“It’s going to a cause a lot of panic on Wall Street,” said Richard Stein of Global Sage, an executive search firm. “Everybody is talking about it, but they’re actually concerned about it becoming public. I would not want to be head of compensation at a Wall Street firm right now.”
In some ways, a zero bonus should not come as a surprise to many bankers. As a result of the 2008 financial crisis, Wall Street firms like Goldman Sachs and banks like Citigroup raised base pay substantially in 2009 and 2010. They were seeking to placate regulators who had argued that bonuses based on performance encouraged excessive risk.
At Goldman, for instance, the base salary for managing directors rose to $500,000 from $300,000, while at Morgan Stanley and Credit Suisse it jumped to $400,000 from $200,000.
Even though employees will receive roughly the same amount of money, the psychological blow of not getting a bonus is substantial, especially in a Wall Street culture that has long equated success and prestige with bonus size. So there are sure to be plenty of long faces on employees across the financial sector who have come to expect a bonus on top of their base pay. Wall Streeters typically find out what their bonuses will be in January, with the payout coming in February.
Senator Bernie Sanders (I) from Vermont stood on the floor of the Senate two Fridays ago and spoke for nine hours on the situation in America. He spoke frankly and convincingly, using charts, graphs, and real-life examples. He was joined by other senators who also brought their perspectives. The message was simple: The rich are feasting on us. The economic and social policies ushered in by war criminal Ronald Reagan have boosted the rich to a position of power unprecedented in American society since the end of slavery. They’ve grown so large that they’ve sprouted wings and flown away to places like Bangladesh, where workers earn .23 cents an hour. When things falter in their search to expand, as capital always must, they return to America to suck more blood from the heartland and then redouble their efforts in smashing up the rest of the world. Capital flies on the wings of the American military and in the hallways of world banking institutions. What wings do the poor fly on?
Despite the situation worsening in America, the poor stay mainly silent. Drug use is rife, the prisons are packed, and more and more young people are graduating with debt with college degrees that mean close to nothing. Senator Sanders pointed out that we have little to inherit from our parents. Indeed, some of them are moving abroad – those who can afford it.
SAN MIGUEL DE ALLENDE, Mexico — The new Starbucks on the corner of the main plaza is bustling. The local library has an impressive selection of English-language romance titles. The bulletin board at the arts center touts ads for tai chi, West African dance, textile instruction and more.
And hey! Isn’t that Martha Stewart strolling through the plaza? It is indeed. She’s here for the star-studded unveiling of an American-owned hotel.
Despite its gringo trappings, this lovely 17th-century city appears quintessentially Mexican, fromits jardín (or garden, as the plaza is called) to the rosy luminescence of La Parroquia, its iconic neo-gothic church.
But it’s also home to a large community of North Americans, many of whom have come to stretch their retirement nest eggs in a tranquil setting that boasts most of the comforts of home—and then some.
“San Miguel is summer camp for Baby Boomers,” declares Marjorie Pope, 64, who arrived here from Atlanta with her husband, Mike, five years ago.
As the first wave of 79 million Baby Boomers turns 65 in 2011, many will be spending their Social Security checks in far-flung locales, from Boquete, Panama, to Chiang Mai, Thailand. Though numbers are mere conjecture, some estimates say 1 million American retirees already live abroad.
Is it too painful for the baby boomers to watch their children struggle in the world they created for them? Or is it simply too difficult to live in the United States on the amount of money they’ve set aside for retirement? Outsourcing retirement also means tax money such as social security will be spent outside of the United States.
The question is really how long the next generation will stand for such distractions at the expense of their livelihood. Will we continue to be sucked into two-party politics and reality television, or can we stand up and fight against the system that brought us into being? We are the product of a time when things seemed plentiful and peaceful, but as we come to understand at what cost, we must be wary of falling into the same traps as the previous generations.
What is needed is a ground-up effort to rebuild our country on real wealth and capital. As Senator Sanders said, there was a time when a man working a factory job in Detroit could afford to support a family of three and send a child or two to college. This framework has not evaporated. It is not forgotten. The question is, does a generation raised on instant gratification have the guts to roll up our sleeves and do real work for a change? Raised on promises that “You can do anything”, are we prepared to settle for decent before we slide into a lifetime of denial?