While the Congress and the rest of the world bemoan the damage to the world economy wrought by faulty models and exotic financial instruments, the financial wizards and their arcane tools are in no danger of extinction.
Unless things radically
change in the nation's capital, nothing on Wall Street will ever change. The underground,
hidden alliances between those whom we 'voted in to office' and the pirates and
fiancial criminals on Wall Street remain a powerful alliance.
Many have deep tentacles
inside the financial industry, having either worked in the industry, gone to
the university with the movers and shakers, or sharing bloodlines and kinship
ties. These people speak the same language: money and power, and their minions
and agents in our legislatures do their bidding, or manipulate professional
relationships to advance their own agendas--that is, setting up scenarios to
The gnashing of teeth and
wailing and moaning over the "tough questions" presented to Wall Street's
mavens by Coongress belies the actual intent to investigate, legislate and incarcerate.
We have laws on the books, which, if they were enforced, would stop this
progression of pirates. Unfortunately, we have too many legislators with their
snouts in the trough to have a real interest in changing the system and sewing
up the loopholes which allow "financial engineers" to pull rabid rabbits out of
their behinds and call them financial instruments.
In 2009, at the highpoint of
cynicism, I wrote:
think that with war drums humming, angry investors simmering and unemployed
millions looking to land on someone as a scapegoat, that the field of financial
engineering would be in disgrace, and its practitioners looking for a safe
place to find a new batch of identity papers, but such is not the case. If
anything, the field has become more exciting and alluring. Employers in
insurance, banking, engineering and other statistics-driven businesses continue
to advertise for financial engineers, or "quants." (Opednews.com)
anything has happened, the field remains a highly lucrative one, still viable
in today's melted market.This snip from a "help wanted ad" on a quant website
proves that the field is still viable, although perhaps not as much as it was
applicant must have industry experiences from the top financial institutions
with deep knowledge of financial derivatives, and the industry standard
valuation models used for security valuation and portfolio risk analysis.
Valuation will rely heavily on the appropriate choice and use of pricing models
and therefore the applicant must have sufficient understanding and intuitive
skills to assess if model results are reasonable. The right applicant will be
working with external clients (traders, sales, buy side, institutional
investors), and internal sales specialists, as well as with developers and
Base salary for this field is around $97,000 annually,
pre-bonus, with a Masters of Financial Engineering. Many positions in London and New
York float round the
$250,000 range. While the Congress and the rest of the world bemoan the damage
to the world economy wrought by faulty models and exotic financial instruments,
the financial wizards and their arcane tools are in no danger of extinction.
There is still a market for derivative evaluators, quant
analysts and traders. While Congress throws the regulatory process under the
bus, the magicians continue to ply their trade. While the AP reports that a
Senate investigation found that Goldman Sachs allegedly, 'developed a strategy
to profit from the housing meltdown and reaped billions at the expense of
clients,' the investment industry appears to view financial engineering as an
essential element of modern investment.
Many pirates made millions betting against the market--while
advising clients to hold on to what the companies knew to be toxic, worthless
investments. As in the case of many corporate emails, Goldman Sachs is in the
middle of an email-generated legal and public relations nightmare.
The subcommittee, which is investigating Goldman's role in
the financial crisis, provided excerpts of e-mails showing a progression from
late 2006 through the full-blown mortgage crisis a year later. Levin said they
show Goldman shifted in early 2007 from neutral to a short position, betting
that the mortgage market was likely to collapse. (AP)
Three votes shy of a win, Wall Street reformers in Congress
remain on the hot seet with voters. According to polls, Americans remain angry
and unemployed, as politicians twist in the wind, trying to find a happy medium
between obeying their masters and satisfying angry voters.
Some are clamoring for a return of the Glass-Steagall Act
which prohibits merchant and commercial banking in the same institution.
Whatever the future holds for the American investment industry, the gloves are
off in Congress. With mid-term elections coming up, one wonders how long
voters' memories will be.
Monica Davis is an Indiana-based marketing specialist, author, radio personality, columnist and public speaker. She specializes in economic, history and public policy issues and has written articles on land loss, bank failure, institutional corruption/document deception, environmental justice and alternative energy. She is the author of six books and is published in Great Britain, Canada, the U.S. and India. Home schoolers in New Zealand have used her articles as teaching tools. Ms. Davis has given presentations on land lynching and the farm catastrophe at churches, museums and universities. She publishes regularly on Opednews,Indybay, Buzzflash,and Sfbayview. Her articles are used as primary research material by researchers and have been read into the Congressional Record in land loss hearings. She has been interviewed by numerous bloggers, radio and television journalists, including:
Black Men Screaming TV
Dr. Wilmer J. Leon, III on XM radio
Radio stations in NYC, New Orleans
Her articles have been read into the Congressional Record and used as the basis for interviews by other reporters. She is available for speaking engagements.
Her books are available on Amazon. Her latest book, published in September is The Forever Dream: Making Social Activism Work
Other books include:
Land, Legacy and Lynching: Building the Future of Black America