Why Wall Street had a record year and you didn't (CNN engages in class warfare)

CNN/Money ^ | 1/25/06 | Justin Fox

[SoFloFreeper]

The S&P had a measly return of 4.9 percent. Securities firms gave out a record $21.5 billion in year-end bonuses. That's fair.

NEW YORK (FORTUNE) - It was, as you may have already heard, a record year for Wall Street pay. Securities firms in New York gave out $21.5 billion in end-of-year bonuses, according to the state comptroller's office. That's $125,500 per employee (although of course the money wasn't distributed anywhere near evenly).

The last time things were this good for Wall Street's traders and bankers, at the end of the Internet boom in 2000, the rest of the country got to share in the fun. In 2005, by contrast, the S&P 500 had a total return of only 4.9 percent. Wage and salary growth for most Americans lagged inflation. So how is it that almost all of the big investment banks managed to have their best year ever?

One possibility is that Wall Street is a leech upon the body economic, sucking out the lifeblood of domestic industry and excreting it as Lamborghinis and $20 million Manhattan apartments for a lucky few. This is a theory with venerable populist roots, and it has undergone a renaissance lately among Americans angry about outsourcing.

[SoFloFreeper]

I'm sick and tired of class warfare. It is especially revolting when it comes from someone who ought to know something about the creation of wealth.

Bush's Justice Department has gone after those who cheat the system, but this isn't good enough, apparently, for Justin Fox and the hacks at CNN. They want the wealthy to be attacked for, well, being wealthy.

[Gorzaloon]

I tend to dismiss anything on CNN, rating it only a little above the New York Times, lawyers, and child molesters.

But I must say, that in reviewing my 401(k) dividends, SOMEONE is making a LOT of money and it sure as hell is not me.

[ClearCase_guy]

although of course the money wasn't distributed anywhere near evenly

When the Revolution comes, everyone will get the same economic distribution. Watch TV all day, drink beer and yell at the kids? $60,000 a year for you. Build a company, work 60 hours a week? $60,000 a year for you. That's justice.

One possibility is that Wall Street is a leech upon the body economic, sucking out the lifeblood of domestic industry

Comrades! Capitalism has given us nothing of value! The Proletariat Revolution will sweep away these leeches! A vanguard of the political elite will usher in a new day!

[rdb3]

This is a theory with venerable populist roots, and it has undergone a renaissance lately among Americans angry about outsourcing.

Yep. That's beyond any doubt.

We have class warriors here.

This is a ch__ch. What's missing?

[festus]

What ?! Someone somewhere in our nation figured out how to make money ?!

This must be stopped ! Only when all people make money, and the same amount of money will things be fair and life be good again, just like it used to be.




Do I really need a /sarc tag ?

[Once-Ler]

Wage and salary growth for most Americans lagged inflation.

BS. You can't make millions by stealing from the poor. Consumer spending is very high. Perhaps the tools we use to measure wages are flawed and don't accurately reflect income. The stock market and 401k returns are not good indicators of income. Can anyone tell me how much money or how many people invested in 401ks in 2005 as opposed to 2000?

[GeorgefromGeorgia]

I routinely read the Money section on CNN. Generally, it is the most conservative section on CNN, and does not display the usual left wing bias. I think most wall street experts tend not to be collectivists. This article is an exception.

[bert]

I had a good year.

[Alberta's Child]

What the author of this article seems to have overlooked is that "Wall Street" securities firms don't just trade stocks -- they do other things like underwrite bonds (a great line of business these days, since we've got so many state and local governments borrowing exorbitant sums of money) and serve as financiers and consultants on major mergers and acquisitions (a booming business in 2005).