Stock Brokers Going Broke

International Forecaster ^ | 31 August 2002 | Bob Chapman

[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 20’s smashed on the financial rocks.

The cool bachelor pads of the 1990’s 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 hadn’t 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 isn’t 3000 points lower. We guess we’ll 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 won’t be the same again for many years to come.

[shrinkermd]

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. '

[dighton]

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.

[Poohbah]

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.

[Orual]

It's no wonder since brokers who made $100,000 to $3 million a year are out of work.

[proxy_user]

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...

[Dog Gone]

A lot of people would be very happy to make $1 million during their entire lifetimes.

[Mentos]

The cool bachelor pads of the 1990’s 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!

[Keith in Iowa]

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...

[Isle of sanity in CA]

This guy sounds so bitter. Who pissed in his Wheaties?

[Leisler]

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.

[moneyrunner]

I hate to break it to you, Buckwheat, but the author is all wet. While my income is down, I’m 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.

[Leisler]

By the way, I am not a Yuppy … or a puke.

Exhibit A. "While my income is down, I’m 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.

[moneyrunner]

Hey, Buckwheat, I’ll OWN that place on the beach you’re fantasizing about. How are you going to get yours? Your good looks or your winning smile?

[End The Hypocrisy]

What's a good online source of gauging where one's annual income ranks one, percentile-wise, in the overall U.S. population please?

[Leisler]

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.

[muleboy]

Holy schadenfreude Batman!

I'm stealing this line, I hope you don't mind. Too funny! Too useful. Many thanks.

[WoofDog123]

I find ego, insecurity and income such an obnoxious combination. Moneyrunner appears to be a less-than-clever example of this.

[Senator Pardek]

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.

[Poohbah]

Now, now, now, you're talking far too much common sense.

[Senator Pardek]

That's why they keep me here.