Extreme Income Inequality: Banksters to Receive $26.7 Billion in Bonuses

Wall Street Bailout ImageDespite causing the financial meltdown that crashed our economy (leading to the Great Recession), only to be bailed out by everyday hard-working taxpayers for their illicit practices, Wall Street is about to receive their bonuses for 2013.

That’s right. Those same wheeling and dealing Banksters that caused the financial meltdown that brought the economy to the brink of destruction, of which no senior-level executive has yet to be prosecuted for causing, will be reaping their rewards to the tune of $26.7 billion in bonus money.

Even worse, this is just the bonus pool for securities employees who actually work in New York City. The average bonus to be paid to securities industry employees grew by 15 percent to $164,530 in 2013. Obviously, the senior-level Banksters shares will be magnitudes larger than the average bonus.

Another prime example of Extreme Income Inequality.

Wall Street informational tidbit:

There is a misconception that Wall Street is composed of rich people gambling with other rich people’s money, but this couldn’t be further from the truth. The secret that Wall Street doesn’t want anyone to know is that hedge funds comprise less than 5% of assets in the stock market. The real big players in the market are individual households and the pension funds, mutual funds, university endowments, charities and foundations that are entrusted with your savings, donations, retirement funds and 401(k)s. They are the owners of trillions and trillions of dollars invested with Wall Street banks. So, in effect, you are the big player in the market. And when a Wall Street bank overcharges a teacher’s retirement fund or a charity on a complex product, or misprices the Facebook IPO, causing billions of dollars of wealth destruction, or helps the governments of Greece and Italy cover up their debt, or rigs interest rates affecting trillions of dollars of loans, it ultimately affects you directly and comes out of your pocket. After all, it’s not their money they are risking on a daily basis.

Sources:

New York State Comptrollers Office | http://www.osc.state.ny.us/press/releases/mar14/031214.htm

How Wall Street Rigs the Game | Greg Smith | http://business.time.com/2012/10/22/viewpoint-how-wall-street-rigs-the-game/

Why the Third Way hates Sen. Elizabeth Warren

Warren addresses supporters during her victory rally in Boston

The obsessive centrists of the punditverse were abuzz today with praise for supposed centrist Democratic organization Third Way and their grumbling op-ed condemnation of Democratic liberal populism in abstract and “economic populists” like Sen. Elizabeth Warren in particular.

But why would the Third Way, a very reasonable and centrist organization that just wants both parties to get along and agree to cut Social Security, Medicare, and other social programs be so very worked up about Elizabeth Warren, Wall Street reform, and the mere thought of breaking up large banks? Worked up enough to launch an apparently coordinated effort against those things?

ThrdWayTrustees

Oh. I see.

It is not all that shocking that the Wall Street Way put out an editorial in the Wall Street Journal condemning attempts to point out that Wall Street has, long before the economic crisis and now long after, taken the lion’s share of America’s economic wealth and left the rest of the nation’s citizens to eek by on the increasingly meager crumbs. You form an organization made up almost entirely from wealthy Wall Street partners, ex-partners and other equity managers who don’t like the notions of regulation or taxes, that’s pretty much what you’re going to get.

It’s a bit more surprising that any supposedly astute political observer could look at the effort and declare it a “game changer.” Lord, now, that’s just embarrassing.

[ Re-posted from Daily Kos, http://www.dailykos.com/story/2013/12/03/1259899/-Why-the-Third-Way-hates-Sen-Elizabeth-nbsp-Warren# ]

Originally posted to Hunter on Tue Dec 03, 2013 at 01:05 PM PST.

Also republished by Massachusetts Kosmopolitans and Daily Kos.

**By the way, I love this woman.  She is exactly the type person we need in Washington!!