US net worth slide slows; government debt explodes

Source: www.forexlive.com

As asset prices have fallen, household net worth has fallen dramatically. The slide slowed in the most recent data. It fell to $50.4 trln in Q1 from $51.7 bln in Q4 2008. Mortgage debt was flat but consumer credit fell 3.5% (at an annual rate). Government debt rose at a 23% annual rate in Q1. The data is consistent with a declining negative rate of change in the consumer’s balance sheet. EUR/USD trades steadily at 1.4090. AUD/USD trades at 0.8200, not far from trend highs at 0.8263.


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