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PeakTrader said...

Saving takes less effort than spending, but it's a lot harder to do.

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Americans' equity in their homes near a record low
June 9, 2011

The average homeowner now has 38 percent equity, down from 61 percent a decade ago.

There are 74.5 million homeowners in the United States. An estimated 60 percent have a mortgage. The rest have either paid off the loan or bought with cash.

Of the people who have mortgages, 23 percent are "under water"...An additional 5 percent are nearing that point.

The Fed's quarterly report...found that corporations are still hoarding cash. Excluding banks and other financial firms, companies held $1.9 trillion in cash at the end of the quarter.

Household net worth in America is up nearly 19 percent from early 2009 but still about 11 percent below its peak in 2007.

The report found household debt declined at an annual rate of 2 percent from the previous quarter, mostly because of a decline in mortgage debt, which has fallen for 12 straight quarters.

But the decline is deceiving. Mortgage debt is coming down because so many Americans are defaulting on payments and losing their homes to foreclosure, not just because people are paying off loans.

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Chart: Household Net Worth:

http://1.bp.blogspot.com/-rRdw6IWFYW0/TfEWS6fbefI/AAAAAAAAPYU/Czc9UrnmHu4/s1600/nw.jpg