Earlier this year, I talked about how the money sloshing into London has created a new class of bankers and traders: the haves and the have-yachts.
But US bankers and traders haven't exactly been on Struggle Street either. The bonanza has also been very much in evidence on the other side of the Atlantic, something I have talked about here and here.
Now we have a report in The Guardian that the boom in mergers and acquisitions, hedge fund activity and private equity buyouts in London has driven bonuses to a record high, up 30 per cent to £14 billion which is twice as big as 2006.
The real estate agents have cashed in with London property prices rising 30 per cent over the past year. Also, the new rich are buying up farm houses as weekend retreats. There's so much money flowing in that the waiting list for a new Rolls-Royce in London is now five years and there is a shortage of crew members for the big monster yachts.
While there are concerns about the growing gap between rich and poor – and warnings that it could lead to riots – analysts say it's not going to increase. Recent turmoil in the markets means that the bonuses paid next year could fall by 20 per cent. Poor guys, let's shed a tear.
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