The wealthy class were being destroyed in the last crash until the Fed and Paulsen, run by Wall St. Bankers, came to the rescue with endless bailouts and QE under the propaganda of “averting depression” and “too big to fail”. Obviously this is likely to happen again.[/quote]
Please. The wealthy class were hardly being destroyed.
Someone might have “lost $100k”, but that might mean 2% less on their total net worth.
That’s different from someone that loses $50k when their total net worth is say $200k.
And I’m dealing with this at all sorts of levels with friends and family and myself. Everyone is going like whoa as me, “I’m down $100-150k from peak”, but in perspective, it’s like 2-3% of their person’s total net worth..Hardly a big deal or financially devastating for them…
Wealthy people might lose money that in absolutely numbers look large for people that are not at that financial level. But it’s chump change, and those people typically clean house in a downturn because they have a lot more financial reserves to pick up cheaper assets when everyone else that is middle class is just scraping by.
Just look at what’s going on now. Inflation is killing middle class that haven’t secured their housing/transportation/etc costs. Higher rent costs, higher food costs, and now more of these worker bees have to return to work, higher transportation costs…And their wages are not growing nearly as fast…
Richer people can buy a house/property more easily than people that need to take out a loan. Richer people can buy an electric car or chances are aren’t tied to a daily job or have a better job that is more likely to be remote friendly. If mortgage rates rise and even if house prices fall, and other cost of living rises, your average middle class counting on a paycheck is no more prepared to buy property assets, in fact it’s probably harder for them because access to loaned money isn’t as easily available.
Rich people who can switch from cheap credit loans to cash still have no issues. And with rising inflation, they also clean house with rising rent costs as a landlord…
Inflation + tighter borrowing terms = Perfect storm for rich to get richer in the long run while middle class gets left behind scrapping by.
Also, most of the people that will get crushed are the novice gamblers of meme stock and crypto that was hoping for that one hit one wonder get rich quick trade….They will be crushed and wiped out. But they weren’t really in the “rich” class to begin with. It’s not like they had a long term DRIP style investment plan to begin with and spend decades building millions, despite what those of us that have been trying to warn them about…
Those “financial guru” instagram feed I subscribe to for shits and giggles sure have gone silent recently….But they’ll make excellent tenants 🙂
