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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 | Link to Comment Doubleguns
Doubleguns's picture

HFT needs fewer and fewer people to program the computers.

Thu, 06/13/2013 - 09:38 | Link to Comment camaro68ss
camaro68ss's picture

Skynet doesn’t need stupid fat finger humans

Thu, 06/13/2013 - 09:38 | Link to Comment SimMaker
SimMaker's picture

£222,222,222.22 lolz.........

Thu, 06/13/2013 - 10:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment NotApplicable
NotApplicable's picture

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

Thu, 06/13/2013 - 13:27 | Link to Comment Overflow-admin
Overflow-admin's picture

2 Skynet guys singing

The Humans Are Dead

"000000010000000111100000001000001111"

Thu, 06/13/2013 - 10:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment SheepDog-One
SheepDog-One's picture

Fuck off troll.

Thu, 06/13/2013 - 09:45 | Link to Comment 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 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

Need Job - Will work for Benny Bucks.

Thu, 06/13/2013 - 09:36 | Link to Comment slotmouth
slotmouth's picture

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

Thu, 06/13/2013 - 09:39 | Link to Comment involuntarilybirthed
involuntarilybirthed's picture

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

Thu, 06/13/2013 - 09:41 | Link to Comment greatbeard
greatbeard's picture

>> no healthcare/pensions/holidays/sickdays.

Neither do part time workers.

Thu, 06/13/2013 - 09:45 | Link to Comment Doubleguns
Doubleguns's picture

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

Thu, 06/13/2013 - 11:48 | Link to Comment 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 | Link to Comment 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 | Link to Comment cloudybrain
cloudybrain's picture

derivatives good, leverage bad

Thu, 06/13/2013 - 09:50 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment The Axe
The Axe's picture

Why cause labor cost savings are huge....

Thu, 06/13/2013 - 09:47 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Parabox
Parabox's picture

I love growing kale!  

Thu, 06/13/2013 - 09:45 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment f16hoser
f16hoser's picture

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

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

I hate charts.

Thu, 06/13/2013 - 10:12 | Link to Comment NoDebt
NoDebt's picture

I like turtles.

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

Thu, 06/13/2013 - 10:18 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Notarocketscientist
Notarocketscientist's picture

STAND WITH EDWARD SNOWDEN - SIGN THIS PETITION

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.

https://secure.avaaz.org/en/stop_prism_global/?bQEUUbb&v=25834

Thu, 06/13/2013 - 10:23 | Link to Comment 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 | Link to Comment 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 | Link to Comment walküre
walküre's picture

Tragicomic

Thu, 06/13/2013 - 10:46 | Link to Comment 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 | Link to Comment 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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