A Disturbing Trend


New York Has the Most Millionaires
Robert Frank

According to the new Metro Wealth Index, created by consulting firm Capgemini, the New York Metropolitan area had 650,000 high-net worth individuals, or people with $1 million or more in investible assets in 2009. That is 18.7% higher than in 2008.

Once again, the New York area topped the list of metro-area wealth centers. Its total was greater than the combined total of the next three runners up–Los Angeles, Chicago and Washington.

Of the top 10, Houston posted the the fastest growth, at 28.9%. But all enjoyed strong growth.

Here are the tallies of millionaires for the top 10, along with the percentage growth:

New York – 667,200, +18.7%

Los Angeles – 235,800, +13.3%

Chicago – 198,100, +15.1%

Washington, D.C. – 152,400 +19.3%

San Francisco – 138,300 +14.5%

Philadelphia – 104,100, +20.1%

Boston – 102,300, + 14.4%

Detroit – 89,100, +12.1%

Houston –- 88,200, +28.9%

San Jose — 86,500, +24.5%

What are the takeaways?

First, that the U.S. taxpayers’ bank bailouts certainly helped those on Wall Street (though why New York still has huge budget problems given the wealth surge in 2009 and much-publicized tax burden of the wealthy remains a mystery).

Second, that finance, technology and oil remain the main sources of wealth in the U.S.

Third, while New York, D.C., Houston and San Jose are now above 2007 levels, the rest are still below the 2007 heights.

Fourth, that 2010 may not be as rosy as 2009 when it comes to minting new millionaires or re-minting the old ones.
What patterns do you see in the numbers?

The seat of government, Washington, DC,  placed in the top five American cities with millionaires and that should say something about what government has done to its citizens.  In a city where the only business is government which then goes and has a steadily increasing number of millionaires from one year to the next but was virtually deadlocked and or engaged in acrimonious debate on increasing unemployment benefits for the country’s unemployed says something about what many people in government think is their role.  The war on terror has led to the enrichment of many private citizens whose wealth depends on a fearful government willing to empty out its coffers to fight or demonize people who either don’t exist, mean them no harm or are incapable of inflicting harm, at the expense of the majority of the American people.  In this case, the expression ‘follow the money’ has meaning!

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The Bush legacy: A failed economy


bushiv1Having built his Administration on lies beginning with 911 and the sordid attempt to justify the invasion of Iraq because of what happened in NYC, it’s completely characteristic of Bush to obfuscate and deny the inevitable: The U.S. economy has been in a recession since December 2007

By one benchmark, a recession occurs whenever the gross domestic product, the total output of goods and services, declines for two consecutive quarters. The GDP turned negative in the July-September quarter of this year, and many economists believe it is falling in the current quarter at an even sharper rate.

*snip*

The White House commented on the news that a second downturn has officially begun on President George W. Bush’s watch without ever actually using the word “recession,” a term the president and his aides have repeatedly avoided….

*snip*

Many economists believe the current downturn will be the most severe since the 1981-82 recession. The country is being battered by the most severe financial crisis since the 1930s as banks struggle to deal with billions of dollars in loan losses.

Loss revenue and jobs are the mark of this recession.

In a worrisome sign of further weakening in the U.S. labor market, November saw the highest number of layoffs in the private sector in more than 32 years.

*snip*

Since the start of the recession in December 2007, as recently announced by the National Bureau of Economic Research (see “Congratulations, It’s A Recession”), the number of unemployed persons increased by 2.7 million, and the unemployment rate rose by 1.7 percentage points with two-thirds of these losses sustained in the last 3 months.

What started out as a $700 billion bailout has now ballooned into over $8.5 trillion dollars of US taxpayer money which can be given away in any way the chairman of the Federal Reserve sees fit, with or without the consent of ANYONE, including Congress.

“Most of the money, about $5.5 trillion, comes from the Federal Reserve, which as an independent entity does not need congressional approval to lend money to banks or, in “unusual and exigent circumstances,” to other financial institutions.

Now Bush is even faced with rebellion within his own party as the bailout for the automobile industry he was in favor of has been defeated in the Senate with the help of members of the Republican party.