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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (87979)	10/26/2007 5:03:49 PM
From: KyrosL	Respond to of 110194

Average household net worth, at 2.7 members per household, comes to $480,000, not $240,000. It's not too high. It's an average, not a median. There are lots of extremely rich people in America.

To: TimbaBear who wrote (87979)	10/26/2007 5:38:27 PM
From: bart13	Respond to of 110194

So....if I take your chart and multiply any given point on the graph by 2.7, I would get household net worth? So we are looking at current household net worth of around $240,000? Doesn't that seem high? Or maybe I'm still being a little dense here? Yes, that's pretty much true except you'd have to slowly move that 2.7 up to 3.5 as you went back in time... and I also blew it. The actual calculation is total household net worth divided by total census population. Number of people in a household isn't used. In very round numbers, total net worth is about $59 trillion and there are about 111 million households in the US, which puts average household net worth at about $530k. Dividing that by the 2.7 persons per household figure gives about $196k for the black line - which is fairly close to the value on the chart ($191,590) considering all the rounding. Sorry for the confusion and my goof in recalling what the formula was.