Who else is sick of watching the markets??? I checked randomly yesterday about 3 times while I was at work (consider that I still work in Milan, and so there is a 6 hour time difference usually), and all three times I checked, there was a different snap shot. Roller coaster doesn’t even begin to correctly describe the action. So, to go back to my post of a few weeks ago saying that a solid job/future for all you business majors could lie in Directors and Officers insurance, I have some news.
EVERYONE is looking for D&O underwriters right now it seems. I was looking around the internet today at some of our competitors and that is the one consistency I found- D&O- everywhere you look D&O.
In other financial news, I made a 10 Euro bet with one of our marketing people (who oddly enough happens to be a huge – and informed- baseball fan) on the World Series. Since I went for the Phillies it seems like I’m going to see a positive return on this. Which given the state of things, is probably a safer “investment strategy” than actually investing. So yes, I’m going to try to supplement my retirement with well placed bets on American sporting events against uninformed Italians.
Maybe if I can fool enough people into my little Ponzi scheme here I can retire after the Super Bowl…build an empire based on nothing.
PS- If you think that this is a legitimate way of making money, or find this theory mildly fascinating- check out the experience Sports blog. The link is on the right.
My new investment strategy- The Phillies
WHY CAN'T MY JOB BE CREATIVE??? or Things that upset me, Part I
Dearest readers of my blog,
In taking a break from the high stress, tumulous, armaggedon style news bits that we’ve all been reading about the financial community in the past few weeks, I bring you what may be the first enstallment in a series of “Things that upset me”. This particular “thing that upsets me” stems from a conversation amongst my roommates a few days ago. Because our landlords control who takes the rooms in our house (and in exchange we pay rent per room and not a fixed amount for the apartment), we found ourselves living with a student in her first year of the Prestigious Italian university- “Bocconi.” Bocconi, for those who don’t know, is the Italian answer to Harvard (although that is probably giving it too much credit), but it is widely considered the best university in Italy with a renowned Business program.
Now, we were discussing her major and she had mentioned that she wanted to major in Marketing because ultimately she wants a job where creativity abounds. So, naturally, as someone who frankly loves her job- I said, “Sara, why not try insurance??”. Her response was something to the effect of “Insurance?!?!?! Blecchh.”
This brings me to my point- THINGS THAT MAKE ME UPSET: Why is it ASSUMED (and we all know what they say about ASSUMING) that there is a complete and utter lack of creativity in the financial sector?
Look, creativity isn’t SOLELY defined by those working in the arts, or at least it shouldn’t be. I think that creativity is best encompassed by being innovative in thoughts, processes and practices. If the financial services industry wasn’t CREATIVE, we would all still be trading food for animal pelts. Most of the insurance coverage that exists in the market today are the result of somebody identifying an uninsured hole and figuring out a way to indemnify loss. The act of placing monetary value on promises (which is what most financial services are- promises to cover insurance claims, speculation that an investment will go up, etc) is nothing short of an act of calculated creativity based on a working professional knowledge.
Hey, I’ll even go one step further to say that a lot of what we see in the news is based on creativity- “creative accounting” – and who’s idea was it to bundle sub prime mortgages into AAA rated bonds!?!
So don’t tell me that people who work in Finance aren’t creative- oh Italian roommate of mine! Its simply not true.
Sincerely,
Lydia (who recently headed up a group who won a new products competition- Professional Liability for Priests- If that’s not creative, I don’t know what is)
Brother can you spare a dime, and other 1929 classics
Dear Financial Markets,
WHAT ARE YOU DOING!?!?!?!? On behalf of all financial services professionals five years or less out of college- PLEASE “check yourself before you wreck yourself.” Or perhaps its too late…A good chunk of America has seen their hard earned money disappear into thin air over the past two weeks- and this clearly is going to have serious repercussions over the most innocent of us whose only act of “corporate greed” (as the socialist left would put it) has been to show up at work and dedicate our days to making our company better, and financially stronger. But this blog is REALLY supposed to be about jobs, and most importantly finding the right one for you and how it looks once you’re in your cube farm.
The one thing that this financial crisis hasn’t changed is the need for certain positions in the financial community. Granted, with the massive layoffs that the industry has seen since the collapse of Lehman, it is certainly not the time to walk into your boss’s office and demand a 30% raise, a promotion or a week of vacation because “you need a break” (ps- I’d like a raise, a promotion and a week of vacation if anyone is reading this…I’m exhausted). The traditional and obvious doors may be temporarily shut but, for those looking for a job, there may still be a way to sneak in through the window. Here are some things I’ve noticed in the past few weeks.
Accounting: if you have a penchant for numbers, this may just be the way to get into your dream corporation right now. I work for one of the companies that have been making headlines lately, and although new hires have certainly slowed down- one thing I have noticed postings for is Accountants of various levels. WHY? Because when you’re in a financial pickle- some of the most important people in the organization become those people who tell you where your money is going and how much is coming in. It’s a simplistic thought but a well staffed accounting department is fundamental, especially when a company is having a hard time.
Marketing- if you have a background in marketing, and you are trying to enter the financial world right now, while this isn’t in itself a qualification, it is a fantastic talking point. Listen, you might say to the person interviewing you, in these tough times, in a soft market, one of the most fundamental elements of a company’s sustainability is retaining existing clients. For growth, one must bring in new clients, and this is most effectively done through good marketing and relationship management. BOOYA- marketing people- USE THIS ARGUMENT! (If talking points can work for political parties- why can’t they work for job hunters?)
Lastly, if you think that there is no way that despite the above you can find a job, maybe its time to start making a strategic investment in yourself- maximizing your ROI is after all, and the name of this blog. In a tight job market, the general idea is to have your resume stand out more than the next guy (and maybe the next guy went to Harvard- what do I know??), and a wonderful way to show interest and dedication to a field where you might not have any practical experience is through professional examinations. So, if in your long days of hunting experience.com or monster or job fox, you are still frustrated- perhaps its time to pick up a text book. Start your Series 7, your CPA exams, your CPCU (Chartered Property Casualty Underwriter) or any other of the number of titles offered through the American Institute of Chartered Property Casualty Underwriters. It is a better option than watching day-time television anyway!
Let think positively and proactively- and WE can make all the difference in the next 40 years of financial history!
The Following Is Entirely MY Opinion...
I’m sitting at my desk today drinking water like a marathon runner- maybe because the past few days have been a marathon of insurance and market news. But, as I’ve said, for real news- and not just opinions or speculation- read Bloomberg- because largely financial blogs are speculation and advice should come from professionals (even though Cramer is and has been wrong many many times- so choose your professionals wisely).
Here is my weekly food for thought:
The election and the bailout. Who’s to blame? Who should we vote for? What does the current financial situation tell us about the US Financial System and what has happened in the past.
The origins of these questions, history major that I was, lies in the very foundations of America. Back in the days of Alexander Hamilton (famous now for the old “Got Milk” commercial), the first US Secretary of the Treasury, there was a big debate as to the beginnings of a UNIFIED American bank. This issue of Individual states rights vs. Federal control harks to the very foundations of our nation, and hits every major issue from Finance, to the abolition of slavery, to women’s rights- and one of the fundamental differences between Republicans and Democrats. The financial industry has long been governed state to state- as Insurance continues to be through various state regulators, but along the way in the past 250 years or so, there was a gradual move in the banking industry towards cross state chartering, national regulation, mergers and acquisitions along the lines of different financial services, establishing financial holding companies and eventually- Deregulation.
Now, where to place the blame. First of all, placing blame in this situation is rather useless in the sense that the damage is done, and now we have to find a way to deal rationally with the fall out. It is also subjective as everyone, in the completely partisan USA would rather blame the “other party”. However, when examining a series of legislation, especially since Clinton’s overhaul of the Financial sector in 1999 (the Financial Services Modernization Act), which heavily deregulated the industry (and brought up to date by today’s congress) and allowed banks to engage in other “financial services” where they previously could not- like Insurance (previously left to the Insurers) or mortgage lending.
Another major problem with the Mortgage crisis is that it is something that was developed in the Government rather than the Finance Industry. Legislation passed during the Carter and Clinton administrations made certain types of sub prime lending illegal- outlawing redlining (also illegal in property insurance- its refusing to lend or insure in certain areas based on demographic information. It speaks to the Adverse Selection risk the finance industry faces, which is a term used to describe the fact that the guy who lives on an earthquake fault line is more likely to want to insure his house than the guy living in an area that’s never had a hurricane, earthquake, flood or tsunami). This opened the industry to an incredibly heightened risk when all of a sudden banks were forced to recognize Unemployment checks as a legitimate source of income.
Now, as an Underwriter, we are paid to exercise our good/professional judgment in assuming risk on behalf of our organization. When Uncle Sam reaches his hand over my desk forcing me to accept clients I know have an increased probability of default. - Something is going to happen.
So who do we blame???
