Wednesday, June 22, 2011

11 million people own over $42 trillion in assets

NEW YORK -(Dow Jones)- The world's millionaires continued to recover in 2010 from the recent financial meltdown, with their population and assets climbing back past the 2007 pre-crisis peak.

In 2010 the number of high-net-worth individuals in the world -- those with at least $1 million in investable assets excluding primary residences -- grew 8.3% to 10.9 million, and their wealth rose 9.7% to $42.7 trillion, according to the 15th annual World Wealth Report, compiled by Bank of America Corp.'s (BAC) Merrill Lynch Global Wealth Management and Capgemini Financial Services.

At the end of 2007, the high-net-worth population was at 10.1 million people with $40.7 trillion assets. But then 2008 wiped out two years of growth, shrinking the high-net-worth population by 14.9% and their total wealth by 19% to levels below that of 2005.

In 2010 the population of ultra-high-net worth individuals -- those with investable assets of at least $30 million -- rose 10.2% to 103,000, as their wealth rose 11.5%. A disproportionate amount of wealth remains in the hands of the ultra-high-net-worth: at the end of 2010 the group represented only 0.9% of the global high-net-worth population, but held 36.1% of its wealth, a slight increase from 2009.

Wealth is still concentrated in the U.S., Japan and Germany, which accounted for 53% of the world's high-net-worth population, although their share is down from 54.7% in 2006. The U.S. is still the country with largest high-net-worth segment, with 3.1 million individuals.

Wow. Based on the above data, 100,000 people (.9% of the ultra wealthy) own approximately $15 trillion (36% of the 42 trillion) in wealth. So these special 100,000 people own on average $150 million worth of assets. Incredible.


  1. We can only take it up the ass for so long...

  2. So I guess one way to solve the deficit problem in the country is to tap the ultra wealthy's money. We could pay off that $14 Trillion, or whatever it is today, quite easily. Hi Ho Robin Hood!

  3. It will continue along this road until the top 1% beleive they are persoanlly at risk. It is and was a long way down to serfdom from the peak of the republic.

  4. SJD,

    Have you ever read Naomi Klein's The Shock Doctrine? To summarize one of the book's major points: There's an unspoken policy agenda in the Washington-NYC financial axis to develop "plutonomy", which is a very fancy way of saying "Trickle Down Economics." The theory goes that as this super-rich elite has more to spend the rest of the economy will be built around catering to their consumer needs... For the sake of disclosure: I ain't got that fancy Harvard Econ degree, but call me crazy if this doesn't look like a hot idea.

    All the best,

  5. But Subprime, don't you think the upper 1% *deserves* that share of the assets based on their *disproportionally hard work* and *economic productive capacity?* Because if you don't, you surely must be a *rotten socialist.*

  6. J-Dog,

    I hate that bullshit retort about socialism. The reality is that the but for the bailouts, zero interest rate policy, QE1, QE2, QEN, the "ultra" wealthy would have lost their asses in the crash of 2008. Instead, as the article states, the uber rich not only recovered but now have more wealth than ever before. Just look at greece and how the bondholders arent required to take any losses while the burden falls on german taxpayers and greek citizens.

    Imagine how much power and influence these 100,000 families have over our elected "representatives."

  7. The revolt must occur. We are beyond 'political action', as that system is captured and rendered an oligarchy. DEBTORS' REVOLT - and the triggering of systemic collapse - is the action available to us. I say we use it.

    Our Founders revolted against England over far, far less.

  8. The avenues of revolt are in place. The question is no longer when, the question is what will come out the otherside. Think Egypt. Mubarak is gone, but the plutocracy is still in place, money moved to saver enviornments and food prices are rising fast.

  9. This comment has been removed by the author.

  10. The ABA will consider accrediting a law school in China in August:

  11. Jordan,

    I don't know whether you were being serious about what you wrote. But if you were, I say that's the wrong way to go about this issue. We need as many voices as we can gather in opposition to this beast. Also, most Americans would not honor such an act, but rather would single you out as a disturbed individual.

  12. How will one know if/when the "revolt" of student loan debtors has begun?

    Will there be violence or will the student loan debtors simply stop making loan payments?

    I'm just wondering what folks mean when they talk about this so-called "revolt".

  13. @ Anonymous 4:48 pm; Gandhi encouraged burning registration cards while he lived in South Africa, perhaps the first act of revolt for debtors here and now would be to present yourself along with all documentation of your debts before the financial institution you owe and burning those papers. It is a meager act, and perhaps it would be futile, but it may spark something else.

    ILLUMINATI - College Conspiracy

  15. Essentially, those people did not achieve their wealth solely through a capitalist system but rather a crony capitalist system. When government and big business partner as they've done in the student lending scam, we all lose.

  16. Andre,

    Without the banker bailouts those "ultra" wealthy would have lost up to 80% of their "wealth." Instead, the powers that be decided to push up the value of these special assets while the 90% of us at the bottom suffer with higher commodity prices.

    What pisses me off is how everyone focuses on the $800 billion dollar bailout of September of 2008. That was just ONE of several bailouts. The other wall street bailouts include:
    1. zero interest rate policy which is killing savers but saving the banks as they lend out at 29 percent on many credit cards
    2. the relaxation of accounting rules(read: accounting fraud). Remember the big fuss over the "toxic" assets? Those assets where either bought by the fed or were marked at 100 cents on the dollar due to FAS rule 157. Here is an example: by friend is a real estate broker, he just did a short sale on a house where the 1st note was at 350k, the 2nd at 50k. The house sold for 140k. That's 260k in losses on ONE house. Just imagine the true banker losses taking place.
    3. QE1 which whereby the fed purchased some of the worst mortgage paper out there from the banks.

  17. Look, I'm a proponent of Capitalism. I think Capitalism is far superior to any other organizing principle of economic resources in a given society.

    But what we have here in the U.S. is not Capitalism. And it certainly bears no resemblance to Adam Smith's notion of an "invisible hand" guiding the marketplace. It's now little more than Crony Capitalism.

    The problem is that the American populace has been brainwashed to defend the idea of Capitalism at all costs. In many ways it's what defines us as Americans. What's currently being paraded in front of Americans is really nothing more than serfdom cleverly disguised as Capitalism.

    The good news is more and more people are beginning to awake from their long slumber. The bad news is the system has become irrecoverably polluted with ineptitude and corruption. So much so, in fact, that it'll be impossible to put it back on steady and equal footing without going through a few, very painful decades. Are Americans willing to forego some of the material luxuries of which we've become accustomed in favor of ushering in a new (more just) economic system? I doubt it. But, at this point, I think they have little choice in the matter.

    Crony Capitalism, as we've all witnessed, is unsustainable. In fact, it's now on life support. Fiat money and government bailouts has kept it from flatlining. But the architects of greed and corruption know they're dastardly brainchild is gasping for air and frightfully tugging at his deathbed's sheets. Quantitative Easing and similar monetary policies can delay death only so long.

  18. First step: cause the collapse of the banking sector through DEBTORS' REVOLT: an intentional default-en-masse. Just stop paying your student loans, etc. If enough people - doesn't need to be everyone, just a critical mass, say 25% - intentionally default, the financial sector will spiral into a desirable collapse.

  19. The Obama Deception -

  20. But the country is on the right track, right, Obamabots and Republicans?!?! "Let's extend tax cuts for the wealthy - and continue to allow large multinational corporation to evade their tax obligations. Don't impose any tariffs on their foreign-made products, either."

    Yes, because this has been such a WINNING formula, over the last 30-40 years, huh?!

  21. eToro is the ultimate forex trading platform for beginner and advanced traders.


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