US household net worth soared in the closing months of 2020 to a fresh record, driven by rising stock prices and residential real estate values after the government took unprecedented steps to ease the financial fallout from the pandemic.
Household net worth increased by $6.9 trillion, or 5.6 per cent, to $130.2tn in the fourth quarter to December 31, a Federal Reserve report showed.
Household debt increased at an annual rate of 6.5 per cent, the fastest in 13 years, according to data compiled by Bloomberg.
Record-low mortgage rates attracted first-time homebuyers as well as those looking for more space. A measure of home prices in 20 US cities surged by more than 10 per cent in December from a year earlier. At the same time, stocks continued to rally.
The report showed the value of equities increased by almost $4.9tn, while the value of real estate held by households by $915 billion. Mortgage debt grew at an annual rate of 5.2 per cent after rising 5.7 per cent in the third quarter, the biggest back-to-back increases since 2007.
In addition to the jump in wealth from homes and stock portfolios, Americans also saw another big jump in savings. This provides consumers with plenty of firepower for spending and helps explain why economists are projecting stronger economic growth figures this year.
Net savings for all of 2020 increased to a record $2.85tn, more than double the previous peak in 2018.
The data also highlighted the unevenness of the economic recovery.
While the pandemic has led to a surge in savings and opportunities for many Americans to buy a home or invest, the downturn has disproportionately impacted low-income workers, many of whom are struggling to pay their rent.
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
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Roll of honour
Who has won what so far in the West Asia Premiership season?
Western Clubs Champions League - Winners: Abu Dhabi Harlequins; Runners up: Bahrain
Dubai Rugby Sevens - Winners: Dubai Exiles; Runners up: Jebel Ali Dragons
West Asia Premiership - Winners: Jebel Ali Dragons; Runners up: Abu Dhabi Harlequins
UAE Premiership Cup - Winners: Abu Dhabi Harlequins; Runners up: Dubai Exiles
West Asia Cup - Winners: Bahrain; Runners up: Dubai Exiles
West Asia Trophy - Winners: Dubai Hurricanes; Runners up: DSC Eagles
Final West Asia Premiership standings - 1. Jebel Ali Dragons; 2. Abu Dhabi Harlequins; 3. Bahrain; 4. Dubai Exiles; 5. Dubai Hurricanes; 6. DSC Eagles; 7. Abu Dhabi Saracens
Fixture (UAE Premiership final) - Friday, April 13, Al Ain – Dubai Exiles v Abu Dhabi Harlequins
Sri Lanka-India Test series schedule
1st Test July 26-30 in Galle
2nd Test August 3-7 in Colombo
3rd Test August 12-16 in Pallekele
The Ashes
Results
First Test, Brisbane: Australia won by 10 wickets
Second Test, Adelaide: Australia won by 120 runs
Third Test, Perth: Australia won by an innings and 41 runs
Fourth Test: Melbourne: Drawn
Fifth Test: Australia won by an innings and 123 runs
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Who are the Sacklers?
The Sackler family is a transatlantic dynasty that owns Purdue Pharma, which manufactures and markets OxyContin, one of the drugs at the centre of America's opioids crisis. The family is well known for their generous philanthropy towards the world's top cultural institutions, including Guggenheim Museum, the National Portrait Gallery, Tate in Britain, Yale University and the Serpentine Gallery, to name a few. Two branches of the family control Purdue Pharma.
Isaac Sackler and Sophie Greenberg were Jewish immigrants who arrived in New York before the First World War. They had three sons. The first, Arthur, died before OxyContin was invented. The second, Mortimer, who died aged 93 in 2010, was a former chief executive of Purdue Pharma. The third, Raymond, died aged 97 in 2017 and was also a former chief executive of Purdue Pharma.
It was Arthur, a psychiatrist and pharmaceutical marketeer, who started the family business dynasty. He and his brothers bought a small company called Purdue Frederick; among their first products were laxatives and prescription earwax remover.
Arthur's branch of the family has not been involved in Purdue for many years and his daughter, Elizabeth, has spoken out against it, saying the company's role in America's drugs crisis is "morally abhorrent".
The lawsuits that were brought by the attorneys general of New York and Massachussetts named eight Sacklers. This includes Kathe, Mortimer, Richard, Jonathan and Ilene Sackler Lefcourt, who are all the children of either Mortimer or Raymond. Then there's Theresa Sackler, who is Mortimer senior's widow; Beverly, Raymond's widow; and David Sackler, Raymond's grandson.
Members of the Sackler family are rarely seen in public.
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