End of an Era on Wall Street: Goodbye to All That

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"End of an Era on Wall Street: Goodbye to All That


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JUST before midnight 10 days ago, as a financial whirlwind tore through Wall Street, someone filched a 75-pound bronze bust of Harry Poulakakos from the vestibule of his landmark saloon on Hanover Square in Manhattan.

Digging into a bowl of beef stroganoff the day after the bust disappeared — it was eventually returned anonymously — Mr. Poulakakos recalled some of the customers who had passed through his doors since he opened his bar, Harry’s, 36 years ago.

Ivan Boesky once had a Christmas party there. Michael Milken worked over at 60 Broad. Tom Wolfe immortalized the joint in “The Bonfire of the Vanities.” Mr. Poulakakos says he even got to know Henry M. Paulson Jr., the former Goldman Sachs chief executive and now the Treasury secretary.

Mr. Poulakakos, 70, has also seen his share of ups and downs on the Street, including the 1987 stock market crash, when Harry’s filled up at 4 p.m. and stayed open all night. But the upheaval he’s witnessing now — much of Wall Street evaporating in a swift and brutal reordering — is, he said, the worst in decades.

“I hope this is going to be over,” he said. “If Wall Street is not active, nothing is active.”

Mr. Poulakakos, rest assured, isn’t planning to disappear. But the cultural tableau and the social swirl that once surrounded Harry’s are certainly fading.

“It’s the beginning of the end of the era of infatuation with the free market,” said Steve Fraser, author of “Wall Street: America’s Dream Palace,” and a historian. “It’s the end of the era where Wall Street carries high degrees of power and prestige. And it’s the end of the era of conspicuous displays of wealth. We are entering a new chapter in our history.”

To be sure, living large and flaunting it are unlikely to exit the American stage, infused as they are in the country’s mojo. But with Congress having approved a $700 billion banking bailout, historians, economists and pundits are also busily debating the ways in which Wall Street’s demise will filter into the popular culture.

It’s an era that traces its roots back more than two decades, when suspendered titans first became fodder for books and movies. It’s an era when eager young traders wearing khakis and toting laptops became dot-com millionaires overnight. And it is an era that roared into hyperdrive during the credit boom of the last decade, when M.B.A.’s and mathematicians raked in millions by trading and betting on ever more exotic securities.

Over all, the past quarter-century has redefined the notion of wealth. In 1982, the first year of the Forbes 400 list, it took about $159 million in today’s dollars to make the list; this year, the minimum price of entry was $1.3 billion.

As finance jockeyed with technology as economic bellwethers, job hunters, fortune seekers and the news media hopped along for the ride. CNBC became must-see TV on trading floors and in hair salons, while people gobbled up stories about private yachts, pricey jets and lavish parties, each one bigger and grander than the last.

Finance made enormous and important strides in these years — new ways to parse risk, more opportunities for businesses and individuals to bankroll dreams — but for the average onlooker the industry seemed to be one endless party.

In 1989, tongues wagged when the 50th birthday celebration for the financier Saul Steinberg featured live models posing as Old Masters paintings. That bash was outdone last year, when Stephen A. Schwarzman, head of the private equity firm Blackstone, feted guests at a 60th birthday party boasting an estimated price tag of $5 million, video tributes and the singer Rod Stewart.

“The money was big in the ’80s, compared to the ’50s, ’60s and ’70s. Now it’s stunning,” said Oliver Stone, who directed the 1987 film “Wall Street” and is the son of a stockbroker. “I thought the ’80s would have been an end to a cycle. I thought there would be a bust. But that’s not what happened.”

Now, with jobs, fortunes and investment banks lost, a cultural linchpin seems to be slipping away.

“This feels very similar, historically, to 1929 and the emotions that filled the air in the months and years that followed the crash,” Mr. Fraser said. “There is a sense of extraordinary shock and astonishment, which is followed by a sense of rage, outrage and anger directed at the centers of finance.”

A WALL STREET hotshot was in a real-estate quandary, and he wanted Barbara Corcoran to help him sort things out.

“This is a finance guy making a ton of money and he was trying to decide whether he should sell the country home in Connecticut, the apartment here in the city or the 8,000-square-foot dream home in Oregon that he just finished,” recalled Ms. Corcoran, who has spent years selling high-end luxury properties to New York’s elite."



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http://www.nytimes.com/2008/10/05/business/05era.html?_r=2&th&emc=th&oref=slogin&oref=slogin
 
First Case of Suicide??

First Case of Suicide?? - sad so Sad! when so mny families will be destroyed!

Los Angeles: Shocked by finding himself a pauper from a Millionaire overnight by the plunging US stock market, an unemployed Indian origin businessman took the extreme step of shooting and killing his wife, three children and mother-in-law, before taking his own life here.
Karthik Rajaram (45), who once made more than USD 1.2 million in a London-based venture fund, was found dead in his Porter Ranch home here along with his wife Subasri (39), mother-in-law (70) and three sons Krishna (19), Ganesha (12) and Arjuna (7).

Authorities believe Rajaram, an MBA, killed his family and himself after seeing his finances wiped out by the stock market collapse, Los Angeles Times reported on Tuesday.

"To us it appears to be a financial stake, a crisis situation that this man became embroiled in over the past few weeks," police said.

On September 16, Rajaram bought a gun. He wrote two suicide notes and a last will and testament. And then, sometime between Saturday night and last morning, he killed his wife, mother-in-law and three sons, and took his own life.

"This is a perfect American family behind me that has absolutely been destroyed, apparently because of a man who just got stuck in a rabbit hole," said LAPD Deputy Chief Michel Moore.

In a letter addressed to the police, Rajaram blamed his actions on economic hardships. A second letter, labelled "personal and confidential," was addressed to family friends; the third contained a last will and testament, Moore added.

© Copyright 2008 PTI. All rights reserved.
 
Yeah that was on the news here too.

Very sad, particularly as he was still pretty young, well educated, been successful in his fund that he co-started, and still didn't see any alternative !

Although he must have totally flipped when he decided to not only kill himself, but also his entire family.
 
"He had some behavioral problems," Robinson said. "He wasn't reliable. . . . He was not an emotionally stable person. It was a real problem and would affect any business he was involved in."

Although Karns and her husband said they liked Karthik Rajaram and were stunned by the news, they said he was "very high-strung, very intense."

Sounds like a nutter to me. If it wasnt the stock market it probably would have been something else eventually.
 
It's strange how someone with responsibility, determination, intelligence and education can do something so extreme and dark while many others with such an entrepreneurial spirit can bounce back time and time again, each time making a bigger fortune to lose.
 
SAD... Very sad.... BUT

hasnt anyone considered this could be the best buying opportunity in a LIFETIME ???

Why is everyone so pissed off ??? sure I have lost a few quid over the past year or so...BUT.. we are into unchartered territory here... this is like BIG Wednesday for traders...

This is what I have been waiting for all my life.... roll yer sleaves up and get stuck in !!!
 
It's strange how someone with responsibility, determination, intelligence and education can do something so extreme and dark while many others with such an entrepreneurial spirit can bounce back time and time again, each time making a bigger fortune to lose.

Absolutely !

What a totally senseless and pointless waste !
 
am i missing something here, i'm not usually dim, but i trade a lot better when i dont have outside interference.

dont they know what stops are? ok everything is losing value but is that a bad thing?

for me it is a god send, I am loving it.

house prices falling = good for ME, couldn't afford one as a first time buyer. and f**k knows why i want to leverage my earnings 10x and pay it back over 30 years.

stock market collapsing, who gives a Shizzle, it's just less margin to buy it when the time comes and i dont have an index tracking fund or pension.

oil is coming down but the damn To***r government cant reduce it at the pumps!!!!!!, natural gas is coming down, both more than 30% from their highs. it was only yesterday, that energy suppliers introduced fixed pricing until 2009/12 as the public feared higher rates from the surges. clever they are locking people in at higher prices, they have their bottom line to secure.

bu**er about cable as i like going and spending money in the states. but good for my positions, I'm short :cheesy:

but i'm sitting here quitely not listening to anything or no-one, if the market wants to come down, i'll follow it. then read why in the papers later in the evening. this is all natural, nature has its way of restoring the balance of power.

all this to me is a good thing.

:rolleyes:
 
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