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terpfan1980
terpfan1980
Join Date 08/2004
+13

American household wealth surges to new record--Fed

March 10, 2005 12:46:53 PM from JoeUser ForumsJoeUser Forums
Heaven forbid that some liberals read this. They'll be lined up to get ready to demand more of their share of these increases so that they can help the government balance the budget on the back of all of this new found wealth.

headline is linked.


American household wealth surges to new record--Fed

WASHINGTON (Reuters) - Rising real estate prices and a resurgent U.S. stock market pushed the net wealth of American households to a record high in the fourth quarter of 2004, the Federal Reserve said Thursday.
In its quarterly "Flow of Funds" report, the central bank said household balance sheet values rose to $48.53 trillion in the fourth quarter, up from $46.59 trillion in the third quarter.
The third quarter net worth was originally reported at $46.68 trillion, which had also been a record. The data is not seasonally adjusted.
Higher values for real estate, equities and mutual funds led the net wealth gains in the fourth quarter, the Fed said. Pension fund reserves also posted a healthy increase.
Elsewhere in the report, the Fed said borrowing outside the financial sector rose at an annual rate of 8.3 percent in the fourth quarter, growing at the same rate as the prior three months. For 2004 as a whole, the Fed said non-financial debt rose 8.5 percent compared to 8.0 percent in 2003.
Household debt grew 9.4 percent in the fourth quarter after a 11.5 percent expansion in the earlier period. The Fed said the deceleration reflected slower growth in mortgage debt and consumer credit.
Household debt increased 11 percent for 2004 as a whole, compared to a 10 percent gain in 2003, the Fed said.



This can't be good for these people. Surely there will be a stream of cries among some to tax this wealth and use the money to pay for more services (or the same ones we currently have). Too many people become more well off is a bad thing. It will surely leave too many people behind.

We absolutely must, must, must raise taxes on these people back to the 1990s level so that we can stop this new wealth from going to the people that worked to earn it, and have struggled to pull themselves up in society. We can't let this happen without getting the money into the governments hands, no matter how badly the people that have done the work deserve the rewards and may need the money for other purposes.

Yup, that's the answer, just go back to those old higher tax rates and collect more money for the government to use to pay for the obligations that the prior generations created for us.


NOT!!!
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terpfan1980
terpfan1980
Join Date 08/2004
+13
Reply #1 March 10, 2005 12:53:47 PM
from JoeUser ForumsJoeUser Forums
I guess I really must add the obvious comment that this news must be fake, and can't be real, as this just couldn't happen in Bush's America.

More people doing better financially just isn't possible with that moron, dip-ship, idiot, liar, scum... etc., (any name but President) running the country.

Right, liberals?

(do I need to add the obligatory "NOT!!!" here also?)
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terpfan1980
ParaTed2k
Join Date 12/2004
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Reply #2 March 10, 2005 1:37:52 PM
from JoeUser ForumsJoeUser Forums
OH NO!!! WE MUST, WE MUST, WE MUST INCREASE OR BUST!!!

Just another example of how tax reductions HELP THE PEOPLE!! Of course, helping the people would be a mistake, because well, if we can do it on our own, who needs a liberal! ;~D

I'll hang out with you Terp, together we'll laugh, joke, maybe have a drink or two and we'll watch one of two things happen here.

1) We enjoy a long barrage of denials, accusations of fraud and other tidbits of taundry tedium from the left... or...

2) Several moments of silence, interrupted only by a few other folks coming around to enjoy the good news with us.

Either way, I'm drinking Mt. Dew... what'll you have?? ;~D
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terpfan1980
terpfan1980
Join Date 08/2004
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Reply #3 March 10, 2005 4:21:14 PM
from PoliticalMachine ForumsPoliticalMachine Forums
Either way, I'm drinking Mt. Dew... what'll you have?? ;~D


I'll have Sweet Tea, the other staple of well heeled rednecks ;~)
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terpfan1980
drmiler
Join Date 09/2004
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Reply #4 March 11, 2005 1:39:54 AM
from JoeUser ForumsJoeUser Forums
Either way, I'm drinking Mt. Dew... what'll you have?? ;~D


I'll have Sweet Tea, the other staple of well heeled rednecks ;~)


The first staple is of course Dr. Pepper!

The first one who slams this will be COL Gene. Any bets?
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terpfan1980
ParaTed2k
Join Date 12/2004
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Reply #5 March 11, 2005 1:50:40 AM
from JoeUser ForumsJoeUser Forums
Well Drmiler, since Terp and I have been hanging out all day, and you're the only one to belly up to the bar with us, I'd say that the ol' Col and his Bush bashing cohorts are on the wagon. At least where this thread is concerned. ;~D

Dr. Pepper... figures.. ;~D
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terpfan1980
drmiler
Join Date 09/2004
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Reply #6 March 11, 2005 8:39:31 AM
from JoeUser ForumsJoeUser Forums
Maybe their just chicken?
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terpfan1980
ProgressiveUSA
Join Date 02/2005
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Reply #7 March 11, 2005 1:00:19 PM
from PoliticalMachine ForumsPoliticalMachine Forums
Naw, I can make a couple comments.

1 - First, thanks for citing a source. The "Flow of Funds" report is one that I have not looked at before & it's very interesting.

2 - That HH wealth number is driven by real estate markets, which at least some (such as "Irrational Exuberance" author Robert Schiller) believe are in something of a bubble. At the very least, real estate speculation has been on the rise out west. All of which brings into question the sustainability of those HH wealth numbers. Here's a typical article about the bubble: (Link) Now please note: I don't fully buy the bubble angle, but the data is pretty compelling.

3 - The rise real estate prices is a global phenomenon -- not just in the US. Economist, 3 Mar 2005: (http://www.economist.com/finance/displayStory.cfm?story_id=3722894) Did the rest of the world get GWB's tax cut too?

4 - The fact is, in the US at least, rising real estate prices are fueled by emergency-level lows in the price of money -- the lowest in 45 years. In other words, thank maestro Greenspan for rising house values, not GWB's tax cuts.

5 - Real estate values *ARE* taxed, terp. It's called "property taxes" & every state, county & school district in the country relies on them. Where have you been hiding?

6 - Do you have any stats on how that HH wealth is spread around? Contrary to supply side rhetoric, a 'rising tide' does *not* raise all boats. The "Flow of Funds" report might have that data...I just didn't have time to dig it out.

7 - Finally, when I cite GWB's record deficits & record federal debt, I was accused of 'intellectual dishonesty' because I used dollar amounts rather than percent of GDP amounts. Doesn't that make you likewise 'intellectually dishonest'?

Again, thanks for the citation.
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terpfan1980
Daiwa
Join Date 07/2001
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Reply #8 March 12, 2005 11:19:03 AM
from JoeUser ForumsJoeUser Forums
terp -

Fundamental rules you ignore at your peril:

All good news is fabricated, trumped up or highly selective.

All bad news is gospel until proven otherwise, and usually survives being disproven.

Hope that helps.

Cheers,
Daiwa
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