“Goldman posted the richest quarterly profit in its 140-year history and, to the envy of its rivals, announced it had earmarked $11.4 billion so far this year to compensate its workers.
At that rate, Goldman workers could, on average, earn roughly $770,000 each this year — or nearly what they did at the height of the boom.
Only three years ago, Goldman paid more than 50 employees above $20 million each. In 2007, CEO Lloyd Blankfein collected one of the biggest bonuses in corporate history.
The latest headline results — $3.44 billion in profit during its second quarter ”
Yes you just read that Goldman Sachs had a record earning quarter. What about you? How have you done this quarter? How have your friends done this quarter? How has your family done this quarter? In the past two weeks I have known FIVE people who have been laid off from their jobs. This does not include people that I know who have been out of work for months.
According to some facts from the Fight Back Article, US in Longest Recessions Since the 1930s by Adam Price this is what it looks like out there for rest of the quarter that Goldman Sachs had record earnings.
The economy has lost almost 6 million jobs (4.1% of total jobs) since 12/07, the worst downturn since the recession of 1948. Unemployment among African Americans hit a depression-level 15% in April, unemployment for Asian Americans has risen the fastest. 8.5 million people are on unemployment. 10.6% of the US is on food stamps. People on average are out of work five months. More than one-quarter of homeowners are ‘underwater’ with mortgages greater than the value of their home during the first three months of 2009. Apartment renters are being hit as former homeowners are competing for a place to live, keeping rents up (I know of three people who have had rent increases in the last few months, I probably know of more, but haven’t asked) even with the rising unemployment. During the first three months of 2009, 15% of houses were vacant, or more than 19 million homes.
I understand the economy turning around takes time, but you know it didn’t seem to take much time for Goldman Sachs. Goldman Sachs who just in October (of 2008) had lost 50% of its value and then got 12.9 billion dollars of OUR MONEY seemed to have made quite a quick turn around. (For reference the entire state of California is in the hole 16 billion dollars, so the gov’t spent 12.9 billion of our tax dollars for this one company, what’s worse is Sachs only got a portion of the AIG bailout the total was 101 billion and more than half of that went to financial institutions in Europe.)
Why do we have to always wait while rich people get life jackets attached to yachts? I thought we were all supposed to be buckling down and saving and being responsible. I thought we were all in this together. Apparently the same rules don’t apply to rich people.
So the average worker at Goldman Sachs has the potential of earning 770,000 dollars this year, while the rest of the country is practically in a depression.
Some more fun facts:
In June retail lost 21,000 jobs.
In June temporary work lost 38,000 jobs.
In June the federal gov’t lost 49,000 jobs.
These are the fields people tell you to go into when you lose your job, but unfortunately there are no jobs in these fields. There is nothing out there. Nothing at all, look on craigslist, there are no jobs. When is the gov’t going to create jobs that you don’t have to know someone to get?
In June information lost 21,000 jobs
Long-term (27 weeks are more) unemployment has jumped to 4.4 million.
The number of persons working part time for economic reasons
(sometimes referred to as involuntary part-time workers) was little
changed in June at 9.0 million. Since the start of the recession, the
number of such workers has increased by 4.4 million.
Facts gotten from the BLS
To end on a positive note, healthcare added 21,000 jobs, but that’s not exactly a field you can go to without going to school. On the school front Los Angeles City College and Los Angeles Trade Tech College are in danger of losing their accreditations (if your school loses its accreditation the units are not transferable to a four year institution.) East LA College and Pasadena City College were given warnings. Oh well I tried to be positive.