Monday, October 6, 2008

Best investment advice: shoebox

The yacht is usually the first to go. Then the Jag and the vacation homes. But don’t think the Wall Street titans are facing a soup line like many Americans. Not yet, anyway.

Their accumulation of wealth has been astonishing. In 1982, it took about $159 million to make the Forbes 400 list. Entry price today is $1.3 billion.

What did the greedy bastards do with the money? They put on a never-ending party. Last year the head of a private investment firm spent $5 million hosting his own 6oth birthday party. The excesses are unbelievable. Click here to read more.

Showy oceanfront homes are on the block. Does $32 million sound like a bargain to you?

Brokers like it hot, and just months ago they were spending $50,000 – even $100,000 – in high end strip clubs. If they liked the performer, tips ranged from a $10,000 line of credit at Bloomingdales to a pair of $125,000 earrings. Guess what? The big money guys are still going to the NYC strip joints.

If more voters only knew …

This just in: a 12-ounce bag of Lay’s Potato Chips costs $7.39; a 20-ounce bag of Cheerios, $8.29; and a 19-ounce of Progresso beef barley soup, $4.29. That’s in Akiachak, Alaska.

Not here. Not yet.


Ken Martin said...

Shocking, yes, but surprising? No. Reminds me of the the heady dot-com days, when Austin start-ups living on venture capital flew their entire company workers to exotic locations for vacations. Team building, you know, morale boosting, you know, productive in recruiting more snot-nosed future Masters of the Universe, you know. Nearly all those companies flamed out, too.

Ira Kennedy said...

Enough of this "Trickle Down" theory. This is what it looks like for my youngest son who works at Sonic:

In the recent past he was working 50+ hours a week and saving money. Then he was unfortunate enough cut his hand while washing dishes... $600 in the emergency room for six stitches. Last night he learned Sonic was cutting back all workers hours to around 30 hours a week (at minimum wage). So, he has gone from working six days a week to three. And the local manager has no say-so over the hours his employees work.

He's now looking at working two jobs. Even at that they aren't enough for him to save money buy a car, insurance, etc.

In my youth (I'm 67) I could afford to be poor: rent an apartment in 1965 on St. Marks Place, NYC, on a dishwashers salary.

What's become of U.S.?

Anonymous said...

And the Dow went below 10,000 this morning. Remind me to check the web for the hemlock society... Sharon

The South Plainsman said...

You guys probably remember Franklin Raines. He's the guy that ran Fannie into the ground while collecting nearly $100 milion is salary and performance bonuses. When he was caught cooking the books to get the bonuses, he was let go. With a $240 million "Golden Parachute." Jamie Gorelick didn't quite do as well.

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