Meredith Whitney Predicts 80,000 Layoffs for Wall St.(Bonuses will disappoint)
by Robert Wenzel
Economic Policy Journal.com
Whitney really does her homework (one of the few on the Street that does) before throwing out numbers like this, so you have to think she is probably right in the ball park as to what is going to happen. Most of these guys (and some gals) that will be laid off will never be able to earn elsewhere the money they earned on the Street. Does this finally break the Manhattan real estate market?
Note also Whitney’s comment on the Fed buying paper held by the investment banks. She is spot on. That is where Wall Street “trading profits” came from last year. I have been pounding home this point. The trading profits were really gifts from the government. Now that those programs are winding down those “profits” are no longer coming down the scam tunnel.