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To: pater tenebrarum who wrote (20194)	9/20/2000 11:34:20 PM
From: Oblomov	Read Replies (2) \| Respond to of 436258

Heinz, Have you looked at the latest release of the Flow of Funds Accounts report? It is quite interesting, particularly the balance sheet of the household sector. I'll link some charts in a few days, but in brief: Household net worth declined significantly this last quarter. It is now down more than 2% from 1Q2000, with HH financial assets down over 3%, and liabilities up by 2% on the quarter. Tangible asset values increased by 2% on the quarter. HH real estate values increased by 2% from Q1 to Q2, and the value of durable goods held by households also increased by 2%. Not surprisingly, the % of home equity owned declined from 55.4 to 55.2%. How do tangible asset values increase when overall net worth is decreasing? How could the Fed possibly measure tangible asset values, anyway? If credit expansion were to slow, these asset values could begin to move in tandem with financial assets.