The Housing Crisis' Latest Victim? Wall Street Bonuses

New York Times   |  Jenny Anderson   |   November 7, 2007 07:31 AM


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Wall Street bonuses may be the latest victim of the subprime mortgage collapse and the tight credit market. Over all, bonuses are expected to be flat to down 15 percent, according to compensation experts and Wall Street executives.

More than most years, the disparities between investment banks and among different divisions within the banks will be unusually large, these experts say. The swings reflect differing losses at the banks and the fact that some areas, like investment banking and stock trading, did very well, while heavy mortgage-related losses were concentrated in a small area where there are fewer and fewer employees to compensate.

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- OETKB I'm a Fan of OETKB 4 fans permalink

Wall St is always quick to say how much they lost but fail to mention how many seedy dollars were made before they got cut short. Factoring in their past gains, they are still probably ahead.

    Favorite    Flag as abusive Posted 01:01 PM on 11/08/2007

Makes one almost believe in justice.

    Favorite    Flag as abusive Posted 11:33 PM on 11/07/2007

Boo Hoo Hoo
cry me a river!

    Favorite    Flag as abusive Posted 05:31 PM on 11/07/2007
- loki I'm a Fan of loki 131 fans permalink
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Boo |=uking Hoo. The babies of the east coast Vegas arent having a guaranteed profit for themselves with our for a day or so. I really dont feel for them.

    Favorite    Flag as abusive Posted 01:28 PM on 11/07/2007

poor, poor babies.

    Favorite    Flag as abusive Posted 11:17 AM on 11/07/2007
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Helicopter Ben Bernanke is tasked with guiding a weak climber - the ever-expanding currency system - to the peak of Mt Economic Utopia. To the left is the chasm of hyperinflation and to the right the precipice of deflation, and the path narrows as it rises up to the distant summit.
On the lower sections of the mountain path it is wide enough to let our guides turn us round. But the closer we get to the summit the more everyone believes it is achievable. Mountaineers suffer the same problem. They call it "Summit fever" and it claims far more lives than bad luck ever did, by corrupting the powers of good judgement.
It takes a lot to turn one person away from a summit. Turning round a happy crowd is quite impossible. They would rather believe the optimism of the guides who talk of spectacular rates of ‘sustainable growth’. They prefer government statisticians who add mandated public sector expenditure into economic growth figures, and they listen to commentators who refer to ‘Goldilocks economies’ and ‘productivity miracles’. So they buy more sports utility vehicles on borrowed money and re-finance their houses.
Yet domestic economic activity has no real growth, and high imports cause huge trade deficits. Savings rates diminish, financial instrument yields evaporate, governments borrow and spend and call it ‘investment’, corporations report profits which have nothing to do with earned cash, financial trickery permeates all levels of society and credit is offered to an ever increasing set of less well qualified borrowers, whether sovereign states, companies or individuals.
The majority cannot see these signs for what they are. Only a few miserable realists look around and, seeing the dangers on both sides, turn back on their own and face the cheerful smiles of those who continue on up.
It’s a long lonely walk down and there’ll be no-one waiting at the bottom to cheer your safe return

    Favorite    Flag as abusive Posted 10:42 AM on 11/07/2007
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