U.S. household wealth increased 2.2% during the third quarter as people cut debt and gained from rising stock prices, according to a report the Federal Reserve released Thursday.

Households' total net worth rose by $1.2 trillion to $54.9 trillion, according to the Fed, while households' outstanding nonfinancial debt fell at an annualized rate of 1.7%, marking the eighth straight quarterly decline.

The bulk of the increase came from rising stocks, which more than offset falling home prices. The Dow Jones Industrial Average and Nasdaq Composite advanced 10% and 12% during the quarter, respectively. In contrast, total real-estate holdings fell 2.1% from a year earlier to $18.3 trillion, according to the report.

Meanwhile, companies continued to boost their cash balances. All together, nonfinancial companies in the U.S. increased their cash total by 7.2% during the quarter to about $1.93 trillion, or about 7.4% of total assets, the Fed also said Thursday.


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Machinerymartinc

THE OTHER DAY I READ THE GOVERNMENT SAVED 500 MILLION ON SOME PROJECT, SHOULDN'T WE GET SOME TAX MONEY BACK????

December 10 2010 at 12:15 PM Report abuse +1 rate up rate down Reply
Machinerymartinc

OH, I WAS WONDERING WHERE I GOT THAT EXTRA $2.20 !!!!!

December 10 2010 at 12:12 PM Report abuse +1 rate up rate down Reply
1 reply to Machinerymartinc's comment
piknplundr

Ha Ha. My household increase was also $2.20 - Not 2.2%!

December 10 2010 at 2:47 PM Report abuse +3 rate up rate down Reply
LEE Resolution

ThinkUp70 11:48 AM Dec 10, 2010 Lee Resolution - Yes, people are tired of whiners, we have a country full of them, always whining about what the government will or will not due for them. Oh yes, we have a country full of whiners. ************* and you appear to be one of them...

December 10 2010 at 11:49 AM Report abuse rate up rate down Reply
1 reply to LEE Resolution's comment
ThinkUp70

You appear to be a whiner also.

December 10 2010 at 11:54 AM Report abuse +1 rate up rate down Reply
LEE Resolution

Business isn't going to let go of their money until they have a reasonable outlook on what's coming up over the next couple of years. They're not going to get it from this regime (which appears not to know how to tie their shoelaces properly).

December 10 2010 at 11:48 AM Report abuse +3 rate up rate down Reply
3 replies to LEE Resolution's comment
jnaylor284

Jcc4567......you are right in one sense. Small businesses are not sitting on cash. I should have said that big businesses are sitting on a load of cash and currently are withholding spending much of it. When big business lets loose of it, then hiring will increase, easing the financial pain for others.

December 10 2010 at 11:46 AM Report abuse +1 rate up rate down Reply
LEE Resolution

ThinkUp70 11:36 AM Dec 10, 20 Nobody complains that our nation ranks 30th in math scores, compared to all other nations. Nobody complains about all the sports "stars" that collect multi-million salaries just to knock a ball around. Nobody complains about all the so-called "super - stars" that collect millions for an acting career, or singing career, but our nation makes them rich with no complaints ***************** Why don't you stop complaining and whining about what others make and do something for yourself and your family. People get tired of whiners...

December 10 2010 at 11:44 AM Report abuse +3 rate up rate down Reply
1 reply to LEE Resolution's comment
ThinkUp70

Lee Resolution - Yes, people are tired of whiners, we have a country full of them, always whining about what the government will or will not due for them. Oh yes, we have a country full of whiners.

December 10 2010 at 11:48 AM Report abuse +1 rate up rate down Reply
ThinkUp70

Nobody complains that our nation ranks 30th in math scores, compared to all other nations. Nobody complains about all the sports "stars" that collect multi-million salaries just to knock a ball around. Nobody complains about all the so-called "super - stars" that collect millions for an acting career, or singing career, but our nation makes them rich with no complaints.

December 10 2010 at 11:36 AM Report abuse +2 rate up rate down Reply
Bob

WHAT A CROCK OF ****!! I had a very successful residential architectural practice until the economy went down the toilet! I had to file for Chapter 7 bankruptcy in 2010 after burning through my savings and retirement money. I still maintain a small one man office and have a few projects to pay the bills but wear the hell is the wealth????? PS, I'd like to get some of the stuff he was smoking!

December 10 2010 at 11:35 AM Report abuse +1 rate up rate down Reply
notanaxkiller

I feel better already.

December 10 2010 at 11:21 AM Report abuse +1 rate up rate down Reply
jcc4567

what a LIE ...basically what this author is saying is, banks cut lending & the top 1% have gotten wealthier, so obviously every american has cut their debt while making more money.....bwahahahahahahahahahahahahahaha....

December 10 2010 at 11:17 AM Report abuse +1 rate up rate down Reply
1 reply to jcc4567's comment
jnaylor284

When households pay down on debt and cut their spending, their net worth goes up proportionaly. Across the board, household debt has been reduced compared to a few years ago when everyone was wildly spending and running up credit. Statistically, US household debt has been reduced overall, which has increased the average net worth of households up the 2% plus the author is writing about. Having said that, obviously there are still many households which are in worse shape financially.

December 10 2010 at 11:51 AM Report abuse +1 rate up rate down Reply