Uncommon Sense

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Wall Street Bonuses Flood NYC’s Economy

Wall Street Bonuses Flood NYC’s Economy
December 19, 2006, by ADAM GOLDMAN

Trickle down theory works again. Reaganomics

When Michael Aaron learned that Wall Street investment banks were going to be shelling out record bonuses this holiday season, the savvy wine merchant uncorked his own plan to make serious dough.

He paid for a double-page advertisement in The New York Times, boasting a rare bottle of 1995 Dom Perignon. The price tag—$14,950.

“We thought we’d put this temptation out there,” said Aaron, chairman of Sherry-Lehmann wine store on Madison Avenue.

The $15,000 bottle of bubbly is just one example of how record Wall Street bonuses this year can trickle through New York City’s economy. People are buying multimillion-dollar apartments. They are driving $40,000 BMWs out of the showroom.

A report released Tuesday by the state comptroller said Wall Street is expected to pay out $23.9 billion in bonuses, shattering last year’s record by 17 percent.

economics, economy, news

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Filed under: economics, economy, news

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