U.S. Household Net Worth Up 4%, Debt Down Nashville Real Estate

The Federal Reserve is reporting positive news about the recovery in the 2010 4th Quarter Flow of Funds Report released on March 10th. Household net worth, which is the total value of a household minus any debt, increased $2.1 trillion from the previous quarter to $56.8 trillion. Household debt has also decreased 0.5% in the last quarter and has declined each quarter since the first quarter of 2008. The increased net worth and lower mortgage debt are expected to lead to stronger homeowners and less difficulty in meeting mortgage obligations.

The Fed also reports on the increasing levels of Government debt. State and Local Government debt rose 8% at an annual rate during the fourth quarter, and increased 5.5% in the third quarter of 2010. Federal Government debt rose 14.5% for the fourth quarter and 20% for all of 2010. Total outstanding public debt is now at $14.1 trillion with a debt ceiling set by Congress of $14.2 trillion. Before the hopes of a recovery are lost, we should reduced the current levels of government spending and debt.

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