Despite all the gloomy headlines and serious fallout from the sub-prime mortgage business, according to Bloomberg News Wall Street bonuses this year are estimated to be $38 billion, even greater than last year.
Many shareholders in stocks have lost money this year, but the increase bonus pool comes from investment banking fees from M&A and underwriting IPO's despite the losses from subprime mortgages. Goldman Sachs is reporting record profits, they hedged subprime losses with a short strategy.
The bonus money is split among about 186,000 workers at Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns.
The average $201,500 bonus on Wall Street is more than four times the $48,201 median household income in the U.S. last year, according to U.S. Census Bureau statistics.
Wall Street bonuses again this year will fuel the Manhattan real estate market. The winter and spring should be very strong.
- If you are a buyer on the fence, act now before you are competing with all the bonus money after the 1st of the year.
- If you are holding off listing (selling) your apartment, get ready for January. The sky hasn’t fallen and the winter/spring market should take off again.
To all my friends and clients on Wall Street Congratulations and Happy Thanksgiving. If you're considering investing in Manhattan Real Estate now is a great time. There is a large variety of innovative new designs in luxury new construction, new conversions and resales in every Manhattan neighborhood for every lifestyle.
Whether you're trading up, ready for your first home or want the perfect pied-a-terre, I look forward to helping you. Click the links to become a VIP Manhattan Buyer and start recieving listings or click VIP Manhattan Seller for a complimentary market evaluation of your home.