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Wednesday, August 8. 2007
I have always heard about the Series 7 exam, but never bothered to look into exactly what it tested until the pup told me that she has to pass it this month, after two months on the job.
It covers a lot of territory. I believe that she is studying hard for it, in the few hours in the day they don't keep her at work.
Wall Street is an exciting place this month: interesting things happening. As Warren Buffet says, when the tide goes out, you find out who is swimming nude.
Posted by Bird Dog in The Culture, "Culture," Pop Culture and Recreation at 11:22 | Comments (32) | Trackbacks (0)
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It's only a six hour exam.
1 question on ethics
If she passes she will get lots of huzzahs and the telephone headset, unless she has many well heeled friends who can help he accumulate the 5 million in assets most houses see as minimum the first year.
My last year at Merrill I brought in and invested 18 million, but I'd been in the business for a time. I walked away.
It's the best $200,000 a year job you can have and the worst if you can't make that....
You have to "buy into" a heaping pile of WS bullshit and do alot of looking the other way. I saw people openly churning accounts and placing trades without the clients permission. They made $500,000 a year before a complaint forced the company to look at them, although they knew it was going on all the time.....it's a slimy world .... been there done that and I would never do it again.
There's a reason brokers score below used car salesmen in polling on trust.
She's not doing that. She's on the investment banking end, at HQ in NY.
Old wine, new bottle....there is no "clean end of the Wall Street turd" to grasp, sorry.
I suspect it will not chill her current exuberance but she might want to read "Blood on the Street" by Charles Gasparino....then go become a medical rep and marry a doctor.
haha. Most docs seem to get "snatched" up by nurses before they finish their training.
You are a cynic, H. I know plenty of highly honorable NY bankers. Pup says all they talk about is integrity.
Gotta get back to work - got to find suckers to place 27 sub-prime second mortages in the next ten minutes. (kidding)
Have you been there for 17 years? How long has the Pup been there? She doesn't even have a 7 yet and you have the audacity to call me a cynic.
Where have you been the past 10 years regarding WS? Enron mean anything? WorldCom? Martha Stewart, Dennis Koslowski?...lets go all the way back to Jay Gould?
Whatever you do you may do very well but unless you've walked the walk, the talk doesn't mean shit.
You sir are naive and do not even rise to the level of sciolism on the subject.
"Pup says all they talk about is integrity."
One of the great lines from the Magnificent Seven, "If God had not wanted them sheared he would not have made them sheep"
FROM BEHIND THE CORPORATE VEIL: THE OUTING OF WALL STREET'S INVESTMENT BANKING SCANDALS - WHY RECENT REGULATIONS MAY NOT MEAN THE DAWN OF A NEW DAY
It was the dawn of a new millennium, and the infamous Internet tech bubble was about to burst. For years on Wall Street you could practically recommend anything "beginning with 'e-' and see it trade at astronomical prices."2 However, behind the scenes, Wall Street was harboring a dirty little secret. Some of its highest paid investment bankers were handing out hot IPO3 shares in return for kickbacks Others were offering favorable stock recommendations from their research analysts in order to secure lucrative investment banking contracts In effect, Wall Street was catering to "two key constituencies: its institutional investors and its corporate clients. If the individual investor wanted to join the party, well, caveat emptor."4
Chew on this..it took about a millisecond to locate:
The difference between an optimists and a cynic is experience.
There's a bit more to it than that. Fundamental analysis, technical analysis, MSRB regs, client profiling (know your client), appropriate vs inappropriate recomendations, portfolio construction and diversification, proper use of options etc,etc.It's a good test but provides for only one of many licenses needed to work in the business.
There are scumbags in every business and every firm. A good advisor knows who's who. If your advisor is one of them it's your fault.
I wish the youngster luck.
I wish her luck also.
There are scumbags in every business and every firm. Check
A good advisor knows who's who. Yep , that's why it took a grand jury years to develop cases against those in the securities industry who were violating laws right and left, becoming megamillionaires and superstars......they should have just asked their friendly broker who were the bad guys.
Sorry Tom but the broker/adviser/financial consultant usually doesn't know who the bad guys are, and if they know who the bad guys are and don't turn them into the SEC then they are violating their fiduciary responsibility to the client. If they did turn them in the "good guy" wouldn't last a year longer in the industry. Per capita the securities business probably has more bad guys than good guys and usually the good guys don't make it if they continue to be good guys......learn to fake it til you make it, cut a few corners, a little iffy here, a little iffy there and yeah, you can make it.
And if you're an investment banker making hundreds of millions of dollars and get caught, so what...do a year at Club Fed, pay a fine , and come out with what...what did Mike Milken come out with 800 million? So it's all good. You're buddies will understand, it's just part of the business.
A cynic, no. Just an observer of Wall Street and advisor for 17 years. But I had an advantage....I'd already done 10 years with the CIA so I'd kinda been around the block so to speak. Personally I'm glad as hell there are things called statutes of limitations.
Habu, my financial guy is a Texas Aggie and so honest that flowers spring up out the ground when he walks by. Of course he knows I will kill him if he screws around with any of my business, LOL.
Wall Street is where people willing go to sell their money for the highest price they can get.
The cost of doing business (fees, losses, all of it) rises as the price you demand for your money rises.
Nobody can fool anybody who doesn't go along with the fooling --first of all by being there in the first place, if you don't know what you're doing.
The public service thus created is the efficient allocation of scarce capital.
Yes, some small number gets hurt --but the alternate model, a state-run capital allocation system, has always been about ten orders of magnitude less efficient, and cannot possibly avoid corruption at the center (rather than at the margins, as we see on Wall sreet), which of course extends that small number of busts to an entire busted population.
I consider the bankers to be the engine room of the capitalist ocean liner
Righto --and productivity is the fuel which the financial people put into propulsion for the ship of state. What Wall Sreet offers is the best available information on the future cost/benefit and risk/reward ratios of enterprise, in general (the economy) and in particular (individual sectors and units within them).
Off/thread, habu, re your dad's war, catch this--a Ken Burns PBS special:
habu- Believe me, I don't disagree with you. I've never seen characters like I've seen in the financial services business. The sociopathic personality is everywhere particularly among those whose real world business experience is limited to that industry. The buy side analyists and the 'distribution network' is mainly populated by boobs and nincompoops who talk a good line and know how to play on human greed and fear. A few advisors concentrate on business fundamentals and provide the proper risk adjusted returns over time for their clients at costs that pay for the added value. Not everyone is a crook although the good ones are few and far between. The compensation system leads to most problems.
Habu the cranky guy today.
There must be many honest ones. I should have used a much smaller brush to stick in the tar can.
It also was probably a situation where it was a business in which I should not have been involved. But darn the money aspect, the working hours when the market is open, the feeling of being on the edge of what's going on was alluring. I got in when the market was under 2000 and the "explosion" of Series 7 holders hadn't begun. Then when the nasty stuff started being revealed it was repugnant to me and I'm sure all those here. I would have loved to have had a shot at the IB and analysts who were colluding to provide me and thus my clients with bad data on issues. I guess the Lord was look'n out for me cause they don't send felony assault perps to Club Fed.
Anyway, I really do hope she hits a good spot, in a great house, and thrives. When you do that it's a sweet feeling cause you're gett'n some long green and you clients are sleep'n like babies.
habu- all the 'nasty stuff' had occurred before and it will occur again. helping investors protect themselves from getting involved in all the nonsense is a good thing. if it sounds too good to be true...
Yes indeed, I remember like it was yesterday September 1920 when the Bolsheviks bombed the Exchange and sent via the US Mail 16 other bombs to such luminaries as J.P.Morgan, John D. Rockefeller and others including the US Attorney General. The chairman of the Senate Immigration Committee housekeeper had her hands blown off opening one of the packages. The House of Morgan to this day still has the pockmarks of the blast.
Yep WS can be dangerous. Bolesheviks here, a Jay Gould there. Now even the buttonwood tree traders are gone.
The markets are bound by nature, they reflect natural law, they're a fractal of the whole shebang. For there to be a way to profit, there must also be a way to lose. Remove that risk, and its not a market, its a government program that only rewards its administrators, and can only do that via extorting the citizenry.
Buddy Larsen you go right in that bathroom and wash your mouth out with soap. Using such a word .. fractal ..in a place where women could be and children play games..
Wash ,wash wash .....
On the economy.
If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it
ahhh, Christ, I miss ya, Gipper. Those speeches of yourn--mercy--made us feel ten feet tall.
Habu, BD is protecting the pup.Lets add to Shakspeare's list Lawyers, Politicians,Bankers,Wall Street Insiders,Carsalesmen, and Vacuum salesmen.Your still a funny guy even when your pissed off.
I sense that there is another concern that has not yet come to the surface in this conversation. For all of you fathers out there, who have daughters and want to protect them from evil, I suggest a book titled: "Saving Beauty from the Beast". It is never too late!
PS I believe we are out of harms way with regard to the fire. But it is a long time between now and first snow. The current announcement is that they will allow it to burn through the fall--if a wind comes from the north we are in a world of hurt. Pray for us please, and many thanks for your thoughts.
The nasty, cyclical stuff I was referring to were the buy recommendations on worthless crud pushed by retail distribution while the firms and the investment bankers made billions as the naive, uninformed schmucks who stayed around too long based on firm 'research' watched it slowly go to zero. All the 'new paradigm' nonsense. It's generational and it will happen again.
Sounds like you got a bit singed by the last bubble. We all did. I actually believed some of the crap I read. Live and learn.
BD you slit my pinata wide open..I did get singed when both WorldCom and Enron went down.
Yeah I was hedging and attempting to pull all the right levers to remain insulated. Diversified ,absolutely, but when one ,especially in the business, has positions in equities that he has researched, watch diligently, made some profit on by taking a little off the table every now and then and still loses a hunk o'the green on it pisses you off.
Then you find out all the stuff Spitzer uncovered and it really, really toasts you. You've usually got your big clients in similar positions and they get raped as well.
And when the investment bankers got in bed with the analysts and started cooking the data, well lets's just say in my first job at CIA that type of crap could get you disappeared for good. Think that's a stretch .. do some due diligence on the death of William Colby who was the Director of CIA and a great guy, but was forced during the Church Committee hearings to give up the family jewels...do ahead take a look.
Please don't "do ahead"..you can do-do, do-rag, do run run run,a do run run...
GO ahead & look.
Actually I was surprised some irate investor didn't take a few of those guys out....sometimes it's just so hard to meet the right people.
Actually, no singe. Went short a bunch of high priced sludge ca. 1/00 and covered too soon. Enron and WCOm, due to a few a few anecdotal personal experiences, never made much sense to me from the get-go. Balance sheets were too weird. When the firms were trying to quickly (@'99?) unload bonds from these guys on unsuspecting retail yield seekers one sensed the game was over. It was an historically absurd time in the capital markets aided by a sense of giddiness on Main and Wall and encouraged by folks who should have known better.
Not to be harsh, but the mid-late 90s saw the full flowering, with the $60 bbl oil/food racket being run from the highest levels of the UN and various national gov'ts, and the vast doings of the Clintonistas behind the Janet Reno protection, of organized crime melding with government. Small wonder it spilled over into the markets, and many corporate suites.
I still have a few thousand shares, worthless but still extant for legal reasons, of the Worldcomm stub, which--I kid you not--is renamed, appears on my statements as, "Touch America".