Record drop in the number of millionaires in 2008
Filed under: Wealth
Merrill Lynch reports that the number of millionaires plunged by 15% in 2008. The value of millionaire's assets fell by 20% in 2008, following a 9.4% increase in 2007.Bloomberg reports that "The number of people in the ultra-high net worth category, those with more than $30 million to invest, not including the value of their homes or consumable goods, fell 25%. This was because they had a greater proportion of their assets tied up in equities, hedge funds and private equity..."
Geographically, the global recession hurt millionaires from all over the world. The number of millionaires in North America fell by 19% compared with 14% in Europe and the Asia-Pacific region. But it's hard to say whether that means that the economy is worse in America -- or just reflects the large percentage of American millionaires who are "middle-class millionaires" rather than the more powerful oligarchs that dominate the ranks of millionaires in some countries.
As big as the drop was, all that it did was bring the number of millionaires back to 2005 levels. So for all the wealth that has evaporated over the past few years, it's just a pullback to where we were before the real estate market completely overheated.
But that raises an interesting question: If all that we've done is retraced a couple years of wealth creation, is it really reasonable to expect a quick turnaround?
Reader Comments (Page 1 of 1)
6-27-2009 @ 6:37AM
Monica said...
I'm a single mother with three kids, and I was not pulling in enough income to support us. Now all that has changed. I am now making more money than I have ever dreamed. I've seen articles from other companies promising success in internet businesses before, and I tried some of them because I had nothing to lose. But, they never came close to the success Google ( http://bit.ly/GoogleProfits ) have given me. It took me from a $24,000 yearly income job to making over $150,000 within 9 months. Money is coming in my google account everyday and I am loving it.
Reply
6-27-2009 @ 9:08AM
Seymour said...
Millionaires on paper. What a joke. Reality has set in after eight years of corruption from Bush and Cheney. The solution is simple...just bring the manufacturing jobs back to America, rebuild the middle class tax base that was destroyed, and we'll all be fine.
Reply
6-27-2009 @ 11:33AM
Walt said...
Bring the jobs back? On the road to recovery? Are you people dreaming? This cap and trade bill is going to drive more businesses out of the Country. There are less millionaires because they were wiped out in the investment market. All due to the melt downfreddie and fannie caused being unregulated because the dems like Franks said there was no problem with them
6-27-2009 @ 9:58AM
GB said...
WHY SO FEW
Reply
6-27-2009 @ 10:44AM
Bob said...
Well, we seem to be on the road to economic recovery. The first thing we need to do is get the health care burden off of business and put it on government so that American business can reduce expenses and be more competitive. Then let the government decide how much you are worth and what it will pay to keep you alive. Then we will let the government determine what products can be made economically in the US. What the value of a product is and what a worker can be paid (and how many workers). Unfortunately, with artificially high energy costs and limited resources, we will be able make only high value commodities, such as electronics. But there is a benefit from the reduced standard of living. We will eat less and get more exercise. And then the ultimate goal will be achieved. No individual initiative. Wait for government and government approval. We will be no better off than anyone else in the world. Everyone will finally love us. Then the government will simply redefine economic recovery, and we will be back to our happy Obama land.
Reply
6-27-2009 @ 12:08PM
Jeani said...
The amount of millionaires was way up under Bush so much so that Forbes list didnt even have enough room to list all the BILLIONAIRES. That was the first time that ever happened. Now because of Sub-Prime lending which really just means giving poor negroes who cant afford homes houses just so they can be "equal". What they did was ruthlessly pursued by people like Barney Franks etc. Now after lending money to simians and electing a simian as President the amount of millionaires is steady dropping. It will only get worse from here as OSambo spreads around the wealth a little more to help his "brothers".
Reply
6-27-2009 @ 1:26PM
Gregory said...
Jeani will you marry me?
6-27-2009 @ 12:38PM
DODO said...
FUNNY,FUNNY!!!!!! NOW LOOK AT THE OTHER END OF THE SCALE.......MORE POORER THEN EVER!
GEE I WONDER......MOST LIKELY THESE MILLIONAIRS THAT FELL OUT OF THE CLUB PROBABLY ARE NOW IN THE BILLIONAIRS CLUB!
Reply
6-27-2009 @ 12:41PM
Leslie said...
Jeani you and the people like you continue to amaze me. How is that you don't understand that when the middleclass has been shrinking and the very poor has been growing, when the gap between the rich and poor is widening-you should be more concerned with that. I am sure you are not a millionaire so why should you care. It is obvious from your comments that you are a racist. It is very amusing that you refer to the president as a "simian", when he is far more intelligent than you(that probably bothers you) I am trying to think of an animal that you are equal to in intelligence-can't think of one.
Reply