It’s nice to know that the bailout money is being put to good use. You see here how greed overwhelms everything else – even common sense. What are these people going to do when they no longer have wealth? When everything falls apart – it’s going to be very ugly for awhile. The following article was written by Chris Martenson.
The looting operation (con’t)
Wednesday, November 5, 2008, 9:13 pm, by cmartenson
At the time, some thought that my characterization of the bailout as a “looting operation” was too strong, and told me so.
I am more certain of that language than ever.
By the time you read this, America will have a new President. I hope he’s better with money than the last resident of the White House. Just look at how the Bush gang is spending the $700 billion bailout package for banks — throwing it at financial institutions with few strings attached.
As a result, many Wall Street institutions are using billions and billions of taxpayer dollars to pay for fat cats’ bonuses.
Goldman Sachs, which is getting $10 billion from the bailout plan, is paying out $6.85 billion in bonuses, according to media reports. That’s $210,000 per employee. And that’s despite a 47% drop in its profit and 53% drop in its share price.
· Morgan Stanley, which is also getting $10 billion from our government, is doling out $6.44 billion in bonuses or $138,700 per employee, even though its profits tumbled 41% and its shares are off by 69%.
· And even the failures at Lehman Brothers are collectively getting over $1 billion in bonuses.
Some conservatives have been bemoaning the “nationalization” of America’s big banks. Yet we didn’t nationalize anything — we don’t control those banks. They’re free to spend the bailout money as they please.
And we got hosed.
Bonuses for Lehman employees? More than 65% of the bailout money to GS and MS being spent on bonuses?
I guess I am confused by what the word “bonus” means in the context of business performance.
It’s okay if you are, too.