Gains in household wealth are giving Americans more confidence to borrow, the flow of funds report
The Fed this week released its quarterly Flow of Funds Report
. The report found that net borrowing by "non-financial non-corporate businesses" shrank by $162.7 billion at an annual rate from July through September 2010.
The balance of public debts was up 6.3 percent from a year earlier, while the corresponding figure at corporations excluding banks, credit unions and other financial institutions was down 3.4 percent, the central bank said in its Flow of Funds report
for the April-June quarter.
Focusing just on the income-producing properties, one gets a total of $779 billion--a significant number, but well below the $1.684 trillion reported by the Fed's Flow of Funds report
central bank's quarterly Flow of Funds report
also showed that household borrowing contracted at a 2 percent annual rate in the fourth quarter, after increasing at a 0.2 percent pace in the previous period.
The Fed's Flow of Funds Report
also showed that real estate-related assets dropped by the most since records began in 1952.
ACCORDING TO THE FEDERAL RESERVE Flow of Funds report
in March of this year, outstanding home-equity loans amounted to more than $1 trillion in 2003.
The Fed's quarterly flow of funds reports
have consistently shown flat household net worth since 2010.
Most of us in the forecasting business today have to grind through reams of data, historic charts, personal interviews, and flow of funds reports
from the Federal Reserve Board.