Cheer for this triumph against greed, then unpack your bags

Greenwich Democrat triumphant

Wall Street bonuses to be flat, reduced or in the case of 20% of its employees, non-existent.  Dodd/Frank has squeezed the profitability out of the industry and the law’s effects are only just beginning to be felt: Hiawatha Warren, scourge of Wall Street, has been whooped into the Senate by liberals regressives aghast at the very idea of someone else making money (new money – if your grandfather did his looting in the early 20th Century well that’s alright then – who else will keep Nantucket home values up?) and your children will be delighted, as they’ve been taught to be by their teachers, whether in public or that private school costing $40,000 per year per adorable towhead.

Wonderful news, of course, but Greenwich homeowners hoping to sell their houses might temper their enthusiasm a bit because – here’s a little-known-secret – those Wall Street bonus babies are the very people who have been purchasing what your friends and neighbors have been selling at such magnificent levels. The music has faded, the horses are slowing to a halt and you, my friend, are still stuck on the pony. Bad luck, eh?

21 Comments

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21 responses to “Cheer for this triumph against greed, then unpack your bags

  1. Please stop calling thses people “Liberals”…that implies Liberty…..exactly the opposite of their beliefs…..

  2. Peg

    Whatever you want to call them, at least they will be happy. Their goal? “Equality for all.”

    But it’s not the old fashioned American “equality of opportunity” or “equality in the eyes of the law.” It’s “we get pissed when someone is successful and wealthy. So we want to tear those people down, so we’re all ‘equal’ – and mediocre.”

    Congratulations, folks. You are well on your way.

  3. Just_looking

    This has happened in other industries. When I was a kid it was the drs and dentists that had the cash, nice cars, etc, then the govt took the margins out of that industry, financial services is the latest target and the process has begun to take the margins out of at industry. It will take a while but it will happen. I suspect that in time a different industry will take its place.

  4. Reader

    I hope all those Greenwich Moms who voted for Obama because of the GOP “war on women” will be happy with their husband’s smaller bonus and the higher taxes on that bonus. Will they regret their vote when they trade in the Range Rover for a minivan? Will they forego their summer rental in Nantucket?

  5. Al Dente

    I thought our endowment included life, liberty and the PURSUIT of happiness. Not someone else’s version of our happiness. Guess I was wrong.

  6. Anonymous

    in obama’s acceptance speech i heard him utter the phrase that the greater good is more important than individual accomplishment, or something along those lines. anyone else catch that?

    nice metaphor for his entire administration.

  7. InfoDiva

    Moving to Greenwich and putting your kids in public school here–especially with a low interest mortgage– is still vastly more affordable than buying that three bedroom coop in the city that only allows 50% financing (if that) and paying private school tuition for the little darlings that starts @ $40K for kindergarten.

    In all honesty, I think lower bonuses won’t hurt Greenwich bread-and-butter family houses as much as you seem to think. I do agree that the $5 million and up market is going nowhere, but that’s not news.

  8. Anonymous

    Reader- actually Romney won all but 3 of Greenwich’s 12 voting districts, so I think more Greenwich mommies than you think were actually voting with their wallets.

  9. Anonymous

    that’s because hubby said if you don’t vote romney, no more private pilates sessions with dirk diggler.

  10. Cos Cobber

    UBS’s exit from fixed income trading wont help around here. The 3500 employeed in Stamford will be reduced to 2000 and then the question will arise in 2017 if UBS leaves all together (when state incentives end). Why have a big building in Stamford running at 1/2 capacity.

  11. Balzac

    For months the media said Romney was an out of touch millionaire whose ideas were selfish and unworkable. Now that the media’s candidate won, we learn from today’s NY Times, p. 1: “Democrats like a Romney Idea on Income Tax” (capping total deductions). Your media tell you the truth, but late enough to ensure that no voter draws the conclusion that Romney proposed some innovative, practical solutions.

    Former Treasury Secretary Robert Rubin has an op-ed of 16 paragraphs, explaining why tax rates should rise. In one sentence he notices that spending cuts are needed. Rubin and all the silly commentators are laser-focused on the ideological, minor question (taxes) while ignoring the more important, practical one (spending). Allowing the Bush tax cuts to expire on those earning $250,000 will raise less than $100 billion annually. On the other hand, reducing federal spending to its historical average of 21% of GNP, as recommended in Simpson-Bowles, will reduce the annual deficit by $450 billion.

    For the Democrats and their media allies, the primary policy objective is an ideological one, to tax those prosperous Americans. They decline to face the big issue, spending.

  12. Cos Cobber

    Great post Balzac. FF, name one defense related spending cut proposed by the Dems?

    I know I am in the minority here, but I think the Republicans should let the Bush tax cuts expire in exchange for real changes to federal spending and the social programs.

  13. GreenITCH

    Cos Cobber .. as for UBS , their FI group which includes Bonds , Currencies and Commodities is probably around 100-150 trading positions . a majority of those people live north of even Stamford , in towns such as Weston , Ridgefield , Fairfield etc .. The rest of trading is already in NYC … Support and lower paying positions are all that will be left come SEpt 2013 …Fact is, you have to live somewhere and many will just deal with commute . Id actually argue with UBS moving positions back into City helos lower Fairfield county … Any town that has a horrendous commute time to NYC , which even includes New Canaan suddenly not as attractive anymore as what is left of banking positions now back in city

  14. Cos Cobber

    GreenItch, how does the 100-150 figure reconcile with the announced head reduction target of 10,000 widewide of which UBS indicated 2k-3.5k would come from North America?

    You have a good point about Stamford vs NYC, but personally I’m less concerned about Greenwich per se and more concerned for the region. Empty buildings in Stamford are never helpful and Malloy/hartford sure will miss the income taxes.

  15. Chief Scrotum

    Although the UBS move maintains salaries of HQ staff in Switzerland, it also begins a death spiral for their trading business as customers increase their trading with other counterparties. It doesnt matter how anyone portrays it, the number of people with outsized comp, is gone for a long time in CT

  16. kc

    Peg,
    I agree with you but there will almost always be those who learn to game the current system and come out on top. It’s just a matter of what skills and talents are rewarded by the current group in power. We can choose to try to reward effort, talent and skill or we can reward cronyism and political ability or whatever you’ve got.

  17. CL Pasm

    @ Balzac…..see quote below from the actual article. I think your point was that Romney had a good idea and that the media failed to alert the general public because it was counter to their agenda. Without the blinders, perhaps we can start to appreciate that the “innovative, practical solutions” you speak of can and do come from each party.

    “The cap — never fully detailed by Mr. Romney — is similar to a longstanding proposal by Mr. Obama to limit income tax deductions to 28 percent, even for affluent households that pay a 35 percent rate.”

  18. Silent Minority

    The unfortunate reality of today’s leadership (including the private sector) is a generation that fueled growth by leveraging the balance sheet of their predecessors. We have created a cashflow (read: check to check) economy at every level. Obummer’s “you didn’t build that” was actually accurate. Sadly, it applies to the majority of adults in the private and public sector. They possess a remote and limited grasp on what fueled this country to its extraordinary living standards in the post war era. Greenspan is perhaps the posterchild of self-reinforcing morons that spent far too little time studying how prosperity is actually built. He built his whole economic policy on a trend of producitivity that he could not disaggregate among labor inputs, technology advancements, and simply selling the family silver. The trend continues…

  19. Anonymous

    Mr Scrotum,
    I think the UBS impact per se is not that huge, the problem is broader and industry wide. People who work for hundreds of financial services firms in NYC commute from Connecticut, the collective impact of all these firms paying less compensation is far more damaging than the UBS job losses, where as somebody else said the number of high earners impacted who worked in Stamford is relatively few.

  20. Cos Cobber

    Evidence of a weaker than hoped for CT economy rear’s itself in the state budget projections….so far the Malloy loving hearst newspapers have ignored the story.

    http://ctmirror.com/story/18167/state-budget-deficit-explodes-governor-expected-prepare-deficit-mitigation-plan