Saturday, November 8, 2008

Wall Street Bonuses - Why are they getting ANY bonuses at all!?

Many people feel, and I have to agree with them on this, that many investment banks generated profits by SIGNIFICANTLY overleveraging themselves and using their capital like a casino. They rolled CRAPS and now the taxpayer has to pay bonuses?

The average American would say "would these guys get the bonuses if not for the U.S. taxpayer? HELL NO!"

I get that these guys work crazy hours, are brilliant people, etc. But part of bonuses is to RETAIN people and to help them walk across the street to the competitor offering even STUPIDER bonuses. Guess what? There are a TON fewer people even around this year, let alone paying bonuses at all!

The taxpayer is going to get VERY pissed VERY quickly if big bonuses come out. I'll even be bold enough to say that some may ask the LEFT LEANING congress, soon to be under Obama's watch, to seriously look at revoking Goldman Sach and Morgan Stanley's bank charter status. Are they really banks? How long can they survive without being able to borrow billions from the federal government for nothing and use it to gamble each day with the taxpayer's money? Now, I would ask Wall Street. Do you really want to piss off the general public and a left leaning congress right now? Your thoughts? Please comment.

Dan Ross

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