Here’s a total buzz kill from Bill Gross.
News is out today that Wall Street pay hit an all-time high this year: $135 billion was paid out to finance execs, according to the Wall Street Journal.
And PIMCO’s Gross is here to crush any feelings of pride with this, a startling statistic from Bill Gross’ most recent investment letter:
Almost a quarter of the 400 wealthiest people on Forbes annual richest list make their money from money, whereas only 8% could make that claim in its first issue in 1982, and probably close to 0% when I first read my economic primer in 1966…
The rest of his letter goes on to talk about how the country is going down the wrong path by encouraging the best and the brightest to pack up for Wall Street instead of the research labs. And how Congress can be bought, and how record corporate profits are a devil’s bargain for the price of America’s soul.
For example, he asks:
How can bond traders make 10, one hundred, one thousand times more money than an engineer or social worker given their dismal historical performance? Why is it that some of today’s doctors are using food stamps while investment banking executives complain about millions of dollars in compensation that might be deferred in case of a future bailout [also known as the clawback]?
Sidebar: What doctors are using food stamps? The ones at the bottom of their class? Just kidding, but we can’t find a record of this happening. Of course, feel free to correct us.