Two major indicators;
Morgan Stanley to cut 1,600 jobs
By Lauren Tara LaCapra
(Reuters) – Morgan Stanley will cut 1,600 employees in the first quarter, the bank said on Thursday, as it trims costs in a difficult period for trading and banking revenue.
The job cuts will come across all staff levels and geographic areas, spokesman Mark Lake said, including investment banking, trading and back-office functions.
Morgan Stanley is one of the last big Wall Street banks to announce major job cuts as analysts have begun slashing fourth-quarter earnings estimates.
Other banks, including Goldman Sachs Group Inc , JPMorgan Chase & Co , Bank of America Corp and Citigroup Inc have already outlined plans to cut thousands of jobs this year……………..
Chicago pit traders are up in arms against a CME Group (CME.O) plan to use electronic trading to set grain and livestock closing prices, a move they fear will drive another nail in the coffin of open-outcry dealing.
CME Group, already under fire from many traders for its delay in getting money returned to customers after the October bankruptcy of brokerage MF Global, said that next March or April it would begin incorporating deals from its electronic Globex trading platform into final prices.
For many, the change appeared an inevitable reflection of the growth in electronic trade, which now accounts for the vast majority of transactions on both the Chicago Board of Trade, the world’s biggest grain exchange, and the Chicago Mercantile Exchange, which offers contracts tied to cattle and hogs.
But to the cadre of pit brokers and dealers who thrive on the final frenetic minute of floor trading used to set the official end-of-day prices, the change was a rallying cry to defend a way of life that is nearly extinct…………..
How near the end of our economic system are we? It looks to me like very near.
Ever since NAFTA passed and manufacturing began to bleed away to slave labor countries the common American worker has known that the corporations have no need of them at a living wage.
Then the jobs that we were told would be our future bread and butter in the computer and technology world began to be farmed out to these low wage fields also. We were baffled at not being able to speak to someone who could understand English to help us with our technical problems. All the courses and IT certification efforts had been yet another waste of time, education, and money leading to another dried up career.
The height of insults came when it was revealed that our unemployment checks were processed overseas, effectively making even more people join the unemployment rolls.
Wall Street has been shrinking ever since the beginning of the 2008 bail-out crisis. But the trading has gone on and those who lost their jobs were just the ones not smart enough to survive the culling.
Now the herd is being seriously culled via the electronic trading systems.
How is that feeling having to step aside for an algorithm?
Can’t be good. Now is the time those on this cattle car need to turn into human beings who care for more that themselves and start holding those corporate bankers up to the light of day instead of hedging bets and making hay while they still have a digitally printed dollar because
Traders, you’re next. How does it feel to realize that you’re expendable too?