Morning roundup: U.S. net worth drops; Italy takes spotlight

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U.S. net worth drops to ’90s levels

Median household net worth for Americans fell to levels last seen in the early 1990s, according to a new Federal Reserve report.

Falling housing prices take most of the blame for the economic shift that effectively erased two decades of wealth accumulation.

On the bright side, recent stats are finding persistent low mortgage rates, which last week hit a new trough, are spurring homeowners who have hung on through the recession to refinance at better, and now fixed, interest rates.

Italy now heads worry list

A brief market rally brought on by initial relief that Spain’s bailout would begin the process of setting the Eurozone’s economy right fizzled as traders began to worry about Italy. Officials in Spain now are calling for a stronger banking union.

There is one advantage to the round robin of worry that shifts attention from one worry to the next. As an RBC economist told the annual STEP meeting in Toronto yesterday, the series of band aid solutions means financial institutions in Canada and the U.S. can slowly reduce exposure to Europe so they won’t be as badly harmed in the event of a crash

Bling can sting

CEOs who drive flashy cars and own multiple homes are no more likely to break the laws of the marketplace than their Chrysler steering peers. The employees who work for them? Well, that’s another matter.

A new study finds employees at companies whose owners show off their wealth have a higher propensity to commit fraud. Really, they had to do a study that proves seeing the boss cruise by in a Bentley when you’re waiting for the bus will make you want to pilfer from your employer? Thanks Captain Obvious!

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Enjoy your day, The Editors