3-month Libor at record lows

Thrugelmir

chucky wrote: »

if that happens and that is a very big if - it won;t happen in our generation. that kind of shift will take a good number of years.

Events happen far quicker now than they did historically. Economically we are in very poor shape.

We are heavily indebted to the Middle and Far East. Whilst we have invested in property. (The profit on which is flowing East in the form of interest for the foreseeable future). They have built sizable stakes in international companies and bought minerals, metals and other raw commodities. With which to supply their own industries. All within the past 50 years.

inspector_monkfish

Generali wrote: »

Indians will take the night bus for a fraction of what a Londoner wants to get on the 8.05.

What goes to India can be a shambles and can be just as good as London, depending on how it's done.

I was a part of outsourcing with 2 investment banks.

IB1 (not doing so well now but well thought of at the time) saw outsourcing as a way to slash costs quickly and gain a quick advantage over rivals. They got a bunch of Indian post-grads over to London for 6 weeks, put them on subsistence expenses (couldn't afford to go to the pub with the rest of us for example) and expected them to take on a job that takes perhaps a year to learn properly.

IB2 (doing very well now) saw outsourcing as a way to cut costs and improve client service. Rented some flats in Clerkenwell and put Indian staff up there on London wages for 6 months. They were encouraged to socialise with London staff au pub and on the sports field. A year after the jobs went to India from a client or internal bank person POV there was non difference between the Indians and the Londoners.

what job were they learning?

purch

what job were they learning?

Spot EURO !!!

Generali

inspector_monkfish wrote: »

what job were they learning?

Various jobs. Settlements, confirmation matching, reconciliations, corporate actions for example.

There are two problems now those sorts of jobs are leaving London:

Firstly, you lose depth of service.
Secondly, why keep the traders in London?

Just like clothing manufacturers can send away everything to Asia but a few sales staff, banks can (and are doing I believe) the same. There is nothing special about a white man in a desk in London that someone of a billion Indians can't replicate or even better.

purch

why keep the traders in London?

Look Gen............it's a proven fact.

Only Brits can trade properly.

Everyone else is completely useless !!!!

inspector_monkfish

Generali wrote: »

Various jobs. Settlements, confirmation matching, reconciliations, corporate actions for example.

There are two problems now those sorts of jobs are leaving London:

Firstly, you lose depth of service.
Secondly, why keep the traders in London?

Just like clothing manufacturers can send away everything to Asia but a few sales staff, banks can (and are doing I believe) the same. There is nothing special about a white man in a desk in London that someone of a billion Indians can't replicate or even better.

why would a trader want to live in india?

even a trained up indian grad is going to want to live in london/new york/paris/tokyo once he's got his trading stripes

inspector_monkfish

purch wrote: »

Look Gen............it's a proven fact.

Only Brits can trade properly.

Everyone else is completely useless !!!!

just look at that legend Leeson.....

Thrugelmir

purch wrote: »

Look Gen............it's a proven fact.

Only Brits can trade properly.

Everyone else is completely useless !!!!

Only Brits work in the City of London........ :rolleyes:

purch

There has to an exception to prove the rule.

Nuff said !!!

kennyboy66_2

purch wrote: »

Then what ??

They kick sand in our face ?

Lets face it empires do decline, but it rarely happens overnight.

In the 1980's Japan was about to take over everything from manufacturing to banking, to huge swathes of property and resources all over the world.

China maybe a massive Japan - but they will have the same demographic issue sooner or later.