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hatelove
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Following the 2007 subprime mortgage crisis, I haven't seen any investment banks in the U.S. at all...as far as a career goes, is going into investment banking still a viable option for people in the maths/physics fields?
twofish-quant said:One big thing that has changed since 2008, is that even when people *are* making money and are hiring, they are keeping very quiet about it. In 2005, if you made a lot of money, then there was social pressure to "conspiciously consume." In 2005, the bankers were the "heroes of the new economy."
Today, anyone that makes a ton of money in finance, is going to be very, very quiet and try their best to look poor, because anyone that looks rich is going to end up having rotten eggs tossed at them by demonstrators.
chiro said:If the proverbial ends up hitting the fan in a big way financially like its happening overseas, then rotten eggs are going to be the least of their worries.
twofish-quant said:On the other hand, one good/bad thing about finance is that when finance falls apart, then everything else falls apart too.
chiro said:Lol, how is that a good thing?
I agree about the fact though that when finance does its job, the world keeps going. Any kind of resource allocation is essential in a modern, advanced civilization.
But having said that, I agree that a great number of financial institutions do their job well by allocating resources to where its needed, and who don't act recklessly with resources like you would expect an addicted gambler to act with someone elses money at Las Vegas.
djent said:it is actually kind of dead.
you might as well be day trading.
There is literally nothing with a stable upward trend with the exception of maybe energy market, and even that not nearly as stable as it used to be
Something to remember is that finance is in some sense a "social parasite." Parasites need to keep the host alive, if finance takes up too many resources from the non-financial economy, then that dies and then the financial sectors die.
Floid said:If I remember correctly, the authors came up with somewhere in the low teens (12-14%) through historical analysis (Dutch tulip bubble, several British Empire episodes) and some quantitative analysis. Then when 2007 comes around we were pushing this limit and the wheels fell off. It would be interesting to see if there was a direct correlation.
The decline of investment banking on Wall Street can be attributed to several factors, including increased regulations, market volatility, and the rise of alternative investment options. The 2008 financial crisis also played a significant role in damaging the reputation of investment banks and leading to stricter regulations.
Yes, investment banking is still a viable career option, although the industry has changed significantly in recent years. While there may be fewer job opportunities in traditional investment banking roles, there are still opportunities in other areas such as fintech and private equity.
Some current trends in investment banking on Wall Street include a shift towards more sustainable and socially responsible investing, the use of technology and data analytics in investment decisions, and a growing focus on emerging markets and industries.
The COVID-19 pandemic has had a significant impact on investment banking on Wall Street. The economic downturn caused by the pandemic has led to a decrease in mergers and acquisitions, initial public offerings, and other investment banking activities. However, the industry has also seen a rise in demand for services such as debt financing and restructuring.
It is difficult to predict the future of investment banking on Wall Street. While the industry has faced challenges in recent years, it has also shown resilience and adaptability. It is likely that investment banking on Wall Street will continue to evolve and adapt to changing market conditions, but it is too early to determine if it will fully recover to its pre-2008 levels.