CNBC reported last night that the average managing director on Wall Street received a bonus of 1.1 million dollars last year. This year he is expected to receive a bonus of 600 thousand dollars. However, had it not been for the bailout, the average director would have gotten only 350 thousand.
The bailout money is going towards bigger bonuses?
If this turns out to be true, expect huge and justifiable outrage from that portion of the country which does not work on Wall Street. I've never heard a better reason for an overthrow of the government -- and the financial powers that be -- in my lifetime.
I'm sure their excuse will be something along the lines of, well, the TARP money didn't go towards the bonus pool, that money was used to shore up our bottom line and to increase liquidity, as it was supposed to.
But does anyone really believe that if the TARP money hadn't been there, some of the moneys used for those purposes might have come from the bonus pool?
How will all the taxpayers who make 50, 60, or 70 thousand dollars a year feel about this?
Don't be surprised if they get their torches and pitchforks and head for Wall Street. I know I'll be rooting them on.