Hedge fund managers Get Billion-Dollar Paydays

[Rajiv]

Wall Street Winners Get Billion-Dollar Paydays

One manager, John Paulson, made $3.7 billion last year. He reaped that bounty, probably the richest in Wall Street history
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The hedge fund managers James H. Simons and George Soros each earned almost $3 billion last year
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Their unprecedented and growing affluence underscores the gaping inequality between the millions of Americans facing stagnating wages and rising home foreclosures and an agile financial elite that seems to thrive in good times and bad
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To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times the amount in 2002. The median American family, by contrast, earned $60,500 last year.
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Since 1913, the United States witnessed only one other year of such unequal wealth distribution — 1928, the year before the stock market crashed

[Olduvai]

Re: Hedge fund managers Get Billion-Dollar Paydays

How many persons were needed to earn this median $60.500 ?
Before or after Tax ?
Perhaps it's time the American people recognized where the interests of their leaders really lie. When the leaders of a country only have a vocal compassion with the average working family and silently support their buddies what have you got ? I can't stop thinking that the US needs far more checks and balances because day by day it's looking more like a runaway train (financially and politically).
As a European I can't stop wondering why the people in the US tolerate paying for a war with taxpayer's money while the benifits are earned by private companies. Why do those who are responsible for the mortgage mess also get a bailout with taxpayer's money while it can be done without hitting the taxpayer (Swedish banking bailout of the 90's).
Don't you guys wan't a proper central bank ?
I heard some rumour that the FED want's even more power to tackle the mess they themselves created. Like a drunk asking more drinks to fix his problem.
Hope Bush doesn't cook up some pretex to give you all martial law.
Liberty is then really only for the few.

regards

[World Traveler]

Re: Hedge fund managers Get Billion-Dollar Paydays

Thanks for posting this, Rajiv. It's well worth reading.

In answer to Olduvai:

I believe America's elite has managed to amass so much wealth at the expense of the rest of us in several ways:

1. 5 companies now control most of the mainstream media outlets in the U.S. Those at the top set the agenda of news coverage (Ruper Mirdoch is a good example, so is GE who owns NBC) and have tended to be very conservative backers of Reagan and the Bushes, ie. pro-big business, pro-FIRE Economy values. That is why Reagan and the Bushes are seemingly immune while Clinton was bashed around a lot in the '90's. Bill Clinton was moderately pro-Fire Economy, but maybe not enough for the super-elite, super-wealthy behind the scenes. The super-wealthy got their biggest tax cuts from Bush 2.

Gaining control of the media was an important goal to pro-big business conservatives, starting with William Simon of the Nixon Administration in the 1970's, who wrote the blueprint in late 1970's.

To get a more balanced presentation of the news, Americans like me have to hit the alternative media or the foreign media.

They also underwrote phony populists like Bill O'Reilly and Rush Limbaugh to re-direct lower-class angst away from the richer and richer elite and toward selected scapegoats.

2. They also encouraged and allied themselves with evangelical religions. Where does the money come from to underwrite these huge evangelical mega-churches whose leaders have supported the pro-big business Republican Party and "conservative values"? $10 Sunday donations ain't going to do it. Religion and "social values" are good distractions for a populace whose standard of living is going down.

3. "Patriotism is the last refuge of scoundrals", per Lord Acton, I believe. Distract the populace by encouraging partiotism, while the elite pursues its true goals, wealth and power.

4. Amass so much money that you can buy the politicians, who need Fire Economy, big business backing to get elected, since election campaigns in the U.S. are privately financed.

5. Allow the masses to maintain their standard of living by granting them more and more credit. This is a win-win for the bankers and America's elite, since it keeps the masses quiet and bankers earn money via the interest on the loans.

The U.S. effectively is becoming more and more like Latin America. Since Argentina collapsed, Latin America has been throwing off the yokels of what they call "noe-liberalism", the "Washington Consensus" economics of "shock therapy", open borders for capital and trade (but not people!), enslavement to the IMF/ World Bank etc., etc.

The average American is starting to see the scam for what it is. We're not there yet in the U.S., but we are getting closer to hitting bottom for majority of Americans. I'm optomistic that we are at least as brave as our Latino brothers and when we hit bottom, we'll elect a government that is more responsive to our needs.

[Guest]

Re: Hedge fund managers Get Billion-Dollar Paydays

... To get a more balanced presentation of the news, Americans like me have to hit the alternative media or the foreign media.

World Traveler - can you recommend to me a specific news source abroad which you follow and consider to be fairly balanced? I'm always interested to check out new sources and am curious to see what informs your views. I spent the first half of my life abroad, so am a "repatriated American".

[phirang]

Re: Hedge fund managers Get Billion-Dollar Paydays

media doesn't tell you what's really happening: you need to learn to read between the lines.

[Guest]

Re: Hedge fund managers Get Billion-Dollar Paydays

... you need to learn to read between the lines.

Ahh. I must not know how to read between any lines yet. Everything is still a mystery to me because I only read TIME magazine and watch CNBC.
Phirang - according to you, how many here are able to read between the lines? Five or six, and the rest sheeple?

[phirang]

Re: Hedge fund managers Get Billion-Dollar Paydays

Ahh. I must not know how to read between any lines yet. Everything is still a mystery to me because I only read TIME magazine and watch CNBC.
Phirang - according to you, how many here are able to read between the lines? Five or six, and the rest sheeple?

FY P&L will do the talking.