For a long time, it has always been argued that Megabank CEOs should be paid their millions in bonuses. As the argument goes, which has always been splashed out onto the media, CEOs need to be paid these huge bonuses because it is such a competitive market and we need the banks.
But here's a wee thought and here's something the MSM never told you.
For instance, say the CEO of Goldman Sachs gets a cash bonus of $100 million. What happens to that money?
Odds are that the CEO of GS will put all that bonus money into his GS account. That means that that $100 million gets multiplied by 10, due to the fractional lending multiple, so this generates -- at the flick of a switch -- approximately 10 x $100 million or $1 billion dollars for Goldman Sachs !!
So Goldman Sachs -- as well as all the other world Megabanks using this bonus payout mechanism -- actually MAKE MORE MONEY OUT OF THIN AIR by paying such high salaries and bonuses to their workers.
Not bad, eh?
Happy New Year !!