WSJ on wealth

[Seth Ackerman]

Doug Henwood wrote:

> The Economist wrote:
> 
> >Optimists claim there is nothing to worry about, because the 
> >increase in debt has been more than matched by an increase in 
> >financial assets. On the surface, balance sheets do indeed look 
> >healthy. Households' net wealth (assets minus debt) has increased 
> >from just under five times personal disposable income in 1990, to a 
> >historic high of more than six times.
> 
> People, including the skeptics at The Economist, always forget the 
> fact that different sets of households have the assets from those 
> that owe the debts: the rich lend to those poorer than they are.
> 
	Just as importantly, don't those financial assets include stocks? If
the stock values fall, the debts do not...

	Seth