Rich People to Cut Their Spending?

News
Rich People to Cut Their Spending?
Wall Streeters are worried about smaller bonuses.
By Allison Moore
HD Diva

Washington, D.C. (January 1, 2008) -- The rich. They say they are different than you and me.

But not when it comes to tightening the belt in this economy.

Reuters reports that Wall Street companies have slashed their bonuses for top executives, forcing the financial fat cats to rethink their gluttonous ways.

The companies are nervous about the mortgage meltdown and the global credit crunch, says the wire service. Consequently, bonuses are down from last year with some income traders getting no extra goodies at all.

"Job security is more an issue right now than how to spend one's bonus," James Grubman, a clinical psychologist who has consulted with wealth management firms, tells Reuters. "If you are not sure whether you are going to have a job in the financial services industry shortly, you may be more conservative with your spending this holiday."

Morgan Stanley and Merrill Lynch, in fact, axed their co-president and CEO respectively due to falling profits and other anxiety-inducing causes.

So, Happy New Year! But put the Aston Martin back in gear, the travel agent on hold and the condo in Aspen on the market.

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