[np] Peripheral euro zone household wealth trumps core - ECB study

[David Morris]

Interesting. I suspected that wealth statistic was skewed.

On Wednesday, April 10, 2013, alice wellintown wrote:

> Not a surprise at all. In fact, one of the major causes of the crises in
> the nations that are said to be in need of support from Germany & Co.  is
> homeownership and the leverage it afforded. While we often read about the
> stark differences in culture in the old Catholic nations, where Club Med is
> ridiculed as a hedonistic profilage in need of German frugality and
> discipline, Greeks, Italians, Irish, and this is true of their American
> relatives in the USA, own and keep their homes, forever, if possible. There
> is no disgrace in living with a Greek Mother and Dad, Brother, Grandmother.
> And, it makes sense that the Unified Germany that once had a Communist
> Economy would not have the same level of homeownership.
>
>  When we take a closer look at these measures of welath we find that homes
> are not assets, are not investments, that can or should be valued on
> individual balance sheets with other more liquid assets. So, the obvious is
> true, that is, the Germnas are richer and need to bail out the others. The
> others may need to pay for it with some cuts in spending and the like, but
> the numbers on welath don't tell us that much about this very bad marriage.
>
>
>
> On Wed, Apr 10, 2013 at 5:36 AM, Kai Frederik Lorentzen <
> lorentzen at hotmail.de <javascript:_e({}, 'cvml', 'lorentzen at hotmail.de');>>wrote:
>
>>
>>
>> http://uk.reuters.com/article/2013/04/09/uk-ecb-wealth-eurozone-idUKBRE9380KX20130409
>>
>> "Average net wealth in Spain was 291,400 euros (247,910 pounds) and in
>> Italy 275,200 euros, significantly higher than in triple-A rated Germany
>> (195,200 euros), the Netherlands (170,200 euros) and Finland (161,500
>> euros).
>>
>> The data, which was mainly collected in 2010, showed that the perception
>> of rich northern European countries helping their poor southern cousins was
>> not accurate, and that solid public finances are no indication of high
>> personal wealth."
>>
>>  Surprised?
>>
>>
>>
>
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