Please do me a favor and grab a barf bag before you watch the video below:
Here are the statistics from the tech ticker:
"Even if this quarter only matches the third, the banks' revenue will top that of any year except 2009," when the top five banks hauled in $127.8 billion. (Through the first 9 months of 2010, the five firms generated $93.7 billion in revenue, Bloomberg reports.)
Given those tallies, it's no surprise Wall Street bonuses are also expected to be robust this year. Overall pay per employee is expected to be down from the peak years, and more is coming in the form of restricted stock. But the overall bonus pool is projected to hit $144 billion this year, which would be a record, The WSJ reports.
Given the ongoing struggles in the "real" economy, it's no surprise most Americans most definitely do begrudge Wall Street's outsized compensation structure, more especially since these firms only survived 2008 thanks to tax-payer funded bailouts.
As separate Bloomberg survey shows over 70% of Americans think big bonuses should be banned this year while over 85% of those surveyed favor a 50% tax on bonuses exceeding $400,000."
I'm sorry folks, I can't help it, I must rant about the bankers after watching this. I know I have done this repeatedly so please forgive me. However, I feel the need to hammer it home again in case some of my newer readers haven't experienced one of my Wall St rants.
Time to let it rip:
OK, so let me get this straight: Wall St gets to pay themselves record compensation based on profits from the money that was given to them by the US taxpayers via the TARP.
A few questions here: Where is our cut Wall St.? It's OUR money you are gambling with. Why don't we get to share in the profits that you never would have made without us bailing you out when you were up to your neck in toxic mortgages?
folks, This makes me LIVID. Where does Wall St get the balls to pay themselves this type of bonus as this country sits in financial ruin?
Why isn't at least half of this money getting paid back to the taxpayer? How does the government allow this to happen? It's just flabbergasting to see something like this when 20% of this nation is unemployed.
Folks, this is the type of stuff you see in 3rd world nations. It's not supposed to happen in the civilized world. Why aren't 2 million Americans marching on DC demanding blood after being flat out looted by Wall St?
Let's not forget, our major banks are INSOLVENT. They wouldn't have changed the mark to market accounting rules if this wasn't the case. This is why most TBTF institutions were trading in the single digits in early 2009. The street was basically betting that these firms were TOAST.
The truth is they would have all FAILED without the bailouts and mark to market changes.
Since this is the reality of the situation: WHY ISN'T THE GOVERNMENT AT LEAST FORCING THE BANKS TO TAKE THEIR PROFITS AND USE THEM TO ABSORB THE LOSSES THAT REMAIN ON THEIR BALANCE SHEET?
This country is about to go tits up and $150 billion would come in pretty handy right now.
You have to wonder: Why are the feds legally allowing the bankers to line their pockets when America sits on the brink of default?
The Bottom Line
Remember this post when America is forced to pay the piper.
Remember this post when your pension fund payout is cut in half.
Remember this post when the retirement age rises to 75.
Remember this post when inflation soars as our dollar turns into toilet paper.
Remember this post when your home is worth 70% less 5 years from now.
Remember this post when our 10 year bond yield rises to "Greece" levels.
Remember this post when stocks collapse.
Wall St created this problem and we were forced to clean up the mess. They have thanked us by paying themselves $150 billion.
Warning: Be prepared to bail them out again folks. This bubble is going to end in tears just like the housing bubble did, and Wall St will be back to pillage the taxpayer a second time. Like subprime, our government debt levels are unsustainable and it's just a matter of time until it all ends in tears.
Mathematically the money cannot be paid back without extreme catastrophic cutbacks in spending and benefits. I am not even sure we can come up with a solution where we are able to pay off our debts.
The fat cats on Wall St obviously could care less. If they did then they never would have never paid themselves such a disgusting amount of money.
Karma is a bitch and one day they will get theirs. Unfortunately, we will probably go right down with them.
Never forget: THERE IS NO FREE LUNCH.