CNBC: The Rich Are Hoarding Cash -- and That's Not Good [View all]

[JaneQPublic]

CNBC, of all places, confirms what we said was true all along: That the 1 percent is not a class of job creators but money hoaders, and that "their fear and lack of risk taking may be imposing real financial costs on the economy." However, one surprising -- if not ironic-- finding in this survey was that 62 percent of the 1 percenters think taxes should be raised.

http://finance.yahoo.com/news/fear-loathing-one-percent-165400847.html

The 2012 Survey of Affluence and Wealth in America, from American Express Publishing and Harrison Group, finds that One Percenters are hoarding three times as much cash as they were two years ago. Their savings rate soared to 34 percent in the second quarter of 2012, up from 12 percent in 2007.

Higher savings would normally be good for the economy. But not now, when capital is needed to invest in growth and jobs. The One Percenters put 56 percent of their available cash into savings accounts and money markets in 2012 - that's up from 24 percent in 2007.

They're investing just 44 percent in financial markets - down from 76 percent in 2007. More One Percenters say the stock market is "a real risk" rather than a "real opportunity." That's a big switch from just last year, when 62 percent said the market was an opportunity.

In other words, One Percenters used to save less, and invest more. Now they're "basically stuffing money under the mattress," said Jim Taylor, vice chairman of Harrison Group. That also means they're spending less - on everything from traditional luxury to second homes.
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http://finance.yahoo.com/news/fear-loathing-one-percent-165400847.html