World's Rich Got Richer in 2009 Despite Recession

Discussion in 'Politics' started by topspin, Jun 23, 2010.

  1. topspin
    Offline

    topspin BANNED

    Joined:
    Apr 29, 2010
    Messages:
    4,149
    Thanks Received:
    196
    Trophy Points:
    0
    Ratings:
    +196
    World's Rich Got Richer in 2009 Despite Recession

    A stock market rebound helped the world's ranks of millionaires climb 17 percent to 10 million, while their collective wealth surged 19 percent to $39 trillion, nearly recouping losses from the financial crisis, according to the latest Merrill Lynch-Capgemini world wealth report.

    Stock values rose by half, while hedge funds recovered most of their 2008 losses, in a year marked by government stimulus spending and central bank easing.

    "We are already seeing distinct signs of recovery and, in some areas, a complete return to 2007 levels of wealth and growth," Bank of America [BAC 15.58 -0.21 (-1.33%)] wealth management chief Sallie Krawcheck said.

    The fastest growth in wealth took place in India, China and Brazil, some of the hardest hit markets in 2008. Wealth in Latin America and the Asia-Pacific soared to record highs.

    Asia's millionaire ranks rose to 3 million, matching Europe for the first time, paced by a 4.5 percent economic expansion.

    Asian millionaires' combined wealth surged 31 percent to $9.7 trillion, surpassing Europe's $9.5 trillion.

    In North America, the ranks of the rich rose 17 percent and their wealth grew 18 percent to $10.7 trillion.

    The United States was home to the most millionaires in 2009 -- 2.87 million -- followed by Japan with 1.65 million, Germany with 861,000, and China with 477,000.

    Switzerland had the highest concentration of millionaires: nearly 35 for every 1,000 adults.

    Yet as portfolios bounced back, investors remained wary after a collapse that erased a decade of stock gains, fueled a contraction in the global economy and sent unemployment soaring.

    The report, based on surveys with more than 1,100 wealthy investors with 23 firms, found that the rich were well served by holding a broad range of investments, including commodities and real estate.

    "The wealthy allocated, as opposed to concentrated, their investments," Merrill Lynch head of U.S. wealth management Lyle LaMothe said in an interview.

    Millionaires poured more of their money into fixed-income investments seeking predictable returns and cash flow. The challenge ahead for brokers is convincing clients to move off the sidelines and pursue riskier, more fruitful investments.

    "There is still a hesitancy," LaMothe said. "Liquidity is incredibly important and people need cash flow to preserve their lifestyle -- but they want to replace that cash flow in a way that does not increase their risk profile."

    The report found that investor confidence in advisers and regulators remains shaken. The rich are actively managing their investments, seeking customized advice and demanding full disclosure about the securities they buy.

    There were signs that investors were shaking off their concerns. Families that kept money closer to home during the crisis began shifting money to foreign markets, particularly the developing nations.

    North American and European investors are expected to increase their exposure to Asian markets, which are projected to lead the world in economic expansion. Europe's wealthy are seen increasing their U.S. and Canadian holdings.

    More wealthy clients also are taking a harder look at large companies that pay healthy dividends, as an alternative to bonds and their razor-thin yields.

    "Investors are open to areas they hadn't thought about before as they try to preserve their ability to be philanthropic, to preserve their lifestyle," LaMothe said. "To me, the report underscored clients are involved and they're not inclined to stay in 1 percent savings accounts."
     
    • Thank You! Thank You! x 1
  2. Gremlin-USA
    Offline

    Gremlin-USA <<< Me in 1970

    Joined:
    May 20, 2010
    Messages:
    1,306
    Thanks Received:
    184
    Trophy Points:
    98
    Location:
    Gremlinville, USA
    Ratings:
    +186
    Your Point?

    Sounds like Wealth Envy to me.

    .
     
  3. topspin
    Offline

    topspin BANNED

    Joined:
    Apr 29, 2010
    Messages:
    4,149
    Thanks Received:
    196
    Trophy Points:
    0
    Ratings:
    +196
    Ahh, I'm one of them.
    This is for the, GIVE ME BACK MY COUNTRY crowd.

    Obama yr 1 40% market return
    People vote thier wallets, and when the cons roll out the tea bag loser Obama's numbers will sky rocket just from the laughter. Then his wealth redistribution (ahh stimulus) keeps getting spent mostly around election time.
     
  4. Gremlin-USA
    Offline

    Gremlin-USA <<< Me in 1970

    Joined:
    May 20, 2010
    Messages:
    1,306
    Thanks Received:
    184
    Trophy Points:
    98
    Location:
    Gremlinville, USA
    Ratings:
    +186
    Hmmmm.... Interesting theory.

    If all this is true and the Rich have gained so much money, why have they not invested in new jobs, building factories, risking some capital on new ideas and investments?

    Because I do not see that as the picture, most people have lost money from this economy, the middle and lower income people it has hurt the worst, but the rich are hesitant of investing and taking chances because of this economy and the lack of solid ideals by the current administration to get the economy going.

    I hear lately on the news "5 straight months of new jobs", well yes technically we have added 480,000 new jobs, but also 1st time unemployment applicants are averaging 420,000 per month, so there is NO job growth.

    Wealth Envy is greed, pure and simple, someone who has less lusting over someone Else's Money, I am far from rich, but I am not a Bigot or maybe to be Politically Correct a Racist, Racism is thinking someone is superior, well do those who emulate Wealth Envy not think they are Superior than someone else, because the think the have the Right to someone else's money?

    Back to the post, I would interested in some proof that there was a 40% Market Return, I generally do well in the little bit of dabbling I do in the Market, but I have not seen anything to relate to a 40% jump last year. The best I came up with lately was about 24% jump in value of some HC stocks (thanks BO, could not have done that without you BO care)

    As to the point of voting with your Wallet, that I can agree with, the 47% of the Moochers in America are defiantly Voting on who will keep the Free Shit Flowing to them!!!!


    .
     
  5. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,618
    Who isn't envious of the superrich?

    Only people who aren't materialists.

    And there's damned few people who are genuinely not interested in having more money than they've already got.

    And that INCLUDES the already superwealthy, too.
     
  6. topspin
    Offline

    topspin BANNED

    Joined:
    Apr 29, 2010
    Messages:
    4,149
    Thanks Received:
    196
    Trophy Points:
    0
    Ratings:
    +196
    wow, proof grab any freaking newspaper and look at the Dow jones industrial average for the year 2009 or the S&P 500.
    GDP has been growing for nearly a year, we have hit a typical recovery slowdown. But, just wait we will keep growing and so will wealth.
     
  7. Big Black Dog
    Offline

    Big Black Dog Gold Member Supporting Member

    Joined:
    May 20, 2009
    Messages:
    22,925
    Thanks Received:
    5,114
    Trophy Points:
    260
    Ratings:
    +5,749
    I believe that things are getting better. My wife is already talking about possibly raising my allowance.
     
  8. Gadawg73
    Offline

    Gadawg73 Gold Member

    Joined:
    Feb 22, 2009
    Messages:
    14,426
    Thanks Received:
    1,603
    Trophy Points:
    155
    Location:
    Georgia
    Ratings:
    +1,677
    In the overwheliming majority of cases where the wealthy got wealthier over a certain period of time the following took place:
    Wealthy people became wealthier because they continued to do the positive things and make choices that made them wealthy to begin with, invested wisely, worked hard and saved their money.
    In the overwhelming majority of cases where the poor gotpoorer over a certain period of time the following took place:
    Poor people became poorer because they continued to do the negative things and make poor choices that made them poor to begin with, did not work hard, had children out of wedlock, spent all their $ on items they could not afford and ran up debt.
     
  9. Gremlin-USA
    Offline

    Gremlin-USA <<< Me in 1970

    Joined:
    May 20, 2010
    Messages:
    1,306
    Thanks Received:
    184
    Trophy Points:
    98
    Location:
    Gremlinville, USA
    Ratings:
    +186
    Well, I do agree that everyone would like to have more money, I personally do not hold it against those that have money.

    I am not saying everyone does either, but is does seem like that is a trend.



    Well I do watch the market, there may be a select 40% jump last year, but what about Today?

    I did a spreadsheet on 2008, 2009, 2010, there was a 40% during jump 2009 technically, jan 2009 the dow was 9000, in march 6600, in july 8300, sept 10,800, dec 2009 10,300

    In 2008 it was July 2008 it was 11,300, today it is 10,293

    So the Dow tanked after BO was elected, it has recovered, but way below 2008 levels.

    All I see are gradual increases overall, I mean during 2009 our economy hit one of the lowest times in history, we have no where left but to go up!, unless we have a double dip recession, but lets not even go there.

    All this improvement is tailspining, like I mentioned earlier about the Jobs Farce, while the GDP may have shown an improvement we our out spending tax dollars at a 4 times higher rate than GDP is going up, hello see a problem.

    There has been a false economy created but trying to buy and borrow our way out of everything.

    I hear the crap, lees people are loosing their jobs this month, WELL did anyone think maybe there are just no more damn jobs to loose out there without a depression?

    I hear, the foreclosure are not as bad this month, again maybe there are not too many damn houses left to foreclose on?

    When Foreclosures go back to 10% on the average and un-employment goes back to 6% then and only then will I believe the BS on the Economy is rebounding, even if magically Foreclosures stopped Thursday and 4% of the Population went back to work Thursday the Economy still has 6-12 months after that day to actually be safe, IMO


    .
     
  10. Gadawg73
    Offline

    Gadawg73 Gold Member

    Joined:
    Feb 22, 2009
    Messages:
    14,426
    Thanks Received:
    1,603
    Trophy Points:
    155
    Location:
    Georgia
    Ratings:
    +1,677
    Government and consumer debt, taxes and an uneducated work force are the biggest factors in a large decline in investment capital.
    If the $ is going to the government for taxes, debt is consuming a larger and larger portion of net income and the pool of available orkers are getting degrees in history instead of engineering or whatever the economy demands then there is very little investment left to go around.
    You get more of what you reward. Punish capital with taxation and run up debt and you get less capital for investment.
     

Share This Page