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Wall Street Oasis » Blogs » Edmundo Braverman's blog
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How To Balance the Budget (Without Really Trying)
 

Edmundo Braverman's picture
Edmundo Braverman
      ST
 
 
(Human, 14,702
 
Points)
 on 10/8/10 at 3:30am

Is it possible to balance the budget without raising taxes? Sure, you say, but you'd have to cut government spending way back.

Turns out that's not the case, as explained here by Dan Mitchell of the Cato Institute. Balancing the budget doesn't require higher taxes, or even any cuts to current programs:

We're always talking about reining in runaway government spending, but I was pretty shocked to learn that all we would have to do is freeze spending where it stands today in order to zero out the deficit in a couple years.

Why is it so hard to get this done?

Maybe I just don't get it. Maybe it makes perfect sense to spend $800,000 to teach guys on another continent how to wash their junk. (hat tip to happypantsmcgee. nice pull.)

If any of you encounter a government lobbyist this weekend, you have your Uncle Eddie's permission to kick him square in the nuts.

  • tax policy
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Comments

TheKing's picture

This is a large part of the

TheKing
      O
 
 
(Senior Neanderthal, 5,169
 
Points)
 on 10/8/10 at 9:11am

This is a large part of the platform Ron Paul ran on in 2008. Of course, when he espoused it, he was an out of touch lunatic. I supported these ideas then and I do now.

Now we have actual out of touch lunatics (tea partiers) espousing these views (and some other actual crazy views) and it's a solid platform. Give me a fucking break.

I'm all for going down this route, just not if it requires the baggage of social conservative garbage that the tea party brings along with it. You can't have the government stay out of your business while simultaneously saying we live in a "Christian nation" and trying to ban same-sex marriage / abortion / contraception (seriously, Christine O'Donnell).

Where are all the socially liberal Republicans? Oh yeah, the tea party killed them.

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Logger54's picture

I can't wait for Anthony to

Logger54
      CF
 
(Senior Monkey, 88
 
Points)
 on 10/8/10 at 10:10am

I can't wait for Anthony to get here...

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TrippinBilly's picture

Are we going to cut NASA

TrippinBilly
      O
 
(Monkey, 53
 
Points)
 on 10/8/10 at 10:29am

Are we going to cut NASA because the founding fathers didn't think Aerospace exploration was important or because it didn't exist back then? I agree with him to an extent.. but you cant just cut those admins like SBA just because they aren't in the constitution. Its a completely different world now.. but stimulus money going to monkeys on cocaine that's just a waste of cocaine. I mean waste of money.
http://coburn.senate.gov/public//index.cfm?a=Files... (page 24)

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In reply to Logger54
TNA's picture

Logger54 wrote: I can't wait

TNA
      O
 
 
(Human, 13,710
 
Points)
 on 10/8/10 at 10:49am
Logger54:

I can't wait for Anthony to get here...

I have arrived.

This is the shit I have been saying the whole fucking time. Government scare tactics when in reality the answer is real simple. Unfortunately simple doesn't get votes and human beings are gigantic pussies nowadays.

King, I agree with you that we need to get out of the business of government involved in social issues. Tea party would be a lot better if they just focused on the fiscal issues.

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mr1234's picture

FYI: http://www.cato-at-liber

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/8/10 at 12:14pm

FYI:

http://www.cato-at-liberty.org/obamas-spending-fre...

http://www.nytimes.com/2010/01/26/us/politics/26bu...

---
man made the money, money never made the man

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In reply to TheKing
mr1234's picture

TheKing wrote: Where are all

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/8/10 at 12:17pm
TheKing:

Where are all the socially liberal Republicans? Oh yeah, the tea party killed them.

Bingo

---
man made the money, money never made the man

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macro's picture

I remember when California

macro
      HF
 
 
(Gorilla, 555
 
Points)
 on 10/8/10 at 12:20pm

I remember when California was going through its budget crises last year (one of them anyway) there was an online module where you could try your hand at balancing it yourself, item by item. Is there something comparable for the federal budget?

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TheKing's picture

The whole political process

TheKing
      O
 
 
(Senior Neanderthal, 5,169
 
Points)
 on 10/8/10 at 12:25pm

The whole political process just obliterates actual moderates. Gerrymandering royally fucked things as well in Congress.

You can't win a Republican primary without moving so far to the right that you couldn't actually govern. The Repubs have no diversity in their party whatsoever. The Dems, hate-em or love-em, at least have some diversity of thought in the party. You can be a pro-life democrat, you can be a pro-business democrat. If you're a pro-choice republican, you're a "RINO" and need to be voted out.

And fuck the tea party. Bunch of redneck dipshits who don't have legitimate jobs so they have time to spend their days at bullshit Glenn Beck rallies. And even though they have so much time, they don't actually know wtf they are talking about. And I hope no one comes in here with some "that's only a minority of them!" bullshit argument, because it's utter horse shit. You want proof? See the polls for Sharon Angle. There you have it.

FEEL THE HATE.

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In reply to TheKing
mr1234's picture

TheKing wrote: And I hope no

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/8/10 at 12:35pm
TheKing:

And I hope no one comes in here with some "that's only a minority of them!" bullshit argument, because it's utter horse shit. You want proof? See the polls for Sharon Angle. There you have it.

Disagree with you on this. Sharon Angle is one candidate out of 3 core Tea Party candidates. I think after the budget crisis fiasco, the Tea Party will lose purpose and disappear.

---
man made the money, money never made the man

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TNA's picture

Oh yawm, the repubs have the

TNA
      O
 
 
(Human, 13,710
 
Points)
 on 10/8/10 at 12:37pm

Oh yawm, the repubs have the tea party and the dems have countless wackjobs, enviro terrorists, Vegan nuts and the like.

Actually King, what you describe about the different parties has historically been a weakness with the Dems. The Republicans can count on single issue support. Example, NRA is pretty much a Rep stronghold and all they care about is gun rights. Dems really don't have that kind of single issue support. Kind of like herding cats. Dems want a bunch of issues and it is hard to really touch on all of them .

Every party and political movement needs foot soldiers. You need fervent, blind supporters to get past the agenda.

I blame the radical tea party members on the fact that elected representatives are worthless, lying, pieces of shit. This is what happens when you have a disconnected political entity. People get sick and tired and become radical. Plus you have a huge divide in this country. Everyone talks about the haves and the have nots, how the income divide is increasing. What I think you really have going on is a divide between people who work and pay more and more taxes and a large proportion of society that is completely worthless and contributes nothing.

I bet the income divide would shrink if hard working Americans didn't have an anchor around there neck.

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In reply to TrippinBilly
econ's picture

TheKing wrote: Where are all

econ
      O
 
 
(Neanderthal, 2,419
 
Points)
 on 10/8/10 at 12:53pm
TheKing:

Where are all the socially liberal Republicans? Oh yeah, the tea party killed them.

I don't think the tea party killed them. There's lots of socially liberal Republicans (and Libertarians, which is not necessarily the same thing) out there. It's just that the tea party is making lots of noise and getting lots of attention, so it's easy to forget about the more sane views/people out there.

TrippinBilly:

Are we going to cut NASA because the founding fathers didn't think Aerospace exploration was important or because it didn't exist back then? I agree with him to an extent.. but you cant just cut those admins like SBA just because they aren't in the constitution.

The constitution is only one component of the argument. The people at Cato, and most Libertarians in general, are not saying we should get rid of the SBA just because it's not allowed in the constitution. They say we should get rid of the SBA because it's an intrusion of many people's freedom, and because the amount of money we pay for the SBA is way more than any benefit we get from it (in other words, it fails a cost-benefit analysis), and lastly they would probably say that irrespective of cost, the net benefit is actually negative (causes more harm than good).

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ThaVanBurenBoyz's picture

Is there a timeline (or

ThaVanBurenBoyz
      PE
 
 
(King Kong, 1,519
 
Points)
 on 10/8/10 at 12:53pm

Is there a timeline (or something) out there, showing when US debt needs to be serviced? Correct me if I'm wrong, but isn't that how Cali set itself up for bankruptcy (freezing spending wasn't enough)?

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In reply to econ
mr1234's picture

econ wrote: TheKing

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/8/10 at 1:21pm
econ:
TheKing:

Where are all the socially liberal Republicans? Oh yeah, the tea party killed them.

I don't think the tea party killed them. There's lots of socially liberal Republicans (and Libertarians, which is not necessarily the same thing) out there. It's just that the tea party is making lots of noise and getting lots of attention, so it's easy to forget about the more sane views/people out there.

I don't think the Tea Party killed moderate republicans but they did kill moderate republican candidates.

There are a lot of moderate republicans floating around, like TheKing. But I am sure guys like him feel like they have no place in today's GOP and no libertarian-style/moderate candidates (like Ron Paul) to vote for.

---
man made the money, money never made the man

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In reply to Anthony .
EngPhD's picture

Anthony . wrote: Oh yawm, the

EngPhD
     
 
(Monkey, 59
 
Points)
 on 10/8/10 at 1:25pm
Anthony .:

Oh yawm, the repubs have the tea party and the dems have countless wackjobs, enviro terrorists, Vegan nuts and the like.

I think the difference is that the Democrat's nuts have been largely marginalized. Sure, we let them give the party money and maybe throw a few dog whistle words into speeches, but they do not hold the reins of power in the party. I don't think we ever nominated, for example, a 9/11 truther for major office. The tea party's nuts are winning primaries and, thanks to the upcoming wave election, many will get elected.

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SAC's picture

Why not cut defense spending

SAC
      HF
 
(King Kong, 1,171
 
Points)
 on 10/8/10 at 1:55pm

Why not cut defense spending ? We don't have the capacity for spending so much on defense anymore, we need to shut down multiple bases.

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mr1234's picture

Check this

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/8/10 at 3:38pm
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---
man made the money, money never made the man

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TNA's picture

Defense spending has been cut

TNA
      O
 
 
(Human, 13,710
 
Points)
 on 10/8/10 at 3:41pm

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Virginia Tech 4ever's picture

Ok, I really like some of the

Virginia Tech 4ever
      EN
 
 
(Neanderthal, 2,321
 
Points)
 on 10/8/10 at 10:25pm
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happypantsmcgee's picture

hokie high, tech tech VPI

happypantsmcgee
      O
 
 
(Almost Human, 9,627
 
Points)
 on 10/8/10 at 10:31pm

If I had asked people what they wanted, they would have said faster horses - Henry Ford

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In reply to mr1234
notjonstewart's picture

mr1234

notjonstewart
      IB
 
(Senior Chimp, 28
 
Points)
 on 10/9/10 at 10:30am
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In reply to notjonstewart
mr1234's picture

notjonstewart wrote: mr1234

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/9/10 at 11:37am

---
man made the money, money never made the man

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TNA's picture

Yeah, according the the CBO

TNA
      O
 
 
(Human, 13,710
 
Points)
 on 10/9/10 at 3:11pm

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cphbravo96's picture

Great response VT. One of the

cphbravo96
      PE
 
 
(Senior Neanderthal, 5,038
 
Points)
 on 10/13/10 at 3:16pm

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
- Ronald Reagan

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In reply to cphbravo96
ThaVanBurenBoyz's picture

cphbravo96 wrote: One of the

ThaVanBurenBoyz
      PE
 
 
(King Kong, 1,519
 
Points)
 on 10/13/10 at 3:59pm
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In reply to ThaVanBurenBoyz
happypantsmcgee's picture

ThaVanBurenBoyz][quote=cphbra

happypantsmcgee
      O
 
 
(Almost Human, 9,627
 
Points)
 on 10/13/10 at 4:18pm

If I had asked people what they wanted, they would have said faster horses - Henry Ford

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Virginia Tech 4ever's picture

CPH isn't say they have no

Virginia Tech 4ever
      EN
 
 
(Neanderthal, 2,321
 
Points)
 on 10/13/10 at 5:00pm
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ThaVanBurenBoyz's picture

Vtech, re-read what was

ThaVanBurenBoyz
      PE
 
 
(King Kong, 1,519
 
Points)
 on 10/13/10 at 5:43pm
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mr1234's picture

ThaVanBurenBoyz

mr1234
      O
 
(Senior Orangutan, 490
 
Points)
 on 10/13/10 at 5:47pm

---
man made the money, money never made the man

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In reply to Virginia Tech 4ever
cphbravo96's picture

Virginia Tech 4ever

cphbravo96
      PE
 
 
(Senior Neanderthal, 5,038
 
Points)
 on 10/13/10 at 5:54pm

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so."
- Ronald Reagan

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ThaVanBurenBoyz's picture

CPH, That's well and good

ThaVanBurenBoyz
      PE
 
 
(King Kong, 1,519
 
Points)
 on 10/13/10 at 6:07pm
    • Credits
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You agree to defend, indemnify, and hold harmless the Company, its officers, directors, employees and agents, from and against any claims, actions or demands, including without limitation reasonable legal and accounting fees, alleging or resulting from your use of the Material or your breach of the terms of these Terms and Conditions. The Company shall provide notice to you promptly of any such claim, suit, or proceeding and shall assist you, at your expense, in defending any such claim, suit or proceeding.

General.

The Company makes no claims that the Materials may be lawfully viewed or downloaded outside of the United States. Access to the Materials may not be legal by certain persons or in certain countries. If you access the Web Site from outside of the United States, you do so at your own risk and are responsible for compliance with the laws of your jurisdiction. These Terms and conditions are governed by the internal substantive laws of the State of New York, without respect to its conflict of laws principles. Jurisdiction for any claims arising under this agreement shall lie exclusively with the state or federal courts within New York, New York. If any provision of these Terms and Conditions are found to be invalid by any court having competent jurisdiction, the invalidity of such provision shall not affect the validity of the remaining provisions of these Terms and Conditions, which shall remain in full force and effect. No waiver of any term of these Terms and Conditions shall be deemed a further or continuing waiver of such term or any other term. Except as expressly provided in additional terms of use for areas of the Web Site a particular "Legal Notice," or Software License or Material on particular Web pages, these Terms and Conditions constitute the entire agreement between you and the Company with respect to the use of Web Site. No changes to these Terms and Conditions shall be made except by a revised posting on this page.

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Our staff, contractors, Internet service providers and others involved in this site follow this policy or similarly strict policies regarding your Information.

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The Company is committed to fully disclosing our policies regarding the collection, use, maintenance, disclosure and security of personal information obtained from users of our site. The term "personal information" includes a name, address, email address, or any other information which could be used to contact you directly or to identify you personally.

Use and Disclosure Limitations

The Company only uses personal information about its Web site users for specific purposes. We do not share user information with third parties except when we have told users about the disclosures, when we have prior consent, or when required by law.

Use Policy: When the Company gathers personal information from users, we ask for permission first. We also disclose, at the time of collection, how the information will be used by us. Personal information is used for activities such as auto-completion of commonly-used forms and helping us contact you when you solicit information from us.

Disclosure Policy: We do not normally disclose personal information to anyone outside of the Company unless we have previously informed users about the disclosures. However, some data may be used from time to time by outside contractors, including auditors or consultants, to assist us in carrying out necessary financial or operational activities. These uses will be consistent with this privacy policy and all contractors using this potential personal information must agree to safeguard it, to use it only for the authorized purpose, and to return it or destroy it upon completion of the activity.

The Company might be required to disclose personal information in response to a valid legal process such as a subpoena, search warrant or court order.

Although unlikely, it is possible that we may have to make certain disclosures to ensure the security of our Web site, to protect its integrity, or to take precautions against potential liability. In any of these situations, we will take any reasonable steps to limit the scope of the data disclosed.

Web Logs: The Company maintains standard Web logs that record basic information about visitors to our Web site. These logs contain: * The Internet domain from which you came to our Web site. * Your IP address. An IP address is a series of numbers which uniquely identifies your connection to the Internet. Although it is possible in some instances, certain types of IP addresses may be used by interested persons to identify users but we do not attempt to identify users in this way. * The type of browser (e.g., Internet Explorer or Netscape) and operating system (e.g., Windows 98) you use. * The date and time you visited the site, and the pages you saw.

We use Web log information to design our Web site, identify popular features, and in similar ways. We do not try to identify individuals from Web logs or to link Web logs to other user information. However, if someone tries to damage our Web site or use it in an unauthorized or illegal way, we may share Web log information with law enforcement agencies. The Company may provide aggregate information such as the number of users who visit particular pages of the site, or the number of people who link to certain external sites from our site, to other parties.

Changes to Privacy Policy

The Company's features and services will change over time and our information-gathering practices and policies may also change.

While our philosophy of protecting user information from inappropriate uses and disclosures will not change, this policy will be updated occasionally to include any change that materially affects the collection, maintenance, use, or disclosure of personal information.

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  • Thoughts on this? Heister brings up a good question: <em>"Who else is going to the job? Which senior Goldman partner is planning on retiring and needs to shield millions in stock options from taxes?"</em> via Bloomberg: <strong>Obama Says Bernanke Has Been at Fed...
    Bye Bye Bernanke? Who Would Be Next?
  • So I've been thinking about looking into getting a part time internship at an AM firm at my college town during the fall semester to buff my resume up a little more for recruiting. My schedule isn't too tough, and I'd probably be able to do around 20-30 hours a week if I include...
    Part Time AM Internship
  • For those of you analysts that wear glasses or contacts... which of the two would you recommend? Forget about the way glasses look.... for the purposes of comfort and practicality, are one them easier on the eyes at 2am after staring at a screen for 10 hours? I'm afraid contacts might dry...
    Glasses or Contacts?
  • Did a pretty extensive search but there wasn't too much information out there. Can anyone provide some color on the pay/lifestyle/exit opps at internal strategy/M&A desks at BBs? It seems like at some banks, this desk is more of a back office role with very good hours but minimal...
    Internal strategy and M&A at a BB
  • Proposed Answer: The pay is atrocious, there is virtually no promotion potential, and the work is not challenging enough. Is this a good answer? If I was to give one answer, which one is...
    "What is the worst part of your job" interview question
  • So all new users to WSO get 6 free financial modeling lessons, 5 of my best tips for networking and my best tips for interviewing over the first month of being a user. Tonght I got a response from one of my networking tips e-mails from a slightly older gentleman that is a "financial...
    Why is this Quant so Angry and So Out of Touch?
  • Assume no CD experience pre-MBA. My thoughts are that working in CD requires making long-term investments (albeit strategic/operational, as opposed to financial), so it may force one to think like a long-term owner, a la value-oriented investing. If possible, how long should it take in CD...
    Post-MBA Corporate Development --> Fundamental/Value HF ... good path to try?
  • Does anyone have PE recruiting resources they'd be willing to share/ trade? I'm looking for modeling tests (with solutions) and have a few tests from top tier funds to trade in exchange. Any other recruiting resources would be appreciated as well. Please PM me....
    PE recruiting resources
  • Hi all - As i have been looking through this site, i have found their seems to be a lack on anything Australian. While that is understandable seeming as the industry is US focused, i thought i'd take the opportunity to try and develop a useful collection of tid-bits and facts by sharing...
    Answering Australian I-Banking Questions!
  • As summer rolls around, many folks leave the office a little earlier on Thursday or Friday nights to make it out for a cocktail event or weekend away from town. There will be a solid amount of extra-industry networking going on, to say the least. And by that I mean sloppy cocktail parties. But...
    Summer Cocktail Events - 5 Tips to Keep the Conversation Flowing
  • ...
    -
  • Hi everyone, I got admitted in the MSF programs at Olin and McCombs recently. Both B.schools are well recognized in their respective regions but I am very confused because of the following factors. Any suggestions will be highly appreciated. I would like to work in IB/ Asset Management. I...
    McCombs MSF or Olins MSF(corp track)
  • Is it possible to get sponsored for series 7 as an undergraduate intern? The company is indeed a member of FINRA. Was thinking of reaching out to one of the executives. Any advice or suggestions are greatly...
    Series 7 while on undergrad internship
  • I've supposedly had one unread PM since registering... but there's clearly no new messages there. Not a big deal but it is annoying, any way to fix...
    "1 unread message"
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<em>Mod note: make sure to see the great comment below by CompBanker</em> I come from a small town where nobody had ever heard of consulting or IB. I was fortunate enough to attend a top target college (a good Ivy) and land a gig in IB at a BB/EB. I'm starting full time this...
Finance Culture - Personalities
<strong>Background</strong> I randomly discovered WSO nearly seven years ago just weeks after I secured a FT MM IB position. The website was extremely nascent at the time with only a few thousand registered users. The majority of the users were college students with only a handful...
How WSO has enhanced my IB/PE career
After over one year in the making, the <strong><a href="http://www.wallstreetoasis.com/2013-wso-compensation-report-full">2013 WSO Compensation Report</a></strong> is here! Access to the FULL 108 page 2013 WSO Compensation Report is <strong>100%...
2013 WSO Compensation Report has Arrived
Where do i even start..I learned so much from this forum. The brutally honest opinions, sincere willingness to help, the technical information and random tips on everything has been absolutely crucial for me landing this offer. Coming from a non-target I didnt get that 3rd year SA position at...
Thank you WSO! Got my FT Offer! ADVICE NEEDED
When I first started as a PE analyst, I constantly struggled with judging the amount of time I should spend on reviewing sourced deals. How much time is enough to really get a handle on the company’s revenue streams? How granular do I need my analysis to be on industry threats? With this...
Misguided Efforts: A Cautionary Tale
Fellow Primates, We are looking for 1-2 students on each campus to help WSO in its sales efforts to student clubs/career centers, and overall promotion at your school both online and on the ground. Below is a description of the position and benefits...thanks in advance for your help! <a...
WSO is Looking for Campus Reps For Summer/Fall 2013 (and beyond)
Many of the questions that have come in surround recruiting for front office Wall Street careers from a non-target so we’ll start with some ideas for recruiting, move on to interviewing, preparing for the job and finally long-term career management advice. Before we begin, it has been...
Stand Out as a Non-Target: Recruiting (Part 1 of 4)
Any Asset Management people here who could give me some insights on it, such as the nature of the work, the pay, the hours, the potential for career advancement, ect? I was looking into IB before but I've decided that I would rather pursue a career that's more intellectually...
Asset Management a better choice than Investment Banking?
<img src="//img.pandawhale.com/48721-Sexually-Oblivious-Female-Meme-Ze2w.png" alt="Sexually Oblivious Female Meme - Favorite Position? I would like to be a CEO.">
If you could be the richest person in the world with your dream job only as a public virgin forever would you do it?
<em>Mod Note: Blast from the Past - "Best of Eddie" - This one is from June 2011.</em> <em><strong><u>Freeriding</u> :</strong> The illegal activity of buying a stock and selling it before paying for the purchase.</em> - <a...
Come On and Take a Free Ride
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