In this time of economic dislocation, with all this talk of rising unemployment, the health care crisis (and that’s for those who have health care), less pay for those who do have jobs, increased poverty, homelessness, and hunger, sometimes it’s hard to remember that the wealthy among us are suffering just as much — no, make that more in many cases — than the rest of us. Thankfully, Nick Carey at Reuters is here to keep us up to date about the travails of those cursed with the awesome responsibility of great wealth:
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Despite some signs that the worst of the U.S. residential housing crisis may be over, many wealthy homeowners are still being squeezed by the combination of weak home prices and the stock market crash.
“I think for wealthy homeowners it will get worse before it gets better,” said Dennis Hedlund, founder of iEmergent, a forecaster for mortgage and real estate companies.
“I don’t think home prices have bottomed yet. Many people are stuck at the high end, as there aren’t many buyers out there,” Hedlund said of owners of luxury properties.
Yes, I cry for them, too. Capitalism can be tough some times, eh? Thank God, though we didn’t over-regulate our financial industry, though, so people of quality and merit who work hard for their money can still make a decent living even in hard times like these.
Major U.S. banks and securities firms are on pace to pay their employees about $140 billion this year — a record high that shows compensation is rebounding despite regulatory scrutiny of Wall Street’s pay culture.
Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007, according to an analysis of securities filings for the first half of 2009 and revenue estimates through year-end by The Wall Street Journal.
Total compensation and benefits at the publicly traded firms analyzed by the Journal are on track to increase 20% from last year’s $117 billion — and to top 2007’s $130 billion payout. This year, employees at the companies will earn an estimated $143,400 on average, up almost $2,000 from 2007 levels.
So my advice to the wealthy who are being so devastated by this economy? Next time, get a job as an investment banker or a senior executive at a large Insurance company. Because “too big to fail” means you’ll never have to be forced to sell your estate in the Hamptons to make ends meet.
