COLUMN: The economy is falling
by Laura Temel l Cornell Daily Sun (Cornell U.)
Issue date: 10/1/08 Section: Opinion
The past few weeks of Wall Street meltdown have profoundly reshaped the economy. Let's start from the top. Last week the Treasury Department bailed out Fannie Mae and Freddie Mac, two of the country's integral mortgage finance companies that dated back to World War II check this fact. Now fast-forward to Sunday night. Lehman Brothers, a prestigious investment bank whose founding predates the Civil War, filed the largest bankruptcy in American history. Wall Street powerhouse Merrill Lynch sold itself to Bank of America. Moving forward, we have A.I.G. and Washington Mutual fighting for their survival. Taken together, the financial services industry has found itself in somewhat of a quagmire.
Now it is pretty clear that over the years Cornell has done a good job linking itself to the world of finance. With roughly a quarter of the classes offered in the Applied Economics and Management major directly related to finance and an official concentration created in the School of Hotel Administration, it appears the Cornell faculty has decisively integrated the interest in markets into our academic curriculum. The strong supply of business classes is met by a robust demand by pre-professional students looking to maximize their utility in financial matters. The Career Services office too adapted to the spike in graduate and undergraduate financial interests. Cornell's strong relationships with Wall Street have consistently helped to place students at the top investment banks for summer internships and full time employment.
Under normal market circumstances, Cornell's affinity for finance would be a good thing. But as the Wall Street domino effect continues, it is quite evident that an abundance of students who aspired to careers in finance will be sorely let down. Fewer banks and jobs, more people unemployed - the point is clear. In retrospect one has to wonder, was it wise for Cornell to invest so heavily into the world of finance? Are all of these initiatives now irrelevant? I would respond that perhaps we have placed too many eggs in one basket.
Now it is pretty clear that over the years Cornell has done a good job linking itself to the world of finance. With roughly a quarter of the classes offered in the Applied Economics and Management major directly related to finance and an official concentration created in the School of Hotel Administration, it appears the Cornell faculty has decisively integrated the interest in markets into our academic curriculum. The strong supply of business classes is met by a robust demand by pre-professional students looking to maximize their utility in financial matters. The Career Services office too adapted to the spike in graduate and undergraduate financial interests. Cornell's strong relationships with Wall Street have consistently helped to place students at the top investment banks for summer internships and full time employment.
Under normal market circumstances, Cornell's affinity for finance would be a good thing. But as the Wall Street domino effect continues, it is quite evident that an abundance of students who aspired to careers in finance will be sorely let down. Fewer banks and jobs, more people unemployed - the point is clear. In retrospect one has to wonder, was it wise for Cornell to invest so heavily into the world of finance? Are all of these initiatives now irrelevant? I would respond that perhaps we have placed too many eggs in one basket.
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