Who made money on the financial crisis?

The financial crisis that we are currently going through has cost a lot of people a lot of money. However not everybody has suffered as a result of the crisis, in fact there are quite a few people who have made money as the result of the crisis. In some cases they have made a great deal of money. The most troubling part is that by and large the people who have made the money are the same ones who got us into this mess.

In large part the people who made money during the financial crisis were the people who led us into it. That is mainly the executives at the large banks and other financial institutions whose questionable practices were the main cause. While the institutions themselves lost heavily it was the investors who were left holding the bag. The executives who actually ran the companies received very large salaries and bonuses for turning in huge profits in the days leading up to the crisis. Unfortunately these profits were a house of cards that ended up collapsing. Even more shocking is that many of the executives that caused the crisis have remained in their jobs and are still earning very large salaries.

The reason that most of the bank and Wall Street executives are still earning large salaries is that most of these institutions have returned very quickly to profitability. They were able to do this because of the huge government bailouts that they received to keep them from going bankrupt. While the banks have certainly lost market capitalization which has cost the investors in the company a lot of money the people who run the companies have continued to earn a lot of money.

Surprisingly it is not just that have made money on the financial crisis. Many of the lower level employees have as well. In large part this is the derivative traders who in large part share responsibility for the mess. Again this comes down to large bonuses that were paid. It is hard to understand exactly why they were paid these bonuses since the trades they made resulted in the loss of a great deal of money. Nevertheless they received the bonuses and they continue to receive them.

There is another group who have taken advantage of the financial crisis in order to make money and that is big business. While many corporations are in fact losing money there are also quite a few of them that have taken advantage of the crisis in order to reduce their costs. The main way that they have done this is by laying off employees and sending the work overseas. In large part they have blamed the weak economy for this but in many cases it was just an excuse that they used to justify laying off employees to make the company more profitable.