Americans have lost $ 5 trillion in assets since the beginning of the year, the rich cry because of stocks and cryptocurrencies
According to Bloomberg news, Americans are feeling poorer as a large amount of wealth has evaporated so far this year.
Research by JP Morgan Chase shows that total wealth of Americans has lost at least $5 trillion and could be as high as $9 trillion by the end of the year.
The rich are the hardest hit, with the billionaires in the ranking losing nearly $800 billion from their peak. The main reason is that stocks fell, cryptocurrencies and other financial channels also went down, causing the assets of the elite to depreciate.
Besides, rising interest rates are also putting pressure on the real estate market in terms of capital, while this is the main asset hoarding place of the working and middle class.
In response to the highest inflation in 40 years, the US Federal Reserve (FED) may act to limit people’s consumption even if they cause a slowdown. .
“It’s quite painful to get back to normal after the good times last year,” said John Norris, chief economist at Oakworth Capital Bank.
Year-to-date, the S&P 500 is down 18% while the Nasdaq has lost 27%. The Bloomberg Index for cryptocurrencies also fell 48% over the same period.
“These numbers will weigh on growth in the coming years,” said JP Morgan Chase economist Michael Feroli.
Even Fed Chairman Jerome Powell and his colleagues have always emphasized that they are aware of and deliberately create such a deceleration to deal with inflation.
The Bloomberg news agency also said that the billionaires who were the biggest beneficiaries in 2020-2021, now they are the ones who lose more money than anyone. The Bloomberg Billionaires Index, which measures the wealth of the world’s 50 richest people, shows a $1.6 trillion drop since its November 2021 peak.
In which, the rich in the US lost the most money with 797 billion USD. Billionaire Elon Musk alone lost up to 139.1 billion USD, equivalent to 41% of total wealth as of November 2021. Amazon founder Jeff Bezos lost $82.7 billion, or 39% of his fortune at its peak.
*Source: Bloomberg
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