<p>This "crisis" is single-handedly wiping out those psychology majors at Ivy League schools who decide to apply to investment banks only because it's junior year and apparently banking is "trendy" and "lucrative." They came into college wanting to pursue a career in medicine, but halfway through intermediate neuroscience, the selfishness of the human race spawns and usurps any remaining ambition to become a doctor; instead, they half-heartedly (if not hesitantly) change careers to finance. The line of thinking is clear: "Oh well, I'll just abandon my passions and do this banking thing 'cause it pays well." The same thing happens to the student who wanted to go to law school. Same thing with the entrepreneur. The computer programmer. The social worker.</p>
<p>Now what?</p>
<p>Now, only the people truly interested in finance will find jobs in banking. I predict a paradigm shift: a movement from incoherence back to specialization and the pursuit of purpose. Students who study journalism will study it ferociously. They will go after internships at the New York Times, the Washington Post, and the Boston Globe. These students will be the top journalists of the next generation. Students who intend to be entrepreneurs will find innovative solutions and become the next Bill Gates, Shai Agassi, and Tesla Motors. Why? Because with the crumbling of Wall Street brings the end of banking as an item of clothing in some fashionista's wardrobe which can be worn or discarded at the user's will.</p>
<p>Of course, this is not to say that biology majors can't go into banking. Not at all. If you have a passion for biology but want to pursue a career in finance, more power to you. Diversity is great. This is only the destruction of banking as a trend. </p>
<p>I was thinking of something similar in that UG business would not be as popular as it appears to have gotten recently; going back to more how it was earlier in the '90s.</p>
<p>What if you have a burning academic passion for Folklore and Mythology, yet still want to pay off your school loans and have a comfortable lifestyle? Sure, a resourceful student might be able to combine his/her passion and job, but there is a significantly lower probability that one will lead said comfortable lifestyle after specializing in Folklore and Mythology. </p>
<p>Now going into college, if you knew that banking (or insert random well-paying but unrelated job here) wasn't going to be an option, would you even choose to major in your subject of interest at all?</p>
<p>Edit: No offense, but I get the impression that you feel entitled to a banking job just for sacrificing four years of academic pursuit to economics/math/finance, and resent those unrelated-humanities majors who can waltz into the same jobs after taking courses which are perceived as easier or more fun.</p>
<p>i also think ug business popularity will go down, most high schoolers apply to ug business programs for that IBanking job, and they are just as ready to switch when it's not there anymore. i think more people will get into the technical majors for the safety net.</p>
<p>I certainly hope you're right, heartcity. Too many of our generation's best and brightest would-be engineers, scientists, teachers, writers, entrepreneurs, and more have been lost to the finance industry and its riches.</p>
<p>^^ Believe it or not these kids "lost to finance" actually do very good things. You don't think the economy would be where it is today (compared to 25 years ago) without wall street do you? Scientists, engineers, teachers, writers don't grow this countries economy. They don't give you mortgages and they sure as hell don't help you grow your wealth. The market has ups and downs and needs a bit of regulation, but any sane person would argue that the finance industry is an immense benefit to all people of this country.</p>
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Scientists, engineers, teachers, writers don't grow this countries economy.
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<p>Are you serious? How much human capital would there be without teachers? How much IPO underwriting would go on, if there were no scientists or engineers?</p>
<p>Financial firms play an incredibly important role (when they're not broken) in distributing capital, sharing risk, etc. But this is just one supporting service to an economy based on production and consumption of actual goods and services... like novels, software, drugs, education, and so forth.</p>
<p>All, you can't possibly point your finger at one demographic and endow them with the title of "the ones who grew this country's economy" -- it's impossible, irrational, and inconclusive. Scientists, teachers, bankers, private equity investors, doctors are all equally significant parts of our economy. I agree with both MS and jfm: on the one hand, the finance industry IS an immense benefit to many people, but on the other hand, like jfm said, it is just one supporting service. It's pointless to argue which industry is the most important.</p>
<p>Fact: Wall Street is changing. Thus, we (see: everyone) too must adapt.</p>
<p>^I would agree, although think you're going to see a much higher percentage of science majors, at least initially, go into science-related jobs rather than Wall St jobs over the next few years,</p>
<p>In the end, scientists and inventors are the only true sources of long-term per capita economic growth. Just from the Solow model etc. and common sense, there is a maximum efficient capital level and no amount of rearrangement of the economy will accomplish anything. The dismissal of technological improvement was what led to such gloom by economists in the Malthusian era, when it was thought that there was an historical trend towards maximum capital, then a permanent plateau, without further economic growth (actually bust cycles were expected). That's not to say the financial industry may not encourage scientists to invent things (and certainly they must first be taught by teachers), but to say the financial industry is the sole (or primary) part of growth is absurd. And really, a lot of it contributes absolutely nothing, but merely churning and transaction costs.</p>
<p>"Students who study journalism will study it ferociously. They will go after internships at the New York Times, the Washington Post, and the Boston Globe. These students will be the top journalists of the next generation."</p>
<p>Haven't you noticed that newspaper jobs are rapidly disappearing? Will there still be internship programs at these institutions in a couple of years? Don't bet money on it!</p>
<p>I think Americans will miss print Journalists about as much as they will miss the geniuses who built the credit default swap business.</p>
<p>As cherokeejew points out, the credit default swap business guys and gals weren't really contributing anything to long-term economic growth anyway (although I think they did contribute short-term to an unrealistically high-priced housing market and inflated commodity prices).</p>
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I think Americans will miss print Journalists about as much as they will miss the geniuses who built the credit default swap business.
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<p>Hah, so true. However the "journalists" at the trash newspapers would actually be missed if they disappeared, since they actually provide valuable services to society such as:
1. harassing narcissists; and
2. providing photographic evidence of said harassment to entertain the plebs.</p>