Regulators and politicians who want to curb the huge bonuses paid to financiers in the wake of the global credit crisis may find the banking sector's response even more unpalatable.
More money for the highest flyers and less for the rest.
(snip)
Britain's finance watchdog said in March: "Although it is hard to prove a direct causal link, there is widespread consensus that remuneration practices may have been a contributory factor to the market crisis."
Ya don't say? Really? A compensation consultant quoted in the article is incredulous that guaranteed bonuses could prove to be perverse incentives. That's disingenuous; that consultant is paid by investment banks to justify those bonuses. Some people can make themselves believe any kind of bunkum if their paycheck depends on it. I witnessed that self-delusion when I worked for large investment firms and I even came pretty darn close to accepting it myself. My resistance and ultimate rejection of such temptation bought me my termination notices.
But how can banks afford to continue the largess for their top pedigreed preppies? By taking the money from you:
Fifteen percent of employers surveyed by the Society of Human Resource Management reduced pay in the past six months — a threefold increase from earlier this year. Companies like Hewlett-Packard, Caterpillar and the New York Times have taken the pruning shears to wages.
Granted, this excerpt is from an opinion column, but facts are facts. The only social class in the United States that has ever had any social cohesion is the ruling class (thank you G. William Domhoff and E. Digby Baltzell), and that class is now circling the wagons to defend their Olympian redoubt from the proletariat. Look for media stories over the next few years to happily chronicle the noble lives of the struggling poor, to make it seem as if remaining poor is natural and desirable. Look for Hollywood dramas and comedies to sing a similar tune. The programming is being prepared.
What is to be done about this? As far as most Americans are concerned, nothing. After all, doesn't God want you to be poor? As far as I am concerned, I am as focused as can be on taking care of myself financially before the door to upward mobility slams shut in my face forever.
