Market Watch staffer Steve Goldstein reports on the lowest growth in borrowing seen in over four years during the third quarter.
The decline of the stock market took away over $1 trillion in household wealth. In the second quarter business debt grew to 8.4%; however, in the third quarter it only grew about 4.7%.
Households, meanwhile, expanded their debt at a slim 1.5% rate. A category called “other loans and advances” — which includes margin accounts at broker/dealers — fell during the quarter and helped offset the 1.6% growth in mortgage debt and the 7.2% advance in consumer credit, which encompasses auto, student and credit-card debt.
Households and nonprofits lost $1.23 trillion of wealth in the quarter, as a $2.3 trillion tumble in the value of corporate equities offset a $482 billion rise in real estate.