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tara747

City Jobs Under Threat - Bbc

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So, from the article, 5000 of 340,000 jobs may be cut (<2%) and bonuses may be 15% lower (after rising 18% in 2006, thus putting them back to 2005 levels, when IIRC things were still okay)

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So, from the article, 5000 of 340,000 jobs may be cut (<2%) and bonuses may be 15% lower (after rising 18% in 2006, thus putting them back to 2005 levels, when IIRC things were still okay)

:lol:

Desperation.

Or is it bargaining?

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:lol:

Desperation.

Or is it bargaining?

Or maybe actually reading the article rather than glancing at the headline and going "woohoo, it says what I want to be true, step aside brain, your services are not needed here!"

Seriously, 2% job losses and bonuses only at 2005 levels? That's all the article's saying. That's not total financial meltdown and bitter recession that'll spark a crippling house crash. Not saying any of the above won't happen, but they won't happen on the kind of numbers that article is throwing around. By all means argue whatever vision you want, but don't pull out articles with numbers in that just don't back up your point.

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Or maybe actually reading the article rather than glancing at the headline and going "woohoo, it says what I want to be true, step aside brain, your services are not needed here!"

Seriously, 2% job losses and bonuses only at 2005 levels? That's all the article's saying. That's not total financial meltdown and bitter recession that'll spark a crippling house crash. Not saying any of the above won't happen, but they won't happen on the kind of numbers that article is throwing around. By all means argue whatever vision you want, but don't pull out articles with numbers in that just don't back up your point.

Yes yes, don't you know that the media have tended to underestimate the effects of what's been happening? A couple of weeks ago the media were insisting that the financial problems were confined to just US subprime lenders, then just the stocks of US subprime lenders, then just US stocks, then just the US economy, then... oops.

:lol:

Edited by tara747

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Or maybe actually reading the article rather than glancing at the headline and going "woohoo, it says what I want to be true, step aside brain, your services are not needed here!"

Seriously, 2% job losses and bonuses only at 2005 levels? That's all the article's saying. That's not total financial meltdown and bitter recession that'll spark a crippling house crash. Not saying any of the above won't happen, but they won't happen on the kind of numbers that article is throwing around. By all means argue whatever vision you want, but don't pull out articles with numbers in that just don't back up your point.

Agreed. But I still think this is enough to push London House Prices negative.

In 2005, interest rates where 4.5% and house prices were 20-30% lower. Not to mention it was easier to get a subprime mortgage those days.

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However, Mr Morgan added that the current market turbulence "needed to be put into perspective".

"It is nowhere near as bad as back in 2000/2001 [the bursting of the dotcom bubble]," he said.

Even if it was as bad as in 2000/2001 (started working in the city the year before) - much of the jobs cuts seem to clean away the "dead wood" first anyway - does some of us a favour :lol:

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On Bloomberg this morning it said 40% job cuts for the sector that deals with mortgages, CDOs, etc - whenever things go bad in the city they get rid of loads of them. Bucketloads at once. And whenever there is a downturn it affects all of the parasitical bar-stewards.

There will be a lot of tossers looking for businesses to run soon and, in 10 years time, you'll see them with their mail-order new-age candle selling web sites saying how happy they were to get out of the city, better quality of life, who needs money blah blah yawn etc

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Seriously, 2% job losses and bonuses only at 2005 levels? That's all the article's saying. That's not total financial meltdown and bitter recession that'll spark a crippling house crash. Not saying any of the above won't happen, but they won't happen on the kind of numbers that article is throwing around. By all means argue whatever vision you want, but don't pull out articles with numbers in that just don't back up your point.

Every little helps :P

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So, from the article, 5000 of 340,000 jobs may be cut (<2%) and bonuses may be 15% lower (after rising 18% in 2006, thus putting them back to 2005 levels, when IIRC things were still okay)

Yeah but this is before UK subprime goes into meltdown and effects from US have only just begun.

London finacial success has been largely built on the back of cheap credit. Active M&A markets being financed by banks, credit derivatives market etc.

These are the things that are going to be hit hardest in the credit crunch.

The city will be culling jobs in the next few years, losing only your bonus will be considered lucky.

Banks pay big salaries, why? Because they are quick to hire and fire. You make your money when you can because when times get tough they will literally cull thousands of jobs.

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Guest Charlie The Tramp

David Buick said on BBC News 24 that the High Street Banks will not be badly affected as we have the best run Banking System in the World. ;)

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This will make 200-2001 seem like a picnic, the media (BBC) are starting to wake up & smell the coffee!

Even if it was as bad as in 2000/2001 (started working in the city the year before) - much of the jobs cuts seem to clean away the "dead wood" first anyway - does some of us a favour :lol:

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Banks pay big salaries, why? Because they are quick to hire and fire. You make your money when you can because when times get tough they will literally cull thousands of jobs.

only it seems that many of the younger ones don't understand this, taking out big IO mortgages for example, and relying on bonuses to pay off the capital. No doubt this too, will feedback into the job loss loop.

Of course, many of the most vulnerable are young - certainly young enough to not have been involved in the city during the last recession, and even during 2000-2003. One would hope that any who have served long enough to have done even the latter would have the nous to realise that you cannot rely on everlasting summer in the City.

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Even if it was as bad as in 2000/2001 (started working in the city the year before) - much of the jobs cuts seem to clean away the "dead wood" first anyway - does some of us a favour :lol:

Indeed. The question is: how much of the housing market is affected by this dead wood employment.

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On Bloomberg this morning it said 40% job cuts for the sector that deals with mortgages, CDOs, etc - whenever things go bad in the city they get rid of loads of them. Bucketloads at once. And whenever there is a downturn it affects all of the parasitical bar-stewards.

There will be a lot of tossers looking for businesses to run soon and, in 10 years time, you'll see them with their mail-order new-age candle selling web sites saying how happy they were to get out of the city, better quality of life, who needs money blah blah yawn etc

40%! But didn't you listen to the Benedict Broadcasting Corporation saying that it would only be 15%, they are always right...

:blink:

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only it seems that many of the younger ones don't understand this, taking out big IO mortgages for example, and relying on bonuses to pay off the capital. No doubt this too, will feedback into the job loss loop.

Of course, many of the most vulnerable are young - certainly young enough to not have been involved in the city during the last recession, and even during 2000-2003. One would hope that any who have served long enough to have done even the latter would have the nous to realise that you cannot rely on everlasting summer in the City.

I worked in the city until last year. I'm 31 now and everyone my age or younger has a distorted view that things only go up. There is a whole generation awaiting a fundamental lesson in economics

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only it seems that many of the younger ones don't understand this, taking out big IO mortgages for example, and relying on bonuses to pay off the capital. No doubt this too, will feedback into the job loss loop.

Of course, many of the most vulnerable are young - certainly young enough to not have been involved in the city during the last recession, and even during 2000-2003. One would hope that any who have served long enough to have done even the latter would have the nous to realise that you cannot rely on everlasting summer in the City.

Ive worked in the city since 1996. The younger guys don't have a clue about the speed with which the bullets are fired. That said however, most revenue producers in whatever organization they are in get good pay offs. Normally after tax its around the £50k mark. In contrast the IT boys and the admin teams often get chucked out with around £10k. On the plus side many are back doing something fairly lucrative if they want to within a year of getting canned. I know plenty of former colleagues who never bothered coming back - they've made some good cash and have enough to live with either no mortgage or a small one, and they work for pin money.

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Ive worked in the city since 1996. The younger guys don't have a clue about the speed with which the bullets are fired. That said however, most revenue producers in whatever organization they are in get good pay offs. Normally after tax its around the £50k mark. In contrast the IT boys and the admin teams often get chucked out with around £10k. On the plus side many are back doing something fairly lucrative if they want to within a year of getting canned. I know plenty of former colleagues who never bothered coming back - they've made some good cash and have enough to live with either no mortgage or a small one, and they work for pin money.

no doubt, but I'll wager that the ones bumped off in 2000-3 tended to have much smaller mortgages than those at risk now.

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