Wednesday, April 02, 2008

200,000 US Banking Jobs at Risk

Keep an eye on the Gvt's unemployment figures as we're certain to see an uptick shortly.

The article below only discusses the banking sector, but think about all the construction, home improvement, auto manufacturing/sales, retail, state (due to diminishing revenue), etc jobs that will be shed simultaneously. Scary indeed.

200,000 US Banking Jobs at Risk

NEW YORK (AP) — The U.S. financial industry has been shedding jobs at a record clip, and some analysts predict the pace will only accelerate over the next year-and-a-half as banks cut costs in the face of the housing market slump and the weak economy.

Analysts at the financial research firm Celent LLC said in a report Tuesday that it expects the U.S. commercial banking industry — essentially, all companies that lend or collect deposits — to lose 200,000 of its 2 million jobs over the next 12 to 18 months.

An annual loss of 200,000 jobs at the nation's commercial banks would be an unprecedented number.

...more layoffs are inevitable as the subprime crisis hits other parts of the banking industry and spreads beyond mortgages to mortgage-related products, such as home-equity loans, and other types of lending, such as credit cards.

"The banking industry over the past 40 years has never seen a downturn in its revenue growth," Marenzi said. "In 2008, it looks like it will decrease for the first time in living memory. They're going to have to respond with severe cost cutting. It's not an environment they're entirely used to."


Reno Real Estate said...

This is terrifying figures, 200,000.

That's a lot of families. I'm sorry to hear, hope a solution comes up.

Though i highly doubt if this will significantly show up in the unemployment figures.

Not because it's insignificant but the head of Labor has a clever way of concealing half-truths for facts.

Anonymous said...

Hi Randy,

Amazing number! Just the beginning though.

It's amazing to me to now see the uplifted mood on Wall St., and by association, all of the sheeple that believe in it.

Today's news brings the story that the economy "is on the mend." Bernanke states that the Fed will get back "most, if not all, of the $29 billion" it used to bail out Bear Sterns!

Well Randy, I guess that's it. Crisis averted. Can you believe it?! How in H--- does anyone believe that all at once, the once potential (probable) global economic crisis is over in a week?! This is not only amusing to me, but quite frustrating.

I've believed for quite some time that one could compare the IQ of the average American with a rock when it came to economics; now my thoughts are confirmed! What do you think?

David O'

Randy said...

Reno, You're probably right, as those figures are massaged (manipulated)to extremes


Sheeple is the correct term. IQ equivalent to rocks--Yes I've said basically the samething before in Brains filled with Mush

Most people are living for the here and now, and many are more concerned about the next episode of dancing with the stars than they are about their own retirement plans.

I know Many, Many folks who don't even contribute to their own "Company matching" 401K plan.

Tax benefits and free money--wake up people!!!