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Millionaires lose confidence

By Judy Martel · Bankrate.com
Thursday, September 2, 2010
Posted: 10 am ET

It appears we've reached a point where even the people who have money to spend are worried about the outlook for the economy. The Millionaire Investor Confidence Index, developed by Chicago consulting group Spectrem, fell 11 points to its lowest point in more than a year. The culprits: concern about unemployment and politics.

On the political front, the rich are naturally jittery about President Bush's expiring tax breaks on investment dividends. A quarter of those surveyed cited the political environment as a concern, and 13 percent cited the labor market.

George Walper, president of Spectrem Group, noted that the decline in confidence among millionaires "is particularly troubling since it suggests millionaires, typically more sophisticated than the broader affluent population, are reverting to a bearish frame of mind."

The lingering economic stagnation does seem to point to a need to get people working again. When people feel secure that they're bringing home a steady income, or that they won't lose their jobs, they begin putting that income to work by buying goods and services, thereby boosting the economy. And how much more government stimulus can we afford?

What do you think it means for the economy now that the millionaires are losing confidence?

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