North America Overtaken by Europe as the World’s Richest Region

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NEW YORK, September 15, 2009—The crisis is transforming the global map of the world’s wealthiest people, with Europe nudging out North America as the richest region, according to a new report by The Boston Consulting Group (BCG). The report, titled Delivering on the Client Promise: Global Wealth 2009, is being released today.

Global wealth fell from $104.7 trillion in 2007, measured in assets under management (AuM), to $92.4 trillion in 2008—a decline of 11.7 percent. It was the first decline since 2001.1

The steepest decline was in North America, where wealth plummeted by 21.8 percent last year

In North America, the share of wealth held in equities fell from 50 percent in 2007 to 38 percent in 2008—but the region still had the highest proportion of wealth held in equities

Europe had $32.7 trillion in AuM, down 5.8 percent from the previous year, followed by North America, with $29.3 trillion in AuM

Latin America was the only region where wealth increased—its AuM grew by 3 percent in 2008
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More at http://www.bcg.com/Media/PressReleaseDetails.aspx?id=tcm:12-28981

Why did America get hit harder then the EU by the crisis? What is Europe doing right, that the US is doing wrong?
 
xbhaskarx said:
And the difference in population is how many hundred million?
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Well all EU states do have universal healthcare at least...so what if the net income is a bit lower? The difference in population has always been there, even before the takeover.
 
Instigator said:
When they say Europe, do they include Russia?
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They mean the European Union I think, so it doesnt include many countries, like lets say Switzerland or Norway.

EU.gif
 
NEW YORK, September 15, 2009—The crisis is transforming the global map of the world’s wealthiest people, with Europe nudging out North America as the richest region, according to a new report by The Boston Consulting Group (BCG). The report, titled Delivering on the Client Promise: Global Wealth 2009, is being released today.
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The honeymoon period is over folks!
:lol

Latin America was the only region where wealth increased—its AuM grew by 3 percent in 2008
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Aww yeah!

:lol :lol :lol
 
typhonsentra said:
200 million.
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Yes, 528,720,588 to 731,000,000 according to wikipedia.

But that's going by the traditional geographic definition of North America and Europe, which for example doesn't count all of Russia as Europe.

I think this report is defining North America more as a "region" than as a "continent"... I'm guessing that based on the last sentence: "Latin America was the only region..." Latin America usually includes all of Central America, and usually even Mexico (although I'm assuming this report includes Mexico as part of North America), all of which is technically part of North America. And who knows if their definition of Europe includes any of Russia at all.
 
xbhaskarx said:
Yes, 528,720,588 to 731,000,000 according to wikipedia.
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I'm pretty sure Russia isn't counted as Europe in these kind of reports.

The EU (27 members states) 497.198.740
The US 307.212.123 + Canada 33.487.208 = 340.699.331

difference: 156 million
 
xbhaskarx said:
Yes, 528,720,588 to 731,000,000 according to wikipedia.

But that's going by the traditional geographic definition of North America and Europe, which for example doesn't count all of Russia as Europe.

I think this report is defining North America more as a "region" than as a "continent"... I'm guessing that based on the last sentence: "Latin America was the only region..." Latin America usually includes all of Central America, and usually even Mexico (although I'm assuming this report includes Mexico as part of North America). And who knows if their definition of Europe includes any of Russia at all.
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Again, I don't see your point if you're in any way trying to imply the population difference is more than marginally relevant to the shift. I don't know which countries they're counting between each region, but I'm suspecting the mix of countries chosen that showed these results were the same as the ones from used in previous years.
 
Though I am sure the housing thing pushed this over the edge, is it that much of a surprise that thae US has been sliding? We're been undermining our own long-term welfare for most of the last decade, if not longer.
 
turnbuckle said:
Again, I don't see your point if you're in any way trying to imply the population difference is more than marginally relevant to the shift. I don't know which countries they're counting between each region, but I'm suspecting the mix of countries chosen that showed these results were the same as the ones from used in previous years.
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Right, I'm not saying it's responsible for the change, I'm sure their definition for both has remained the same.

I'm just curious about how they are defining both regions.

And obviously population matters in terms of per capita wealth. Nigeria is a much "richer" country than Luxembourg... considering this is OT and this is inevitably going to turn into a praise Europe bash North America thread, trying to make some larger points that go beyond some recent economic fluctuations, I think that's a very relevant point.
 
Was bound to happen eventually since Europe has historically always been the richest region in the world. The only reason the US has been dominate is that Europe was destroyed in WWII. They have a bigger population overall and now that they are not killing each other (as was commonplace throughout history) they can do well. But personally I think that this is just a temporary blip due to the recession in the US.
 
SmokyDave said:
Isn't it the military spending that is dragging the US down?
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This isn't about government spending. It's about personal wealth. And a lot of weathly people in the US lost money in the stock market, home values dropping, and lots of businesses closing/firing people.
 
Maybe because, um, US citizens have a higher proportion of their wealth in equities, as the report says. The stock markets got hit hard the past year, so equity values went down. When they go back up (or even perhaps when the current rally is factored into a new total) Americans will have a higher swing in AUM than Europeans.

It's a basic part of financial culture for America and Europe. Generally speaking, Americans tend to be bigger risk takers with their money and in business than Europe.
 
xbhaskarx said:
Right, I'm not saying it's responsible for the change, I'm sure their definition for both has remained the same.

I'm just curious about how they are defining both regions.

And obviously population matters in terms of per capita wealth. Nigeria is a much "richer" country than Luxembourg...
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I know populations matters in terms of per capita wealth. However, they're largely irrelevant to this discussion unless there was an unprecedented shift in population density over the last year...
 
Hari Seldon said:
But personally I think that this is just a temporary blip due to the recession in the US.
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Probable. If the US was hit hardest and earliest because of this latest crisis or whatever, it should probably be the earliest to see recovery, and the most dramatic recovery.

EU maybe wasn't hit as hard so possibly doesn't have as dramatic a recovery to look forward to. But then again, it was hit pretty hard in absolute terms...I mean, thinking of countries like Iceland...and others maybe where things have yet to fully manifest themselves. It's been no picnic for anyone.

(edit - though I know iceland isn't in the EU...and their crisis has led to them scampering to join. but you know, every country's been rocked to one degree or another, iceland was just one extreme).

I'm sure personal wealth in my own country has fallen dramatically in the last year or so due to property depreciation.
 
Ceres said:
This isn't about government spending. It's about personal wealth. And a lot of weathly people in the US lost money in the stock market, home values dropping, and lots of businesses closing/firing people.
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Aah, sorry, should have been paying more attention.

If it makes Americans feel better, this particular European isn't feeling terribly rich lately.
 
You're abit of an idiot aren't you. Read the papers for the last year and a half?

assets under management (AuM)
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This includes shares, generally Americans hold more shares than Europeans. Since the stockmarket has been thoroughly raped alot of households have seen losses on the shares they own.
 
turnbuckle said:
I know populations matters in terms of per capita wealth. However, they're largely irrelevant to this discussion unless there was an unprecedented shift in population density over the last year...
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Sorry, I edited. Yes it should be irrelevant to the discussion that should be happening, but it won't be irrelevant to the discussion that will happen.

Edited comment:

And obviously population matters in terms of per capita wealth. Nigeria is a much "richer" country than Luxembourg... considering this is OT and this is inevitably going to turn into a praise Europe bash North America thread, trying to make some larger points that go beyond some recent economic fluctuations, I think that's a very relevant point.
 
mikekennyb said:
Maybe because, um, US citizens have a higher proportion of their wealth in equities, as the report says. The stock markets got hit hard the past year, so equity values went down. When they go back up (or even perhaps when the current rally is factored into a new total) Americans will have a higher swing in AUM than Europeans.

It's a basic part of financial culture for America and Europe. Generally speaking, Americans tend to be bigger risk takers with their money and in business than Europe.
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You know everyone going to ignore this and just start chanting "fuck yeah socialism" right?
 
EUROPE FUCK YEAH!

Send the troops, it's time to conquer back our colonies!

Soon you'll be drenching fries with mayonnaise and using the metric system!
 
mikekennyb said:
Maybe because, um, US citizens have a higher proportion of their wealth in equities, as the report says. The stock markets got hit hard the past year, so equity values went down. When they go back up (or even perhaps when the current rally is factored into a new total) Americans will have a higher swing in AUM than Europeans.

It's a basic part of financial culture for America and Europe. Generally speaking, Americans tend to be bigger risk takers with their money and in business than Europe.
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Exactly, and I think that's even more damning to the United States. Much of our wealth is contained within the wealthiest. Just yesterday on many of the financial websites you would find 2 articles that seemed to be counterintuitive - 1 - Americans working more and earning less 2 - US Household wealth jumps 2 trillion in 2nd quarter.
 
fuck yeah, socialism!

xbhaskarx said:
Sorry, I edited. Yes it should be irrelevant to the discussion that should be happening, but it won't be irrelevant to the discussion that will happen.

You can never go wrong underestimating the average OT user.
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You were right

gamergirly said:
Our population is nowhere near the population of Europe. All those countries, you kidding lol
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*shrug*
 
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