People on Wall Street are facing tough times, on $350,000 a year. It's true that not of us many will be shedding tears over the reports in Bloomberg that Wall Street bankers will be taking home smaller bonuses this year. In fact, they might even be laughing at some of the more preposterous lines in the story. "People who don't have money don't understand the stress," said Alan Dlugash, a partner at accounting firm Marks Paneth & Shron LLP in New York who specializes in financial planning for the wealthy. "Could you imagine what it's like to say I got three kids in private school, I have to think about pulling them out? How do you do that?"
But what's more important in this story is that it's telling us we might be seeing blood flow down Wall Street. Reuters reports that the New York City fiscal watchdog has found that Wall Street bonuses have fallen by as much as 25 per cent and that profits are down. We read that Wall Street is expected to shed 4300 jobs in 2012, while wages, including bonuses, will fall 7.5 percent, the Independent Budget Office said in a statement."
Then again, we are talking here about the financial industry workers who made the recession happen. Will it have a broader impact on the broader economy? Well, as Motley Fool points out, it will have a big impact on New York City's luxury market, from luxury cars and private jets to high-end restaurants and jewelry companies. Not much of a spillover.