Friday, 4 February 2011

Making money from money

"Fifty years ago, the highest paid and most prestigious professions were that of a doctor or a 707 airline pilot who flew the “golden” route from Los Angeles to Honolulu.

Today the yellow brick road begins on Wall Street or the City. Aside from supernova innovators such as Steve Jobs or Mark Zuckerberg, the money is made from securitizing things instead of booting and rebuilding America.

Almost a quarter of the 400 wealthiest people on Forbes annual richest list make their money from money, whereas only 8 percent could make that claim in its first issue in 1982, and probably close to 0 percent when I first read my economic primer in 1966."

Bill Gross founder of PIMCO.

While the statement is undoubtedly true, it is hard to take Mr. Gross completely seriously, since he too made his money from money.

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