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U.S. household wealth suffers record drop in second quarter
- kiba 4y agoIt is problematic that household wealth is stored in housing, creating bad incentive that exabacate inequality and accelerating climate change and just making us a poorer society.
- dragontamer 4y agoSeems to be a different issue than what's being discussed here? Housing prices didn't fall last quarter.
- injvstice 4y agoSomeone just had a soapbox moment. Anyway, from my personal experience, my personal wealth rate of change was definitely negatively affected by the housing market, due to increase in valuations, which turned into a significant increase in real estate taxes. I live in one of those places (Austin) where my house valuation jumped by 120% YoY.
- mdcds 4y agocan you share your logic? claims that housing being valuable leads to "bad incentives", bigger inequality, and overall poorer society aren't obviously true to me.
- systemvoltage 4y agoWhy is inequality bad and more importantly, what levels of inequality are acceptable? What is the objective standard here and what are the criteria/reasons that justify that standard?
- aperson_hello 4y agoIts bad for the ~third of households that don't own housing. But from classic wealth distribution metrics, I suspect it's overall a good thing for inequality (because so many people own their own houses).
- jschveibinz 4y agoIt’s the effect of the stock market losses. From the article: “…a bear market in stocks far outweighed further gains in real estate values, a Federal Reserve report showed on Friday.
- ericmcer 4y agoI wonder how quickly prices of goods will follow, they sure went up quickly on the way up.
- 8bitsrule 4y agoTitle's a bit overwrought. "tumbled to $143.8 trillion at the end of June from $149.9 trillion"
- twoxproblematic 4y ago
- diogenescynic 4y agoWealth destruction will lead to demand destruction which should lead to earnings contraction.
- missedthecue 4y agoAnd lower inflation