The $16.7 B in bonus money that Goldman Sachs plans to distribute to its employees after a windfall profits year equates to nearly $700,000 to each of its 31,700 employees.
This would be a staggering amount during more stable economic times; it is even more unconscionable during these turbulent times when Goldman was teetering on the brink of collapse and the Feds determined the 140 year- old firm, deemed too big to fail, needed a bailout. And so the US Taxpayer pumped in $22 Billion to save the sinking ship.
Consider this: $12 B was loaned to Goldman to protect its investments in credit default swaps created by AIG-- an extremely risky move by Blankfein's firm. Goldman then turned around to use the total US aid package of $22B to reap profits, to a certain extent, in the very investment vehicles-CDW's- that purportedly was going to sweep it under.
What an outrageous situation. Since she used our money as insurance to further leverage her investments in other less risky investments, we the 300 million citizens of our country deserve to share in the profits as well. That means each US citizen would reap about $70 in profits.
What hubris (and of course, irony) for those whose own greed brought them to the brink of disaster should even consider receiving any profit, let alone any bonus, when 300 million of us are lend our 'full faith and credit' behind her to insure success, when 1 of 3 homes is less worth than the mortgage that secures it, when unemployment is reaching 20% in many areas, the once rich are lining up for food stamps, and the homeless swell the streets.
We cannot fault the greed of those with the capital, nor can we fault the innocent home buyer who is sweet talked into a deal that any prudent lender would reject. Greed will always prey upon the innocent. What we need is for Congress to quickly enact emergency legislation to tax these bonuses at a 90% rate. That way America can earn her just due and perhaps Goldman may still live to see the light of day!
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