The headlines, “Merrill Lynch’s bonuses made 696 millionaires”, hit the world at a time when everyone in the world searches for money while at the other corner, it read “California could lay off 10,000 state workers”. It’s amusing to see how coincidence plays at hand. 10,000 job cuts are to save US$750million this year, $50 million short (from 700 millionaires) though. If I were the US government, I would take back the bonuses and use it to save the jobs in California, at least for the year.
And I would continue the investigation on other investment banks that have fallen, i.e. Lehman Brothers, Bear Stearns and so on. Check the bonuses and benefits in any form they received for the last 2 years and total it up to see if the amount matches that we have lost so far in the subprime crisis. I won’t be surprised if that figure misses by a bit.
I have heard from my friends in financial sector that they would want to retire in 40s and most of their predecessors had done that. Now, I truly understand. I mean the public used to lose money in the stock markets to those smart alecs who got away each recession or crisis with deep pockets. Simply, put the money earned into properties and bonds (Fed’s favourite tool) and make sure you cash-stripped for the crisis. In the boom times, there you go! Everything blows up in value and deeper pockets are created.
The thing is, now, for those who don’t invest money in the stock market got affected as well. Because of company bonds, which companies borrowed from the public through the facility set up by investment banks (who earn commissions at no risk), these companies has to make monthly repayments and in times of poor sales, they would naturally fail to fulfil these. And the only way out is to cut jobs.
Knowing this, you may feel as frustrated as I do over the injustice. I felt like posting words like F*** the bankers and blah blah blah. But I also know that I can’t. In times like this, the richest people are not the governments, lawyers or judges. Yes, you know who the bastards are. I have no more money to defend any case. I have not read Friedrich Hayek’s The Road to Serfdom (which is in my book collection and definitely reading list) but I have feeling we all are taking that path now. Forget about the freedom capitalism promised. It just a big circle back to the same destination. Well, there is still time. Join the financial sector after the crisis (since there are still no criminal laws created for such criminal acts) and make your way up the ladder before the next crisis. You will be rewarded lifelong freedom.
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