Outrage, from James Bitumen

March 19, 2008 |

TallyOne thing is for certain regarding the collapse of BSC: restricted stock and options compensation, which likely went from an aggregate net worth of a several hundreds of millions of dollars to the ripe and round figure of zero. The decay of this wealth is what no one is talking about and what will have substantial ramifications over the medium-longer term.
On a much more important note: we have arrived at the point of the free market lifecycle where profiteering might still remain private, yet losses are now becoming socialized. Also scary are the recent changes made by our Treasury regarding the rules and limits of credit/mortgage market dealing by participants. "You can only profit so much." Or, "this is no longer a free market."

Jim Sogi replies:

Decay of wealth? In fact over the past five years net wealth has gone up approx 48%. This despite the drop in the real estate market which constitutes a much smaller share of net wealth than equities. Also consider that the bulk of spending and wealth is concentrated in the top quintiles where income and wealth have gone up at an even faster pace. So the press and meme about decay of wealth is a red herring designed to part you with your money and transfer it to the top.


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