CNBC: The Rich Are Hoarding Cash -- and That's Not Good

[JaneQPublic]

CNBC, of all places, confirms what we said was true all along: That the 1 percent is not a class of job creators but money hoaders, and that "their fear and lack of risk taking may be imposing real financial costs on the economy." However, one surprising -- if not ironic-- finding in this survey was that 62 percent of the 1 percenters think taxes should be raised.

http://finance.yahoo.com/news/fear-loathing-one-percent-165400847.html

The 2012 Survey of Affluence and Wealth in America, from American Express Publishing and Harrison Group, finds that One Percenters are hoarding three times as much cash as they were two years ago. Their savings rate soared to 34 percent in the second quarter of 2012, up from 12 percent in 2007.

Higher savings would normally be good for the economy. But not now, when capital is needed to invest in growth and jobs. The One Percenters put 56 percent of their available cash into savings accounts and money markets in 2012 - that's up from 24 percent in 2007.

They're investing just 44 percent in financial markets - down from 76 percent in 2007. More One Percenters say the stock market is "a real risk" rather than a "real opportunity." That's a big switch from just last year, when 62 percent said the market was an opportunity.

In other words, One Percenters used to save less, and invest more. Now they're "basically stuffing money under the mattress," said Jim Taylor, vice chairman of Harrison Group. That also means they're spending less - on everything from traditional luxury to second homes.
MORE...
http://finance.yahoo.com/news/fear-loathing-one-percent-165400847.html

[renate]

1. the rich always hoard cash--that's how they get to be rich

I would do the same thing if I could. These are uncertain times, and they have money available to stuff into the mattress. I don't blame them at all--but the fact that they're saving instead of investing is surely a HUGE reason to not give them any further tax breaks with the pretense that they'll create jobs, for goodness' sake! The trickle-down theory was BS when it was invented and it's even more BS now.

[HiPointDem]

2. 62% of 1%-ers think other people's taxes should be raised, & that's what they're going to do.

[Cali_Democrat]

3. We need to give them even more cash through massive tax cuts

so they can hoard even more cash and jobs will magically appear.

[Tennessee Gal]

4. The 1% are in favor of tax increases on those making as low as $250k per year? Interesting.

~snip~

Many Democrats might argue that all of this moat-building and cash hoarding and community-shunning by the rich is exactly why we should tax them more. They say the lack of mass consumer demand is the reason the wealthy aren't investing and creating jobs. At least the government would deploy that capital into the economy, rather than keep it under a Vividus mattress, they argue.

Most One Percenters agree with them - at least when it comes to higher taxes. The survey found that 62 percent of One Percenters are in favor of an income-tax increase. More than half say the increase should be imposed on people making $500,000 or more (basically themselves).

Another 31 percent say it should be imposed on filers making more than $250,000 - basically the Obama cut-off.

Only 25 percent think the income cut-off should be $1 million.

Taylor said that it's the uncertainty over tax policy - rather than higher taxes themselves - that is most affecting the spending and investing of the wealthy. He said this reality stands in stark contrast to the public perception that greed is preventing compromise in Washington.

"All of this antagonism that is being created is not the fault of the people Obama says are being greedy," Taylor says. "If there is resistance to tax increases it's coming from others - perhaps lobbyists or Tea Party people or consultants. The One Percent accept the reality."

~snip~

So, if the 1% is mostly accepting that their taxes should be raised, why on earth is the idiotic right fighting so hard against it.

Oh, that's right. It is because Obama is proposing it as the right thing to do. We just can't have Obama getting what he proposes even if it is what is best for the country's economy!

[JaneQPublic]

9. Why is the right fighting tax hikes on the rich if the 1% support them?

I think you are spot on about their knee-jerk opposition to anything Obama Supports.

But there's another reason: Their pledge to Grover. And, of course, the GOPers place a higher priority on keeping their no-tax hike pledge than on fulfilling their obligation to do right by the American public.

[rrHeretic]

5. I almost fainted from shock

(not) when I read this article. Seriously, this is OLD news. They've been hoarding their golden sheckles since the dawn of man.

[marble falls]

6. THERE IS NO TRICKLE DOWN, THERE HAS BEEN NO TRICKLE DOWN. THERE WILL BE NO TRICKLE DOWN .....

UNLESS WE TAX TO TURN ON THE FAUCET.

[midnight]

7. That's what we need to do, but we can't just use the word tax... Use the ALEC method... come up

with some fantastic sounding phrase..

[marble falls]

8. revenue enhancement

[midnight]

14. Very nice.. It has such a rich sound about it.. I'm sure it will be a winner with the Paul Ryan's.

[aquart]

13. Destiny restoration. The Patriot's Levy.

[midnight]

15. quart both are awesome... Maybe even a mashup of Patriot's Restoration....

[marble falls]

17. I vote for Patriot's Levy

[high density]

10. Duh?

The rich suck money out of our economy just like offshoring does.

[aquart]

12. Parasites bleeding us dry. Tax or die.

[aquart]

11. I would prefer not to pry it from their cold, dead hands but death duties are looking good.

I want to do things to make tax accountants weep.

[socialist_n_TN]

16. It really doesn't surprise me that the 1% favor...

a tax hike on themselves. In all those hoarder shows that my wife watches, the hoarders have to be FORCED to give up their "Precious". Whatever that precious is.

It's a disease that they know will have REALLY bad consequences at some point, but since that point is somewhere in the nebulous future, they can't overcome their OCD on their own. So they want government to force them to get well.