<p>I can’t speak to biotech companies, but VCs have long kept their starting salaries and bonuses on par with the ibanks because we compete for the same employees. I in fact had a call today from one VC seeing if I could pass on any resumes of interns who would not get offers now which gave me the thought to call another and offer her the same. She wants the names. Many believe all types of private equity funds will take the opportunity to grow parts of their businesses or start new ones in the wake of ibanks becoming commercial banks.</p>
<p>I also think the reports of huge salaries/bonuses on the part of young college grads are wildly exaggerated. Given that most of the jobs are in the world’s most expensive cities and that they must dress well and live in safe neighborhoods because of the hours they keep, these kids are not getting rich right out of school.</p>
<ol>
<li><p>As I said, these folks work on commission. It is their livelihood. They will try to sell.</p></li>
<li><p>No disrespect–but weather is rain , sun , snow.</p></li>
<li><p>Demand creates supply.</p></li>
<li><p>Dumb (ignorance) is not an excuse in law or otherwise."</p></li>
<li><p>And apparently lie, cheat, steal and help put people into bankruptcy.</p></li>
<li><p>No disrespect, but another definition of weather is to overcome.</p></li>
<li><p>In a modern economy, equilibrium is highly influenced by regulations or social good. CBOs and MBSs were highly unregulated and held off the books of firms. Thus we are now forced to distrust every RE, banking and investment stock. Perhaps if the Govt, who support home ownership, stepped in to set proper regulations on ARM mortgage lenders.</p></li>
<li><p>Which is why, shortly above borrowers, are the lenders who made dumb loans and spread false and misleading information to confuse borrowers.</p></li>
</ol>
<p>morris,
Who is making money in their IRAs and 401ks? The Dow Jones Industrial Average first crossed 10,000 in March, 1999. Almost ten years later, it is up about 15%. That lags the rate of inflation. Meanwhile, Wall Street wages exploded during this period and some of the money was just obscene. I’m not a class warfare type, but a lot of what has gone on Wall Street over the last decade has IMO been unconscionable. If America ever really knew the extent of the manipulation and the greed…and this bailout just continues that fleecing. The biggest beneficiaries are going to be the Wall Street folks who put us all in jeopardy in the first place.</p>
<p>The only happy outcome is if behavior gets changed, from people making poor decisions with huge institutional resources to people deciding how much debt to put themselves in when contemplating a new car, home, or that extra appetizer at Applebee’s. People at all levels in this economy have to change the way they spend, save, borrow, invest, and take chances.</p>
<p>Meanwhile Wall Street’s busy pointing fingers. First it was homeowners taking advantage of the market Wall Street created. Now they’re blaming regulations and accounting standards that merely show a record of a bad debt.</p>