5,395,484 times
Reputation: 2747
Has anyone bought a box of cereal lately?

It seems like not that long ago, boxes were a lot bigger. I was kind of shocked getting this little thin box of honey nut cheerios. There's all sorts of masked inflation going on. Has Ben Bernanke ever mentioned how food items regularly get smaller, or packaged in smaller boxes with the same price. Does that show up in his inflation indicator?

-With these "net worth of americans drop" articles, I think what makes people feel poor, their knowledge/skill, intellectual capital isn't keeping pace with the rest of the world. Look how much the world has leap frogged since '92. Have many people bettered themselves since then to keep up with gains in Asia, Europe, China? Probably not.

I think we've been in a holding pattern since then. Look at the huge growth in things like for profit colleges, the stagnation of test scores, overall bureaucracy, etc. What are we really doing to increase our net worth in schools?

We're closer to an end game than a beginning for the US dollar around the world. The US economy from 2000-2010 or 15 reminds me of tectonic plates shifting (say in the pacific). A lot going on under the surface. I.e. the massive accumulation of Chinese foreign reserves. Our loose FED policy, etc. I wouldn't be surprised if Americans net worth stays where it is or goes lower for 10, 20 years. There was a massive amount of artifical wealth created.

-I think we're also in a commodity super cycle, with maybe 10 years more to go. The 90's were a low point for food and energy. It's not going to be a good comparison going forward. If grains, wheat, oil keep going up, thats not going to be very good for americans net worth.
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