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McKinsey: Half the World’s Banks Too Weak to Survive Downturn

bloomberg.com

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Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#111

Post by Merrill »

omginternets wrote: post #102
ChrisLomont wrote: post #24

Earlier quoted context omitted.

>For the rest of us debtors...it remains an ongoing disaster Taxpayers didn't pay for bailouts. The Fed did. Taxpayers did make a profit form them, however, since the profits the Fed saw from the bailouts were, by law, handed over to Treasury (except for statutory operating expenses), offsetting taxes. >those who greased the runways for the shareholders with their lost homes Most of those those losing homes did so by…

>Also blame borrowers defaulting. Forgive my ignorance, but wasn't the subprime crisis so scandalous precisely because bankers were recklessly pushing mortgages on people who couldn't pay?

NINJA mortgages. No Income, No Job, or Assets.

There is actually a good business in providing mortgages to people who have income, jobs or assets, but who can't/won't provide documentation because of their legal status or the nature of their job/assets. They are actually good credit risks because they don't want any of the attention caused by debt collection and/or bankruptcy proceedings.

But some mortgage brokers took it way to far to people who simply did not have those things.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#112

Post by buckminster »

helpPeople wrote: post #43

I look at 8 year automotive loans, and I wonder- who is about to get screwed. People with jobs at gas stations buying new $30k vehicles. Either inflation is about to get bad, and our parents/Grandparents lose big or deflation happens and young people are screwed. Are there any other options?

In the UK in recent years there has been a big increase in lease-to-buy deals where the consumer can return the car and walk away. The car finance companies seem to be in the riskiest position.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#113

Post by PopeDotNinja »

esoterica wrote: post #108
PopeDotNinja wrote: post #99

Earlier quoted context omitted.

Here's the basic model: - McKinsey hires a bunch of "top" school grads - after a few years, some hires clearly have the potential to make partner, and most don't - McKinsey encourages clients to hire the people who aren't partner material at an attractive wage - feeling good about making a step up after capping out at McKinsey, most people gladly accept - McKinsey now has an alumni network at client's which are a goo…

Most people leave McKinsey willingly for greener pastures, not because they were not considered partner material and were forced out. People join consulting mostly for the exit opportunities, not because they strive to be lifers there

There's a lot of setup that goes into encouraging people to leave. Management works hard to make sure that people have greener pastures to go to. The people leaving don't see that side of it. If a partner encourages a client to hire Susie, and Susie leaves for the client, Susie might not ever know that a partner helped create that opportunity.

A friend of mine who used to work in management at Ernst & Young told me a bit about how this game is played. You need a strategy for getting people out that maintains the relationship, and offering backdoor bribes to lure people away is one way they do that.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#115

Post by TurkishPoptart »

stakhanov wrote: post #95
dfxm12 wrote: post #94

Earlier quoted context omitted.

MECE Mango-eating computer engineers? No, that doesn't fit in based on the context clues...

Mutually Exclusive & Comprehensively Exhaustive. It's how to do bullet points according to McKinsey. They had to invent it in the 1960s because apparently by the 1960s no one at McKinsey was yet, you know, aware of the existence of centuries' worth of literature on formal logic. So they reinvented the wheel as far as that particular cultural achievement was concerened. Or the first millionth of it, to be more precise…

God, these consulting companies are the _worst_.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#116

Post by m0zg »

PopeDotNinja wrote: post #99
rchaud wrote: post #50

Earlier quoted context omitted.

The difference is that in most cases, the shady mechanic is not somebody you already know from college, or from golf or your national frat society. McKinsey gets paid ungodly sums in part because they are the archetype of the old boy's club. Their new hires usually come only from top business schools, and likely already have several years under their belt at the types of companies McKinsey gets business from. In addi…

Here's the basic model: - McKinsey hires a bunch of "top" school grads - after a few years, some hires clearly have the potential to make partner, and most don't - McKinsey encourages clients to hire the people who aren't partner material at an attractive wage - feeling good about making a step up after capping out at McKinsey, most people gladly accept - McKinsey now has an alumni network at client's which are a goo…

Some people don't know this, but Sundar Pichai is ex-McKinsey. Could be one of those "not good enough to make partner".

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#117

Post by throwaway66920 »

TurkishPoptart wrote: post #115
stakhanov wrote: post #95

Earlier quoted context omitted.

Mutually Exclusive & Comprehensively Exhaustive. It's how to do bullet points according to McKinsey. They had to invent it in the 1960s because apparently by the 1960s no one at McKinsey was yet, you know, aware of the existence of centuries' worth of literature on formal logic. So they reinvented the wheel as far as that particular cultural achievement was concerened. Or the first millionth of it, to be more precise…

God, these consulting companies are the _worst_.

Alternatively, this is just some guy asserting that everyone at McKinsey thinks they invented a brand new concept, when in fact, it’s just a heuristic they teach people to communicate more effectively, because communication is hard.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#118

Post by vraivroo »

TurkishPoptart wrote: post #115
stakhanov wrote: post #95

Earlier quoted context omitted.

Mutually Exclusive & Comprehensively Exhaustive. It's how to do bullet points according to McKinsey. They had to invent it in the 1960s because apparently by the 1960s no one at McKinsey was yet, you know, aware of the existence of centuries' worth of literature on formal logic. So they reinvented the wheel as far as that particular cultural achievement was concerened. Or the first millionth of it, to be more precise…

God, these consulting companies are the _worst_.

What do you expect from a bunch of 24 year-old self-proclaimed "experts" fresh out of Harvard?

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#119

Post by vraivroo »

throwaway66920 wrote: post #117
TurkishPoptart wrote: post #115

Earlier quoted context omitted.

God, these consulting companies are the _worst_.

Alternatively, this is just some guy asserting that everyone at McKinsey thinks they invented a brand new concept, when in fact, it’s just a heuristic they teach people to communicate more effectively, because communication is hard.

I see you are unfamiliar with McKinsey.

Re: McKinsey: Half the World’s Banks Too Weak to Survive Downturn

#120

Post by theandrewbailey »

segmondy wrote: post #71
helpPeople wrote: post #43

I look at 8 year automotive loans, and I wonder- who is about to get screwed. People with jobs at gas stations buying new $30k vehicles. Either inflation is about to get bad, and our parents/Grandparents lose big or deflation happens and young people are screwed. Are there any other options?

$30k vehicles are cheap these days. My mouth dropped when I was at the auto show and seeing SUVs like navigator and escalade with price of $80k+

Navigators and Escalades are luxury SUVs. Of course those are going to cost a lot.
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