American
households accumulated debt at the fastest rate in the second quarter in more
than four years, and total domestic debt grew at the quickest rate in
three-and-a-half years, suggesting many consumers are still struggling three
years into an economic recovery, reports The Market
Watch.
Household debt
climbed $39.4 billion, the first gain in over a year, to $13 trillion in the
second quarter, according to Federal Reserve data issued on Thursday -- just $2
trillion shy of the country's total yearly economic
output.
Americans'
financial net worth retreated by over $300 billion to $62.7
trillion.
In the short
run, higher debt levels could boost growth. But unless wages and incomes keep
up, analysts say any consumption spurt will likely prove
short-lived.
U.S.
non-financial firms held liquid assets amounting to $1.73 trillion, down about
$20 billion from the prior quarter.
Households have
struggled to rebuild their assets and income after the country's housing bubble
popped and triggered the 2007-2009 recession.
The latest
Census data showed median U.S. incomes fell 1.5 percent to $50,054 in 2011 after
adjusting for inflation, the second consecutive annual drop.
U.S. households
saw incomes shrink for a second straight year in 2011, according to a Census
Bureau report released Thursday, Sept 20. WSJ The income of
the typical U.S. family fell or was flat in almost every state last year, with
the drop particularly steep in places where the economy has been hit hard by the
housing bust. WSJ The sharpest
drop occurred in Nevada, where median income fell by 6%. The median fell by 3.8%
in California and by 2.9% in Arizona and Florida. Those four states are among
those that have seen the biggest falls in home values and housing construction
since the financial crisis, and where Americans are still struggling with the
resulting heavy debt and high unemployment. WSJ Nationally, the
median income dropped by 1.3% to $50,502 in 2011, with 46.2 million people in
poverty, according to a Census Bureau report released Wednesday, Sept 12.
MarketWatch
AHT/HJ
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