Most Wall Street activity is devoted to diverting money from one person’s pockets to another person’s pockets. Most minimum wage workers do things that are directly beneficial to people.
The past financial crash was worse because Wall Street bankers and financiers took risks with other people’s’ money. The coming financial crash will be worse for the same reason.
The Wall Street bonus system is an incentive to take risks, because the managers get to keep the bonuses when they win and they do not have to give them back when they lose.
Financial markets are necessary to a well-ordered capitalist economy. But they should serve the needs of business and industry, rather than vice versa. And those who operate the financial markets should not be in a position to control the economy or soak up the wealth of society.
After the financial crash of 2008, none of the failed Wall Street firms was willing to cancel bonuses as a condition for receiving bailout money. Both the Bush and Obama administrations capitulated and granted the bailout funds anyway.
Since then, regulators have been working on rules to limit Wall Street bonuses, but no rules have been issued. It’s unlikely any such rule will be proposed under the Trump administration. It has almost as many Wall Street financiers in authority as retired generals, and Trump’s program is to get rid of what little financial regulation that there is.
Four Wall Street Bonus Charts That May Make You Scream by Sarah Anderson for Alternet.
Donald Trump Isn’t Even Pretending to Oppose Goldman Sachs Anymore by David Dayen for The Intercept.
Donald Trump Wants Right to Say ‘You’re Fired’ to Consumer Protection Head by Erik Sherman for Forbes.