Breaking…American’s net worth shrinks by 1.33 Trillion in the first quarter.

AP Economics Writer= WASHINGTON (AP) — American households lost $1.33 trillion of their wealth in the first three months of the year as the recession took a bite out of stock portfolios and dragged down home prices.

The Federal Reserve says household net worth fell to $50.38 trillion in the January-March quarter, the lowest level since the third quarter of 2004.

The first-quarter figure marked a decline of 2.6 percent, or $1.33 trillion, from the final quarter of 2008. Revised figures show that during the recession’s deepest point in the October-December period, Americans’ net worth fell by 8.6 percent.

Net worth represents total assets such as homes and checking accounts, minus liabilities like mortgages and credit card debt.