Just numbers


JP Morgan 2009 bonuses = $26.9 billion

Subprime chargeoffs at the bank (in other words, foreclosed mortgages - i.e., people kicked out of their homes) = $568 million in the fourth quarter of 2009.

Put another way, paying ten percent less bonuses could have stopped all sub-prime foreclosures in 2009. Without doing the math, it's easy to guess that shaving another, oh, five percent off the bonuses would have stopped ALL foreclosures.*

Wealth transfer, indeed.

* Even if you're still employed and paying off your mortgage, the rash of foreclosures affect all homeowners, further depressing housing prices. I suppose if you don't own a house but want one, that is a good thing - assuming, of course, that you can convince a bank to lend you money.
And no, I don't suggest that JPMorgan just give those houses away, nor do I think it's a good idea to buy something you can't afford. But if you think the banks are doing any of us a favor, you're nuts.