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The Richest 10% of Americans Now Own 84% of All Stocks


“Despite the fact that almost half of all households owned stock shares either directly or indirectly through mutual funds, trusts, or various pension accounts, the richest 10% of households controlled 84% of the total value of these stocks in 2016,” Wolff writes.

That number—which accounts for individual shares as well as stocks held via mutual funds—represents a big change from 2001, when the top 10% owned just 77% of all stocks.

Furthermore, while virtually all (94%) of the very rich reported having significant stock holdings—as defined as $10,000 or more in shares—only 27% of the middle class did. (The study framed that middle class as the group between the poorest 20% and the richest 20% of Americans.)

The concentration of stock holdings among the rich, Wolff says, is due to the twin stock market busts of 2001 and 2008. While the middle class was scared off by these declines, he explains, wealthier investors were able to swoop in and increase their holdings.

 

I think the point is that the tax cuts that have helped fund such buy-backs were marketed as a boon to the wage-earning class, with headlines trumpeting the handful of companies that gave their employees bonuses upon the passage of the law as evidence of how it would work. Anybody with a grasp of economics and economic history knew that wasn't the case, that the vast amount of the money would go directly into the pockets executives and shareholders, 84 percent of whom are in the Top 10 percent of wealth in this country. From there, a large portion of that money would either go right back into some investment vehicle like stocks or real estate or art or wine, or to vacations, or to luxury automobiles, and, thus, would never actually enter into circulation in the economy in which the vast majority of this country's population abides. A small percentage might, tangentially, go to administrators or consultants or other service providers or hospitality workers, but the vast, vast, vast majority of any additional money accumulated by the wealthy above its current means remains in the orbit of the wealthy, which is why trickle down economics is complete bullshit.

 

Gotta hear both sides.

Profits Without Prosperity

The Case for Stock Buybacks

 

Corporate executives are using stock buybacks to pad their own compensation, according to SEC official

Stock buybacks enrich executive pay even when business sags

 

All I can say is, shame on 73 percent of the middle class.

You want to know what it takes to amass $10,000 in a 401(k)? Four percent of a $50,000 income for five years. And that's with zero stock appreciation, and zero company match. And that 4 percent deduction also reduces their taxes --- which makes it, in effect, a 2 or 3 percent deduction --- so double shame on them.

 

I'm going soon this morning and got mine ready!

 

Total coincidence I'm sure. Just like all the others.

 

This fuckin' guy.

 

From your lips to Dave Ramsey's ears.

That said, maybe folks are still a little spooked.

https://money.usnews.com/money/blog...nt-savers-lost-2-trillion-in-the-stock-market

The Recession Hurt Americans' Retirement Accounts More Than Anybody Knew - The Atlantic

 

Maybe they are spooked. Shame on them.

My brother was mentioning once how his savings were badly hurt in 2008.

I'm like, "WTF? How is that possible? It was a great BUYING opportunity for a couple of years with cheap stocks. Stay the course, and you'll come out far ahead."

 

What the western media keeps leaving out. Total coincidence I'm sure:

 

Good advice if you're 35 years old.

Not much help if you're 60.