Office Closure Follows Letter . . . Coincidence?

Perhaps you will find this newsworthy? At the least, it is extremely coincidental.

On Oct. 20, you published my letter, “Jobless Numbers Don’t Reflect Reality.” In that letter I mentioned the constant downsizing of the banking industry.

On Oct. 18, my employer, Fleet Mortgage Corp. (a nationwide Mortgage Bank and part of Fleet Bank), announced that it is closing my office. This closure follows approximately one year after Fleet bought Plaza Home Mortgage. The Woodland Hills branch, which they are closing, was the last office in Los Angeles County for Fleet.

With Fleet pulling out of the Los Angeles market, me and the rest of the retail and wholesale staff here will be looking at other opportunities.

GEORGE KAHN

Woodland Hills

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Mr. Kahn in his (Oct. 20) letter makes a valid point. Statistics need context and analysis. The same could be applied to the recent figures concerning personal bankruptcy. Some point to the figure as a sign of weakness in the economy. In fact, the high number is likely because of less stringent requirements banks have recently had with regard to issuing new credit cards.

By the same token, Mr. Kahn makes an equally erroneous assessment of inflation.

First, the same standard applied to current unemployment has been applied for many years. Hence, while the numbers may not reveal the true unemployment picture, on a comparison basis, year over year, current figures show an improvement and one which is commensurate with the economy.

Second, Mr. Kahn’s interpretation of low inflation is equally flawed. Currently, U.S. consumption of goods and services is at its highest level in history, rather than in decline as Mr. Kahn implies as the reason for a low inflation rate.

Inflation is being held in check by two primary factors. First, competition is holding prices down. Second, increased productivity is reducing the unit cost, allowing companies to keep prices stable.

While consolidation in the banking industry has reduced job opportunities there, the area of greatest job loss has been at a level where incomes were the smallest: retail banking at the teller level. This may change as banks try to deal with customer rebellion against higher fees for fewer services. It may not bring back the tellers, but it may create other positions.

While bank consolidations have also caused some job loss in the middle- and upper-management areas, there has been an explosion of jobs in financial services. Investment houses, brokerage houses, mortgage lenders all need people with a banking background.

MICHAEL SOLOMON

Los Angeles