Too many rules may keep young folks from finance – Schwarzman
Email 
Print
Excess regulation could hurt young people’s desire to enter the financial services industry, Blackstone’s CEO Stephen Schwarzman cautioned on Tuesday.
Schwarzman, who runs one of the world’s biggest private equity firms, was asked his thoughts on financial sector recruitment after giving a speech at the Japan Society on Tuesday.
“The glamor and the upside that I think young people believed when they entered finance is certainly going to be compromised in this cycle,” Schwarzman said. “You’ll have a much more regulated business. To really answer the question, you have to see what comes out of the regulatory regime. If there’s real regulatory excess, that will greatly diminish people’s desire to enter this field.”
Schwarzman also said that up to 45 percent of the world’s wealth had been destroyed by the credit crisis.
Comments RSSPost Your Comment
Not only this, but also investing is becoming painful. I have just canceled two insurance policies, and was treated as a suspect, having to prove who I am, where I live, the account to transfer money to etc, even though the company has happily taken premiums from the account for 20 years!
Gold in a hole in the ground seems to be the solution. Never again will I invest with an insurance company, never!
Boo Hoo..wouldn’t it be terrible, if so many more intelligent young people decided to go into medicine, science, educations, etc….what a loss, huh?
This ?guy? got it right. The quote is from blog
http://dlmblogmissn.blogspot.com/2009/03 /paper-wilting-is-not-wealth-destructio n.html. And you should see the illustration in the blog.
Wednesday, March 11, 2009
Paper Wilting is Not Wealth Destruction
“Between 40 and 45 percent of the world’s wealth has been destroyed in little less than a year and a half,” Schwarzman told an audience at the Japan Society. “This is absolutely unprecedented in our lifetime.” (Reuters March 11, 20090
The quote is from Stephen A. Schwarzman, chief executive of the Blackstone Group.
Blackstone describes itself as “a leading global alternative asset manager and provider of financial advisory services ..”.
This is a classic example of the myopia of the financial community which sees wealth as pieces of paper that flutter between financial institutions.
The farmland, forests, mines, factories, homes, minerals, office towers, warehouses, etc. still exist. Yes the prices attached to these assets have changed. Yes the composition of the ownership is continually changing with some winners and some losers. The flutter of paper is largely a zero sum game.
The losers in the flutter of paper seek bailout money from us taxpayers while the winners in the zero sum game are understandably maintaining a low profile.
Posted by dldlmblogmission at 9:16 AM
0 comments:
After the financial debacle we are currently experiencing, I find it difficult to cry tears over too many rules. If the large salaries and benefits attracted the best and the brightest over the last few years, many must have failed in their duties both morally and legally. It is more important to protect this country and our investors than to make job applicants feel wanted.
It is a good idea to get prudent regulation in place in the aftermath of our current global financial crisis. We do not need more greedy & reckless people in our financial industry. We need people who will act prudently in the future in this sector being that it really affects every other sector of our economy. Also if the regulation is too harsh, then we will see the effects and we can go back and ease where needed. With that said, I personally think other than the “uptick rule” we really should focus on enforcing the rules we have in place. .02
From the exposure I’ve had with some of the “young folk” who are interested in finance, I would rather see individuals who are actually interested in economics and finance rather than getting rich quickly by entering the field. Furthermore, I find the most connected are often hired rather than “the best and the brightest”. If the financial world mainly hires the “best and the brightest” why are we in the situation that we are in?