If Things Are So Great, Why Is This Chart So Bad?

Tyler Durden's picture


Just as during the Great Moderation, buying financials has become the no-lose trade for any and all momo junkies. From their 'fortress' balance sheets (prone to total leveraged collapse at any moment from giant over-zealous trades and mismarking of assets) to their 'can't lose' scenario analysis if rates rise because NIM will make them rich (aside from the fact that it won't), bank stocks have been among the best performers in recent months (dramatically outperforming credit in the last few weeks). So we have a simple question. If things are so great... if the outlook so rosy... if the price-to-book so misvalued... why are the bank laying off people in 2013 at a rate almost as fast as they did in 2009?


Financial institutions are firing staff at almost the same rate in 2013 as they did in the immediate aftermath of Lehman!


which perhaps explains this divergence...


Chart: Bloomberg Briefs

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Thu, 06/13/2013 - 09:35 | 3653784 Doubleguns
Doubleguns's picture

HFT needs fewer and fewer people to program the computers.

Thu, 06/13/2013 - 09:38 | 3653793 camaro68ss
camaro68ss's picture

Skynet doesn’t need stupid fat finger humans

Thu, 06/13/2013 - 09:38 | 3653794 SimMaker
SimMaker's picture

£222,222,222.22 lolz.........

Thu, 06/13/2013 - 10:10 | 3653900 NoDebt
NoDebt's picture

Not that I like to see job loss from a macro perspective, but...... if you gotta pick a group of people to fire, isn't bankers a good group to start with? 

Thu, 06/13/2013 - 10:34 | 3654015 Sudden Debt
Sudden Debt's picture

I don't think you need to fire all those bankers.... maybe only those that survive the firing squads...

Thu, 06/13/2013 - 12:55 | 3654475 oklaboy
oklaboy's picture

the little peons are getting wacked, no self respecting bankster is going to get wacked.

Thu, 06/13/2013 - 12:55 | 3654476 oklaboy
oklaboy's picture

the little peons are getting wacked, no self respecting bankster is going to get wacked.

Thu, 06/13/2013 - 11:45 | 3654241 NotApplicable
NotApplicable's picture

I was thinking, "well, at least that job market is functioning properly."

Thu, 06/13/2013 - 13:27 | 3654570 Overflow-admin
Overflow-admin's picture

2 Skynet guys singing

The Humans Are Dead


Thu, 06/13/2013 - 10:10 | 3653899 Panafrican Funk...
Panafrican Funktron Robot's picture

Pretty much.  Roughly 10000% of the profits the banks have been generating have been through trading, not lending.  Lending is more labor intensive, often requiring actual human interation and other bothersome shit like that.  

Thu, 06/13/2013 - 11:45 | 3654238 steelhead23
steelhead23's picture

That is it exactly.  As the proprietary desk becomes the primary profit center of the institution, real, retail banking dies, along with the broader economy.  If it weren't for QE to the moon, those graphs would have to be on a log-normal scale.

Thu, 06/13/2013 - 09:36 | 3653785 SheepDog-One
SheepDog-One's picture

Looking for comon sense in the insane asylum....well good luck with that. I'm seeking higher ground myself.

Thu, 06/13/2013 - 09:36 | 3653786 francis_sawyer
francis_sawyer's picture

It's all about those "PROFIT to Earnings" ratios... Should have listened to the 'Stock Picker in Chief" when you had the chance...

Thu, 06/13/2013 - 09:40 | 3653798 SheepDog-One
SheepDog-One's picture

Can't call him a stock picker, INDEX picker maybe, but 'new all time lows' are rocketing up individual stocks have never done so bad as indexes have never done better....grand smokescreen.

Thu, 06/13/2013 - 09:42 | 3653806 SheepDog-One
SheepDog-One's picture

Fuck off troll.

Thu, 06/13/2013 - 09:45 | 3653810 francis_sawyer
francis_sawyer's picture

Yes I agree... 'INDEX' is a more appropriate definition...


Alas... There is no Hindenburg... There is only the Bernank... [soon there will only be 'Smellin like Hellen Yellen'... h/t to, I forget who, but it was funny]...

Thu, 06/13/2013 - 09:36 | 3653787 Lets_Eat_Ben
Lets_Eat_Ben's picture

Need Job - Will work for Benny Bucks.

Thu, 06/13/2013 - 09:36 | 3653789 slotmouth
slotmouth's picture

Cutting jobs is pretty much the same thing as economic growth.

Thu, 06/13/2013 - 09:39 | 3653797 involuntarilybirthed
involuntarilybirthed's picture

alog's have no healthcare/pensions/holidays/sickdays.

Thu, 06/13/2013 - 09:41 | 3653803 greatbeard
greatbeard's picture

>> no healthcare/pensions/holidays/sickdays.

Neither do part time workers.

Thu, 06/13/2013 - 09:45 | 3653818 Doubleguns
Doubleguns's picture

JPM will soon be a computer named HAL and Jamie Dimon.

Thu, 06/13/2013 - 11:48 | 3654248 NotApplicable
NotApplicable's picture

Then I can only await the day that the computer says, " I'm sorry, Jamie. I'm afraid I can't do that."

Thu, 06/13/2013 - 09:40 | 3653799 LawsofPhysics
LawsofPhysics's picture

Answer one simple question;  "What products of real value do these financial fucks actually produce again?"

Last time I checked these fuckers produce nothing but financial "products" of mass destruction.  Shit, they can't even keep your PMs safe anymore.

Thu, 06/13/2013 - 09:49 | 3653812 cloudybrain
cloudybrain's picture

derivatives good, leverage bad

Thu, 06/13/2013 - 09:50 | 3653830 Lets_Eat_Ben
Lets_Eat_Ben's picture

Banking should be a utility. A necessary keeper of savings and giver of loans. The banking institutions role has been so perverted that it works against the people of the whole world.

Bankers have been given the freedom to leverage up and put themselves on the hook for unfathomable amounts of money in hope that they hit it big and pocket profits. If the gamble goes south, have the FED buy it, or transfer the liability to the people's tab; it's a win/no lose situation for them and a lose/lose for the pions (you and I).

Another case of a necessary entity that has used it's privileged position for power grabbing purposes so that they can game the system and make money at the expense of everyone else on the planet (Because as Santelli says, "all stimulus/money priniting is fungible.") => this is a zero-sum-game. They win; you lose.

Thu, 06/13/2013 - 11:56 | 3654254 NotApplicable
NotApplicable's picture

Banks have ALL been murdered. By design. The blessed handful of TBTF will consume the rest, as "banking" transforms into a purely government role, a.k.a. "lender of last resort." Nearly all mortgages and auto loans come from Uncle Sugar these days.

In the future, if you want a loan, you'll have your approval as well as your rate set by the NSA.

Thu, 06/13/2013 - 15:12 | 3655009 dtwn
dtwn's picture

Need to return to the good ol days:

The 3-6-3 Rule is how the United States retail banking industry operated from the 1950s to the 1980s.[1]:51 The name 3-6-3 refers to the impression that bankers had a stable, comfortable existence by paying 3 percent interest on deposits, lending money out at 6 percent, and being able to "tee off at the golf course by 3 p.m.

Thu, 06/13/2013 - 09:43 | 3653808 The Axe
The Axe's picture

Why cause labor cost savings are huge....

Thu, 06/13/2013 - 09:47 | 3653822 LawsofPhysics
LawsofPhysics's picture

...exactly.  Time to trade that suit in for a rake and hoe motherfucker...

long sharecropping.

Thu, 06/13/2013 - 09:54 | 3653861 JohnG
JohnG's picture

I was picking beans at 6:15 this morning, as soon as I could see to do so.

Thu, 06/13/2013 - 11:53 | 3654259 NotApplicable
NotApplicable's picture

Boy, I wish I was. Forgot to close all of my gates last night, and the damn goats ate my kale, lettuce, and topped a few tomato plants. If only I'd gotten up earlier...

Thu, 06/13/2013 - 12:09 | 3654294 Parabox
Parabox's picture

I love growing kale!  

Thu, 06/13/2013 - 09:45 | 3653815 Stuck on Zero
Stuck on Zero's picture

That number of people can only come from rank and file employees.  That means brokers, cold callers, accountants, order takers, etc.  In other words, the people in the financial industry who serve the masses.  One can only conclude that the Average American is simply abandoning the markets.


Thu, 06/13/2013 - 09:46 | 3653819 The Carbonator
The Carbonator's picture
  1. So lets see.  QE 1 - 4 didn't work and Fiat money is BS.


Somehow I think that the same folks will just push the same fix.  More EQ.  More Fiat debasement.  More insanity.


They need to start a war or another distraction thats the only ticket.  I know, lets push immigration "reform" so that we can import 30 Million more undocumented Democrats to add the our already strained social welfare state and the Obama Care medial scam.  That will fix EVERYTHING!

Thu, 06/13/2013 - 09:47 | 3653825 Downtoolong
Downtoolong's picture

Because, who needs employees to deal with pain-in-the-ass-customers when all your profits come from keeping the Fed in your pocket and front running them?

Thu, 06/13/2013 - 09:50 | 3653840 f16hoser
f16hoser's picture

Brokers living in Boxes? Say it isn't so........

Thu, 06/13/2013 - 10:02 | 3653884 847328_3527
847328_3527's picture

I hate charts.

Thu, 06/13/2013 - 10:12 | 3653904 NoDebt
NoDebt's picture

I like turtles.

Ya know, this may not be the site for you.

Thu, 06/13/2013 - 10:18 | 3653923 Nobody For President
Nobody For President's picture

A greenie because it made me laugh on a tough morning...

Thu, 06/13/2013 - 10:13 | 3653905 Forgiven
Forgiven's picture

If we do not find a way to erase the problems of today, we will see them fill the chapters of tomorrow.

Thu, 06/13/2013 - 10:13 | 3653906 Judge Crater
Judge Crater's picture

There are few things that give Jamie Dimon more satisfaction than firing employees.

Thu, 06/13/2013 - 10:15 | 3653913 Notarocketscientist
Notarocketscientist's picture


To President Barack Obama:

We call on you to ensure that whistleblower Edward Snowden is treated fairly, humanely and given due process. The PRISM program is one of the greatest violations of privacy ever committed by a government. We demand that you terminate it immediately, and that Edward Snowden be recognized as a whistleblower acting in the public interest -- not as a dangerous criminal.


Thu, 06/13/2013 - 10:23 | 3653949 Monedas
Monedas's picture

None .... none, I repeat .... of these financial service workers .... will get PAL .... Paid Aministrative Leave .... like Public Servant Oligarchs get .... especially when they've committed crimes .... against humanity !

Thu, 06/13/2013 - 10:32 | 3653992 Monedas
Monedas's picture

Italian prosecutors pursued Amanda Knox .... with more zeal .... than Captain Francesco Shettino .... of Costa Concordia shame ?

Thu, 06/13/2013 - 11:24 | 3654183 walküre
walküre's picture


Thu, 06/13/2013 - 10:46 | 3654067 Tombstone
Tombstone's picture

To hear the talk on Bloomberg this morning, you would think that the economy was about to explode with growth and employment.  Could it be by the end of the year we will be growing at +3% or more? 

Thu, 06/13/2013 - 14:25 | 3654783 Clowns on Acid
Clowns on Acid's picture

"if things are so great, Why is this Chart so bad?" ... Because the central planners want it this way. Next question Tyler.

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