Cash stash may reflect fear of wealth going out of fashion

Comments (16)
inMyView wrote:

Cash is based solely on belief. Hoarding it is a gullibility extreme.

Jun 25, 2014 2:56am EDT  --  Report as abuse
Rhino1 wrote:

What I don’t get is why it’s always the schools where the mad gunmen show up, shooting innocent children.

Why is nobody going after the wall street bankers?

Jun 25, 2014 6:36am EDT  --  Report as abuse
JustProduce wrote:

While some continue to sing the recovery chants, the reality is that cash hoarding happens not in an optimistic environment but their opposite. And it is this hoarding that impedes things like Velocity of Money which is essential in a recovery. In other words, the high cost of capital (cost to access the hoarded money) for the middle and small sized businesses is the real sign of a total lack of trust on the so called recovery. This economic exercise has been a total failure.

Jun 25, 2014 7:00am EDT  --  Report as abuse
pbgd wrote:

Tell me about it, the rich have always got richer. Only in the old days they weren’t called Oligarch. They were called Grandduke, Freiherr, Principe, Dowerduchess, Earl, Graf, Marquess, Erzherzog, Contessa, Fürst, Baronessa etc etc etc.

Jun 25, 2014 7:41am EDT  --  Report as abuse
rlm328 wrote:

“There’s little doubt the richer are getting much richer.

Last week’s annual CapGemini/RBC survey of investors worldwide showed the number of households with more than $1 million in investable wealth rose almost 15 percent to 13.7 million in the year through 2013.”

Kind of defeats the theme the rich are getting richer when the number of house holds in that segment are growing in number.

Jun 25, 2014 7:44am EDT  --  Report as abuse
Kakko wrote:

Wealth inequality is often the result of discipline inequality, patience inequality, and modesty inequality.

Take 2 people, same job, same rented apartment, same leased car but 1 person goes to the bar for dinner and drinks every night spending $30, then buys a new $400 camera lens every month. The other puts $30 in the bank and sticks with a PaS camera.

1 year later 1 person has $0 net worth and the other has $12,000.
After 10 years 1 person has $0 net worth and the other has a paid for apartment and paid for car (saving $500 more/month). Then puts that savings in a mutual fund paying 6% in dividends.

After 30 years 1 person has almost 400 cameras and lenses, has a BMI of 30 from all that beer, health issues, $0 in monthly savings from work, and $0 net worth.
The other has a paid for apartment, paid for car, BMI of 24, good health, $1500 in monthly savings from work and $400k in mutual funds paying out an additional $2000/month.

Why blame the disciplined, patient, and modest people for the greed, impatience, and ostentatiousness of people who spent all their money?

Jun 26, 2014 6:48pm EDT  --  Report as abuse
DLNY wrote:

What this article missed from these statistics is that the entire increase in wealth was actually to NEW millionaires, not existing ones. This isn’t a case of the rich getting richer, but of members of the lower classes joining them.

As is typical with the elite, this is just jejune in the extreme and so they will get their lackeys in the press to drip feed the masses misleading stories which will allow them to stop this. “Only little people pay taxes.”

Jun 27, 2014 7:54am EDT  --  Report as abuse
Overcast451 wrote:

“Cash is based solely on belief. Hoarding it is a gullibility extreme.”

Yep and if you hoarded *anything* else; other than ‘wealth’ – people would say you are certifiably insane. But because it’s ‘wealth’ – people won’t say that, lol.

Jun 27, 2014 8:37am EDT  --  Report as abuse
Overcast451 wrote:

*What I don’t get is why it’s always the schools where the mad gunmen show up, shooting innocent children.
Why is nobody going after the wall street bankers?*

Maybe… just maybe… it’s because these rich; having more money than could ever need are now craving more power. In order to get more power; they have to concoct ways to take away the rights of the people. And just perhaps… much of this is ‘staged’ to make it easy to sway public opinion on changing laws and people giving up their rights.

Maybe I’m crazy too – but I’ll say one thing; either way, I’m not as crazy as those that hoard wealth like this. So say I’m crazy all you want – but think about that.. :)

Jun 27, 2014 8:40am EDT  --  Report as abuse
runfast3 wrote:

Bitch….Bitch Bitch

Jun 27, 2014 11:28am EDT  --  Report as abuse
comitas7 wrote:

The cash-hoarders and their paid servants on Capitol Hill know very well the US economy is on life-support and dying.

Jun 27, 2014 3:22pm EDT  --  Report as abuse

From the article…”Higher minimum wage proposals are on the table in the United States, Britain and Germany and could eventually halt the DECADE-LONG decline in real U.S. wages.”

Oh that’s quaint. More like a 33 year decline in real U.S. wages AND salaries! Adjusted for inflation going as far back as 1970, U.S. minimum wage should be around $11 an hour, and keeping the minimum down keeps most everybody else’s wages down as well.

But go ahead, “elites”, keep hoarding and loving your money. But it won’t love you back, and none of us can take any of it with us when we depart this planet after our few short decades on it.

Jun 27, 2014 3:37pm EDT  --  Report as abuse

Perhaps the wealthy aren’t really “hoarding”. We have long had over a $ million in investment assets. After so many years of Fed easing and ZIRP we find that we aren’t comfortable placing money in risk assets anymore. It’s not to say that we’re selling, it just that we aren’t buying. So dividends and capital gains (and any other income) ends up going to cash.

Jun 27, 2014 3:50pm EDT  --  Report as abuse
m_blstr wrote:

The old grasshopper and the ant story unfolds in real life.

Jun 28, 2014 8:17am EDT  --  Report as abuse
BobtheMoron wrote:

People are saving their money due to the fear that the government is going to cause a full on economic collapse. They should be buying things now that would sustain them in that collapse. A worthless dollar saved is an even more worthless dollar later.

Jul 01, 2014 9:40am EDT  --  Report as abuse
BobtheMoron wrote:

People are saving their money due to the fear that the government is going to cause a full on economic collapse. They should be buying things now that would sustain them in that collapse. A worthless dollar saved is an even more worthless dollar later.

Jul 01, 2014 9:40am EDT  --  Report as abuse
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