Archive for December 6th, 2012
I just got done reading the following by Reuters’ Jason Lange about household wealth in America:
The net wealth of U.S. households rose in the third quarter to its highest since late 2007, providing a hopeful sign for future consumer spending.
Net financial wealth grew $1.72 trillion to $64.77 trillion, the Federal Reserve said on Thursday.
That left household wealth $1.2 trillion short of where it stood in the fourth quarter of 2007, just as the economy was sinking into a severe recession. Wealth peaked at $67.3 trillion in the third quarter of that year.
Rising home prices helped drive the increase in the latest quarter. The value of real estate owned by households rose about $300 billion, the Fed said. Stock holdings climbed by about $520 billion.
Increases in wealth could make consumers feel more comfortable spending their money. Many economists think consumers spend a few cents of every dollar they gain in wealth.
(Editor’s note: Italics added for emphasis)
Seeing this reminded me of something “crash prophet” Peter Schiff said back in September about the Fed trying to re-inflate the housing bubble through QE3 in an attempt to revive the floundering U.S. economy. I wrote on September 18:
In his September 14 entry on the The Schiff Report YouTube video blog, Schiff, who correctly-predicted the bursting of the U.S. housing bubble and 2008 global economic crisis, explained to viewers what QE3 was really about:
This is the plan that Ben Bernanke has. Ben Bernanke’s plan to revive the U.S. economy, and create jobs, is to inflate another housing bubble. That’s it. That’s what the Fed’s got. That’s what it came up with. As if the last housing bubble worked out so well for the economy, that the Fed wants an encore…
How is another housing bubble going to solve anything. Now one thing that Ben Bernanke hasn’t figured out yet- it ain’t gonna work. No matter how much he tries, no matter how much air he blows in to that housing market, he’s not going to reflate that bubble. There are simply too many holes in it, and there is no precedent for relating a busted bubble. More likely, all that cheap money is going to go someplace else…
The housing Pollyannas are definitely back, as you’ll read about in a Friday post.
But is housing back?
Lange, Jason. “U.S. household wealth rises to near 2007 high.” Reuters. 6 Dec. 2012. (http://news.yahoo.com/household-wealth-increases-64-77-trillion-172821521–sector.html). 6 Dec. 2012.
Last week, I spotted an article with an interesting headline on the Forbes website. It was “Where Americans Are Moving.” Considering the mainstream media has been trotting out stories of people moving back to the city recently, one might think that traditional urban centers like New York City, Los Angeles, and my hometown of Chicago might be big draws these days.
Joel Kotkin wrote on November 27 about the results of a recent analysis of domestic migration for the nation’s 51 largest metropolitan statistical areas by demographer Wendell Cox. From the piece:
How about the biggest losers? From 2000-09, the metropolitan areas that suffered the biggest net domestic migration losses resemble something of an urbanist dream team: New York, which saw a net outflow of a whopping 1.9 million citizens, followed by the Los Angeles metro area (-1,337,522), Chicago, Detroit, and, despite recent improvements, San Francisco-Oakland. The raw numbers make it clear that California has lost its appeal for migrants from other parts of the U.S., and has become an exporter of people and talent (and income).
And despite the cheap money Bernanke-Geithner policies of the past few years that have benefited giant banks centered in the bluest big cities, people continue to leave these areas. The 2010-11 numbers show the deck chairs on the migratory titanic have stayed remarkably similar, with New York still ranking first among the 51 biggest metro areas for net migration losses, followed by Chicago, Los Angeles, Detroit and Philadelphia. In most of these cases only immigration from abroad, and children of immigrants, have prevented a wholesale demographic decline.
So where are Americans moving to these days? One state in particular is the big winner in this category. Let me give you a hint. Think of a yellow rose.
You can read the entire Forbes piece here on their website to see if the large metropolitan area near you is where Americans are calling home these days.
Or from where residents are moving away, like here in the Windy City.
Christopher E. Hill, Editor
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