So, the financial system is in a deep mess. I am not saying I understand it all, but if someone asked me to summarize the gist of the problem I'd say it's this - please correct me if I am completely wrong:
We, or rather US creditors in the first place, gave loans to people (American consumers) for everything from houses to cars to other consumer goods, no matter what their creditworthiness. Consumers happily spent away, America basically paid for the worldwide economic upturn over the last few years. But they paid for it with money they didnt have. Eventually, the first people were unable to pay back their loans, interest rates climbed and even more people had trouble making their payments. That's how foreclosures started. House prices began to sink, thus making it harder for people to finance their other debt and the downward credit spiral began. That's why now people default on their consumer credits as well. And the rest of the world is financially also in trouble because all those debts can be purchased by other parties using a complicated system of derivatives that apparently not even those that should know understood.
To make a long story a little shorter: Things suck at the moment. Jobs, especially in finance, will become scarcer. Which will lead to more competition in other job areas, such as consulting. From what I gathered this has already happened in the hunt for MBA internships in 2008. It's not going to get any better any time soon.
Now: Should us MBAs of 2010 be worried?
I mean people are talking about the next great depression already. I cant tell you if you should be worried. I definitely cannot say I am not. On the other hand, we might just spend a great deal of the recession time at school and then get out of school by the time things start to get better AND we will have an MBA under our belts. But obtaining that dream summer internship in 2009 might be quite brutal.
I also wonder if this should have implications for my school choice? Should I go for the school where I have to pay the least to get out of school with as little debt as possible? Probably the wrong approach. I guess it is better to go where you think you will have the best job chances post-MBA. Because there is not point in having no debt if you cant get the job you want out of business school. (Although all my choices will get me into consulting)
These are interesting times, I am trying to observe and learn as much as I can. We can still worry when there is reason to.