Australia & New Zealand Banking Group , is going to cut 900 jobs are the Australian real estate market slumps. Financial Jobs are facing a carnage with banks cutting down left , right and centre .ANZ which is one of the 4 largest banks in Australia joins its couterparts around the world in sharply cutting banker jobs as the global slowdown bits the financial industry. Note the outlook in the Financial Industry is that of a Depression even as the world economy faces some hiccups from the European Debt Crisis . Real Estate Markets have been distorted globally by bad regulation , low interest rates etc. While China is seeing the first signs of a troubled real estate market, USA has been feeling the effects since the last 3-4 years. Australia has also joined in with the popping of the real estate bubble. Alongwith construction and real estate companies , financial companies who make the real estate mortgages are the worst hit in general.

Bank of America had already announced thousands of job cuts earlier.Today it cut 20% of its Asian MDs as it tries to cope with the sinking of investment banking revenues.Other investment banks like RBS,Nomura,BNP Paribas,Societe Generale are also cutting jobs with a vengeance.Goldman Sachs also announced big time salary cuts for its partners and fixed income trading.

Seeing Stocks Markets these days would make one think that the world economy has managed surpass the problems of the European Union Debt Crisis,the slowing of China,India’s governance led slowdown etc.However big global companies continue to bunker down reducing job headcount and reducing investment.Despite record levels of cash and big profits,MNCs are not increasing their investment giving a thumbs down to efforts by policymakers to boost growth through record low interest rates.RBS has been rumored to cut 10,000 jobs in its investment banking division while Pepsi which has a mostly recession proof business too is cutting down.India’s beleagured airline Kingfisher is set to cut 2000 jobs as well.

Income Inequality and unemployment amongst white collar workers is a massive growing under-appreciated problem in India and China.These countries despite growing tremendously have built in severe distortions which are only becoming bigger by the day.Graduates in both countries increasingly find a massive demand deficit for their services while income inequality grows bigger as billionaires build billion dollar houses amidst people earning less than $2 day.

The Indian Stock Market Regulator SEBI has been seen doing nothing against blatant market manipulation and stock rigging scams.Mid cap and Small Cap Stocks are havens for rigging by promoters and stock brokers as SEBI seemingly does nothing.Even in the primary market,junk IPOs rule the roost with even the recent correction failing to see crap stocks making a debut (Sudar Garmets,Fineotex,Omkar etc.).To anyone with a modicum of common sense it is apparent that such low quality companies could not raise money without manipulating the markets.However SEBI in its infinite wisdom remains blind to this.Stock brokers like Ashika,Dangi continue to operate unimpeded despite being indicted for scamming.Even reputed stock brokers are involved in underhand and shady dealings.However SEBI does nothing indirectly encouraging fleecing of small and retail investors.Not that big investors like Goldman,GMO are immune to fly by night operators as well.

India’s Fast 8-9% GDP Growth has become the envy of the developed world groping with anemic growth rates of 1-2% and rising sovereign debt burdens.Asia led by India and China are the new engines of growth of the global economy.However a close examination of the growth shows the rising strains and inequality.Most of the growth in India has been a jobless one with capital intensive sectors leading the way.While some service sectors like the IT and BPO Industry have also grown at a rapid pace,it has only affected a minuscule portion of the Indian population.The rest continue to wallow in misery and poverty which is reflected in the growth of Naxalism.India’s education infrastructure is quite woeful with majority of graduates unemployable.This has led to a growing army of unemployed half education youth fighting to get low end jobs.Unlike China,India’s industry forms just 30% of India’s GDP and majority are still employed in agriculture.Most of India’s service industry too constitutes of low value add,low paying jobs.With growing communication and information,the few good low end jobs on offer leads to a desperate jostling.Public sector jobs in railways,paramilitary are especially lucrative offering job security and a decent social position.This has led to increasing clashes.