Credit

Household Net Worth Dives 18% 

When it comes to household net worth, declining home prices and a falling stock market are a recipe for disaster. U.S. households saw their net worth fall a whopping $11.2 trillion, or 18 percent, to $51.5 trillion at the end of 2008, essentially wiping out five years of gains, the Federal Reserve reported Thursday. In the fourth quarter alone, household net worth dropped $5.1 trillion, posting a record 31 percent annualized decline. Net worth — defined as assets minus liabilities — has fallen for six consecutive quarters since it’s peak in the second quarter of 2007.