Perception tends to lag events, a phenomenon from which a lot of Wall Street bankers are suffering at the moment. While the general public believes they are still living it up on borrowed money, the reality – for many of them at least – is different.
The squeeze on investment banks, which took some time to occur following the 2008 financial crisis, is now kicking in. As Tony Jackson writes in his FT column, the glory days of easy money for bankers are over (for the time being, at least):
Across the western world, the public rhetoric about bankers is proving oddly durable. They caused our troubles, but are not sharing them. We suffer privations, they get bonuses.
That is somewhat behind events. Investment banking, at least, is in a slow-motion train wreck. The fact that some bankers are still in the buffet car squabbling over the last bottles of champagne is a distraction.