"The financial services industry, which includes investment, banking, insurance, and real estate firms, accounts for one in 14 jobs in Massachusetts. The economic impact is even broader because financial services workers earn high incomes, averaging $95,000 a year - nearly twice the state average. In addition, financial services help support another large and high-paying sector, professional and business services, which includes accountants, lawyers, and consulting firms."
Yeah, we are f*****!!!!
No wonder so many citizens of this state are poor and in need of food stamps (see todays roster of posts)!!!!
"Can state's financial firms dodge the bullet?; Some predict cuts as Wall Street suffers" by Robert Gavin, Globe Staff | July 23, 2008
Massachusetts' financial services industry has so far not been hurt by the troubles afflicting the stock and credit markets, but Wall Street's problems will eventually hurt profits here and force job cuts, analysts said.
Yesterday, Wachovia Corp., the large financial services firm based in Charlotte, N.C., reported an $8.9 billion loss for the second quarter and said it would cut $2 billion in costs over the next 18 months and more than 6,000 jobs.
Savings and loan giant Washington Mutual Inc. reported a $3.3 billion quarterly loss and announced a $1 billion cost-reduction program.
Last week, Merril Lynch & Co. of New York reported a $4.6 billion loss in the second quarter, following a loss of nearly $2 billion in the first quarter. It has cut more than 4,000 jobs this year.
If the stock market continues to turn in losses, as it did last month, then Massachusetts firms will certainly see conditions worsen. Many Massachusetts firms, such as mutual fund companies, make money based on the value of the assets they manage. When the value of stocks and other assets declines, so do revenues.
"The Massachusetts industry is so tied to national financial markets that I don't see how it can escape unscathed," said Gus Faucher, director of macroeconomics at Moody's Economy.com, of West Chester, Pa.
In another sign, BostonCoach, a limousine service catering to the financial firms, confirmed last week that it recently laid off 17 employees. The company is owned by the mutual fund giant Fidelity Investments of Boston.
The financial services industry, which includes investment, banking, insurance, and real estate firms, accounts for one in 14 jobs in Massachusetts. The economic impact is even broader because financial services workers earn high incomes, averaging $95,000 a year - nearly twice the state average. In addition, financial services help support another large and high-paying sector, professional and business services, which includes accountants, lawyers, and consulting firms.
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