From Gowdie Family Wealth (Australia)-
Last weekend, our daughter invited my wife and I to a charity fundraising event in London, held by one of her friends. Those attending were aged in their mid-20s to early 30s. We were by far the oldest people there.
Some arrived in their Maseratis, while others spoke of their latest holiday to Tahiti, or shared the culinary delights of the most divine restaurant in Paris. To the best of my knowledge, none owned their own property. Ah, the joys of youth and money.
The majority I spoke with were employed in the financial sector. They all worked punishing hours…never home before nine or 10pm and often worked on weekends. Live hard. Play hard.
This was all a far cry from the London I lived in during the early 1980s. Perhaps it was the social circle I kept, but I cannot recall every second person being an investment banker.
Source: Charles Hugh Smith
The graph allocates US financial profits on a per capita basis.
Back in the early 1980s, the financial sector was making a profit of around US$200 per person. Today, it is making more than US$2,500 per person.
On an inflation adjusted basis, US$200 in 1980 is worth around US$600 today. Therefore, in real terms, over the past 35 years, financial profits have quadrupled on a per capita basis.
The financial sector has broadened its reach extensively since the 1980s. There is now a plethora of debt related products (home loans, credit cards, lines of credit, mortgage equity withdrawals, etc.), along with funds management, retirement funds, derivatives, currency management, stock broking, mergers and acquisitions, fixed interest trading, syndicated investments, hedge funds…and the list goes on…