Goldman's BLOWOUT year end compensation payouts . . .

Intresting theory pattyboy.
Goldman bankers arent likely to own more than one apartment in the area.
And Morgan Stanley bankers ... what, they think Goldman will be hiring them? Maybe a few, no more.

Yeah, can't wait for the Big Guaranteed Blowout. Just 5 more months to go: August, September, October, November, December. Good thing nothing bad ever happens in the financial markets during those carefree months of autumn!

GS employees are too smart to try to catch a falling knife. Why would they anyway when they can buy various stocks with inside info (that's how it's done on WS).

Despite the positive news in the press. I've heard that the culture in GS has taken on a conservative tone in terms of cutting costs and excesses. They have had significant layoffs over the past year and aside from the profit generators, a lot of support staff, IT, Operations etc will probably remain cautious on RE in the short term. besides bonuses aren't revealed to each employee until the 4th qtr.

GS laid off 16% of their workforce. Some of the bonus may be in restricted stock as well, so I doubt it's all cash. Most GS employees prob already own their own apts / homes anyway and don't want to be landlords. I would think they have other, more lucrative, areas to invest their personal wealth than NYC condos.

1) For a lot of the revenue generating jobs, it is a huge pain to invest in stocks as there are major restrictions and hoops to jump through in order to buy and sell. This is true for not just GS but a lot of the major banks. (If you don't believe me, ask some people what they do and how much of a pain it is. If they claim it's not a pain, then they don't do it often or they are maybe exaggerating their position.)

So a lot of these people prefer investments that they don't need to go through layers of approvals for... real estate being one of them.

2) Despite all the hoopla about huge bonus pools and bonus per employee, do you really think support, IT, operations, personal assistants are going to get the average bonus? In REALITY, the pool is smaller than most realize for the majority of staff and quite frankly unfair.

"and quite frankly unfair"

to say the least

I doubt most GS employees have to jump through hoops to invest in stocks/bonds. Even if they do, I'm sure most of their wealth is tied up in GS stock. I don't see many GS employees speculating in RE, sorry - especially on the way down - as I said, they're too smart for that - that's why they are GS employees!

>>I doubt most GS employees have to jump through hoops to invest in stocks/bonds.

You should find any revenue generating trader or banker at any bank and ask them. What I said is fact.
You're putting words in my mouth on the speculating.

My statement was intentionally very neutral and just attempting to clarify some huge misconceptions.

Confidence is what this NYC housing market needs and the GS news is one step towards it.

aifamm - you really think GS bond traders want a 2nd job as a landlord??? I don't think so.

GS stock is still $100 off its high.

Hmmm... wonder why.

Guess nobody actually wants to put their money where their mouth is...

If folks don't want Goldman stock, you think they're going to want tanking real estate?

bs: Show me where i said gs people want to be landlords. I said specifically some prefer real estate. That's it. I also said on the flipside that bonuses aren't as big as the media makes it to be.

If they buy RE and don't live in it, wouldn't they be landlords? Or are they just going to let the property sit vacant? I assume most GS employees already own their own homes or condos.

You can invest in your primary residence as opposed to renting. Since in manhattan owning cost > renting cost, I was calling that "investing".

If you assume most GS employees already own, then we are having a pointless discussion.

But interesting nonetheless that you think GS employees are smart... and then assume they already own. ;)
Hehe ok enough. Back to work.

I assume most own b/c either (A) they bought prior to the bubble or (B) they live outside of Manhattan b/c they have families. Do you really believe they most highly compensated GS employees are renters???