U.S. households’ bottom line in decline

The net wealth of U.S. households declined by 2.9%, or $1.7 trillion, in the first quarter of the year, marking the largest decrease since 2002, according to the Federal Reserve Board’s “flow of funds” report. The net worth of U.S. households fell to $55.97 trillion in the first quarter, down from a revised $57.67 trillion during the first quarter of 2007. The decline was the second in a row and the first since the second and third quarters of 2002, when households’ net wealth fell 3.3% and 4.4% Total household financial assets fell 2.9% to $44.07 trillion, according to the report. The value of stock holdings fell 10.2% to $4.9 trillion. Mutual fund shares fell 7.8% in value to $4.74 trillion. The value of real estate holdings fell 1.3% to $22.07 trillion.