The Good,The Bad, And The Bankers

It’s being reported that sales of existing homes are at their highest level in nearly 3 years in the U.S.  Sounds pretty good doesn’t it?  Sounds like the economy may be turning around.

Before you get too excited, it should be noted that home mortgage foreclosures are also rising.  Here in Los Angeles, homeless people are showing up in relatively affluent parts of the San Fernando Valley, where not that long ago there were no homeless to be found.    About  90,000 of Los Angeles County’s residents are currently homeless.  Unemployment in the City of Los Angeles is running around 12.4%.

While it’s wonderful that some can afford to buy homes, it’s far worse that many others are being thrown out on the street.  You could say the bad outweighs the good?  Maybe I’m being too pessimistic?  Seeing a mother with her three young kids hoping for a handout while gathered around a shopping cart that holds their worldly possessions will do that to you.

What’s the average salary for an employee at Goldman Sachs?  Was the average pay package expected to hit $900,000?  Is that possible?

“Goldman’s second-quarter earnings, which amounted to $38m per day, were up 65% on 2008 and confirmed the US bank’s status as one of the stand-out winners from the credit crunch which paralysed the financial industry for much of last year.

The firm’s revenue of $13.76bn was the highest in its 140-year history. Its success on the trading floor is likely to translate into record bonuses, to the dismay of critics who view runaway compensation as a key factor contributing to the global economic meltdown.” -The Guardian

So the big bankers are bouncing back after the bailout?  How?   Experts say they are making many of the same risky investments that got us into the biggest financial mess since the Great Depression.   And it appears that without new and serious regulation they might take us there again.  Only this time it could be worse.  Much worse.

Before this is over it could be someone you know standing out there in a supermarket parking lot with nothing more than a shopping cart holding their dreams and aspirations.

Leave a Reply

Your email address will not be published.