Bank deposits are up. Therefore:
Think about that for a moment: the world’s wealthiest people are so lacking in faith in the world’s financial markets that they’d rather hold €33 trillion in cash and lose money as a result.
Ignore the angle on the banks that Allianz makes.
What this really says is that the world’s wealthiest do not believe the puff of neoliberalism.
Nor do they believe that there is anything very entrepreneurial going on out there.
And they most certainly don’t believe current market valuations and so they’re actually withdrawing from markets.
For once they may have got something right.
But last week we were being told that the wealthiest have done best out of QE because asset prices have been pushed up. It’s the weal;thy who own the assets, you see? Now we’re being told that the wealthy shun assets and prefer bank accounts.
Either of these could be true but not both.
The correct answer being that the wealthy are more heavily vested in assets and the poorer among us boosting their savings accounts. Hmm, perhaps not the poorer, but the middle.
It’s not George Soros sticking his cash in a savings account now, is it?