Feeling Poorer These Days?

The Federal Reserve reported that household net worth declined by $1.3 trillion dollars for the quarter ending in March. Total household worth is now at $50.4 trillion dollars at the end of the first quarter of 2009.

On a positive note, house hold debt also contracted this quarter, the second consecutive quarter. Home mortgage debt didn't grow at all and consumer credit debt contracted at an annual rate of 3.5 percent.

Just the opposite has happened with state and local government debt this quarter, debt has increased at an annual rate of 5 percent last quarter. Anyone see higher state taxes, property taxes and sales taxes in the future? 

Surprisingly Federal government debt growth slowed down this past quarter to 23 percent, down from the prior two quarters of nearly 40 percent growth.