Bloomberg News reports that Wall Street layoffs are putting blood on the streets. But those Wall Street vets have turned those layoffs into new careers -- one Harvard economics grad who formerly worked for Bear Stearns has started a business making cupcakes. That's because, as Bloomberg reports, Michael Maloney, who recruits finance professionals for Maloney Inc. in New York, said, "The job market is in the worst, most chaotic state I've ever seen it in fixed income. I've been doing this for over 30 years and I've never seen anything like this."

The statistics Bloomberg cites are stunning. 76,670 investment jobs "in the Americas" have gone up in smoke "following the global credit crunch that started a year ago." And 33,300 finance jobs in New York City, or "7.1% of the 2007 peak, will be cut by June 2009." And those who lose their jobs will be giving up big money. Wall Street workers averaged $399,360 in 2007 -- six times the $62,390 for New York City jobs outside the securities industry.

So the tough are turning to making cupcakes. Jessica Walter, who studied economics at Harvard, was vice president in credit strategy at Bear Stearns. Bloomberg quotes Walter as saying, "I want to teach kids to cook. The goal is to have this be my full-time job and make enough to live.'' To that end, she founded Cupcake Kids! in New York to provide birthday parties and cooking classes for children.