Quote:
Originally Posted by Tony T
NYT: Don't worry:
Few Americans Own Stocks, So Few Are Affected by Slump
The riotous market swings that have whipped up frothy peaks of anxiety over the last week have virtually no impact on the income or wealth of most families. The reason: They own little or no stock.
“For the vast majority of Americans, fluctuations in the stock market have relatively little effect on their wealth, or well-being, for that matter,” said Edward N. Wolff, an economist at New York University
Fake News! (really, this can't be true) |
Actually it is true, but what it implies is far worse than you realize. It is not that Americans haven't invested in the market, it is most American have no savings (wealth) to invest in the markets. 5% of Americans control more than 50% of the wealth. 60% of the American population holds 4.2% of the wealth. So yes, vast majority of Americans are not affected by the markets since that is primarily a wealth effect. Income is a different matter.....