CNBC: Rich families are hoarding cash

[devil21]

Nearly 40% of holdings of those surveyed is in cash.

http://www.cnbc.com/id/101157290#ixzz2jcFWvJPT

Of course Citi says they need to give that cash to the banks.

 

[Truth-Bringer]

Of course Citi wants that cash, so when the time comes to "pull a Cyprus" they can reap the benefits...

 

[devil21]

Of course Citi wants that cash, so when the time comes to "pull a Cyprus" they can reap the benefits...

On second read, they probably don't mean physical $100 bills stacked in ammo boxes though. Just digits sitting in checking accounts and the like. I realized this once I considered how much 40% of a rich family's assets would actually translate to physical paper cash.

 

[oyarde]

Other than some sort of emergency fund , I am not really sure sitting on a bunch of cash in the bank is any great strategy for the future......

 

[Dr.3D]

Other than some sort of emergency fund , I am not really sure sitting on a bunch of cash in the bank is any great strategy for the future......

How could you possibly doubt those pieces of paper with the promise of wealth written on them?

I've seen the Mexican Peso crash like a rock through the roof of a greenhouse. I lost a lot of money I had invested in some Mexican bonds when the Peso crashed. Now I have a jar full of paper notes with the numbers $1000 printed on them that are only valuable if I sell them as collectors items on Ebay.

I understand what you are saying.

 

[oyarde]

How could you possibly doubt those pieces of paper with the promise of wealth written on them?

I've seen the Mexican Peso crash like a rock through the roof of a greenhouse. I lost a lot of money I had invested in some Mexican bonds when the Peso crashed. Now I have a jar full of paper notes with the numbers $1000 printed on them that are only valuable if I sell them as collectors items on Ebay.

I understand what you are saying.

I have two pesos , mine are gold.

 

[oyarde]

How could you possibly doubt those pieces of paper with the promise of wealth written on them?

I've seen the Mexican Peso crash like a rock through the roof of a greenhouse. I lost a lot of money I had invested in some Mexican bonds when the Peso crashed. Now I have a jar full of paper notes with the numbers $1000 printed on them that are only valuable if I sell them as collectors items on Ebay.

I understand what you are saying.

You should have took me with you Doc , I would have been like , well while we are spending all this money, lets pick up some silver pesos , gold pesos and a few cases of tequila, if we lose our ass on the bonds later , we will get together , drink the tequla

 

[dannno]

Other than some sort of emergency fund , I am not really sure sitting on a bunch of cash in the bank is any great strategy for the future......

It might be a good short term play if the crash is similar to '08 but who knows.

Not a good longterm play.

 

[Cleaner44]

I'm sure they mean that much of it is sitting in money market type accounts and the bankers want it invested in something they can manipulate. Poor, poor bankers

 

[osan]

The families were also asked if U.S. stocks were more likely to rise or fall 10 percent over the coming year. Some 65 percent expected a gain."What does this all suggest?" Wieting asked. "In our view, under-invested bulls."

Can you say "contradiction"? Can you say, "this makes no damned sense at all"?

If I'm bullish on the market and possess an IQ anywhere in the double digits, I am not going to allow myself to be underinvested. Therefore, the implication here is one of two things: either all of those $25MM+ net-worth individuals are idiots, or the fact that they expect market gains implies that despite it they have no trust in the markets longer term viability. Market gains? What sorts of gains and for how long; two fundamentally important issues that apparently were not addressed - at least not in the cited article.

The market is bullshit and has been so a very long time - well before any of us were born. I have never trusted it and have never invested in it. A shame, given I could have walked away with many millions, given my former positions in certain business affairs. But hindsight is 20/20 and I have never been able to get comfy with a game that is inherently unworthy of trust and I was never willing to go the insider route, though plenty of those opportunities came my way.

Honestly, given the nature of this beast, I think people without inside information are out of their minds to play with its tail as it sleeps.


Just my worthless opinion.

 

[pmbug]

lolololol... Sounds to me like these rich families are pricing more risk in the markets (and governments/central banks) than the average "bear".