Click here for the article of CNN Money, April 13, 2009.
(breakingviews.com) -- It's already April, and business students would
normally be weighing which investment bank's job offer to take. But
this year's crop of MBAs faces bleak prospects - for the same reason
it's hard to place new asset-backed debt. A shrinking and cautious
finance industry means lots of already seasoned assets - including
people - are available at cheap prices.
There is a bright side. The number of students wanting to work on Wall Street reached historic highs before the bubble burst. Just shy of half of Harvard's MBA crop last year went into finance.
The hotter areas now, according to the universities, are venture stage businesses, the energy sector and overseas firms. Even in these areas, acceptances are down perhaps by a quarter. Regardless, this is probably a better use of talent. Finance, after all, should be an accessory for rather than the engine of wealth creation.
At least, that is, until the next time. MBA classes have a history of piling into expanding bubbles. The few that land banking jobs today will face less competition. When markets rebound, they will be well placed to profit handsomely. A new crop of young and ambitious students with short memories will notice - and a new race to Wall Street could be on.