I think that its fair to say that a number of us here suspect that a fair number of those populating the financial establishment are there by virtue of being the idiot children of America's aristocracy. Some of us have probably even said as much. This though is far less entertaining than watching one of their own come out and say it.
On Friday that's precisely what happened. Andrew Lahde, a manager at a Los Angeles based hedge fund sent an email out to all in his firm telling them that he was quitting the game and:
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, “What I have learned about the hedge fund business is that I hate it.” I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly receive) rose to the top of companies such as AIG,Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
Feels like something out of Vonnegut novel.
Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn), a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned.......
The sums that continue to be spent by Wall Street firms on payroll, payoffs and, most controversially, bonuses appear to bear no relation to the losses incurred by investors in the banks. Shares in Citigroup and Goldman Sachs have declined by more than 45% since the start of the year. Merrill Lynch and Morgan Stanley have fallen by more than 60%. JP MorganChase fell 6.4% and Lehman Brothers has collapsed...
Many critics of investment banks have questioned why firms continue to siphon off billions of dollars of bank earnings into bonus pools rather than using the funds to shore up the capital position of the crisis-stricken institutions. One source said: "That's a fair question - and it may well be that by the end of the year the banks start review the situation."
The numbers are shocking. This is for the first 9 months of this year.
Just to put this in context, both banks are being offered $10 billion each from the US Treasury in order to be "recapitalized."
Why is it that when working America is being asked to bear the burden of a bailout, that the Aristocracy isn't even being asked to give up bonuses that they haven't earned?