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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (203785)	11/10/2002 5:05:16 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 436258

true tried to edit but gave up it is economists - "Wirtshaft" - economy -" weise" - wise - another mistake in defining an economist as a wise man, knowledgeable about the economy. Alta Vista was more in line with reality of life

To: Tommaso who wrote (203785)	11/10/2002 6:49:23 PM
From: Haim R. Branisteanu	Respond to of 436258

Merrill Cuts Show Economists Drag on Costs November 10, 2002 03:22 PM ET By Mary Kelleher NEW YORK (Reuters) - Wall Street is axing one of its last remaining luxuries as it copes with the market downturn: economists. Economists would seem vital to stock and bond prognostication, but analysts say these experts in the dismal science cost too much. They garner high salaries without generating revenues or offering a quantifiable service like rating shares. Merrill Lynch and Co. Inc. MER.N on Thursday was the latest firm to let a big-name forecaster go, firing chief economist Bruce Steinberg. Two other high-ranking Merrill economists also left on Thursday: Matthew Higgins and David Horner. Other firms are expected to follow. "Some of these firms are kind of heavy on the economics and strategy side," Reilly Tierney, an analyst at Fox-Pitt, Kelton, said. "They are some of the smartest guys in the firm, and probably paid pretty well, but it's a total luxury." A drought in bread-and-butter securities businesses like advising on stock offerings and mergers has forced Wall Street to cut costs everywhere. Merrill has eliminated more than a quarter of its staff, or 18,600 jobs, since the start of last year and cut 1,200 positions in the third quarter. Wall Street's also overhauling research departments amid a wide-ranging probe by regulators and New York Attorney General Eliot Spitzer into stock research abuses. Spitzer and regulators have alleged firms issued overly bullish research reports to win investment banking deals. The firms are negotiating ways to split research off from banking units. REGIONAL TEAMS PLANNED Merrill also is overhauling its economics and strategy units to create regional macroeconomic teams, cutting costs as it goes, a source familiar with the matter said. Merrill's chief U.S. strategist, Richard Bernstein, likely would head the North American group, the source said. Bernstein also has been bearish, the correct stance on markets recently, while Steinberg was bullish until recently. The source said the restructurings had nothing to do with whether Steinberg was right or wrong, though one analyst said it was not surprising the bullish economist was the one to go. "I don't think it's a coincidence that they cut a guy who's been associated with the bull market," Justin Hughes, an analyst at Jeffries & Co. said. Merrill has used a heavier hand in tackling costs, though other firms are doing the same thing, analysts noted. Merrill's Martin Fridson, considered the top high-yield bond strategist on Wall Street, left this week. Investment bank Credit Suisse First Boston also laid off nearly 20 percent of its research staff including chief market strategist Tom Galvin. "If you're going to cut an area and not worry about the consequences of cutting it it's going to be strategy and economics," Tierney said. "Those are the areas that don't really produce any revenues...The fact that these guys were wrong or whatever I don't think has anything to do with why they were fired." Merrill said it is not retreating from any markets. "We remain committed to providing our clients around the world with comprehensive macro products," a spokeswoman said. "Our business plans for economic and strategy will be announced in the next few weeks."