It has been argued for some time on this blog that the current financial crisis is not in fact an economic crisis but an well organised wealth transfer mechanism from the middle classes to the superrich. E.g. "Crisis? This is how it works", "There is a method in this madness"
A couple of days ago BBC reported that the London's most expensive house ever was on the market for, what was believed, over £300m. And that it was a part of a broader trend. "Knight Frank calculates that what it calls "prime" central London property prices have gone up by 50% since March 2009."
It is worth reiterating: "Every time we read about obliterated pension schemes and generally falling income and purchasing power of the middle and working classes, the workhorse of the economy, and the growing gap between them and the super rich, thriving market of top end properties in London, luxury goods and services, from systemic perspective it is simply a wealth transfer.
One can argue whether this is right, or wrong, but this is exactly what is happening. Whatever the view is the current crisis is the largest wealth transfer exercise from the middle and working classes to the super rich using pyramid schemes which have exactly the same structures and mechanisms - pretty primitive actually - as Albanian pyramids in the 1990′s."
So if you ever wondered where the quantitative easing money went and we do not see any improvement of the economy, but rather the opposite, the price of this property and the steep price rise of prime properties in London (50% since 2009) should give some clues. And in the meantime the Bank of England balance sheets keep growing full of toxic waste.