Are we becoming a banana republic of rich and poor? You decide.
last week came reports about the phantasmagoric bonuses that Wall Street is handing its top-tier employees. Goldman Sachs Group alone is giving "$16.5 billion for salaries, bonuses and benefits, or an average of $622,000 for each employee," according to the New York Times. The Financial Times reported that Lehman Bros. Holdings Inc. and Bear Stearns Cos. would shell out "about $12 billion in compensation -- more than $300,000 per employee."
But in the fun-house world of American capitalism, don't count on these greenbacks being distributed in such an equitable manner. Instead, the top rainmakers are expected to walk away with multimillion-dollar checks in their Brooks Bros.' pockets -- with Goldman Sachs' "golden 25" receiving $25 million apiece and some big dealmakers scooping up as much as $50 million.
All told, there have been estimates that Wall Street Santas would deliver more than $100 billion this year -- more than quadruple the record $21.5 billion in year-end bonuses handed out last year.
Where will this river of liquidity flow? In addition to furs, diamonds and other pricey tchotchkes, the biggest beneficiary of the Wall Street wellspring may be the luxury real estate market.
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