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ECONOMY & EXECUTIVE PAY

This nation—in fact, this world—finds itself in an economic nosedive, driven downward since the turn of this century.

As the economy plummeted, executive compensation for the financial industry skyrocketed. Since the start of 2009, the shock has become more obvious and apparent.

When the Glass Steagull Act was written off the books by Congress in 1998, the American banking industry then could legally engage in brokerage, i.e. trading of financial instruments. As bankers, they created financial instruments such as loans. These loans had mystical provisions, which I do not have room to discuss. Simply put, a $1 million mortgage yielding a $50,000 low rate per each year, in three years would yield $75,000.
Bankers could package these together in financial bags and sell bunches to hedge funds, other bankers, and other crapshooters on Wall Street. Mr. Big Bucks could

borrow $100 million from Citi for 4.5% and buy a bag of 100 of these mortgages. In three years, Mr. Big Buck’s $45,000 per annum’s cost would yield $75,000. Of course, Mr. Poor Man, the borrower, in three years could hardly keep up his payment, and then he lost his job. The borrower was broke and the mortgage was in default.

In the meantime, the bankers who sold these toxic time bombs were getting millions in pay and bonuses. Who is paying for this today?

Jerks like you and me.

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