Experience Stern | News & Events

Excerpt from MarketWatch -- "Stock market crashes are inevitable, and we’re kidding ourselves if we think otherwise. That, at least, is the stark conclusion to emerge from research conducted several years ago into the frequency of crashes: 'Institutional Investors and Stock Market Volatility,' by Xavier Gabaix, a finance professor at New York University, and three scientists at Boston University’s Center for Polymer Studies: H. Eugene Stanley, Parameswaran Gopikrishnan and Vasiliki Plerou."

Excerpt from Bloomberg -- "I just think [Yahoo] has been a soap opera that's gone on two or three seasons too long. It should be sold. It is a great asset. It's the most trafficked website in the world."

Excerpt from Fashionista -- "For the past nine years, New York University’s Luxury and Retail Club has brought together students, faculty, luxury executives and local business owners to discuss the ever-changing luxury landscape. Eve Mongiardo, chief operating officer and partner at Irving Place Capital, argued that luxury is no longer about exclusivity and high price points. 'Some argue that Starbucks is a luxury company,' said Mongiardo. 'In many ways it is because it’s a daily indulgence that many of us can’t live without.' Luxury can mean different things to different people — it just depends on whom you’re asking."

Excerpt from Financial News -- "Existential events are not often fatal, but few companies escape the years of lacklustre performance that follow the thumping that the events engender. Boards of big business companies need to wake up and recognise that they can lower the probability of such events in the future by reshaping the cultures and middle management cadres that have enabled them."

Excerpt from The Wall Street Journal -- "Stereotypes in general—negative and positive—are entrenched in part because they help us take cognitive shortcuts. By offering a way to 'automatically categorize people into social groups,' they allow us to 'free up mental energy to' live our daily lives, says Michael North, an assistant professor of management and organizations at New York University’s Stern School of Business."

Excerpt from the Financial Times -- "Trium’s strength lies in harnessing the very different world views and teaching styles of three institutions, says Prof Zemel."

Excerpt from Voice of America -- "TPP opponents say the deal means disputes between businesses and governments can be resolved by arbitrators, a process they contend gives too much power to unelected officials. That provision drew the ire of New York University professor and former IBM official Ralph Gomory. Gomory told Voice of America this provision of a three-person panel to decide any controversy that might arise 'is not a democratic process.' He says 'it’s a process of a few people who are appointed and make a judgment.'"

Excerpt from CNBC -- "But, Damodaran said Uber's challenge is going to be showing how profitable it really is, especially with increasing competition. 'Investors are willing to wait a really long time and Uber may very well be able to convince investors, but I think the biggest challenge they face is, unlike a year ago when the competition was small and splintered, they are now playing against the big boys in their own game.'"

Excerpt from The Huffington Post -- "...long before the latest Guidelines were being contemplated, large food companies began witnessing the rapid evacuation of their consumers. Lobbying against the Dietary Guidelines will not change that, and with the microscope so sharply focused on them, it is likely to further damage consumer trust and backfire."

Excerpt from the Financial Times -- "Based on my current assessment of the outlook and the risks around the outlook, I believe the economy can handle an increase in the fed funds rate and that it is appropriate for monetary policy to take a step back from the emergency measure of zero interest rates. A small increase in interest rates from zero is not tight monetary policy."
 

On Friday, October 16, the Luxury & Retail Club will hold its ninth annual conference, themed "Redefining Luxury." The conference will feature a fireside chat with Julie Rice and Elizabeth Cutler of SoulCycle as well as a keynote speech by Rebecca Minkoff.

Excerpt from Project Syndicate -- "Online talent platforms apply a similar approach to the world of work – with a similar impact. By creating regional, national, and even global job markets, they allow employers to tap into broader talent pools and connect job seekers with a wider universe of opportunities. In this way, they have transformed the typical job search, and are now approaching the critical mass needed to move employment numbers."

Excerpt from Marketplace -- "The economy is this system that absorbs shocks, and either prices move when a shock hits the economy or quantities move when a shock hits the economy. What are these quantities I’m talking about? These are like the numbers of firms or the numbers of workers. So if we don’t make little adjustments in prices that help the economy adjust to these shocks, instead what we'll see is firms going bankrupt and people losing their jobs."

Excerpt from Bloomberg -- "In a working paper for the National Bureau of Economic Research, a group of researchers looked at 8.5 million credit card accounts. They found that for every 1 percentage point reduction in what it costs banks to borrow, banks extended $127 in credit to families with credit scores below 660. Those families spent 58¢ for every new dollar in credit. Under the same conditions, families with credit scores above 740 got $2,203 in extra credit. But they didn’t spend a penny of it. Says Johannes Stroebel of the NYU Stern School of Business, one of the authors: 'The targeting of these credit expansions is potentially to the wrong people, to the people that don’t want to borrow more.'"

Excerpt from CNBC -- "We should not let populist opinion drive regulation: it doesn't make sense to kill high frequency traders and the associated liquidity they provide just because they make money through intelligent machines. However, if the data quickly reveal patterns of behavior that destabilize markets, we should take focused action on the basis of such evidence."

NYU Stern's Center for Global Economy and Business welcomed Loretta J. Mester, President and CEO, Federal Reserve Bank of Cleveland for a talk on “Long-Run Economic Growth” with the Stern community on Thursday, October 15.

Excerpt from MarketWatch -- "The costs of financial intermediation—including banking, investment management and legal, accounting and custodial support—has generally been rising since 1970, and today is equivalent to about 7% of U.S. gross domestic product, despite cost-obliterating new technologies and market deregulation, according to Thomas Philippon, a finance professor at New York University."

Excerpt from Reuters -- "'We are in an era now where transparency is the watchword. It raises the issue of: Who is going to have the information? Is it just insiders?' said C. Samuel Craig, professor of marketing and international business at New York University’s Stern School of Business."

Excerpt from mbaMission -- "... Jeffrey Carr joined Stern’s full-time faculty in 2007 and is now a clinical professor of marketing and entrepreneurship. ... As one first year we interviewed said of his experience at Stern, 'So far, the most impressive class has been Marketing with Jeff Carr,' adding, 'He’s super engaging and makes you think more about the consequences of your actions in marketing than simply teaching you the tools. The class structure is very informal, but all of the students are learning a ton.'"

Excerpt from The Washington Post -- "'Is it just a matter of time, or are social media firms trying to force an unnatural act?' wonders Scott Galloway, a professor who teaches marketing and branding at New York University’s Stern School of Business. Galloway said it seems that perhaps people view social networks as more of the digital equivalent of a hanging out at a bar — a place where it feels right to socialize, but would seem awfully weird to buy a sweater or a plane ticket."

Excerpt from National Post -- "In his seminal 1990 article 'Endogenous Technical Change,' Paul Romer identified a couple of crucial features about new ideas. Firstly, they are what economists call non-rival goods: more than one person can share a new idea without affecting its usefulness to other people. In the absence of at least some IP protection, it would be almost impossible for firms or researchers to cover the costs of R&D. IP devices such as patents give their holders a temporary monopoly in the use of a certain technology, and those monopoly profits can be used to cover the costs of R&D."

Excerpt from The Wall Street Journal -- "'Jes has had a long career in banking doing a lot more than the securities business,' said Roy Smith, a professor at New York University and a former Goldman Sachs Group Inc. banker. 'But that’s a tough part of Barclays’s business for it to get right. Jes’s experience at the top levels of J.P. Morgan can only help."'

Excerpt from BBC -- "There are plenty of jobs where you don't actually have to be physically co-located with the customer... and certainly for those kinds of jobs, I think you're not really constrained as much as you were by immigration policy or by whether the person is actually in the same city as the customer... For the jobs where the geographic barriers break down and anyone from anywhere can provide work, you do see in the short run sort of a downward pressure on wages, but for a lot of the other jobs where actually being physically present in the same place is important, I'm actually seeing an increase in wages relative to the US averages."

Excerpt from BusinessBecause -- "At NYU Stern School of Business for example, the accounting department is developing new courses in statistical and data analysis, says Alex Dontoh, professor of accounting and deputy chair of the department. He says there is a 'need for students to develop technical skills in data analytics and information technology, in order to stay relevant in the professional accounting marketplace'."

Excerpt from Orange County Register -- "Orange County currently has eight EB-5 projects getting $404 million from EB-5 investors. Ninety percent of that investment is at the $500,000 level. That makes sense: If your choice is to invest $500,000 or $1 million to get the same green card, you’re going to choose the smaller investment, said Gary Friedland, a lecturer and research scholar at New York University who co-authored a study of EB-5 projects. 'It’s a no-brainer,' he said. “That’s why the developers do cartwheels to make sure their development qualifies as a TEA.'"