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Total financial assets in the private sector of the U.S. economy are six times the country’s GDP, Bank of America analysts reported.
According to them, the figure includes the value of deposits, loans, direct investments, pension fund reserves, currency, stocks, bonds and other securities, but not real estate.
Analysts say the ratio reflects the financialization of the U.S. economy and the depth of wealth inequality.
Before the deregulation of the U.S. economy in the 1980s, financial assets were just 2.9 times GDP, but have since grown steadily, reaching a peak of nearly 6.3 times GDP in June 2021.
According to the Federal Reserve, when real estate is included, the total wealth of American households is about eight times their disposable personal income.
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