Busted: Bankers and The Global Economy

June 26, 2008

More Jobless Bankers Set to Hit Job Market

Citigroup Inc., one of the larger international bank holding companies, will cut 10 percent or about 6,500 of the jobs in its investment banking division here in the States. Citigroup has trimmed more than 350,000 employees around the globe. By the end of March at least 9,000 positions had been cut based on information from the Wall Street Journal.

The Journal voiced that entire trading desks in New York and other cities are expected to be cut and especially hard-hit will be mergers and acquisitions bankers.

Meanwhile, certain investment firms like Stifel Nicolaus and Thomas Weisel are hiring to take advantage of the fire sale of available labor.

Meanwhile, the banking community continues to seek investors in an effort to stop the bleeding from bad securities. State government is piling on as well. California’s attorney general has filed a civil lawsuit against Countrywide Financial claiming the mortgage lender used misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn’t fully understand. Greed and bad business eventually consume the perpetrators. Banking is being forced to look at itself in the mirror.

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May 13, 2008

Housing Crisis Over?

If the Wall Street Journal says it, it must be true! The brilliant economist and author Cyril Moulle-Berteaux declares that “most people forget that the current housing bust is nearly three years old.” He bases the supposition on evaluation of latest trends.

He’s right that affordability ultimately created the mortgage bust. How high can real estate prices go while undergoing the intense misuse and abuse of the banking community? Affordability was created by “false affordability” through unsound practices. You cannot finance the world in a never-ending upward spiral.

The doctor of Wall Street declared that “the boom made housing unaffordable for many American families, especially first-time home buyers.” The fact is that abusive and overextended lending practices lead to (more…)

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