Comments on: $56 Trillion — American Net Worth Drops in 2008 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Thu, 11 Mar 2010 17:51:42 +0000 http://wordpress.org/?v=2.3.1 By: Kurt Brouwer http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1832 Kurt Brouwer Mon, 17 Nov 2008 17:41:44 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1832 Wake up -- this post was written last year so the bailout was not in existence then. Also, government debt, which is what the bailout is, has no direct correlation to personal net worth. Wake up — this post was written last year so the bailout was not in existence then. Also, government debt, which is what the bailout is, has no direct correlation to personal net worth.

]]> By: Wake Up http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1829 Wake Up Sun, 16 Nov 2008 19:50:31 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1829 Mr. Brouwer, I'm sorry to tell you but the credit crisis is already at $5 trillion in bailout monies. And here you are thinking it will be considerably less than $1 trillion. I estimate it to be $10 trillion will all done, some 10 times what you think. Mr. Brouwer,
I’m sorry to tell you but the credit crisis is already at $5 trillion in bailout monies. And here you are thinking it will be considerably less than $1 trillion. I estimate it to be $10 trillion will all done, some 10 times what you think.

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1527 Kurt Brouwer Mon, 29 Sep 2008 04:54:41 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1527 The net worth of Americans is certainly dropping right now. However, it is a net figure (asset minus liabilities) after all consumer debt and real estate debt. As to government debt, that's a bit north of $10 trillion right now, but it's hard to calculate because of all the government bailouts. However, government debt does not have much to do with personal net worth. All governments have debt and our government debt is about average compared to our GDP. Medicare and Social Security are unfunded to some extent, but those liabilities don't have much to do with individuals. It is possible that benefits will be cut or taxes increased at some point in the future, but again that is hypothetical. The current financial workout or bailout is likely to cost less than $1 trillion, probably considerably less, so it should not have a huge impact on personal net worth. Haircut net worth to $55 trillion if you like, but we're certainly not bankrupt. And, there is one factor you have not considered at all, which is all the assets owned by our government. Debt is an issue, but the other side of the balance sheet is pretty robust as well. The net worth of Americans is certainly dropping right now. However, it is a net figure (asset minus liabilities) after all consumer debt and real estate debt.

As to government debt, that’s a bit north of $10 trillion right now, but it’s hard to calculate because of all the government bailouts. However, government debt does not have much to do with personal net worth. All governments have debt and our government debt is about average compared to our GDP.

Medicare and Social Security are unfunded to some extent, but those liabilities don’t have much to do with individuals. It is possible that benefits will be cut or taxes increased at some point in the future, but again that is hypothetical.

The current financial workout or bailout is likely to cost less than $1 trillion, probably considerably less, so it should not have a huge impact on personal net worth. Haircut net worth to $55 trillion if you like, but we’re certainly not bankrupt. And, there is one factor you have not considered at all, which is all the assets owned by our government. Debt is an issue, but the other side of the balance sheet is pretty robust as well.

]]> By: randallgerard http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1525 randallgerard Sat, 27 Sep 2008 18:23:23 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-1525 So, let's see.. Americans have a total net worth of 56 trillion, but how much of that is spoken for in the form of total government debt? And how much of that is still inflated beyond all reality in the form of a housing and real estate bubble that has yet to return firmly to planet earth? And how much is spoken for in the form of 'unfunded liabilities' such as Social Security and Medicare? Add in total consumer debt, the cost of the current financial debacle, the cost of american adventures overseas (most of that is off-budget) and stir. We're bankrupt.. but it hasn't come home to roost and the rest of the world hasn't stopped buying our worthless paper.. yet. So, let’s see.. Americans have a total net worth of 56 trillion, but how much of that is spoken for in the form of total government debt? And how much of that is still inflated beyond all reality in the form of a housing and real estate bubble that has yet to return firmly to planet earth? And how much is spoken for in the form of ‘unfunded liabilities’ such as Social Security and Medicare? Add in total consumer debt, the cost of the current financial debacle, the cost of american adventures overseas (most of that is off-budget) and stir.

We’re bankrupt.. but it hasn’t come home to roost and the rest of the world hasn’t stopped buying our worthless paper.. yet.

]]> By: drb http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-967 drb Sun, 29 Jun 2008 15:34:15 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-967 up 15 trillion adjust for inflation, up 7.5 trillion adjust for 50% worldwide fall in dollar against say the euro, up approx 3.25 trillion. in 7 years - 8% overall, 1.1%.yr, overall. current deflation, 2 trillion in first quarter, estimate 2 trillion lost last half 2007. if next 12 months loses at same rate, 4 more trillion lost by first quarter 2009. adjust as above, 2.25 adjusted trillion lost by end of recession. net 1 trillion gain in real terms since 2001. basically a statistical blip. basically no change in net worth in last 7 years. up 15 trillion

adjust for inflation, up 7.5 trillion

adjust for 50% worldwide fall in dollar against say the euro,

up approx 3.25 trillion. in 7 years - 8% overall, 1.1%.yr, overall.

current deflation, 2 trillion in first quarter, estimate 2 trillion lost last half 2007. if next 12 months loses at same rate, 4 more trillion lost by first quarter 2009. adjust as above, 2.25 adjusted trillion lost by end of recession. net 1 trillion gain in real terms since 2001. basically a statistical blip.

basically no change in net worth in last 7 years.

]]> By: John F. http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-376 John F. Mon, 03 Dec 2007 14:33:51 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-376 What does it mean when you say home equity and retirement plan savings are not "fully" factored in. Do these represent part of the totals? What does it mean when you say home equity and retirement plan savings are not “fully” factored in. Do these represent part of the totals?

]]> By: Everything Finance http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-277 Everything Finance Wed, 17 Oct 2007 13:21:49 +0000 http://www.fundmasteryblog.com/2007/10/02/579-trillion-american-net-worth/#comment-277 <strong># 5 Edition: Carnival of Everything Finance</strong> # 5 Edition: Carnival of Everything Finance Welcome to the October 15, 2007 edition of carnival of everything finance. We had over 80 really good articles submitted for this edition. Editor favorites have "*" on them. Earning Money # 5 Edition: Carnival of Everything Finance

# 5 Edition: Carnival of Everything Finance

Welcome to the October 15, 2007 edition of carnival of everything finance.

We had over 80 really good articles submitted for this edition.
Editor favorites have “*” on them.

Earning Money

]]>