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Stock Brokers Going Broke
International Forecaster ^
| 31 August 2002
| Bob Chapman
Posted on 08/31/2002 10:55:16 AM PDT by shrinkermd
We are terribly sorry to say our prediction of April 2000 of 50-70% of stockbrokers and stock brokerage firms going under before the bear market is over is sadly coming true. Broker commissions are off 80% and payout has been dropped to 23-35%. We hear many stories of alcohol and drug abuse, and suicide and many of these young men and women, who found transitory fame in their 20s smashed on the financial rocks.
The cool bachelor pads of the 1990s have given way to one-room studios in the suburbs. They now struggle through life in menial jobs trying to get their lives and futures together again. Needless to say many have totally lost hope in the system. You might say what goes around comes around. No one ever told these poor souls what goes up must come down and usually does so when you least expect it. 29 months of a bear market has certainly taken its toll.
We figure that if the Plunge Protection Team hadnt been manipulating the market the Dow would now be near 5500-6000. It is stupefying to review all the scandals, bankruptcies and poor earnings and try to understand why the Dow isnt 3000 points lower. We guess well have to wait for the real estate, credit and derivative bubbles to break. As we have seen, deregulation has been a nightmare particularly since the Glass-Steagal Act was terminated. Wall Street brokerage firms, investment banking firms and banks have simply run amok. Its no wonder brokers have depression rates over four times the national average.
Its no wonder since brokers who made $100,000 to $3 million a year are out of work. Those left are making 20-35% of what they took home just three short years ago. It now seems like a lifetime ago. We see thousands of arbitrations and lawsuits. Strategists, analysts and bankers have been completely discredited. Worse yet, those of this group who warned of the impending problems have been shuffled into the background or fired. Wall Street and the banking community have fled under fire and are still fleeing and the battle of truth is only 1/3 of the way to being fully discovered. We can tell you that Wall Street wont be the same again for many years to come.
TOPICS: Business/Economy
KEYWORDS: brokers; doom; gold; goldbugs; recession; stocks
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This is a small excerpt of Mr. Chapman's 50 page, most recent report. I enjoy paying for his services; however, unless you can tolerate big doses of conspiracies from time, you will be put off. He uses inductive reasoning for his investment conclusions and deductive reasoning for his conspiracy and political views. In abbreviated form, sans stock advice, he is usually published again in LeMetropole Cafe. '
To: shrinkermd; Orual; aculeus; general_re; Poohbah; BlueLancer
We are terribly sorry to say our prediction of April 2000 of 50-70% of stockbrokers and stock brokerage firms going under before the bear market is over is sadly coming true.I am terribly sorry to say that I don't believe he's sad about it.
Struggling-one-room-studios bump.
2
posted on
08/31/2002 11:10:21 AM PDT
by
dighton
To: dighton
Notice how there are NO sources for the claim that commissions are down 80%? Ditto with the reports of alcohol and drug abuse; ditto with the reports of suicide.
3
posted on
08/31/2002 11:14:45 AM PDT
by
Poohbah
To: dighton; aculeus; general_re
4
posted on
08/31/2002 11:23:41 AM PDT
by
Orual
To: Orual
They would not be in bad shape if they had saved some of their earnings. Or do you think they invested themselves in the stocks they were recommneding? Nah, they couldn't have been that dumb...
To: Orual
A lot of people would be very happy to make $1 million during their entire lifetimes.
6
posted on
08/31/2002 11:33:52 AM PDT
by
Dog Gone
To: shrinkermd
The cool bachelor pads of the 1990s have given way to one-room studios in the suburbs. They now struggle through life in menial jobs trying to get their lives and futures together again. Holy schadenfreude Batman!
7
posted on
08/31/2002 11:38:16 AM PDT
by
Mentos
To: shrinkermd
Not only are Brokers earning less, so are their employers, which causes them to cut back in things they do - which means other companies that do business with brokerages have less business - and people end up unemployed. People like me for example...
To: shrinkermd
This guy sounds so bitter. Who pissed in his Wheaties?
To: shrinkermd
Why don't they enlist in the Army? In a year or so they can be in Afganistan or Iraq or Kosovo making 20 grand a year, full benifits.
Friggen yuppie pukes.
10
posted on
08/31/2002 11:50:02 AM PDT
by
Leisler
To: Leisler
I hate to break it to you, Buckwheat, but the author is all wet. While my income is down, Im still making more money than 95%+ of Americans. By the way, I am not a Yuppy
or a puke. You sound bitter. You need a hug.
To: moneyrunner
By the way,
I am not a Yuppy
or a puke. Exhibit A. "While my income is down, Im still making more money than 95%+ of Americans.
Exhibit B. "moneyrunner"
I'll take you at your word, you're just a plain old, boorish greedhead.
12
posted on
08/31/2002 12:59:39 PM PDT
by
Leisler
To: Leisler
Hey, Buckwheat, Ill OWN that place on the beach youre fantasizing about. How are you going to get yours? Your good looks or your winning smile?
To: moneyrunner
What's a good online source of gauging where one's annual income ranks one, percentile-wise, in the overall U.S. population please?
To: moneyrunner
Thanks for exhibit C.
You sound a little bitter about good looks and winning smiles. I won't mention charm.
Sadly, you only have one place on the beach? Most economically successful people I know have two, one up north and the other down south. Keep grinding.
15
posted on
08/31/2002 1:18:06 PM PDT
by
Leisler
To: Mentos
Holy schadenfreude Batman!I'm stealing this line, I hope you don't mind. Too funny! Too useful. Many thanks.
16
posted on
08/31/2002 1:29:04 PM PDT
by
muleboy
To: Leisler
I find ego, insecurity and income such an obnoxious combination. Moneyrunner appears to be a less-than-clever example of this.
To: moneyrunner
This guy has no idea how brokers make $$$. He thinks they get rich when the market goes up. Not necessarily true.
Here's a hint for him: Friday's NYSE volume was about 900,000,000 shares.
To: Senator Pardek
Now, now, now, you're talking far too much common sense.
19
posted on
08/31/2002 3:09:57 PM PDT
by
Poohbah
To: Poohbah
That's why they keep me here.
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