It's been nearly four years since the financial bubbles burst, yet public anger with Wall Street remains strong. The reason why seems clear:
"They got bailed out, we got it in the neck."
Even so, the public is mostly unaware of the fact that there are fewer people on Wall Street to be angry with.
The number of jobs on Wall Street peaked a decade ago, just before that number fell by 20 percent decline during the 2000-2002 bear market. A partial recovery in employment gave way to another precipitous jobs decline beginning in 2007. This chart tells the tale:
Note well the small bounce up in Wall Street jobs since 2009 -- small indeed vs. the larger bounce in U.S. stock indexes.
But even that small employment bounce is in peril. Recent news reports say that trading volume is down in "bonds, currencies and commodities," while trading revenues fell by 25 percent in Q2.
What's more, the very latest round of headlines suggests that Wall Street's top dog may lead the way lower: The share price of Goldman Sachs fell this week to its lowest level in two-plus years, and the firm said "it planned to slash 1,000 jobs."
The Wall Street Journal put it this way: Goldman has seen "a steep decline in trading revenue because it stopped rolling the dice." The article also included this:
"One key measure of the amount of risk at the firm fell to its lowest level in almost five years."
Now, please don't read any sympathy into my comments about Goldman or Wall Street; I have none. The public's lasting anger has much to do with perceptions of injustice, and the perception is based on reality.
Yet the facts about (un)employment on Wall Street are likewise real. They reflect an unfolding trend that the July Elliott Wave Financial Forecast calls "a risk-rejection of epic proportions."
Read more facts and evidence about that risk rejection, right now. The Financial Forecast can be on your screen in moments: learn more below.
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