For those of you that were losing sleep worrying about the top earners at Goldman Sachs, you can relax your little minds. According to the Guardian, Goldman will be handing out record bonuses; the largest bonuses in its 140 year history! And you know why?
Well apparently Goldman has done really, really well in it's first half, and that's due to...are you ready?..."lack of competition!" Oh, there is a surge of trading foreign bonds, and whatever else they've decided to package and trade back and forth to each other in a continuation of the most deceptive ponzi scheme ever. And then, of course, the bonus structure was changed at the end of last year which made it look like they saved money; but, what they really did was to stop allowing their "talent" to take the money and run at bonus time. In other words, the stock and cash bonuses that used to be liquidly available at bonus time, now take time to ...er..."vest." So, if I'm reading http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=ao5_D4S6Zgdw correctly, the 2008 awards don't really become fully available until the end of 2009, thus creating a bullshit scenario where everything is rosy, and so we can do it again, but this time bigger!! You get that? This is when you need Taibbi to 'splain things ( especially because I haven't mentioned his fantabulous Rolling Stone article that barely scratches the surface of this mess, in a long time. And you know what? It holds up well to a couple of months of more ponzi, if you want a window into the foundational non-rules of this game.)
When last we saw Goldman Sachs and their Chiefs, it was Christmas time 2008, and they were giving up their bonuses as some attempt to distinguish themselves from their brethren (what I envision as tentacles,) in just about every area of the financial world. The big question back then was would the rest of the big financial firms follow suit, and also could top "talent" be retained without huge bonuses?
The Wall Street Journal explained it thusly:
The decision at Goldman doesn't mean everyone at the firm will go home empty-handed. The firm still has to reward its roughly 30,000 employees. Distinctions are being made between the highest-ranking executives and lower-level traders and investment bankers, according to people familiar with the matter. Many of these employees performed well in 2008 despite the market turmoil, these people say, but could get plucked away by rival firms if compensation practices are significantly altered.
and
The move on the part of Goldman's top executives is expected to set the tone for the rest of Wall Street, where bonuses are typically many times bigger than base salaries. At many financial firms, about half of all revenue is allocated to compensation, and multimillion-dollar bonuses are routinely paid out to ensure the best talent stays put. Top traders and bankers on Wall Street typically make a base salary of about $250,000, with the rest coming as a bonus. Employees tend to get their bonus numbers in the first two weeks of December -- with the cash coming early in the New Year.
And isn't it a kick that the huge fight over the roll back in Bush's tax cuts for this top tier of earners was about what turns out to be just their base salaries?! I don't know why that strikes me as disgusting, but back then, those who earned over a quarter mil were willing to go to the mat to save a few thousand dollars of that at the expense of their fellow Americans whose houses were/are being foreclosed upon, and people who's lives were basically in the toilet, largely because of the ponzi schemes that these very characters cooked up! And, yes, the salaries that these folks make are contracted with the bonuses in mind, so I suppose you cant just tear away a percentage of what they expected to earn. Its just that all of this talk of contracts and retention of employees makes me think of the fact that every time any American puts a deposit into their 401.k or even their bank account, (remember the super money market with the .02% interest,) they have a contract with those "talents" who move this paper around the globe with the promise of a tiny percentage getting shaken down to the savers. Isn't the deal that they get to use our money, even overnight, to make a huge profit putting it somewhere, and so we get a penny in our own tin cup, or cat-food can, as the case may be?
So, while Goldman is patting itself on the back for this rock and roll first half, and making sure that no real laws were broken and that everyone gets their cut of the profits, I wonder if someone might look at the contract that the entire industry might have had with us. That really should go even beyond the little loans that we floated to keep these fuckers alive. Maybe somebody could look at how it's possible for the top chiefs and the "retained talents" to walk away with the biggest fucking bonuses in 140 years while everyone I know has lost their retirement savings! Oh, its because that other guy did it, right? Like AIG? Was it bad old AIG? How come they passed most of their bailout money directly to Goldman? How did that work?
Hey, that's capitalism and the free market for ya! I may not know much about the ins and outs of this shit, but I know when I've been railroaded. These top financial institutions took our trust and in a global way raped the system. They threw back some crumbs last Christmas to try to look all sorry like, and now they are back at it.
If these firms are all in bed with each other and banks are insurance co's are brokerages, then no one should be paying huge bonuses until the entire thing is regulated fairly. President Obama just can't make new laws that fast, and the quarter mil club has too strong a lobby...and, honestly, I don't know if Obama really wants to completely overhaul this anyway, because that would amount to the S-word....and we all know that if we go down that path we may end up with single payer health care and the whole package! What would that be like?
So, all you independent and free Americans out there, be happy that the government isn't allowed to put its hand in your pocket and its rules in your bedrooms, (some of the time,) its cameras on your street corners and its taps on your phone lines, (some of the time,) because these guys removed your pocket stitching while you were busy being all free out there on the range with Bush, and the money already poured out the other end.
RIP Coco
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