Wealth without risk: Get a big bonus
Most people would be happy to build wealth without risk. Of course, "without risk" is generally not possible. You can minimize risk. Eliminating it's tough to do. Unless you're a banker these days.
In spite of the financial crisis, in spite of taking government money, we now see banks giving generous bonuses to their executives - Goldman Sachs being the top giver. And when we say generous, we mean BIG generous. Goldman's giving the biggest bonuses in their long history. Amazing how they do that in spite of the loss of wealth most of us have experienced, isn't it?
Of course, let's be careful here. It's easy to slip into the "envy" game. If someone earns their pay, they deserve it. I don't resent a person who works hard for their money - or even someone who gets "lucky" and gets a windfall - a lottery winner comes to mind, for example.
But I'm not sure about these latest bonuses. Not that Goldman people don't work hard. They do. In fact, they have to provide their employer with every possible contact point - home phone, cell, email, etc. - so that they can be summoned at any time day or night. When opportunity strikes, Goldman wants to be first in the door. They didn't become a prosperous investment bank by accident.
And we've all read how they returned the money the government gave them, along with some other banks who are giving out big bonuses.
Still, there's something that strikes a dissonant chord here. For one thing, in Goldman's case, one of the tranches of AIG government aid - dispensed under then Treasury Secretary Henry Paulson, former head of Goldman - led to a direct payment of $13 billion that Goldman might have lost or at least taken a long time (if ever) to collect. And, according to the NY Times, Goldman announced it was setting aside $11.36 billion in employee compensation for 2009. Hmmm....
Well, snap out of it. The deed's done. The billions will be paid out. And I'm not getting any. When it comes to wealth without risk, I won't be getting it from any bonuses. It's back to the grindstone for me.
How about you? Are you getting any BIG bonuses this year? Will you be getting some wealth without risk? No?
Here's some free advice: just don't let yourself be consumed by envy. It's not worth it. On the other hand, there is the matter of justice, of course. Is it fair that these banks, who were basically saved by government intervention (where ultimately the taxpayer - you and I - are on the hook?) now dispense billions in bonuses?
In spite of the financial crisis, in spite of taking government money, we now see banks giving generous bonuses to their executives - Goldman Sachs being the top giver. And when we say generous, we mean BIG generous. Goldman's giving the biggest bonuses in their long history. Amazing how they do that in spite of the loss of wealth most of us have experienced, isn't it?
Of course, let's be careful here. It's easy to slip into the "envy" game. If someone earns their pay, they deserve it. I don't resent a person who works hard for their money - or even someone who gets "lucky" and gets a windfall - a lottery winner comes to mind, for example.
But I'm not sure about these latest bonuses. Not that Goldman people don't work hard. They do. In fact, they have to provide their employer with every possible contact point - home phone, cell, email, etc. - so that they can be summoned at any time day or night. When opportunity strikes, Goldman wants to be first in the door. They didn't become a prosperous investment bank by accident.
And we've all read how they returned the money the government gave them, along with some other banks who are giving out big bonuses.
Still, there's something that strikes a dissonant chord here. For one thing, in Goldman's case, one of the tranches of AIG government aid - dispensed under then Treasury Secretary Henry Paulson, former head of Goldman - led to a direct payment of $13 billion that Goldman might have lost or at least taken a long time (if ever) to collect. And, according to the NY Times, Goldman announced it was setting aside $11.36 billion in employee compensation for 2009. Hmmm....
Well, snap out of it. The deed's done. The billions will be paid out. And I'm not getting any. When it comes to wealth without risk, I won't be getting it from any bonuses. It's back to the grindstone for me.
How about you? Are you getting any BIG bonuses this year? Will you be getting some wealth without risk? No?
Here's some free advice: just don't let yourself be consumed by envy. It's not worth it. On the other hand, there is the matter of justice, of course. Is it fair that these banks, who were basically saved by government intervention (where ultimately the taxpayer - you and I - are on the hook?) now dispense billions in bonuses?
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