Globally, debt and equity capital markets lost around $23 trillion of ‘wealth’ in Q2 as Putin’s invasion sent commodity prices higher, slammed stocks on recession fears, and central banks around the world engaged in policy-tightening to battle the inflationary monster at their doors.
In the US, The Fed’s Flow of Funds data issued today shows that US Households lost a shocking $6.1 trillion in Q2 – the largest quarterly loss ever (bigger than the aggregate loss reported in Q1 2020 during the peak of COVID lockdown policies around the world)…
We do caveat that drop with the words we shared for Q1:
“This number is garbage and only makes sense if households were allowed to mark their own stock prices… the real net worth drop could be multiples of this…”
This is the second consecutive quarterly drop in net worth (after falling about $147 billion in the first quarter), dragging the total down to $143.8 trillion… as The Fed balance sheet begins to rollover…
And this is all happening against a background of the “strongest economy ever…”
More From The Real Estate Guys…
- Sign up for The Real Estate Guys™ New Content Notifcations
- Check out all the great free info in our Special Reports library.
- Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
- Stay connected with The Real Estate Guys™ on Facebook, and our Feedback page.
The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.
Broadcasting since 1997 with over 600 episodes on iTunes!
Love the show? Tell the world! When you promote the show, you help us attract more great guests for your listening pleasure!