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Posted by on Feb 5, 2009 in Economy | 1 comment

Economy-Killing Wall Street Bonuses

Americans are furious about Wall Street bonuses. They believe these rewards are massively excessive, undeserved, and in the current economic environment totally inappropriate.

All true. But what should really be getting people angry is that these bonuses in large measure are responsible for this country’s present economic woes.

The size of Wall Street bonuses have long been linked to the income a given trader or other Wall Streeter brings in to his or her company’s coffers. And these bonuses are doled out at the end of the year. Think about that. To get a big bonus this year you need to bring in big money this year. If your strategy involves long-term planning you don’t get the big bucks.

The Wall Street bonus mania is thus intimately linked to plans and schemes that kick out quick cash. Which almost always involves gimmicks rather than careful efforts over years and years.

The Wall Street bonus game is a proven economy-killer. The self-proclaimed “best and brightest” who have long played it to their own great advantage should be let go. Bring on the plodding, salaried, non-bonus receiving, gradual builders of long-term prosperity.