Big Wall St Bonuses are Baaaaaaaaack! But for the rest of us, it's wage freezes and austerity...

[nashville_brook]

http://www.commondreams.org/headline/2010/11/29-1


Mind the Gap: Bumper Bonuses Are Back, Yet Millions Struggle on Welfare in US
Growing inequality at the heart of the US economy is being laid bare this holiday season.
by Andrew Purcell in New York


Conspicuous consumption is back on Wall Street, in anticipation of bonuses close to pre-recession levels. Some American companies have just posted the largest quarterly profits ever. Meanwhile, one in five families is relying on food stamps to get by and unemployment remains stuck at around 10%.

(snip)

The Japanese bank Nomura has estimated that America’s top five financial firms – Goldman Sachs, Morgan Stanley, Citigroup, Bank of America and JP Morgan Chase – have set aside almost $90 billion for bonuses. “I did not expect compensation would come back the way it has,” bonus analyst Alan Johnson told the New York Times. “I underestimated the industry’s resiliency.”

(snip)

The final amounts won’t be known until January, when fourth quarter results come in. Analysts will be watching Goldman Sachs chief executive Lloyd Blankfein’s bonus with particular interest. Two years ago he took nothing, after his company benefited from a huge injection of taxpayer money. Last year, he was awarded $9 million, paid in stock – not much for the most profitable firm on Wall Street. This year, he is expected to come close to matching the record he set in 2007: $68.5m.

(snip)

When last year’s Wall Street bonuses were announced, President Barack Obama called them “shameful” and “the height of irresponsibility”. But the tough regulation he vowed to introduce is full of loopholes and it now looks like he will also back down on his campaign promise to raise taxes for people earning more than $200,000 a year.

[aquart]

1. Yah, my thoughts on this are fancifully bloody.

Fortunately for Wall Street I'm a huge physical coward.

[nashville_brook]

2. it's class warfare and we're getting clobbered. wikileaks is the closest thing we have to justice.

[Initech]

3. Urge to kill... rising!!!

[nashville_brook]

5. perfectly reasonable response. i'm right there with you.

[Tuesday Afternoon]

4. have set aside almost $90 billion for bonuses.

holy fucking shit.

[nashville_brook]

7. yep. set aside...as in...capital not in use.

[Swamp Rat]

6. Ok, this is all-out war!

[WCGreen]

8. Let's say we have 100,000,000 people at or below the poverty line...

that's $900 for every man woman and child mired in despair, not thriving, just existing all because of the top 1% lust for more and more and more...

Why do we suffer this crap?

Why do we not demand that they pay their fair share?

What is it that we are missing that we allow unfettered socialism for the wealthy and brutal capitalism for the rest of us?

Is this truly a Christian Nation that allows for this?

Why are our people so gullible to buy this shit without question?

Thank you sir, can I have another...

[CaliforniaPeggy]

12. I wish I could recommend your post...

It could easily be its own thread...

Very well said.

[Yavin4]

18. The Same Corps That Are Passing Out These Bonuses Also Own Our Media and Our Govt

So, the people are uninformed unless they actively pursue the truth.

[nashville_brook]

20. hopefully my tin foil hat will also work as an antenna.

[Autumn]

9. I really hope that someone, anyone will

stand up and say that this is not acceptable. Oh who the fuck am I kidding. :puke:

[nashville_brook]

16. at this rate, i wonder if it will even be brought up rhetorically

[pa28]

10. Wall Street still has multiple trillions in unused bailout programs at it's disposal.

To maintain an honest balance sheet and fail to bonus yourself until your institution reaches insolvency is almost bad business.

[nashville_brook]

11. +1

[Generic Other]

13. Think we will read more about this in Wikileaks in January?

I look forward to reading the emails and memos justifying this stuff!!


http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=9651726&mesg_id=9651726

[nashville_brook]

14. i can't wait for that - i wonder if the january release is timed around the bonuses on purpose.

[applegrove]

15. And they don't want to loose the international buying power of the US dollar even

though lowering the dollar would help unemployment. The whole US economy has to serve their needs.

[nashville_brook]

17. i thought the monetary "easing" was supposed to do that -- or, do i have that backwards?

[applegrove]

21. Quantitative Easing is printing money which results in the devaluation of the dollar. Which will

help with unemployment as American goods become less expensive on the world markets so demand increases. But, right now, the GOP is against this employment policy. They want the dollar to be high for some reason.

[TBF]

19. Actually the bonuses on Wall Street are predicted to increase this year.

http://online.wsj.com/article/SB10001424052748704506404575592644050046172.html

By AARON LUCCHETTI

"Wall Street bonuses are set to rise about 5% this year, fueled by increases to compensation for employees in hedge funds, retail banking and private equity that offset declines for those in stock and bond trading, according to a survey by compensation consultants Johnson Associates Inc."

More at the link.