The Restructuring of Wall Street the Fed is Fighting

There are plenty of layoffs on Wall Street, but it's not a bad time for recent business school grads.

What's going on is a restructuring of Wall Street. The high paid employees are getting bounced, and are being replaced by lower paid recent finance grads.

Despite shedding tens of thousand of jobs because of the credit crunch and recession, Wall Street firms are still hiring 2009 business-school graduates at a healthy clip, college professors and administrators tell NyPo:

"Investment banks are getting rid of staff earning $600,000 to $700,000 a year, and hiring graduating students on annual salaries and bonuses of $100,000 to $125,000," said J. Randall Woolridge, a finance professor at Penn State's Smeal College of Busines. "They always need these worker bees."

The high earners, who are more experienced in the business world, are moving on--maybe starting their own businesses that meet the new restructured demands of the consumer world, while newbies are ending up on Wall Street, where demand is falling off.

Of course, the Fed is trying to prop up the old structure with every pumping machine it has. The result being that fewer of the business experienced, world savvy, leaving the Street to start new businesses that serve consumers, hch would occur if the natural restructuring of a recession would be allowed to run its course. The ultimate outcome of this Fed distorting prop-up of the old Wall Street structure being huge inflation down the road.