Thursday, June 22, 2006

Unbalanced Sheet

Jerry Bowyer reminds us that it is pointless (let's just say really, really stupid) to focus on only one side of the balance sheet. The wealth of US households has increased significantly over the last few years. We now have $66 trillion in assets and $13 trillion in liabilities which nets to $53 trillion in net worth. And I think we should mention that this also fails to accurately account for the value of education which is and has been a major investment for many families.

Those who focus only on the liabilities completely miss the boat.


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