Quote from Landis82:
Agreed.
He was not a floor TRADER.
He was a floor BROKER executing orders for customers . . . some of whom were hedge-funds who are no longer around anymore.
He was probably executing a couple of thousand contracts a day for the little 3-4 man brokerage outfit that he was working for as a floor broker. When order flow "dried-up" their revenues got slashed and so did his SALARY and BONUS.
Unfortunately, his resume does not have any skills that can be realistically transferred to an upstairs TRADING position with the commodities division of an investment bank, or that of a hedge-fund.
And let's not forget how much of your income gets eaten up by taxes in NYC, including the 4% New York City tax . . . My guess is that his actual take home pay from the $200,000 was in the vicinity of $110,000
That's the cold, hard, stark reality of being a floor broker on one of the more successful commodities exchanges in NYC when the hedge-fund community goes through a HUGE contraction.
Good post Landis.
Great point about his "take home pay", probably $110,000, but to make a point, let's take the absolute high and say $125,000.
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From the article--
"Last month, for the first time, the Arayas didn't make a mortgage payment. Their savings are almost depleted. The mortgage, taxes and fees for the family's condo cost $6,200.
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The guy is taking home 125k and spending 60% of it (75k) just on his freaking condo!!!
That leaves 40% of his TAKE HOME for food, clothes, credit cards, utilities, cable/internet bill, entertainment, vacation, college savings for two kids, and retirement savings!!!!
He had no business buying a million dollar condo.
It's very difficult to feel bad for the guy (although I still do).
