Impact of Wall Street meltdown on colleges

College Search & Selection
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<p>I can't speak to biotech companies, but VCs have long kept their starting salaries and bonuses on par with the ibanks because we compete for the same employees. I in fact had a call today from one VC seeing if I could pass on any resumes of interns who would not get offers now which gave me the thought to call another and offer her the same. She wants the names. Many believe all types of private equity funds will take the opportunity to grow parts of their businesses or start new ones in the wake of ibanks becoming commercial banks.</p>

<p>I also think the reports of huge salaries/bonuses on the part of young college grads are wildly exaggerated. Given that most of the jobs are in the world's most expensive cities and that they must dress well and live in safe neighborhoods because of the hours they keep, these kids are not getting rich right out of school.</p>

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<p>Brave</a> new world for financial markets - MarketWatch</p>

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<p>Economics</a>, Financial, Historic Trends and Commentaries</p>

<p>
[quote]
Dear Congressmen LaTourette, Brown, and Voinovich,</p>

<p>I've been doing a bit of thinking about this bailout plan that Congress and the EXECUTIVE branch of government is cooking up. I don't like it. However, it appears that it is not a matter as if it is going to pass, but more like when is it going to pass. Guesstimates range that this package will run the taxpayers anywhere between $700,000,000,000.00 and $1,500,000,000,000.00. Since Congress and Treasury/Fed (acting on behalf of the Executive Branch) are hatching out a plan, I thought it might be helpful to "bounce" a few ideas.</p>

<p>Recommendations
1. Jail anyone who was responsible for reckless financial behavior on Wall Street. This would apply to any company who will receive Federal monies. This would include: CEOs, Boards of Directors, and Company Officers.</p>

<ol>
<li><p>CEO's and company officers in every financial institution where there is distressed debt should return all wages and salaries for the last 10 years. This will be seen as a act of good faith to the taxpayer.</p></li>
<li><p>Replace all standing boards of directors on any financial institution that would be insolvent without the government bailout.</p></li>
<li><p>Companies participating in the Bailout Plan should produce common shares payable to the U.S. government on a percent basis. (i.e. If Bank of America were to lay-off $70 billion in bad debt, then they would have to "give" the Federal government $70 billion in preferred shares.)</p></li>
<li><p>Distressed homeowners who receive help in this Bailout Package would preform 40 hours of community service for every $1,000.00 in "forgiven" debt.</p></li>
<li><p>Interest free loans for anyone who currently owns a home, and has not been late on any payments. There is a glut of expensive homes which need occupants. The government would greatly benefit by having RESPONSIBLE homeowners upgrade, and irresponsible homeowners downgrade to our old houses. </p></li>
<li><p>Limit the Fed. through regulation.</p></li>
<li><p>Re-organiztion of Department of Treasury...with additional Congressional oversight. </p></li>
<li><p>Balanced budget amendment.</p></li>
<li><p>A public apology from every member of Congress, Department of Treasury, the Fed , and the executive branch.</p></li>
<li><p>A new version of the Glass-Stegall Act.</p></li>
<li><p>Since this Bailout Plan is designed to save the richest 2%-3% of Americans, I propose increasing their tax rate back to the 70% level.</p></li>
<li><p>End lobbying of ANY institution that is subsidized by the taxpayer.</p></li>
<li><p>Financial institutions who receive help in the government BAILOUT should be forced to end all stock options, and utilize those funds to convert these financial institutions to acceptable accounting practices.</p></li>
<li><p>Only the losses claimed by financials and that were "marked to market" on the books can be claimed. Of course, these losses would have to be claimed before the short ban was put in place. Complete disclosure right?</p></li>
</ol>

<p>While the negotiations are being considered, I hope you take the time to read these ideas as possible resolutions to this serious crisis.</p>

<p>Respectfully yours,
Brian

[/quote]
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<p>"Ferryboat--</p>

<ol>
<li><p>As I said, these folks work on commission. It is their livelihood. They will try to sell.</p></li>
<li><p>No disrespect--but weather is rain , sun , snow.</p></li>
<li><p>Demand creates supply.</p></li>
<li><p>Dumb (ignorance) is not an excuse in law or otherwise."</p></li>
<li><p>And apparently lie, cheat, steal and help put people into bankruptcy.</p></li>
<li><p>No disrespect, but another definition of weather is to overcome.</p></li>
<li><p>In a modern economy, equilibrium is highly influenced by regulations or social good. CBOs and MBSs were highly unregulated and held off the books of firms. Thus we are now forced to distrust every RE, banking and investment stock. Perhaps if the Govt, who support home ownership, stepped in to set proper regulations on ARM mortgage lenders.</p></li>
<li><p>Which is why, shortly above borrowers, are the lenders who made dumb loans and spread false and misleading information to confuse borrowers.</p></li>
</ol>

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<p>morris,
Who is making money in their IRAs and 401ks? The Dow Jones Industrial Average first crossed 10,000 in March, 1999. Almost ten years later, it is up about 15%. That lags the rate of inflation. Meanwhile, Wall Street wages exploded during this period and some of the money was just obscene. I'm not a class warfare type, but a lot of what has gone on Wall Street over the last decade has IMO been unconscionable. If America ever really knew the extent of the manipulation and the greed.....and this bailout just continues that fleecing. The biggest beneficiaries are going to be the Wall Street folks who put us all in jeopardy in the first place.</p>

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<p>We're all losers in this thing. </p>

<p>The only happy outcome is if behavior gets changed, from people making poor decisions with huge institutional resources to people deciding how much debt to put themselves in when contemplating a new car, home, or that extra appetizer at Applebee's. People at all levels in this economy have to change the way they spend, save, borrow, invest, and take chances.</p>

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<p>[url=<a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/09/22/AR2008092202688.html?hpid=topnews%5Dwashingtonpost.com%5B/url"&gt;http://www.washingtonpost.com/wp-dyn/content/article/2008/09/22/AR2008092202688.html?hpid=topnews]washingtonpost.com[/url&lt;/a&gt;]&lt;/p>

<p>Meanwhile Wall Street's busy pointing fingers. First it was homeowners taking advantage of the market Wall Street created. Now they're blaming regulations and accounting standards that merely show a record of a bad debt.</p>