Inheritances v Cost of capital v #Children/woman

System

Cells - You have not taken into account people's debt levels.

cells

antrobus wrote: »

Your argument is economic nonsense.

The UK’s estimated financial net worth at the end of 2015 was minus £269 billion.

https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/bulletins/nationalbalancesheet/2016estimates


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Yes perfectly highlighting that banking is just a double entry accounting system. Your own link says £8.8 trillion net worth. What do I care if someone has a house worth a million and a £100k mortgage and someone else has a £100k deposit in a bank. The bank balance sheet balances out (£100k-£100k) but the net position is £1 million equity and capital. Here is you link in full


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1. Main points
The total net worth of the UK was estimated at £8.8 trillion at the end of 2015. This was equivalent to an average of £135,000 per person or £327,000 per household.

Estimates of UK total net worth more than tripled between 1995 and 2015, an increase of £6.0 trillion. This was equivalent to an average increase of £87,000 per person.

Dwellings remained the most valuable non-financial asset in the UK at £5.5 trillion, accounting for 62% of the UK’s total net worth at the end of 2015. Dwellings increased in value by £355 billion (7%) between the end of 2014 and the end of 2015.

The households and non-profit institutions serving households (NPISH) sector provided the largest increase in the total net worth of the UK in 2015. The net worth of this sector increased by £406 billion (4%) over the period 2014 to 2015.

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2. What you need to know about this release
This annual bulletin provides estimates of the market value of financial and non-financial assets in the UK for the period 1995 to 2015. The national balance sheet is a measure of the wealth, or total net worth, of the UK. It shows the estimated market value of financial assets, such as loans and non-financial assets, such as dwellings. Market value is an estimate of how much these assets would sell for, if sold on the market. The data are used to monitor economic performance, to inform monetary and fiscal policy decisions and for international comparisons.

In line with other national accounts outputs and tables, estimates for 1995 and 1996 have been derived and introduced into this dataset; this increases the length of available time series.

The estimates in this release cover the period 1995 to 2015. All data referred to in this bulletin are annual estimates at current prices and include changes in prices as well as in the volume of assets.

These estimates are consistent with the 2016 UK National Accounts (The Blue Book). The dataset for this bulletin is available in the accompanying spreadsheet as well as in section 11 of the Blue Book. The sections on quality and methodology and background notes provide information on coverage, quality and how to use the data.

The institutional sector and asset breakdown of non-financial corporations, into public non-financial corporations and private non-financial corporations is not available from the net capital stocks dataset. As a result, these data and the totals that are derived from these data are not shown in the tables accompanying this bulletin.

As part of the continuous improvement process, there are revisions to the estimates for the period 2004 to 2014; further details are available in the background notes section.

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3. Total net worth
Estimates of UK total net worth more than tripled between 1995 and 2015, with an increase of £6.0 trillion. This was equivalent to an average increase of £87,000 per person, from an average of £49,000 per person in 1995 to £135,000 per person in 2015.

Figure 1 shows that since 1995, estimates of UK total net worth increased consistently until the economic downturn in 2008 and 2009. From 2010 onwards, they have increased in almost every year, with the exception of a small decrease in 2012.

At the end of 2015, the UK was valued at an estimated £8.8 trillion, an increase of 6% (£493 billion) compared with the end of 2014, which continued the long-term pattern.

The estimated value of non-financial assets increased by £441 billion (5%) between the end of 2014 and the end of 2015. The increase in the value of non-financial assets was largely due to dwellings which contributed to 62% of the UK total net worth at the end of 2015.

The UK’s estimated financial net worth at the end of 2015 was minus £269 billion. This increased by £52 billion (16%) between the end of 2014 and the end of 2015. The increase in the financial net worth was largely due to a reduction in loan liabilities in the financial corporations institutional sector.

cells

mrlegend123 wrote: »

Cells - You have not taken into account people's debt levels.

The £8.8 trillion is the net position after debts. Its why the over £1 trillion in banks don't show up they are canalced out by the over £1 trillion in bank debts. I believe it even takes into account the national debt (most of that is just a double entry with the government owing some £1.6 trillion but others mostly UK institutions holding the other side of the bonds)

economic

cells wrote: »

The £8.8 trillion is the net position after debts. Its why the over £1 trillion in banks don't show up they are canalced out by the over £1 trillion in bank debts. I believe it even takes into account the national debt (most of that is just a double entry with the government owing some £1.6 trillion but others mostly UK institutions holding the other side of the bonds)

Mrlengend123 - this is why you are silly, miss the whole story and assume silly things. Mrlegend - legend in being silly.

System

economic wrote: »

Mrlengend123 - this is why you are silly, miss the whole story and assume silly things. Mrlegend - legend in being silly.

You are silly for having the username of economic and not having a clue about economics in general. I was talking about cell's crazy theory not the article. You are a silly billy.

The floating wealth as stated in the article is based on the current valuations of assets of this linear business cycle. The article also indicates wealth inequality in the UK. The UK needs to work harder in closing the wealth gap.

antrobus

cells wrote: »

Yes perfectly highlighting that banking is just a double entry accounting system. Your own link says £8.8 trillion net worth. What do I care if someone has a house worth a million and a £100k mortgage and someone else has a £100k deposit in a bank. The bank balance sheet balances out (£100k-£100k) but the net position is £1 million equity and capital. Here is you link in full
....

Do you not understand that my link is to the ONS report on which your original Guardian piece is based?

I'm just pointing out that your whole argument is economic nonsense. As the headline of the Guardian report reads 'ONS data shows UK wealth wedded to property'- the increase in UK wealth is entirely down to an increase in house prices. That housing wealth might well 'cascade down the generations', but subsequent generations are going to have to buy those houses.

System

Well said Antrobus. I've been trying to tell cells that in different threads. Don't worry Cells, Economic and MarkSoton posters all got a grade E in GCSE in Economics so they know what they are talking about....banter. When they don't get their own way, they like to get aggressive. I am only a aggressive poster when someone insults me for my views - we are acting like children I know.

westernpromise

mrlegend123 wrote: »

Don't worry Cells, Economic and MarkSoton posters all got a grade E in GCSE in Economics so they know what they are talking about....banter.

But you're an OR living in forces accommodation all found, and you get your economic information from zero hedge and from other crash trolls. How does that you more authoritative?

System

What's living in forces accommodation got to do with my views? I would have the same views living in a cardboard box. I get my own views from following the financial markets. Everyone has a right to a opinion.

cells

antrobus wrote: »

Do you not understand that my link is to the ONS report on which your original Guardian piece is based?

I'm just pointing out that your whole argument is economic nonsense. As the headline of the Guardian report reads 'ONS data shows UK wealth wedded to property'- the increase in UK wealth is entirely down to an increase in house prices. That housing wealth might well 'cascade down the generations', but subsequent generations are going to have to buy those houses.

yes the two are linked, as house prices go up so do gifts/inheritances therefore the unaffordability mostly falls away

this is how a lot of property especially in London is funded. If prices go up £100,000 but so has your inheritance/gifts then you are not really much worse off. basically back to the 'paying for housing once'