The Real Brexit "Catastrophe": World's 400 Richest People Lose $127 Billion

Tyler Durden's picture

For all the scaremongering and threats of an imminent financial apocalypse should Brexit win, including dire forecasts from the likes of George Soros, the Bank of England, David Cameron (who even invoked war), and even Jacob Rothschild, something "unexpected" happened yesterday: the UK was the best performing European market following the Brexit outcome.

 

This outcome was just as we expected three days ago for reasons that we penned in "Is Soros Wrong", where we said "in a world in which central banks rush to devalue their currency at any means necessary just to gain a modest competitive advantage in global trade wars, a GBP collapse is precisely what the BOE should want, if it means kickstarting the UK economy."

On Friday, the market started to price it in too, and in the process revealed that the biggest sovereign losers from Brexit will not be the UK but Europe.

Not only, though. Because as we noted yesterday in "Who Are The Biggest Losers From Brexit?", there is an even bigger loser than the EU: Britain and Europe's wealthiest people.

Britain’s 15 wealthiest citizens had $5.5 billion erased from their collective fortune Friday after the country voted to leave the European Union. Britain’s richest person, Gerald Grosvenor, led the decline with a loss of $1 billion, according to the Bloomberg Billionaires Index. He was followed by Topshop owner Philip Green, fellow land baron Charles Cadogan and Bruno Schroder, majority shareholder of money manager Schroders Plc.

It wasn't just Britain: as Bloomberg added overnight, the world’s 400 richest people lost $127.4 billion Friday as global equity markets reeled from the news that British voters elected to leave the European Union. The billionaires lost 3.2 percent of their total net worth, bringing the combined sum to $3.9 trillion, according to the Bloomberg Billionaires Index. The biggest decline belonged to Europe’s richest person, Amancio Ortega, who lost more than $6 billion, while nine others dropped more than $1 billion, including Bill Gates, Jeff Bezos and Gerald Cavendish Grosvenor, the wealthiest person in the U.K.

Ironically, it turns out that when George Soros threatened "The Brexit crash will make all of you poorer – be warned", what he really meant is "it will make me poorer." And yes, George, the people were warned which is why they voted the way they did.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Neochrome's picture

Oh noes, there goes the neighborhood...

Cognitive Dissonance's picture

This is the world's tiniest violin playing "My heart goes out to you". My deepest sympathies to the world's richest people for their loss.

NOT!

Tiny Violin

bamawatson's picture

there will be no exit. the "unwinding" process is a complete inescapable trap ( more difficult than a contested divorce)

already today there is a petition for re-vote circulating; it has over 1 million signatures

there will be no exit

froze25's picture

If they lost it, then someone else got it, wealth redistribution.  Not the kind they wanted I'm sure.

Harlequin001's picture

That argument assumes that wealth is indestructible, which it isn't.

Dental Floss Tycoon's picture

That's right.  When paper markets deflate the money simply evaporates.

ZH Snob's picture

which begs the question: is paper wealth really wealth at all?

obviously, it works in stable times and can withstand an awful lot, but in the final analysis, when one seeks to protect their wealth, how safe and/or real is anything on paper or in the electronic ether?

SoilMyselfRotten's picture

$127 billion lost....ahh, you mean the rounding error was lost?

santafe's picture

Poor babies! Maybe these other RICH can PRINT and WIRE them some money.
https://goo.gl/bFYusM

True Blue's picture

Take your 'Biblical Insitiute' BS and go spread it somewhere else. Getting tired of your pedantic, stupid links.

Hail Spode's picture

Are you a moderator? No. If you don't like his links, don't click on them. Or take the time to thoughtfully explain why they are in fact "B.S.". Or I guess you can just pretend you are the Zero Hedge police, but that's rather odd.

Curiously_Crazy's picture

Yeah - the first time ZH showed the graph it went back much further (that is to say a whole year or so) and they'd gained and lost more over that period that this drop.

Not as headline grabbing that graph so they thought they'd rehash it to make it look more dramatic and then relisted it.

PTR's picture

The tylers do have a thing with chart-drama.  I see it every time with BDI...

Tall Tom's picture

 

 

 

 

Paper Wealth is just another name for a Derivative.

bamawatson's picture

http://www.vox.com/2016/6/23/12021222/brexit-what-happens-next

Voters have voted in favor of Brexit: British exit from the European Union. That means that in the coming months, British and European leaders will begin negotiating the terms of Britain's departure.  The process of leaving the EU will take years

Britain's vote to leave the EU is not legally binding, and there are a few ways it could theoretically be blocked or overturned.

Article 50 of the Treaty on European Union establishes the procedures for a member state to withdraw from the EU. It requires the member state to notify the EU of its withdrawal and obliges the EU to then try to negotiate a withdrawal agreement with that state.

Britain's "Leave" vote, however, does not represent that formal notification. That notification could take place within days — for example, when EU member countries meet for a summit that is scheduled for June 28 to 29. Or British officials might wait a few months to pull the trigger.

Once Britain invokes Article 50, it will have a two-year window in which to negotiate a new treaty to replace the terms of EU membership. Britain and EU leaders would have to hash out issues like trade tariffs, migration, and the regulation of everything from cars to agriculture.

********************"The withdrawal process is unprecedented," a British government spokesperson said a few weeks ago. "There is a great deal of uncertainty about how it would work."**************************

Phoenix Pilgrim's picture

Today's paper money, tied to nothing of tangible value and printed by private for-profit corporations, is just a high tech tool used by the elites to enable control, fraud, exploitation, redistribution of wealth, claims of ownership, and oligarphy. For us serfs, it is a compromised medium of exchange.

Tall Tom's picture

 

 

 

 

Paper Money is a Derivative.

 

What do you think that the Derivatives Market is?

 

It is a highly levered market of paper claims on real and tangible wealth...the actual goods.

 

A paper currency is a claim on future production of a good or a service delivered.

 

When I am writing about the Derivatives Market Implosion I am including in my analysis every single currency globally.

 

That is what the Bond Bubble bust will bring about. All currencies will become worthless. All of them, practically overnight.,...ALL....at once.

 

WE have never seen anything like this.

 

It is starting to gear into a rapid phase of destruction.

 

This is THE END OF THE GAME..

SilverRhino's picture

Hard assets and PM's ... the ONLY sure store of wealth

U4 eee aaa's picture

It remains wealth for as long as people are willing to debase themselves for it. As soon as they gain clarity and sober up, paper money's value evaporates

Son of Loki's picture

Some zh folks obvioulsy need a dose of da "sensitivity training."

 

5 years in a FEMA camp for some re-education will surely o the trick!

U4 eee aaa's picture

what power does a fema camp hold when your life already is one? At least I'll eat better

Spanky's picture

It remains "wealth" as long as people have confidence in it. As soon as they lose that confidence, money's value evaporates.

There, fixed it for you.

It's all a confidence game, in the truest sense of the phrase.* Gold too.**

 

*Pun and ironic statement intended.

**Am aware of gold's history. More specifically, am aware of how writers cite that history to justify and support confidence in gold -- both as a store of value and medium of exchange. Not to quibble, humans need an abstract and easily agreed upon symbol of actual wealth that can be readily exchanged and transported. Money has a long history, too bad it's been erased from higher education in favor of a chaotic diversity of studies... Didn't it used to be called Political Economics?

fbazzrea's picture

true, both confidence games except for a few slight differences:

gold and silver have a long list of reasons why over millenia people have agreed upon their use as money.

all else, including fiat, derivatives, certificates, bit monies, etc., not so much for not so long.

one strictly confidence game. one innate.

U4 eee aaa's picture

The gold some people are holding is the same gold Cleopatra wore around her neck. Can't say that for the paper she wrote on

HoserF16's picture

What if George Soros Shorted the UK Market on Thursday knowing full well the BREXIT would pass? So a few Billionaires lost billions. I'll bet ya, some Trillionaires picked-up the shares at a extremely low price...

 

Harlequin001's picture

Ok, so if according to Bloomberg, the top 400 wealthiest are worth around 4 trillion, then who owns the other 213 trillion estimated in global wealth?

Someone is hiding his money, me thinks...

Ferrari's picture

Me thinks that list is a complete Joke. The Rothschilds, Warburgs, etc. count their money by the trillions. Controlling the issuance of national currencies is a lucrative business I understand. That list is missing a tier or two.

U4 eee aaa's picture

They don't count their money any more. They count how much control they have

nmewn's picture

Yeah I saw that. 

One supposes (if successful) the Brexits would then petition and garner a million signatures as well, why, we could have voting forever with no definitive outcome!

Very unifying ;-)

Harlequin001's picture

Who needs a petition? We've just had a referendum!

FFS!

nmewn's picture

Yeah, it's prolly more red herring sauce for the pollsters & political pundits who make a living off this kind of shit.

But...at least for now...another good outcome of Brexit is the TTIP's chances just took another major hit, much to the consternation of globalists everywhere ;-)

https://www.yahoo.com/news/uk-leave-final-nail-coffin-stalled-u-eu-15265...

Harlequin001's picture

Let's just hope it goes the way of the EU eh...

or should I say, "Not my problem anymore..."

nmewn's picture

Indeed.

Much like us here in the states being unaccepting & resentful of executive orders & fiat trade declarations raining down on us from DC, I would imagine it's the same as them pouring out of the bowels of Brussels ;-)

Harlequin001's picture

Dunno old stick. I bailed out of the EU when the British Govt told me I had to bring in and administer 'stakeholder pensions' in my small business.

Shut dow the whole business and moved half way round the world and enjoyed every minute of my relatively 'regulation free' existence.

You never know, if they clear out the red tape I might even venture back and try again.

A lot has changed since I left, it used to be more socially acceptable to be seen climbing out the back of a sheep than a Skoda, but now look at it...

Who'd a thought...

nati's picture

I wonder, if Brexit is such a bad idea, why did the elites even allow the referendum in the first place?

bamawatson's picture

other than my own subjective speculation, i have no answer.

however, let me set forth this relevant info: brits saw what happened months earlier in the rigged scotland vote; subsequetnly THOUSANDS volunteered to assist in the

Hand Counting of PAPER ballots; thus the tabulation was more difficult to rig.

unlike in USSA where we are LEGALLY PROHIBITED from challenging the rigged software of the NO-BID contract diebold vote tabulations

we can be certain there will be no more Human Hand Counting of paper ballots no where no how never again !

gonetogalt's picture

I'm fairly certain that the ultimate outcome is military rather than economic, or rather, that a closer military alliance will form through closer economic ties between US & UK.

The European countries just aren't all that up for a war with Russia, as Germany, Austria, Scandawoovia, Italy, just don't want to play the Neocon game. So as the EU and NATO fencesit, the US, along with it's new best friend can go about doing God's work, that is bringing peace and stability to Syria and the ME.

And what may kick off that shitshow? How about a 911 replay that incinerates or at least irradiates a place where the Donald is visiting?

(Cause to have a real good war, you just can't do without Hillary.)

wildbad's picture

because the peasants are revolting.  because of pitchforks and tar and feathers.  because of guillotines and guns and real men who hate tyranny.

 

the manipulated concept of democray has one fatal flaw for the oligarcs..sometimes it really works.

 

this is a great start.

bamawatson's picture

""To mollify dissenters in his own party and stop the rise of the far-right UK Independence Party, Cameron promised to hold a referendum on leaving the EU if his Conservative Party won the 2015 election."

http://www.vox.com/2016/6/23/12021222/brexit-what-happens-next

Tall Tom's picture

there will be no exit. the "unwinding" process is a complete inescapable trap ( more difficult than a contested divorce)

already today there is a petition for re-vote circulating; it has over 1 million signatures

there will be no exit

 

 

 

Oh yes. There will be an exit.

 

There will be a violent exit if not a non violent exit.

 

Civil unrest in the UK is growing. There was an MP shot and killed over this....with a homemade gun. (Thank God for 3-D Printers.)

 

Yes. There will be an exit. It is up to the poiticians to enact that exit if they want to keep whatever remaing shreds of power to which they cling.

bamawatson's picture

"The Process of withdrawing from the European Union", which goes through the infamous Article 50 of the Treaty on European Union (TEU), the first time in history when Article 50 will be invoked, there may actually be a hurdle to the actual Brexit process, in the form of a Scottish and Northern Irish veto to Britain's separation from the EU.

so far 19 downvotes for my morning comment, then zh posts this http://www.zerohedge.com/news/2016-06-25/not-so-fast-scotland-and-northe...

i REPEAT exactly what i said at 9:30 a.m.  "THERE WILL BE NO EXIT !"

 

possibly you people should actually try reading the rules

o, big tommy says the brave people are gonna just up n leave. hahahahahahahahahaha!!!!!!!!!!!!!

sure big tommy, just like the greeks, just like the squat-to-piss Americans laying down for homobamacare

it's the hotel california, hoss, ain't nobody leaving

EuroPox's picture

$127 billion pfft!  Anyone know what happened to DBs $6.3 TRILLION currency derivatives yesterday?

SirBarksAlot's picture

Didn't they get a new VP of Operations?  I think his name was Cameron.

SoilMyselfRotten's picture

No worries, they can withstand a $70 VIX, feel better?

bamawatson's picture

http://www.vox.com/2016/6/23/12021222/brexit-what-happens-next

Voters have voted in favor of Brexit: British exit from the European Union. That means that in the coming months, British and European leaders will begin negotiating the terms of Britain's departure.  The process of leaving the EU will take years

Britain's vote to leave the EU is not legally binding, and there are a few ways it could theoretically be blocked or overturned.

Article 50 of the Treaty on European Union establishes the procedures for a member state to withdraw from the EU. It requires the member state to notify the EU of its withdrawal and obliges the EU to then try to negotiate a withdrawal agreement with that state.

Britain's "Leave" vote, however, does not represent that formal notification. That notification could take place within days — for example, when EU member countries meet for a summit that is scheduled for June 28 to 29. Or British officials might wait a few months to pull the trigger.

Once Britain invokes Article 50, it will have a two-year window in which to negotiate a new treaty to replace the terms of EU membership. Britain and EU leaders would have to hash out issues like trade tariffs, migration, and the regulation of everything from cars to agriculture.

********************"The withdrawal process is unprecedented," a British government spokesperson said a few weeks ago. "There is a great deal of uncertainty about how it would work."**************************