There’s long been a theory that certain parts of the luxury goods market are recession proof. I guess not:
Britain’s millionaires, who more than doubled in number between 2003 and 2007 as property prices soared, have seen their wealth drop by almost a quarter in the past year, the CEBR said.
“It looks as though the experience for millionaires is relatively similar to that chronicled by the Sunday Times for their rich list, which showed a fall in the number of U.K. billionaires this year from 75 in 2008 to 43 this year,” the CEBR said.
The newspaper showed a 38 percent drop in the wealth of those on the list of the nation’s richest individuals, larger than the 24 percent decline estimated for the average U.K. millionaire in today’s report, the CEBR said.
The wealth squeeze has also hurt luxury goods sales. The CEBR cited reports saying that sales of Bentley Motors Ltd. cars fell by two-thirds so far this year, while Bayerische Motoren Werke AG car sales are down 35 percent.
But that’s just the UK: I’m sure the Galt’s Gulch Bentley dealership is doing just fine.
Zifnab
The Obama Recession strikes again!
The Other Steve
Andrew Bacevich is on the radio right now.
They’ll probably have the audio from the show up later today. Anyway he’s doing a book signing and speaking at St. Joan of Arc’s church in Minneapolis tonight at 7pm. I’m going to see if I can go.
cleek
this guy actually went Galt. so, that’s one.
The Grand Panjandrum
@The Other Steve: If you haven’t read his book (you know the one Cole promised to review and discuss … ahem) The Limits of Power you really should. I read it a few months ago and am reading it again right now. It should be required reading for everyone who cares about this country.
The Other Steve
@The Grand Panjandrum: I bought a copy for my father at Christmas. I’m waiting for him to finish reading it so I can. :-)
gbear
MPR ran a story this morning about how luxury goods manufacturers are offering smaller versions of their products to keep their elite customers happy. Some guy is making a killing with 4″ long cigars called ‘Nubs’, and perfume makers are offering 1/3 oz. bottles of fragrences. Appearances must be maintained.
jonas
Hey, as Limbaugh said, it’s only a recession if you “choose” to participate.
Comrade Dread
I will try to hold back my tears for the poor plight of the endangered billionaires as I walk past the increasing number of homeless people on my way to work.
Mike S
My brother in law sells Bentlies and Rolls Royces. Sales are way down.
TenguPhule
I will be sure to light a candle for them when they’re up against the wall when the revolution comes.
asiangrrlMN
@The Other Steve: I heard the tail end of the interview. I’m putting the book on my wishlist.
Linkmeister
Of course the number of British millionaires has fallen: the expense scandal in Parliament has hurt MPs terribly!