$1.7 TRILLION HAS GONE "POOF!"

According to the Fed Reserves Flow of Funds Accounts, released on June 5 2008, American's net worth declined in the 1st quarter of 2008:

Household net worth—the difference between the value of assets and liabilities—was an estimated $56.0 trillion at the end of the first quarter of 2008, $1.7 trillion dollars less than in the preceding quarter.

CNN Money puts some of this in perspective:

Americans $1.7 trillion poorer
Americans' net worth falls for the second straight quarter as home and stock prices decline, but it may not hurt consumer spending, experts say.

By Tami Luhby, CNNMoney.com senior writer
Last Updated: June 5, 2008: 4:12 PM EDT

NEW YORK (CNNMoney.com) -- Americans saw their net worth decline by $1.7 trillion in the first quarter - the biggest drop since 2002 - as declines in home values and the stock market ravaged their holdings.

Meanwhile, the amount of equity people have in their homes fell to 46.2%, the lowest level on record.

The first quarter's decline follows a $530 billion drop in wealth in the fourth quarter of 2007.