1. Equity in Homes that were fraudulently inflated by Subprime and Alt-A loans.
2. Stock Market and 401K increases due to Reloc’s used purchase consumer good that have no lasting value (HDTV’s, Electronics, Cars, Clothes, Restaurants, Plasic Surgery, etc.)
I bet ‘Household Wealth’ increased at least that much in the last 2 to 7 years due to the above two items.
This is not wealth, it is only bytes on a balance sheet. It only becomes wealth when it becomes a currency that retains its value over time. Until then, it is only speculative value.
This is one big governmental ‘Mulligan’ back to 2001/2002. Except now they cannot use housing to stimulate the economy. They are using your future taxes and your kids taxes and their kids taxes to pay for this mess.
Take notice, the only thing that will not deflate in the coming years will be the State and Federal Government’s budgets or taxes…
They will give you a $1000 check today and tax you $3000 tomorrow… you watch…
California is a prime example…
Any check I get from the Fed will go straight to Sacramento in higher taxes… what kind of stimulus is this…
