Genuinely because we are getting top-tier analysis from world-class business experts. On Wednesday both MBA classes were given a special lecture by Professor of Finance Jim Hatch. He described to us the origins of the credit crisis, the sequence of events that led to the collapse of several banks, and the various bail-outs made by the U.S. Congress and other governments around the world. There are many people to blame for this crisis - regulators, politicians, investors, mortgage lenders, mortgage customers - but it seems to be rooted in the gigantic compensation packages awarded to CEOs that are mainly focused on short-term results. They are given free reign to make incredibly risky bets with virtually no recourse. If they bet right, they are rewarded with praise and millions of dollars. If they bet wrong, "Gee I guess I was wrong about that one." While homeowners have lost their homes, and investors have lost their investments, CEOs are walking away with generous severance packages on top of having cashed-in their stock options. I read an opinion by Jack Bogle today that suggested that emphasis be put back on investment in stock markets rather than "renting" stocks for short-term speculation. This could be done by taxing short-term capital gains as well as fixing the mutual fund model so that turnover is much lower. I think that such fundamental changes to the financial system is necessary if it is to have any sort of a future.
What a great time to be in B-school - that was also sarcastic. Companies in the U.S. are freezing their hiring efforts as they face falling sales and a dismal economic outlook. Thousands have already lost their jobs in the investment banking industry. Canada seems a bit better off - Ivey students are still being offered ibanking jobs - however I believe there is already increased competition. A classmate mentioned to me that at a recent information session at a bank's office in Toronto he had met graduates from U.S. schools like Wharton and Kellogg. Unable to find work in the U.S., these MBA grads had returned to look for work in Canada. I expect that finding work over the next few months will be difficult. Luckily for me, the technology industry remains a bright spot in this gloomy economy. Three prominent tech firms - Google, IBM, and Intel - have recently reported strong earnings. Hopefully this means that they will still be hiring.
On a completely different note, the colours in London are amazing. The trees are every shade of red, yellow and gold. I took a photo from my balcony but it doesn't do justice to the real thing.
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