Luxury Car Dealers Look Away Now: Wall Street Bonuses Go Poof!
Today's New York Times reveals the not-so-startling news that Wall Street's Big Swinging Dicks are not so big and not so pendulous this year. "A review of the latest statements from the largest financial companies based in the city shows that they intend to hand out about $18 billion less in pay and benefits in 2008 than in 2007… It would mean about $10 billion less in taxable income and several billion dollars less to be spent on apartments, furniture, cars, clothing and services. For many investment bankers and traders, year-end bonuses traditionally account for at least three-fourths of their income. But the downshifting of the Wall Street lifestyle has already begun." The general economic downturn is starting to take its toll luxury car sales, with Lexus down 29.8 percent in June, down 14.7 percent for the year. But is it possible? Could Porsche's $127k base Panamera land with a thud? Will Ferrari actually be heading for that moment in their history when they have, gulp, inventory?
The Lexus's sales fall is more of an indication of their real customer base is not on the same level as traditional titan's BMW & MB. A significant percent of Lexus' s customer base can not really afford their product. This is more alarming than the actual fall in sales. Toyota's product and service maybe on the same level as rivals BMW and MB but there customer base is not.
The bonuses paid to these guys is obscene. In a downturn in the economy the small guy is always told that a pay rise is out of the question, nthe company lost X milion dollars in the last year so the company cannot afford it. How often do we see bonuses cancelled all together for the same reason. NEVER. History show the rich get richer the poor get poorer.
A country that manufactures nothing becomes nothing. We are following in the footsteps of England. A banana republic that rises and falls on stock market valuations, housing bubbles and other vague notions of wealth - fleeting ones at best.
I do not want to expect to much from this, but I do hope for a lot. What I really want is help and guidance through obstacles. Greedy folks are obstacles, economic woes are obstacles. I just do not want to suffer because of my challenges, or fear them. I made need to make some pioneering moves though.