Sergio Ermotti, the CEO of the Swiss bank UBS, has peered into the minds of his wealthy clients - and he doesn’t like what he sees.

“Today our clients are paralyzed by their fear of losing their wealth in these volatile markets,” Ermotti told investors and reporters this morning. “As a result they continue to increase their allocation to cash and other safe assets.”

The comments were aimed at explaining UBS’s margin troubles in its wealth-management business. But they also sum up the sudden pessimism of today’s wealthy investors and spenders.

At this stage of the recovery, what the economy needs is for people with money to be spending and investing. The wealthy are often the “first in and first out” of recessions, taking the initial risk and seeing the earliest signs of light.

But today, rather than confident capitalists, we have paralyzed plutocrats.

Source: Yahoo Finance News