what if the markets crash...

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bouh22

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It may be a silly question that I have as the answer depends on multiple factors (such as the bank one works at) BUT: in case markets would crash, where would the deathtoll be the most appalling according to you? FO? MO? BO?
Let's say I'm about to continue my career in exotic derivatives taking a MO position and would like to know whether it is a hasardous move at that time.

Thks!
 
Are you sure you're not better off taking up a position in catastrophe insurance?
 
ahah like I said, I knew my question would sound a bit silly...
truth is it is not only a career shift that I'm taking but also leaving my country and therefore the confort of everything I know. Hence the question, just to be sure that my professionnal decision is a wise one as it comes with personnal sacrifices.
By the way, catastrophe insurance may rock someday;)
 
Well, the immediate effects would probably be felt in the front office, as clients who get burned try to blame whoever they are dealing with. On the other hand, having been through some kind of meltdown is actually a good selling point in interviews, as long as you didn't do anything to make a bad situation worse.

Back office would likely be unaffected, since an organization will still need to process transactions and keep the paperwork accurate, as long as they remain a going concern.

Middle office? I suppose it all depends on whether the FO people successfully divert clients' blame to the middle and back office teams. In a crisis, there is usually backlogging of orders and liquidity problems, so people closer to the front will be saying that "I was trying to get out, or do X, but the middle and back office folks screwed up and didn't get my orders executed in time."

I guess I need to review exactly what activities fit into FO, MO, and BO to be more detailed. For example, is a portfolio manager that doesn't interact with clients and just executes a process considered FO or MO?
 
I think markets won't crash while Bush stays in the office. Why do I think so? It's a behavioral finance issue. Lots of small and middle-size investors think that overall economic situation will improve if Bush is kicked out.
 
toronto, I am not seeing where you are coming from. Bush would potentially veto some of Congresses stupider spending, not to mention potential tax hikes. Would Hillary, doubt it. Obama, maybe...

Blaming Bush for economic problems is pretty lame, seeing as how well the economy is doing, and the simple fact that the government, especially in the U.S. has little infleunce on the health of the economy. At least that's from where I see it.

Politicans are just a bunch of overpaid lawyers who think they are important...
 
Yeah, nearly 7 years into the Bush administration, and economic and political problems are STILL just leftovers from the Clinton days. We just need to hold the course, and eventually, there has to be at least one good thing that happens that the Bushies can decide to claim credit for.
 
I don't care about quality of people's reasoning. But I care about consequences of their reasoning. So, I stay invested in equities for now.

And I wasn't talking about politicians here.
 
I'm not saying the probelms of the past 7 are Clinton's fault, nor the for the most part good 8 years were due to Clinton, or Bush I for that matter. If any President is responsible for the relative prosperity and growth of the past 25 years or so, it's Reagan and his willingess to stand by Volcker.

Considering what the U.S. has been up against, a technology stock crash and 9/11 and the two wars that followed during the Bush II presidnency, the economy has done very very well I would say. The problems of today in terms of the economy have far more to do with the cheap money Greenspan et. al pumped into the economy, and sat on for two years. Hence, the housing bubble

just how I see it...
 
bchadwick Wrote:
-------------------------------------------------------
> Yeah, nearly 7 years into the Bush administration,
> and economic and political problems are STILL just
> leftovers from the Clinton days. We just need to
> hold the course, and eventually, there has to be
> at least one good thing that happens that the
> Bushies can decide to claim credit for.


hahahaha
 
LOL, I was predicting a correction when the S&P were at 1525 and the Dow at like 13,500 so take what I say with a grain of salt lol.

Turkish, I am going to be in T.O. the last weekend of August I believe, you going to be around do you know>?



Edited 1 time(s). Last edit at Monday, July 16, 2007 at 03:28PM by CFA_Halifax.
 
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