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FreeTrader

Uk Households Lose £892bn Wealth In 2008

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The ONS published the online version of the National Accounts today (the 'Blue Book').

http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=1143

To make it easier to see how the wealth of households changed in 2008, I've collated the data into a single spreadsheet, and I hope it displays okay below (note that the some of the totals will be very slightly out due to rounding differences – this isn't me, it's the ONS).

The relevant tables in the Blue Book are 6.1.9 and 10.10. All figures are in billions.

Households lost £892bn in 2008, although net wealth is apparently still up on 2005 (but lower than 2004 in real terms). The value of residential buildings fell by 9.4%.

Net financial assets haven't changed much since 2000, but this is somewhat deceptive – the households holding the financial liabilities aren't necessarily the same as those holding the financial assets.

BlueBook09Households.gif

Edit: added 'necessarily'

Edited by FreeTrader

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What's "Loans secured on dwellings (others)" (i.e. not banks or building societies)? This seemed to show a big growth from 2007 - 8, whereas banks fell and building societies only rose slightly,

Peter.

P.S. Thanks for this.

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Guest DissipatedYouthIsValuable

Banking system loses £892bn of pretend money that they though they had.

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What's "Loans secured on dwellings (others)" (i.e. not banks or building societies)? This seemed to show a big growth from 2007 - 8, whereas banks fell and building societies only rose slightly,

I think that'll be 'other financial institutions' that are outside the main UK clearing bank system and also loans that were securitised.

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Banking system loses £892bn of pretend money that they though they had.

What's noticeable is that if you exclude the share of insurance and pension fund reserves (which most households can't easily get their hands on) from financial assets, UK households have very little net financial wealth.

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I think that'll be 'other financial institutions' that are outside the main UK clearing bank system and also loans that were securitised.

I was wondering if it was securitisation. That's quite a bit of money to come back onto the balance sheets of the banks (presumably) if the securitisation market doesn't reopen,

Peter.

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