Canny caution or bumbling oversight, the world’s richest people have retained huge stockpiles of zero-yielding cash throughout the recent surge in financial asset prices.
Their persistence may have, counter-intuitively, prolonged the buoyancy of those very assets in the process — helping to inflate the outsize wealth of the super-rich further.
With the debate about rising inequality re-invigorated this year by French economist Thomas Piketty’s best-selling book on ballooning wealth gaps, the spending and savings behavior of the so-called “plutonomists” has rarely seen more scrutiny or had more influence on the economy and markets...
Saturday, June 14, 2014
The world’s richest people are sitting on gigantic piles of cash that aren’t earning them anything | Financial Post: