Tuesday, December 21, 2010

Bonus round

Greetings good citizen,

I’m suffering a personal transportation crisis and its eating into my writing time. As we are all aware, it’s much easier to borrow a lot of money than it is to borrow a little.

Worse, try to borrow a little and it will turn into a lot!

I don’t suppose now would be a good time to remind you, good citizen, that the US of A no longer has any kind of anti-usury legislation on the books.

Did I mention ‘mis-management’? Which is to ask who the fuck (besides bankers) thought THAT was a ‘good idea’?


But these guys only hide behind the Bible, I suspect you wouldn’t find one of them who comprehends its teachings…

They wouldn’t be able to call it ‘The Good Book’ if it was filled with nothing but how to corn hole your neighbor, like we see in this story What, no bonus?!

In some ways, a zero bonus should not come as a surprise to many bankers. As a result of the 2008 financial crisis, Wall Street firms like Goldman Sachs and banks like Citigroup raised base pay substantially in 2009 and 2010. They were seeking to placate regulators who had argued that bonuses based on performance encouraged excessive risk.

At Goldman, for instance, the base salary for managing directors rose to $500,000 from $300,000, while at Morgan Stanley and Credit Suisse it jumped to $400,000 from $200,000.

Even though employees will receive roughly the same amount of money, the psychological blow of not getting a bonus is substantial, especially in a Wall Street culture that has long equated success and prestige with bonus size. So there are sure to be plenty of long faces on employees across the financial sector who have come to expect a bonus on top of their base pay. Wall Streeters typically find out what their bonuses will be in January, with the payout coming in February. [snip]

Dealing with the Zeros can be complicated. “It’s a real headache,” said another senior banker, who asked not to be identified because the topic is so volatile at his company. There has been so much grousing that in some cases, he said, “we’ll throw $20,000 or $25,000 at each of the Zeros so they’re not discouraged.”

“No matter what we pay people, it is never enough and they always find something to complain about,” this banker said.

Left to your imagination good citizen is the ‘vast majority’ of the working class whose annual salary is LESS THAN $20 to 25,000!

Yes, good citizen, the half-way mark in the salary distribution is approximately $30,000 with half making more and half making less.

Yet the banking industry will pay its managers what someone else works all year for just so they won’t ‘feel bad’.

How do you suppose this makes the poor bastards who have to work all year, usually at thankless, dead-end jobs to get the same amount feel?

(PS. That’s nearly TWICE what I make…as an ‘underemployed’ white guy whose over 50.)

Anyway, other matters are conspiring to rob me of the time to finish this piece and most of this stuff is already a day old.

Such as this from Mr. Krugman:

No matter how many times you whine about something nothing changes.

Let us not forget that State Budgets: The Day of Reckoning is at hand…

I witnessed first hand evidence of this ‘Day of Reckoning’ thing in action last night. There were NO plows or sanders out during the storm. Once the storm ended, the clean up crews got rolling…which was a shame because there were numerous accidents attributed to the untreated roads…

As should be evident to all by now Greed Is Not Good Worse, push come to shove, greed isn’t that ‘good’ even for the greedy as they too are affected by the dangerous situations their greed creates.

So much for a ‘slap-dash’ job but to delay longer would render the material useless.

Thanks for letting me inside your head,


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