The Definitive Rich Vs Poor Chart: "The Rich Hold Assets, The Poor Have Debt"

Tyler Durden's picture

This chart from Citi's Matt King pretty much sums it up (and contrary to what Magic Money Tree growers will tell you, debt is not wealth).

Why is it important? Simple - contrary to the Fed's flawed DSGE models, it is the poor who are more likely to consume. And logically with their purchasing power being funneled to the rich with every $85 billion in monthly debt monetization, they purchase less and less. As the slow but steady contraction in the economy over the past five years has proven beyond a reasonable doubt.

But hey: at least Hamptons' houses have never been more expensive and the Russell2000 keeps on hitting daily all time highs. Thank you "wealth effect."

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Zer0head's picture

so was the DC driver shot in the Capitol yesterday (the one that the media has stopped reporting on) rich or poor?

 

http://www.buzzfeed.com/ryanhatesthis/everything-we-know-about-miriam-ca...

NotApplicable's picture

I found it strange how people kept referring to her as the Capitol shooting suspect, rather than victim.

Herd Redirection Committee's picture

The rich are too rich.  Millionaires always think I am shittalking them when I talk about rich people.  Rich = $1 billion or more

The rich have more than they can spend, and yet, they want more, because they aren't greedy, they are power-hungry sociopaths.

Herd Redirection Committee's picture

But the 'greed' is just a symptom, not a cause.

hedgeless_horseman's picture

 

 

 

Deceased single mother with a $250,000 condo and an Infinity on a dental tech income of $73k.

What was her debt/income ratio?

When people have nothing to lose, they lose it.

MillionDollarBonus_'s picture

If you really care about the economy then you have to care about the middle class. Economists believe that the key to economic prosperity is investing in the middle class, because this has a knock on effect of helping the poor. Read today's article at the Accredited Times to learn more about how our administration is helping the middle class and how we can improve the economy even more:

http://accredited-times.com/2013/10/04/investing-in-the-middle-class-the...

Beam Me Up Scotty's picture

How about we stop devaluing dollars?  The "poor" could more easily pay for things if their dollars were worth more, right MDB?

dontgoforit's picture

$73K is more than my wife and I make together.  The condo I can understand.  The Infiniti is a bit much.  A Hyundai or Impala would fit better.  So they shot & killed her.  Unarmed.  (Well, an Infiniti can certainly look like a 'big' bullet - and she was crashing into stuff.)  They ought to do a DNA test and compare it with obama's - there's gotta be more to this than meets the eye?

Stackers's picture

The epic Pete Stark Debt is Wealth meltdown - must watch if you haven't seen it

http://www.youtube.com/watch?v=UjbPZAMked0

Joe Davola's picture

So debt's no longer an asset - good to know.

James_Cole's picture

The rich own the debt, which for them is an asset, the poor owe the debt which means for them it's a liability. How the shit works.

Free market capitalism ftw!

MillionDollarBonus_'s picture

Good point James. Debt is one of the major problems with the 'free market'. It's an inherently flawed system.

www.accredited-times.com

Meat Hammer's picture

If it were truly a free market it wouldn't be a debt-based, fiat monetary system with legal-tender laws that force people to participate in it.

James_Cole's picture

I was commenting on the idea that the rich hold assets, poor hold debt - not any specific country. Free-market capitalism is specifically a system where people with assets / capital lend to people without. 

So it follows, people without assets / capital are forced to participate under the rules of those who control assets. The percentage of people in either group can obviously vary quite a bit. The more people who hold assets the more equitable the system and the more 'fair' the rules of the system. 

This is not rocket science...

 

Anyone bother to notice that rich lending to poor (with all the expected strings attached) was how the US built up it's entire empire??

 

Rentier's picture

$73k in DC would be like $40-50k most other places.

MachoMan's picture

1.5x+ the average household income...

Debugas's picture

the poor are poor for a reason - they have no income generating capital

redistribution of capital is the ultimate solution

and it happens from time to time and mostly in a violent fasion (wars, revolutions etc)

Kobe Beef's picture

I beg to differ. Most of the poor people I've met were either born stupid or made stupid decisions.

Stupidity has a price. Poverty is usually it.

James_Cole's picture

Einstein was impoverished when he fled to the US. 

The price of stupidity!!

darteaus's picture

Not as impoverished as he would have become if he had stayed.

FEDbuster's picture

I know some technically broke PhDs.  Good earners whom live WAY beyond their means with little or no investments.  Stupid is, as stupid does.

MachoMan's picture

technically broke, is that like technically pregnant?

FEDbuster's picture

They count home equity, state funded pensions, etc... as part of their "net worth".  No liquid assets, no investments, a few grand in the checking account.

Deacon Frost's picture

It appears MillionDollarBonus_ is responsible for a lot of the negatives on this site.

bagehot99's picture

'Investing in the Middle Class' is absolute gobbledegook - it's the kind of horseshit that unqualified Marxist community organizers say when they want to funnel other people's money into, say, Solyndra.

The middle class grows when the economy grows, not the other way round. Which won't be happening while President ShutYellowstone is in the WH.

Jumbotron's picture

"Investing in the Middle Class' is absolute gobbledegook - it's the kind of horseshit that unqualified Marxist community organizers say when they want to funnel other people's money into, say, Solyndra.

The middle class grows when the economy grows, not the other way round. Which won't be happening while President ShutYellowstone is in the WH."

Since Ronald Reagan, the e CON omy has grown simply through debt issuance back by fiat paper backed by the full faith and credit of a hopelessly corrupt cabal of human scum.

But THE SCUM thanks you for your simplton solution as to simply kick out Obama and replace him with ......whom?  

I mean.... you do know that ONLY the CON gress has the Consitutional authority to issue coin and set the value of it and.....

.....OOOoooops!  Forgot.....the CON gress gave that power over to the newly invented Federal Reserve in 1913....as well as passing the Federal Income Tax in that same year.

But PLEASE......go ahead while the Powers That Be chuckle....please continue to believe that ALL we have to do is get that puppet out of the White House.  Just like the Libtards believed all we have to do is get rid of the puppet Bush out of the White House.  THEY bitch as much as WE do because they feel OBAMA IS WORSE than Bush because he's LIED about everything near and dear to them.

Jumbotron's picture

Already seen it.  Worth a repeat, though, every time.  Thanks.

Jugdish787's picture

Great video!  I have never seen it before.  The part that is so frustruting about all this information is that you and I can look at this video and think, wow! this makes sense.  Unfortunately I could send this to 100 people and they would all call me crazy and a conspiracy nut.  I think as a whole there is no hope until the majority of people get woken up to reality when it hits them in the face.  Short of that they are never going to care.

Seer's picture

I have no idea whether Reagan understood the mounting forces or not, but all was already steam-rolling along when he hit the throne.

The light switch was thrown in 1971 (peak oil production & USD decoupled from gold; also, the Big China opening).  In order to make it look like the lights were still on we've been burning everything that we could get our hands on.  The Bill (due) was issued back in 1971, THAT was when the US defaulted, and it never did reconcile this default.  I wonder whether Carter was confronted by the bankers: Reagan sure the heck was- that's where we got the start of the "thousand points lights," all the shit burning (via "de-regulation")...

NOTE: It matters little what the actual "event" was, or who was there or was "responsible," as the perpetual-growth-on-a-finite-planet premise was going to end in utter failure anyway.

Jumbotron's picture

"I have no idea whether Reagan understood the mounting forces or not, but all was already steam-rolling along when he hit the throne.

The light switch was thrown in 1971 (peak oil production & USD decoupled from gold; also, the Big China opening).  In order to make it look like the lights were still on we've been burning everything that we could get our hands on.  The Bill (due) was issued back in 1971, THAT was when the US defaulted, and it never did reconcile this default.  I wonder whether Carter was confronted by the bankers: Reagan sure the heck was- that's where we got the start of the "thousand points lights," all the shit burning (via "de-regulation")...

NOTE: It matters little what the actual "event" was, or who was there or was "responsible," as the perpetual-growth-on-a-finite-planet premise was going to end in utter failure anyway."

THAT.....my friend.....is some Quantumly Cosmic Truthiness right there.

I'd give you a +1000 but I can't frack that.

prains's picture

1971 was the Fiscal Default for sure and what's followed for the last fourty years is the social, cultural and moral default. That fourty years of circling the drain is nearing it's end, whatever you want to call this latest Bukakkee theatre it's certainly another of the mounting cracks forming. The entire Syrian Bukakkee now makes so much more sense in light of this latest debacle. The entire raison d'etre for trying to start a war in Syria WAS TO AVOID this debacle. It's so much clearer now, these fucking pigs will kill anyone or start any war they can in order to protect themselves. What they absolutely DON'T want still is to be seen by the general population as the cause of any war. We at least have that going for us. There's still a tiny sense of shame amongst them that one day History will show they in fact were the evil doers. Most ZHers already now this but plausible deniability is still in play. Once that's gone, it's game on.....pack a bag

Meat Hammer's picture

"Economists believe that the key to economic prosperity is investing in the middle class"

You and they couldn't be more wrong.  People in the middle class got there by investing in themselves.  

Herd Redirection Committee's picture

Or rather, reinvesting profits in themselves.

One of the major differences between the American colonies and those in Latin America and elsewhere, was the amount of capital reinvested locally.  With Latin America, much more went back to the Old World (AFAIK).  Would be interesting if research has been done specifically in this area.

bogdanlg's picture

Man, I am tired of all you wannabe tinckle down economics proponents. A curse on your house and you will end up being the one looking straight into the monster's eye. You and all like you think you can grab that monster and pull yourself up and yet you don't see that's exactly the delusion that the 1% want you to believe. The vast majority on this board won't make it but will keep believing in this distorted concept of "freedom" until they die. Happy Delusion everyone!!!!

hawaiian waverider's picture

your "investing" is called welfare and surprise- many of the recipients would rather sit at home and actually earn more than by working.  Accredited Times haha... accredited by who?  Your article you wrote says "force greedy corporations to hire more workers" sounds exactly like something Pelosi would say.  Hilarious. 

Seer's picture

"many of the recipients would rather sit at home and actually earn more than by working."

Banksters actually have their own "home away from home" (referred to as "the office").

darteaus's picture

Yeah, because you can't have a middle class without opportuinties being designed, created and regulated by an all powerful federal government with tens of thousands of apparatchiks sending memos to and fro!

Canadian Dirtlump's picture

sadly, this woman fits in with many of these mass shootings in one way. Mental illness. Specifically, you can bet your ass she was on some type of pharmaceutical poison. the litany of social welfare programs help buttress poverty rage, but the effects specifically of all these meds, especially coming off or going on can't be managed by money.

hedgeless_horseman's picture

 

 

Sorry, but the cause simply cannot be the meds.

Pharmaceutical Manufacturing: Top Recipients

Yardfarmer's picture

a fine compendium of the authors of the "affordable" care act. how about one on the other cabal, the insurance companies.

hedgeless_horseman's picture

 

 

Bribery is an act of giving money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in charge of a public or legal duty.

 

http://en.wikipedia.org/wiki/Bribery

"constitutes a crime"

lol

Stupid wikipedia.

Anusocracy's picture

So welfare constitutes bribery?

Meat Hammer's picture

I'll have those niggers voting Democrat for a hundred years.  Lyndon B. Johnson

Herd Redirection Committee's picture

LBJ, well, if organized crime wasn't in charge of the country before (I have some doubts), they definitely were with LBJ in the Oval Office! 

11b40's picture

Corporate welfare is the result of bribery.

The poor don't have much in the way of bribe money, or lobbyists.

DOT's picture

Are you that stupid or is this some new kind of sarcasm?

Kirk2NCC1701's picture

The way I read this chart:  I see the Top2 guys as the ones they 'bought' to "make things happen".

The rest were paid off to go along and convince their pals to do so also.

Yardfarmer's picture

"mass shooting", not. mass shooters, yes.