As #Occupy Wall Street cleaned up its tents from Zuccotti Park and the pepper spray from their face, the One-Percenters were also getting a boot in the rear, to a tune of approximately 200,000 lost finance jobs!
Some are calling this massacre of jobs a complete ‘a paradigm shift’ as the cushions of the 2008 market crash seem to have deflated since then. Back in 2008, Wall Street rebounded with the help of unprecedented government support, including loans from the U.S. Federal Reserve. Even the poster child of Wall Street, Goldman Sachs, posted record profit the following year, and bonuses paid to securities-firm employees in New York City rose 17 percent to $20.3 billion, according to New York State Comptroller Thomas DiNapoli. Today, Wall Street is getting ZERO money and ZERO sympathy.
More specifically, in a delightful Bloomberg article, Huw Jenkins, former head of investment banking at UBS AG and now managing partner at Brazil Banco BTG Pactual SA (very long title), stated that this climate “is something very different. This is a structural change. The industry is shrinking.” And even Wall Streeter-prone blogs like ZeroHedge has posted about the scare and the fact that some are saying that Wall Street wont be regaining its lost jobs until 2023! Ouch!!
Where will all these guys and gals (very few) go?! Definitely not Zuccotti nor their parent’s home because let’s face it, unless they were extremely stupid and reckless with their bonus/salary, then they could be okay for a couple of months, even years if they move to places like Quito, Ecuador (like some Wall Streeters are) where the low cost of living and emerging markets could lead to promising and growing career opportunities. I recently met some guys that left the industry voluntarily and are making their way over to sites like Escape the City, to search for oversees, fun, exciting, and seemingly well-paying gigs.
Needless to say, the trend is not looking good for anyone! Not even the perceived One-Percenters who are also losing their cushy jobs for reality checks. One guy even said his bar tab the week prior to his MF Global layoff had more zeros than the money currently in his savings account. How the F does that happen, I dont know! But the truth is, it sucks for a lot of people right now. Again, I cannot say I feel bad for the kid who got a bonus of $128k rather than the usual $300k due to decreasing Wall Street payouts, jobs, and morale- but I can say that there are a lot of reality checks going on and it does not look too pretty for anyone. Well, except the top 0.1% and the U.S. Senate.
Hence, before you picket, take a look arond you, and ask whether you are picketing the right cause and person. It may be that the well dressed guy next to you on the subway may have just lost his job too!
- UnoccupyWallStreet: As 200,000 Depart, And The Rest Face Plunging Bonuses, A Look At Wall Street From The “Other Side” (zerohedge.com)
- Wall Street Unoccupied as 200,000 Lose Jobs (businessweek.com)
- Wall Street faces ‘darkest days’ as jobs vanish (business.financialpost.com)
- The Heroes of Wall Street Are Actually Barred From Wall Street (businessinsider.com)
- Pre-Marketing: Could AIG bailout cost another $25 billion? (finance.fortune.cnn.com)
- Occupy Wall Street has money to burn (money.cnn.com)
- The Single Most Dumbfounding Sentence About Occupy Wall Street Ever Published [Journalismism] (gawker.com)