Economy

American Wealth Grows By $1.2 Trillion

A rising stock market during the July-September quarter has helped boost the net worth of Americans by 2.2 percent to $54.9 trillion. The overall gain, reported by the Federal Reserve, came despite the fact that real estate values dropped by 3.7 percent.

The AP says that the gain still leaves Americans trillions short of their previous high-water mark:

"Americans' net worth still would have to rise an additional 20 percent to revisit its pre-recession peak of $66 trillion."

Bloomberg says the Fed report is another sign that consumers are finding their way back from the brink of the 2008 financial crisis:

"Rising wealth and falling debt are putting consumers further down the road toward improving their personal finances following the worst recession since the 1930s, one reason why spending has picked up. The report also showed that a drop in home prices limited the gain in net worth, indicating residential real estate remains a risk to the outlook."

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