Newzity

We may have lost our house, but hedge fund managers have earned money hand over fist during the crisis. They earned so much that they broke even Wall Street’s record. Last year, one of the managers John Paulson made $3.7 billion. Yes, that is a billion.

And he is not alone. George Soros made $2.9 billion and James Simons made $2.8 billion. There are total of five managers who made more over $1 billion last year. The average income of the top 25 managers was $877 million in 2007. The lowest paid manager on the list got only a mere $360 million. Even the average income of the top 50 managers was over half a billion. In the same time period, average family income was $60 thousand. So how did Paulson make his money? By betting against mortgages and banking on housing market collapse. Put it simply, as all of us lost more, he earned more. That is how Wall Street works.

Do not worry when troubles come, everyone from US Government to World Banks would rush to save these hedge funds.