It’s reported that Wall Street will hand out over $30 billion dollars in bonuses this year, with Goldman Sachs doling out over $16 billion of it. They’ve apparently profited more this year than any other investment bank ever has.
With this influx of liquid money coming into the local economy, how do you think that will affect things? From retail shopping, automobile purchases and real estate? An article in yesterday’s Daily News mentioned that many people are going on lavish spending sprees, paying top dollar for “I gotta have it now” impulse purchases, from expensive cars, golf clubs, jewelry and more. So it’s possible many local Hoboken businesses may see a positive increase in sales this holiday season.
It’s also been said that with all these trigger-happy and newly uber-wealthy investment brokers and traders roaming around, it could negatively impact the Real Estate market for those not fortunate enough to receive such a windfall. While many believe the real estate market is still unstable and that a bubble burst is imminent, others feel this surge in expendable cash will artificially inflate the market and put it out of reach for most people.
This article from Forbes Magazine indicated that the number of people receiving bonuses this year is down 5% from last year (41% to 36%). And even those 36% of people aren’t all receiving cash. 61% of them are receiving things other than money. Items such as gift certificates and food.
What kind of bonuses do you get where you work? Better or worse than last year? None at all? What do you think these massive Wall Street bonuses will do? A change for the better for the economy? Or more disparity between the wealthy and the low to middle class?
In a related note, here’s a funny blogger who works for a financial company. He apparently hates the Wall Street types, and had a series of really funny cartoons, with even funnier comments underneath them. I got a kick out of it.