TSX falls but students not concerned

5 12 2008

Compiled by Kara Bertrand, with files from @ Humber reporters Kelly Roche and Hameed Hussain
Published: October 9, 2008

The Toronto Stock Market fell 1,200 points on Monday Oct. 6, leaving traders and investors scrambling to save their failing stocks.

The market slid 401 points on Tuesday while Wednesday’s numbers jumped 200 points by end of day.

The TSX has lost about one-third of its value since June.

The markets have barely recovered from last week and Monday, but economists warn that we’re not yet out of rough waters.

“At this point, we all should be concerned,” Patricia Lovett-Reid, senior vice-president of TD Bank said. “I don’t think we’re at the catastrophic phase yet but we need to see a lot of liquidity coming back into the system, and the sooner the better.”

Lovett-Reid, who is also the host of Money Talk on the Business News Network, said there will be a global economic down-turn with sub-par growth globally.

Paul Piper, professor of economics at Humber, said because over three-quarters of our trade is with the United States, Canadians should be alarmed.

“If our American customers are in trouble, well then you and I better worry because we’re going to have a hard time selling to them,” he said. “And if we can’t sell to them, guess what, Canadian workers are going to get laid off.”

Job security was also an issue brought up by Lovett-Reid, especially pertaining to students and recent graduates.

“The problem with what’s going on right now is a crisis of confidence and a credit crisis,” she said. “What that means to the end user is that jobs will be lost because companies won’t be able to make payroll because they’re not going to be able to borrow from their financial institution.”

Students not concerned

Alex Popsor, 22, a first-year civil engineering student, said he was not concerned about the state of the economy.

“I’ll always have an easy time getting a job,” he said. “Before I came to Humber, I did a bit of research, and I went into civil because it has more options.”

Popsor wasn’t the only student not worried about the markets.

Ashley Jewers, 19, a general arts and sciences student, said her choice to enter culinary management next year will guarantee her a job out of college.

“I know what I’m doing and what I’m going for,” she said. “But I’ve got another few years of school before I’ll start thinking about the economy. Ask me in another three years.”

Although Humber students don’t appear to be worried about the economy, Lovett-Reid said investing wisely now and along the line would be beneficial for students.

“When you build a portfolio right from the start, you’re not looking for speculative investments, you’re looking for good quality,” she said. “Companies that have real earnings, that pay a dividend, that’s a good way to set your portfolios up when you’re starting. But in terms of the job market, we will get through this crisis.”