As I write this, millions of Americans do not know how they can make their next house payment, visit the doctor, buy their next prescription, fill their gas tank to go to a job interview, or even feed their children. These are rough times for Main Street. Meanwhile, the least deserving of all Americans, the people whose unfettered greed visited these hardships on everyone else, are licking their chops in anticipation of spending $90 billion in bankster bonuses, while the Republican Party schemes to give them even more.
Conspicuous consumption is back on Wall Street, in anticipation of bonuses close to pre-recession levels. Some American companies have just posted the largest quarterly profits ever. Meanwhile, one in five families is relying on food stamps to get by and unemployment remains stuck at around 10%.
For three years, since massive government bailouts of the financial system, New York’s bankers, traders and hedge fund managers have been wary of flaunting their wealth – many remember the outrage that greeted revelations that Merrill Lynch chief executive John Thain had bought a $35,000 toilet, as his firm imploded. Last Christmas, Citigroup chief executive Vikram Pandit told employees: “We will be judged in the court of public opinion.”
But this year, shameless extravagance is making a comeback. One investment analyst booked hip-hop star Lil’ Kim for his Halloween party. Another paid Playboy bunnies to dance for guests behind a satin screen. A Morgan Stanley trader was sacked for hiring a dwarf for his friend’s stag night in Miami and trying to handcuff him to the groom. And business is booming at the most expensive shops – luxury jeweller Tiffany reported a 7% increase in sales worldwide.
The Japanese bank Nomura has estimated that America’s top five financial firms – Goldman Sachs, Morgan Stanley, Citigroup, Bank of America and JP Morgan Chase – have set aside almost $90 billion for bonuses. “I did not expect compensation would come back the way it has,” bonus analyst Alan Johnson told the New York Times. “I underestimated the industry’s resiliency.”… [emphasis added]
Inserted from <Common Dreams>
In this situation, Republicans say that the extension of benefits for the unemployed must be paid for in the budget, but adding $700 billion to the debt to give these corporate criminals a huge extra tax cut is needed. Unemployment benefits are the most simulative thing government can do for the economy, because they spend it all fast. Tax cuts for the rich are the least, because the rich invest it to transfer even more wealth to themselves from the poor and middle classes. I don’t get how people cannot understand this. It’s not rocket science.
Rachel Maddow and Sam Stein hammer this point home and discuss income disparity and the lame duck Congress.
Visit msnbc.com for breaking news, world news, and news about the economy
This coming month is the best chance Democrats will have to do something good for America. I fear they will cave-in, and I will be taking names.
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