Experience Stern | News & Events

Excerpt from Forbes India -- "When Facebook’s share price started tumbling down since its listing two weeks ago, not everyone was surprised. In February, as soon as its numbers became public, Aswath Damodaran, a finance professor at NYU Stern School of Business, valued the company at $72 billion. It made a debut with a valuation of $100 billion, or 100 times its earnings."

Excerpt from WIRED -- "While there are several possible business models for Facebook to create value, each with its potential risk and reward, I propose that Facebook create the world’s first information market."

Excerpt from The Atlantic -- "Economist William Baumol famously observed that it's really hard to make a string quartet more efficient, because it's not feasible to replace the live violinist with a robot or with a cheaper Chinese violinist Skyping in from Shanghai. Similarly, you can't perform 'A Long Day's Journey Into Night' with fewer than four principal actors."

Excerpt from Bloomberg -- "'Even a great banker like James Dimon can’t really manage such a huge operation,' Sylla said. 'They convince themselves that everything is fine because they’re making money.'"

Excerpt from Newsweek -- " ... Groupon represents a textbook case of the business principle known as first-mover advantage. ... As Nobel Prize–winning economist Michael Spence observed, a business that swiftly achieves and maintains dominance can reap superior profits and enjoy unrivaled customer loyalty."

Excerpt from BBC News -- "The black hole in the Spanish banking system is very, very large and it would need, I believe, much more than 100 billion euros."

Excerpt from Barron's -- "Though volatility expectations aren't likely to reach the frightening levels of 2008, stock investors may want to heed Ed Altman, finance professor at New York University, who points to an increased correlation between stocks and high-risk bonds."

Excerpt from New York Magazine -- "Johanna Stout, manager of the Fashion Incubator explained, 'We have a partnership with NYU Stern [School of Business]. We really noticed that the designers, they’re not business people, you know? ... So for nine months we paired them with an MBA student and an adviser from the industry to work on their financials before they even moved in. We're like, let's clean up the financials, let's get you a business plan, and then you can move into the incubator.'"

Excerpt from Financial Times -- "We find it extraordinary that it should be Germany, of all countries, that is failing to learn from history. Fixated on the non-threat of inflation, today’s Germans appear to attach more importance to 1923 (the year of hyperinflation) than to 1933 (the year democracy died)."

Excerpt from Psychology Today -- "Does feeling sadder truly make us wiser? We’d certainly like to think so: putting a positive spin on a negative experience can help make it more palatable. If we think about how sadness actually affects people, then a different story emerges."

Excerpt from The Washington Post -- "David Yermack, a professor at New York University’s Stern School of Business, examined Michelle Obama’s 189 public appearances between November 2008 and December 2009 and found that the appearances coincided with spikes in the stock prices of the companies whose clothes she wore."

Excerpt from Bloomberg -- "The economist Robert Frank has suggested doing this via a consumption tax, patterned after a 1955 proposal by Nicholas Kaldor. All spending above $7,500 per person would be subjected to an escalating rate of tax."

Excerpt from Reuters blog -- "America’s big banks are short a mere $500 billion in capital. That’s how much more of a cushion Nobel prize-winning economist Robert Engle thinks is needed for banks to survive another financial crisis."

Excerpt from MSNBC -- "'It's always undesirable to have uncertainty about the fiscal path,' said Kim Schoenholtz, an economics professor at New York University. 'Economic growth requires investment, and that requires risk taking. Anything Congress can do to reduce uncertainty... would be helpful.'"

Excerpt from Forbes -- "Contrary to appearances, we can afford more and better education, ever more ample health care, adequate support of the indigent, and a growing abundance of pri-vate comforts and luxuries. That we cannot afford all of these is an illusion ... "

Excerpt from Bloomberg Businessweek -- "A few years ago I thought I had seen it all, having had this front-row seat to so much happening in business globally. But then I received a call that led to one of the most exciting days of my life. It was the New York Yankees calling. They wanted me to throw out the first pitch in the last game of the season. ... "

Excerpt from Institutional Investor -- “The year started off very well but REIT ETFs have all soured over the past month,” says Stijn Van Nieuwerburgh, Professor of Finance at NYU Stern and director for Stern’s Center for Real Estate Finance Research. “Markets have perceived a higher probability of a macroeconomic slowdown.”

NYU Stern Professor of Statistics Jeffrey Simonoff, Lan Ma Nygren of Rider University and Stern PhD student Nikolay Kulmatitskiy find that winning a major Tony Award increases the length of a production’s expected run by about 50 percent. Additionally, each major Tony nomination alone is associated with a roughly 30 percent longer expected show run.

Excerpt from The Guardian -- "When working-class people vote conservative, as most do in the US, they are not voting against their self-interest; they are voting for their moral interest."

Excerpt from The Washington Post -- "Silber relies on interviews and access to Volcker’s personal papers to tell the story of the Fed chairman’s political and economic battles under five presidents."

Excerpt from CNN -- "Marcin Kacperczyk, an Assistant Professor of Finance at NYU’s Stern School of Business, is not particularly surprised by the increased interest and investments in single malt Scotch whisky considering the timing. ... '2007 to 2010 were not good years for the markets in general, so it isn’t really surprising that these smaller markets are growing.'"

Excerpt from Broadway World -- "'Shows that have been nominated for major Tony awards but are still vulnerable to closing ... stand to potentially benefit from the awards show on June 10,' explained Professor Simonoff. 'Shows like Nice Work If You Can Get It or Once, which have each been nominated for five major Tonys, could potentially increase their expected run nearly 50 percent if they win all five awards.'"

Excerpt from Bloomberg -- "'A moonscape scenario, one where everything that is mobile leaves, is certainly one you can anticipate,' Michael Spence, a Nobel laureate in economics and professor at New York University’s Stern School of Business, said in an interview in Milan. 'The short-term scenario is one of chaos.'"

Excerpt from The Globe and Mail -- "Remember those seven words, they're the seven most deadly words in investing and valuation. They Must Know Something That I Don't. When the stock is at $640, [but] you come up with a value of $200. What's your rational side saying? Don't buy that stock, right? Then you hear this voice… they must know something that you don't...."

Excerpt from The Wall Street Journal -- "As the trend continues—as the huge financial conglomerates operate under continuous and rigorous scrutiny—they will become financial public utilities. Meanwhile, the crucial job of competitively allocating credit will be relegated to a shrinking portion of the financial markets."