The Fed Won: America's 0.1% Are Now Wealthier Than The Bottom 90%

Tyler Durden's picture


Game over, man: the Fed won.

As the Economist reports, according to a new paper by authors at liberal bastion UC Berkeley and the LSE, US inequality in wealth is approaching record levels (actually it already surpassed it as reported long ago).

"The authors examine the share of total wealth held by the bottom 90% of families relative to those at the very top. In the late 1920s the bottom 90% held just 16% of America’s wealth—considerably less than that held by the top 0.1%, which controlled a quarter of total wealth just before the crash of 1929. From the beginning of the Depression until well after the end of the second world war, the middle class’s share of total wealth rose steadily, thanks to collapsing wealth among richer households, broader equity ownership, middle-class income growth and rising rates of home-ownership. From the early 1980s, however, these trends have reversed. The top 0.1% (consisting of 160,000 families worth $73m on average) hold 22% of America’s wealth, just shy of the 1929 peak—and almost the same share as the bottom 90% of the population."

That was as of 2013. By now the wealth of the top 0.1% is not only well above that of the "bottom 90%" but higher than it has ever been.

Thanks Uncle Ben and Aunt Janet.

In other news, Janet Yellen, thoruoughly stumped by the causes of America's record wealth inequality, advises America's poor, already drowning in debt, to please build assets in order to "rise above."

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Tue, 11/11/2014 - 11:32 | 5436446 ShortTheUS
ShortTheUS's picture

Shared sacrifice...



Tue, 11/11/2014 - 11:36 | 5436458 TruthInSunshine
TruthInSunshine's picture

Janet Yellen/Bill Dudley to grant 0.25% FOMC loans to 99% to buy back their debt.

Tue, 11/11/2014 - 11:41 | 5436498 Publicus
Publicus's picture

Nothing  a little Ebola won't fix.

Tue, 11/11/2014 - 11:42 | 5436504 LULZBank
LULZBank's picture

They own it.

But their next problem is to maintan possession.

Tue, 11/11/2014 - 11:52 | 5436543 Shocker
Shocker's picture

This is what a Fed Recovery looks like

Layoff List:


Tue, 11/11/2014 - 12:08 | 5436602 Wait What
Wait What's picture

it must be ironic that Janet used to teach at that 'liberal bastion' that is UCB. Something must have happened to her brain between the time she left and became Fed chairtroll.

"do what we say, not what we do"

Tue, 11/11/2014 - 12:32 | 5436691 chumbawamba
chumbawamba's picture

Meh.  They have a bunch of paper and computer digits.  You'll pardon me if I'm not at all impressed.

II am Chumbawamba.

Tue, 11/11/2014 - 12:50 | 5436757 rocker
rocker's picture

Status Quo. Success. This is their job afterall. It's all about big money.

Now Comcast, Fox, Time Warner and Verizon want to control the Internet.

We will not be able to get Zero Hedge as a timely blog. Toll Gate, this lane please.  

Tue, 11/11/2014 - 13:21 | 5436900 Liberal
Liberal's picture

Please do not criticize these Jewish bankers in charge.  They've been persecuted throughout history and they're victims of never-ending racism that must be outlawed.  In short, they've suffered enough! 

Tue, 11/11/2014 - 13:35 | 5436962 NoDebt
NoDebt's picture

If the 1930s are any indication of what's the come from this point forward, it looks like it's going to get even more skewed before it corrects.

Buy stawks.  Because Yellen.  Or whatever.

Tue, 11/11/2014 - 15:22 | 5437387 The9thDoctor
The9thDoctor's picture

If the bottom 90% took Yellen's advice and bought assets with their $10 an hour salaries, then this wealth inequality gap wouldn't be so huge.


Tue, 11/11/2014 - 13:40 | 5436979 ILLILLILLI
ILLILLILLI's picture

The salient question is *why* have they been 'persecuted'...

Insofar as they have been ejected from 90+ countries over time, one has to ask *why* that is.

Tue, 11/11/2014 - 14:08 | 5437098 NoDebt
NoDebt's picture

Bad luck?

Tue, 11/11/2014 - 16:26 | 5437683 messymerry
messymerry's picture

Personal hygiene issues...

Tue, 11/11/2014 - 18:45 | 5438213 SoilMyselfRotten
SoilMyselfRotten's picture

All it takes is hard work and determination to get into the 0.1% club. Why are you 99.9% such lazy, apathetic, pieces of shit?

Tue, 11/11/2014 - 16:21 | 5437662 IronForge
IronForge's picture

List and/or Source, Pls?  I know of GBR. 


Tue, 11/11/2014 - 18:56 | 5438258 Agent P
Agent P's picture

Because Obama...I mean Jesus.

Tue, 11/11/2014 - 13:41 | 5436984 TMLutas
TMLutas's picture

Toll Gate is a first world freaking problem. When the difference in getting text is measured in sub second increments, it isn't a real issue. You can fix the type of net neutrality that matters by a simple anti-fraud bill. The ISPs want to advertise Internet access by the highest speed available to their most favored content. You just define the speed they can use as their Internet access as their high speed on their slowest content type. 

Problem solved.

If they block a port, they can't advertise they have Internet access at any speed. If they slow down some P2P packets to 9600 bps, that's the fastest they can say your whole internet access is and that product won't sell. All the people who are port blocked and protocol slow downed into a parody of Internet access will finally be told what a travesty they are buying and maybe they'll switch to something else that actually gives them real Internet access and the power to be a producer as well as a consumer. And since this is an advertising regulation of weights and measures, it's actually constitutional (it's an explicit power of Congress) and it keeps the FCC out of my routers so it's full of win. 

Tue, 11/11/2014 - 12:50 | 5436763 Georgia_Boy
Georgia_Boy's picture

Unfortunately the 90 percent will not bother to learn what the Fed is and how money is not really money.  They won't push to undo the damage of financialization, currency printing, creeping socialism, labor arbitrage, and having 100 ill-concieved laws to avoid one good one.  They'll just push to tax the rich and grow the government some more.  They understand the following:  Those people have money and stuff, and I don't, so they need to give it to me.

Who knows, the knots of knots of distortions may yet be untied and things laid straight without burning the house down, but I don't know how that happens.

Tue, 11/11/2014 - 12:54 | 5436771 brockhardman
brockhardman's picture

I agree with Chumbawamba.  In the end, their fake money won't buy them much.

Tue, 11/11/2014 - 12:58 | 5436804 Ferrari
Ferrari's picture

As I see it those at the tippy top, those behind the central bankers, are not at all about wealth, but about power over eveyone else. We down here, up to the big bank CEO level are about chasing wealth. That obsession with the chase for wealth, with the assumption that the winners get a berth on the ark, is what keeps us all docile and in line. Correct me if I'm wrong.

Tue, 11/11/2014 - 13:20 | 5436896 highandwired
highandwired's picture

It's not just the ones at the tippy top that want to control everyone else.  The slaves love controlling other slaves too.  The Kapo mentality is so prevelant in our society that I cannot wait for the ship to sink to the bottom of the ocean.  For more absurdity, see this link where a 5 year old boy is being kicked out of his school for the crime of being related to his uncle:

Tue, 11/11/2014 - 13:35 | 5436910 J S Bach
J S Bach's picture

"Game over, man: the Fed won."


Remember that "they" are just men like you and me.  Their perceived control over the plebs right now is merely that of trading power (money and its issuance).  When the masses finally wake up to their servitude, TPTB will be overwhelmed and justice will be meted out.  Be courageous to the end... it's all a matter of perception and deception.

Tue, 11/11/2014 - 13:39 | 5436980 zerozulu
zerozulu's picture

My hopes are hanging with ropes.

Tue, 11/11/2014 - 12:51 | 5436765 TahoeBilly2012
TahoeBilly2012's picture

Next year we go to global collapse and atempt at world currency, aka "mark of the beast". When that comes about you should better understand why they wanted .1% to have all the control. But it's obvious right? Those people have been selected to carry out orders to assist with all their organizations and no complaining.

Tue, 11/11/2014 - 11:59 | 5436561 Bemused Observer
Bemused Observer's picture

LOL! Yeah, and this is where the plan starts to unravel...It's always easier to make the pile than to defend it.

Tue, 11/11/2014 - 12:03 | 5436582 Mae Kadoodie
Mae Kadoodie's picture

Over?  Did you say over?  Nothing is over until...errr nevermind.

Tue, 11/11/2014 - 13:10 | 5436860 A Nanny Moose
A Nanny Moose's picture

"The Goddamed Germans got nuttin' to do wit it!" -Buford T. Justice.

Tue, 11/11/2014 - 12:06 | 5436589 LULZBank
LULZBank's picture

Rise of the private armies. XE, ISIS etc.

Reguler armies are being downsized and Police being given implicit green light and cover to extort from the populace as long as they be good dogs to the owners.

Read the trends and you would know the game.

Tue, 11/11/2014 - 12:10 | 5436604 LawsofPhysics
LawsofPhysics's picture

Bingo.  Glad I went long black markets and sharecropping...


FYI- define "wealth" for yourself.  "They" are where they are simple because sheeple still accept "their" paper promises.

Tue, 11/11/2014 - 12:33 | 5436692 tonyw
tonyw's picture

Since they're consistently increasing their fraction it doesn't look like it's a problem of possession more what to do with it.

Most Americans are easily duped with bread and circuses, all those guns, red/blue/republocrat,  police state (civil asset forfeiture) and what hapens?

Absolutely nothing, the same old, same old get voted back in with mostly the incumbents being re-elected.


Tue, 11/11/2014 - 13:30 | 5436937 Bangalore Equit...
Bangalore Equity Trader's picture

Listen TIS.

"Janet Yellen/Bill Dudley to grant 0.25% FOMC loans to 99% to buy back their debt."

"JESUS" this is an excellent comment.

Tue, 11/11/2014 - 11:36 | 5436459 TruthInSunshine
TruthInSunshine's picture


Tue, 11/11/2014 - 11:41 | 5436497 max2205
max2205's picture

20 and 20.....40


Where's the other 60%?

Tue, 11/11/2014 - 11:46 | 5436520 ZoroAustrian
ZoroAustrian's picture

Between 90% and 99.9%.  They ain't doin so bad either, by the looks of things.  I think they've mostly got their hands in Janet / Uncle Sam's pockets too.

Tue, 11/11/2014 - 12:31 | 5436687 Okienomics
Okienomics's picture

Obviously anyone with a little personal wealth MUST have their hands in the govt's pockets.  Doesn't that put you in the "You didn't build that" crowd?

Tue, 11/11/2014 - 12:39 | 5436722 ZoroAustrian
ZoroAustrian's picture

Hey I'm not saying there are no self-made men (or women) left, but they're getting a lot more scarce these days.

The 0.1% definitely have people who built big businesses (though many of these still exploit govt / banking, think Warren Buffet).  The middle tier may have some smaller real estate tycoons and the like (again, riding the debt wave to riches), but I'm sure there is a huge (greater than half) representation of inheritance, finance, or agency (i.e. CEOs with big options and salaries) in that cohort.  So no, they didn't build that.

And as good an example as any of today's self-made man is Zuckerberg.  Ok, he built that.  But it sure isn't worth what the market says it is.  And his growing wealth is also mostly a figment of distorted markets (thank you Janet) than the result of his innovation.


Tue, 11/11/2014 - 13:56 | 5437046 adr
adr's picture

You really think Zuckerberg is a self made man?

The guy barely has enough brain power to get dressed in the morning. He is the best example of how connections and CIA seed money can make a worthless hack into a billionaire.

A self made man makes his money from something he built himself and the sales generated from it, not by using the scam engine stock market.

Henry Ford was a self made man. It wasn't until he was older and the kids got restless that Ford went public. He also hated Jews and the central banking system.

Tue, 11/11/2014 - 14:09 | 5437106 ZoroAustrian
ZoroAustrian's picture

Thanks adr, I don't disagree with any of that, really.  I didn't see The Social Network, don't really know who exactly built it, and don't really care.  I do know it's a very good example of what a joke our economy has become.  And there are so many others ...

Tue, 11/11/2014 - 11:48 | 5436530 headhunt
headhunt's picture

The FED and the Chinese

Tue, 11/11/2014 - 13:20 | 5436893 Bangalore Equit...
Bangalore Equity Trader's picture

Listen TIS.

Excellent comment. So rich and full bodied. Obviously from a brilliant Zero with a track record of excellent comments.

Your the best man.

Tue, 11/11/2014 - 13:39 | 5436918 TruthInSunshine
TruthInSunshine's picture

I love you like a sibling.

Tue, 11/11/2014 - 11:36 | 5436470 junction
junction's picture

Yes, but to even things out, we all have equal shares of the National Debt. 

Tue, 11/11/2014 - 13:03 | 5436827 Perimetr
Perimetr's picture

The games not over until it hits 100% . . . stay tuned.

Tue, 11/11/2014 - 14:33 | 5437193 Defiated
Defiated's picture

..speaking of sacrifice...any truth to the rumor that 'organs are harvested from dying US Soldiers'?..

Tue, 11/11/2014 - 14:45 | 5437230 Defiated
Defiated's picture


Tue, 11/11/2014 - 14:45 | 5437231 Defiated
Defiated's picture


Tue, 11/11/2014 - 15:30 | 5437415 Aeternus
Aeternus's picture

Well.... Atleast I have a little bit of gold still.

Tue, 11/11/2014 - 11:34 | 5436453 Glass Seagull
Glass Seagull's picture



1.) Distributed costs

2.) Concentrated benefits

Tue, 11/11/2014 - 12:24 | 5436657 Took Red Pill
Took Red Pill's picture

It used to be if a company did well, it shared the wealth with it's employees. Now, the workers get screwed as much as possible and the fruits of their efforts go to the shareholders.

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