Evaporated milk round

[Benny B]

Evaporated milk round

By Robert Cyran

MBA recruiting:  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.

The problem, of course, is that Wall Street has been savaged by layoffs. Financial employment shrank by 43,000 in March according to newly released government figures. That’s the 15th month of steady decline.

That means that not only are many banks still cutting back, but if they are hiring there are plenty of recently-fired youngish bankers available with experience. As with financial investments in the current climate, there's no reason to go with the new thing when there are plenty of assets available with track records. And the students can’t count on a government programme to jump-start demand for their services.

Sure, US investment banks and especially boutique firms are still doing the rounds of business schools, but they aren't hiring many people. Even top-tier Ivy League schools have seen Wall Street acceptances halved. Job offers to foreign students have even been rescinded because banks that have received government funds face extra hurdles securing visas.

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.

[Soul Crusher]

[I read an article the other day that said MBA degress now are not worth the money considering where things are going ansd the costs involved. 

[Benny B]

[I read an article the other day that said MBA degress now are not worth the money considering where things are going ansd the costs involved. 

I don't agree. The business acumen and social skills learned are invaluable. You just need to be sharper in the manner in which you market yourself in these difficult times. You also need to consider non-traditional sectors of business for MBAs such as NGOs, government, etc. Forget the prestige factor and go for improving your skill set within a targeted realm.

All grad schools have costs, be it law, business, medical, etc. There are so many lawyers on the streets of NYC that you can't walk five feet without tripping over one. The majority make no real money and are in a despised profession. Does that mean they should not plunk down the costs of law school? If it is their passion and what they want to do with their lives, they should go ahead and do it.

[Soul Crusher]

I don't agree. The business acumen and social skills learned are invaluable. You just need to be sharper in the manner in which you market yourself in these difficult times. You also need to consider non-traditional sectors of business for MBAs such as NGOs, government, etc. Forget the prestige factor and go for improving your skill set within a targeted realm.

All grad schools have costs, be it law, business, medical, etc. There are so many lawyers on the streets of NYC that you can't walk five feet without tripping over one. The majority make no real money and are in a despised profession. Does that mean they should not plunk down the costs of law school? If it is their passion and what they want to do with their lives, they should go ahead and do it.

Thats why I went into debt collection and started my own business.  there are way too many lawyers running around all trying to do personal injury, m&A, real estate, or other crowded fields. 

[240 is Back]

I don't agree. The business acumen and social skills learned are invaluable. You just need to be sharper in the manner in which you market yourself in these difficult times.

bingo.  The MBA for mgmt purposes, maybe it's not worth the cost anymore.  The MBA in terms of problem-solving skills, ability to see opportunities, and living for that SCA... that's priceless baby