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founding

I just put in here because it is your latest article:

I would be very interested to read your opinion/fact checking on the article below. Particularly: Do you agree with the first chart (around 175 trillion $ private asset wealth).

https://awealthofcommonsense.com/2024/06/the-bottom-50/

Thanks a lot

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author
Jun 12·edited Jun 12Author

Hey Stephan:

Yeah, $175T household wealth is right in there. Varies depending on exactly which option you're looking at.

• Which year or quarter-end balance are you viewing

• Net Worth, or Assets

• Household sector, or "personal" sector which is Households + nonprofits (this was often shorthand-referred to as the household sector before HH and NP balance sheets were broken out.)

DFAs are a great go-to on this, they show the "pure" household sector only. Can see either Assets or Net worth, broken down by either wealth percentiles or income percentiles. Plus multiple other options. (Download "detail" data files for even more options.)

https://www.federalreserve.gov/releases/z1/dataviz/dfa/

Balance sheets:

B.101 HHs & NPs here: https://fred.stlouisfed.org/release/tables?rid=52&eid=809856

B101.h and B.101.n broken out here:

https://fred.stlouisfed.org/release/tables?rid=52&eid=810321

Have only looked briefly at that link, I will say he jumps around between breakout by income quintiles and wealth quintiles (very diff measures and import), makes it kind of a mess.

Factoid as an example: The top 10% of wealthholders owns 87% of equity shares. The top 20% of income recipients owns...87% of equity shares. 🙃

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