WALL STREET’S 20,000 JOB CUTS OVER 2 YEARS

The economic slump as a result of the credit crisis and the collapse of Bear Stearns, one of the nation’s largest underwriters of mortgage bonds, may risks New York City losing more than 20,000 jobs in the high-paying financial sector over the next two years.

The collapse of the subprime mortgage market last year and the ensuing credit contraction have saddled the world's largest financial institutions with at least $200 billion of write downs and losses.

Bear Stearns Cos., once the fifth-biggest U.S. securities firm, became the emblem of panic on Wall Street two weeks ago, when it was forced to submit to an emergency takeover backed by the Federal Reserve as clients and lenders deserted the company. More bank losses are likely, according to analysts.

Once again, the questions therefore are: Will the persisting market turmoil and the ripple effect in US affecting Malaysian economy? What measures Malaysian government ought to take?