Taibbi nails it again. A must read [Why Wall Street Should Stop Whining]
When I look at the revenue and bonus numbers on Wall Street this year, I see a number of companies that, despite being functionally insolvent in reality and dependent upon a combination of corrupt accounting and cheap cash from the Fed to survive, are still paying out enormous amounts of money in compensation.
In fact, when one considers the lost billions and trillions from the end of the mortgage bubble scam and the expiration of the quantitative easing program, it’s pretty incredible that bonuses are even in the same ballpark as they used to be.
... The financial services industry went from having a 19 percent share of America’s corporate profits decades ago to having a 41 percent share in recent years. That doesn’t mean bankers represent 41 percent of America’s labor value: it just means they’ve managed to make themselves horrifically overpaid relative to their counterparts in the rest of the economy.
When I look at the revenue and bonus numbers on Wall Street this year, I see a number of companies that, despite being functionally insolvent in reality and dependent upon a combination of corrupt accounting and cheap cash from the Fed to survive, are still paying out enormous amounts of money in compensation.
In fact, when one considers the lost billions and trillions from the end of the mortgage bubble scam and the expiration of the quantitative easing program, it’s pretty incredible that bonuses are even in the same ballpark as they used to be.
... The financial services industry went from having a 19 percent share of America’s corporate profits decades ago to having a 41 percent share in recent years. That doesn’t mean bankers represent 41 percent of America’s labor value: it just means they’ve managed to make themselves horrifically overpaid relative to their counterparts in the rest of the economy.
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