I was reading in the New York Times today about how difficult it is for some of the Wall Street bankers who either didn’t get their bonuses last year, or who are subject to the cap of $500,000 placed on executives who work for companies which receive government bailout money. The whining was incredible – and so was the list of reasons why these guys need more. In fact, it was more than incredible. It just puts an exclamation mark on what many of us have been saying for the past 30 years, since the Reagan experiment took over Washington DC. These are the same people who begrudged the Air Traffic Controllers the package Reagan promised them in the campaign and then, ruthlessly, pulled back on as he started the national “break the unions” campaign in the early eighties. These are the same people who begrudge the auto workers who make $28 per hour PLUS benefits for putting their SUV’s and exotic Hummers together. And when you hear of why they are complaining, it’s hard to give them sympathy – especially when their behavior as bankers has cost the American taxpayers something like 3 or 4 thousand dollars a piece so far, with no end in sight. These guys are the epitome of the “trickle down” economic theories put in place by Reagan – they are the top tier of taxpayers that have been so in need of these horiffic tax cuts for the past 3 decades.
I agree that a sound banking system is imperative. What I don’t agree with is that these multi-million dollar executives are irreplaceable. My nephew did an internship at Deutche Bank in New York last summer – pre meltdown – and he came away somewhat disillusioned at the incredible greed which pervades Wall Street. My nephew was working in the “risk management” division of Deautche Bank – and the stakes are really high – business executives spend 15 to 16 hours a day GAMBLING other people’s money – and calling it banking. But what really bothers me is that despite the trauma these banks have caused for the rest of us, the executives who went way over the line, seem to think they are still deserving of multi-million dollar salaries and bonuses. I don’t need to make further comment on the 18+ billion in bonuses that was granted from TARP funds – even an idiot can tell how sick that was – it’s the idea that some of these people who have led their companies into losses in the hundreds of billions (THAT’S WITH A B) of dollars seem to think they are irreplaceable. Well, the only way I could agree with that is to say it would be hard to find people who could lose that much money in one year!
Here’s some of the reasons for the whining. Private schools cost upwards of 30+ thousand dollars a year – per child. OUCHEE! Now, I’m a public school teacher, and despite I’m having a tough year, I think I’m not that bad as a teacher – and that’s only a bit under my take home pay FOR THE YEAR! But that’s just a start. The Manhattan appartment costs $8000 per month for the mortgage (figuring what my mortgage is and what the payment is that tells me the mortgage is in excess of a million dollar balance) with $8000 per month in “association” fees. I presume that is the cost of having someone protect your fancy place in an environment where some people might think you were a bit excessive – I’m not sure, I can’t even imagine an $8000 per month fee to pay someone for their services. Then there’s the car and the driver – and, oh yes, the place to store the Benz or whatever it is that you need for the driver to drive. And the preferable driver is an ex/cop who can carry a weapon which brings the cost of the driver up to $125,000 per year. (makes me want to learn how to use a weapon)
OK, now it gets even better. To be included in the “in” crowd you need a place on the Hamptons. Now, for those of you like me who have no idea what the Hamptons is, a little research will tell you it’s an exclusive community where the “track” houses go for something like $5 to $10 million. Now, that’s hard for me to even fathom. But a little work with my calculator says that if I buy one of the cheap Hampton residences for, say $5 million, and I’ve got say $1 million for a down payment (20% – I have no idea if people in that stratosphere have the same rules as the rest of us on mortgages) then the payment would be something like $20 to $25 thousand PER MONTH! OK, so now I think you can begin to see why a measly $500,000 just won’t do for these thieves. But, I’m not finished. When you consider the Nanny, the food, the entertainment, the expected three trips per year to Aspen, or Europe, or the Bahamas, or who knows where (The only way I got three days at the beach this year is because one of my former subs owns a beach house and gave me a good deal), and things like personal trainers, private jets, and I could go on – you can see why these guys are complaining.
You see, I think what happens is that when people get entreched in any lifestyle, they think they have some kind of right for it to continue endlessly. I mean, to a certain extent, I fight the urge to fall into that rut all the time. I’ve committed 15 years of my life to teaching, very intensely I might add, and I often think that this should go on forever. But, the reality is that the reason I GET to keep teaching is that I keep teaching. I don’t know if that makes sense – but once I stop teaching (even if I’m still in the classroom) someone’s going to want to get rid of me. I’m having a tough year – nothing to compare to executives losing hundreds of billions of dollars – but a tough year none-the-less. I lay awake at night trying to figure out how I can get through to my students and get them excited about learning. Should I fail, it’s not like losing billions, but to me probably even more devestating. We’re talking about live human kids here! Then, it becomes time to start thinking about whether or not it’s time to stop. So, as far as I’m concerned, these people who have ruined the retirement policies of millions of working Americans like myself need to stop whining. If they can’t make it on $500,000 (actually, I don’t think they’re worth half of that – that’s still about 10 times my gross salary) – then it’s time for them to go get another job. If the CEO of a failed Wall Street Bank can get someone to give them a multi-million dollar job elsewhere – they should take it!