EASY COME EASY GO

BANZAI7 NEWS--According to a study reported in the WSJ, the incomes of the wealthy have become far more variable than incomes for the rest of Americans.

They find that both growth and declines for the top 1% from 1982 to 2006 were more than twice as volatile as the comparable numbers for all taxpayers. The wealthiest of the wealthy had even more volatile incomes, with the top one-10th of 1% experiencing volatility of more than four times the average.

“One might expect that the labor income of higher-end households is more insulated from aggregate fluctuations than that of low-income households, but it in fact is more exposed,” the study says.

“Prior to the last 25 years, high-income households were not more exposed to fluctuations,” the study says.

Experts at the Banzai7 Surfing Institute point out that the generation of American high end wealth has also shifted from less volatile industrial production, to dot com IPO production, to highly volatile ponzi investing and derivative and securitization scheme production/trading bulked on cheap leverage steroids.