This post on the Democratic Underground highlights the point:
“Our total GDP for the nation is about $14 trillion. 2009 bonuses are around $140 billion. So, 1% of our total economic output for 2009 is going to the banking mafia’s pockets. Not even the banks themselves – JUST THE BANKERS. Just amazing.”
Major U.S. banks and securities firms are on pace to pay their employees about $140 billion this year – a record high that shows compensation is rebounding despite regulatory scrutiny of Wall Street’s pay culture.
It has been reported that Wall Street bonuses will total some $145 billion. That’s 1% of GDP – and is absolutely obscene.
(Read the whole piece, it’s amazing. Gotta love Karl Denninger.)
Wall Street’s Bonus Binge in Perspective
A relative handful of Americans, says a key congressional panel, will take home more this year than half the nation’s taxpayers combined.
Americans worried about the ever-intensifying concentration of wealth at America’s economic summit have been focusing of late, quite understandably, on the latest annual round of Wall Street bank bonus awards.
But we now have even more reason to worry about our savagely unequal distribution of income and wealth — from researchers at the congressional Joint Committee on Taxation. Earlier this month, that panel released income estimates for the coming year. They make for a sobering read.
In 2010, the tax panel calculates, a little over 1 million U.S. taxpayers will report incomes over $500,000. These 1 million top-earners will collect an astounding $241 billion more in income this year than the just under 80 million taxpayers who will take home less than $40,000.
The sad part about this thread is that people commenting have absolutely no idea how this ultimately came to be.
They don’t understand the mechanisms of government that are at work which brought this about.
One person comments:
But they just became totally unhinged after the S&L scandal. Major de-regulation combined with a flood of new investment dollars from the Reagan tax breaks and the complex financial vehicles from the S&L restructuring lead to the start of all this crap. The repeal of Glass-Stegal set the stage for critical collapse, and the Bush tax cuts drove a frenzy of investment.
Regan, Bush, Glass-Stegal, blah blah blah – totally missing the point. Not even getting close to the real reason why this is going on.
The short answer can be boiled down to three letters: Fed
But we can’t blame them! OH NO NO! Not our precious federal reserve system! Without that the fascist tyrants that call themselves democrats know their entire house of cards would come crumbling down.
Without the fed, there’s no way to fund all the massive government programs by borrowing the nation into oblivion! How could congress possibly pass a “single payer” (euphemism for communist) healthcare plan without the fed to borrow unlimited amounts of money to fund it?!
The level of Orwellian doublethink in action is truly a sight to behold. They are enraged that the banks could possibly pay 1% of the GDP in bonuses, yet no anger at all is directed at the system that made this possible.
No anger at all is directed at the regulations that shut out competition leaving just a few financial titans in total control. No anger at all is directed at our illegal and fraudulent currency system. No anger at all is directed at the Obama administration that stacked its appointments with Goldman Sachs bankers. OH NO NO NO!!! THIS IS BUSH’S FAULT!
Hell that guy even reached back to Reagan! hahahaha come on man.
While the bailout story and the financial collapse take longer than this post to explain, its clear Bush and Reagan were bit players in a multi-generational ponzi scam that has been looting the public for nearly a century. The faster democrats come to understand that government is the real cause of their woes, the faster we can get our freedoms and our economy back.
Free markets with healthy competition absolutely prevent titanic bonuses from being paid out. In fact, the ultimate result of a pure free market is to reduce all profits to zero. Only through force of government can such dramatic looting occur.