Current Financial Crisis

Hey all,

First, a quick intro: I am a Career Assistant at the Vassar CDO, and an econ major looking into finance after I graduate. My name is Stephen Donnelly. I will be posting on this blog every now and then, and more likely than not, my posts will usually contain something related to finance. Even if you aren’t looking into this field, it is pretty far reaching into many industries.

So the financial world is rocking and rolling. Lehman Brothers went bankrupt, Bank of America bought out Merrill in a forced sale, and volatility is at historical levels. Now the government is planning a $700 BILLION bailout of financials. This is the biggest financial crisis since the great depression. But I won’t go into details of what is causing this crisis, how it could have been prevented, or what it means on the global scale. You can look that up anywhere, or attend the Investment Club panel discussion on financial markets coming up before October Break. Vassar students want to know the answer to other questions. Most importantly, can we get jobs?

Getting a job during a recession (although we technically aren’t in one at the moment, the possibility looms large, and regardless, the economy stinks) is never as easy as in a period of healthy growth. This, as Ron Burgandy would say, is a given. However, it’s a little too simplistic to say its tough to get a job, because in reality, the health of current labor markets is very industry specific.

On the one hand, if you are looking at working for a large non-profit organization, or a service organization (such as Americorps, Peacecorp, or Teach for America), you don’t need to worry; these organizations are hiring as much as ever. Additionally, positions in healthcare will stay at relatively stable levels. After all, people always need doctors. Jobs in education are definitely out there. In a time where the market is rough, more rising college students will be looking at grad school, as opposed to starting work immediately.

On the other hand, if you are looking for a position in finance… things are interesting. Lehman’s employees are hungry on the street, and banks everywhere are letting people go. Hiring for banks is at extremely low levels. In addition, the financial market is somewhere in the process of a complete overhaul. Goldman Sachs and Morgan Stanley are now bank holding companies under the eye of the fed, and much regulation is coming. The optimist might say it’s best to enter the markets at the low point (and from an investment standpoint this is of course true), but don’t expect the same volume of investment banking analyst positions for the next few years.

However, at the same time, don’t give up hope if you are looking at going into finance. There are a number of ways to enter that aren’t through a major bank. Corporate finance is one area that won’t be nearly as choked. In addition, international financial markets are healthier than American markets, and students looking into finance should take a look overseas. Also, financial consulting (north-face vests, TGI Fridays, and all…) is a healthy industry.

The bottom line is that it is a period of financial change. The structure of financial institutions must shift after the government throws $700 Billion at them, and along with this shift, jobs will be both created and destroyed. In the meantime, there are two important points to take away. First, you can always change jobs if you can’t find what you want right now. If there is a certain field that isn’t hiring in 2009, this doesn’t mean they will be stagnant forever. In the meantime, if you are set on a certain path, choose a position that will give you experience relative to what you ultimately want to do. Second, no matter what you majored in, firms are looking for thinkers with specific skills. So, despite what the economy looks like, don’t let your major hold you back from a desirable position that seems “unrelated”. With many fields, this isn’t nearly as important as what you bring to the table. And smart, independent Vassar students bring a lot to the table… right? Right.

Regards,

Stephen Donnelly