Experience Stern | News & Events

Excerpt from WalletHub -- "There is no question that the SBA loans will help small businesses survive. There is some academic research on the role of SBA during the 2007-08 financial crisis and it suggests that SBA loans help businesses weather economic crises. It's not clear whether the SBA has enough resources to meet all the current needs, however, because no one knows the length or severity of the COVID-19 crisis."

Excerpt from Financial Times -- We’ve done a lot to strengthen banks, and that’s a good thing. But we’ve done much less outside the banking system,' says Richard Berner, a finance professor at New York University and the former head of the US Treasury’s Office of Financial Research, which was set up to monitor systemic risks after 2008. 'And that unlevel playing field tends to get regulatory arbitrage, with some activities simply migrating to less regulated entities.'”

Excerpt from New York Post -- "Paul Barrett, an NYU professor and Director for the Center for Business and Human Rights, believes that tech companies have only one responsibility to serve the public during any crisis: 'To not make a terrible situation even worse.'"

Excerpt from Medium -- "A pillar of capitalism is you can’t reward the winners without punishing the losers. I worry our government has been co-opted by the wealthy and is focused on protecting the previous generation of winners, even if it means reducing future generations’ ability to win. Aren’t we borrowing against our children’s prosperity to protect the wealth of the top 10, if not 1, percent?"

Excerpt from Associated Press -- "Professor Tensie Whelan, the former head of the Rainforest Alliance and current director of NYU’s Stern Center for Sustainable Business, says focusing on sustainability practices in the toy industry is long overdue. 'We’ve got 60 million kids under 14 in the United States. We’ve got 90 percent of toys made of plastic. We have chemical issues, waste disposal issues, social supply chain issues. So, a lot of things that need to be addressed,' Whelan said."

Excerpt from From Day One -- "The conflict has become a moral dilemma for many high-profile U.S. corporations–and their decisions may be long remembered. 'It’s not enough to just get up and tell your employees, ‘Thank you, let’s dig in deeper,’ or ‘Here’s more money,' Susan Stehlik, director of the Management Communication Program at the NYU Stern School of Business, told From Day One."

Excerpt from Bloomberg -- "Bankruptcies related to Covid-19 shutdowns will set records in the next 12 months, according to Edward Altman, the professor emeritus at New York University’s Stern School of Business who developed a widely used method called the Z-score for predicting business failures."

Excerpt from Axios -- "Any move of this magnitude naturally elicits the question "why?" I spoke to NYU professor (and my ex-boss) Nouriel Roubini to answer that question and came away with 6 main reasons for the rebound. Technical. At the market peak, a lot of investors had leveraged long positions. They faced huge margin calls as the market fell, which forced them to dump even their safest assets at discounted fire-sale prices. When the forced sales ended, fears of a major financial crisis receded, and prices bounced back up."

Excerpt from Fortune -- "By now, everyone has a COVID cancelation story. The South by Southwest festival, which last year brought more than 400,000 people to Austin and generated $355 million in revenue, was canceled a week before it was set to begin. Finals for the Scripps National Spelling Bee, which hundreds of students compete in each year, was suspended. The Eurovision Song Contest was canceled for the first time since it began in 1956."

Excerpt from The Wall Street Journal -- "A good resource in looking for societal wisdom is Jonathan Haidt, a social psychologist, professor at New York University’s Stern School of Business and author, among other books, of 'The Righteous Mind.' 'This is a time for us to reflect,” he said by phone, “and choose a better story. Right now stories are being rewritten all around us, nationally, individually, and we all get a chance to do some of the rewriting.'”

Excerpt from Seeking Alpha -- "In a white paper from last December, Aswath Damodaran and Bradford Cornell noted that "big market promise" stocks are often initially overvalued and later see their share prices correct to more realistic levels."

Excerpt from The New York Times -- "'Recent years have seen many good economists trying their hand at writing a popular book in an attempt to disseminate their ideas among a wider audience and influence opinion — with a remarkably large number attaining more than a modicum of success. The past 12 months have been particularly rich, with Thomas Philippon’s 'The Great Reversal: How America Gave Up on Free Markets,' Emmanuel Saez and Gabriel Zucman’s 'The Triumph of Injustice: How the Rich Dodge Taxes and How to Make Them Pay,' Abhijit Banerjee and Esther Duflo’s (winners of this year’s Nobel Prize) 'Good Economics for Hard Times,” and Thomas Piketty’s 1,100-page “Capital and Ideology.'”

Excerpt from Ladders -- "Not all of the mistakes we all make in the first 10 minutes of the day are caused by procrastination. In fact, getting on with our work in the wrong way can have a negative impact on our productivity. Checking your work emails first thing is a common mistake. New York University’s Adam Alter says that it takes an average of 25 minutes to get back to being most productive after you’ve checked your emails."

Excerpt from Retail Dive -- "Whether and how many customers return after the pandemic eases also depends on what they take away from their imposed isolation, according to Thomai Serdari, a professor of luxury marketing and branding at New York University's Stern School of Business. There's likely to be pent-up demand, but possibly tempered by a new appreciation for consuming less, especially as a recession bears down, she said."

Excerpt from The Age -- "In a joint paper with Kermit Schoenholtz, a market guru and now finance professor at New York University's Stern School, he warns of potential bank runs and a cascade of fire sales across asset markets despite the heroic firefighting efforts of the Fed so far. The NYU Stern's SRISK gauge shows that the "weighted average leverage ratio" of European lenders is nearly 48, three times US levels."

Excerpt from Fortune -- "'Most people don’t have enough expertise in financial markets. It’s not their job,' says Nicholas Economides, a professor of economics at NYU Stern School of Business. Add a once-in-a-lifetime pandemic that causes a global crash, and you quickly see armchair 401(k) investors are in over their head in choppy waters."

Excerpt from Project Syndicate -- "In 2008-2010, the Great Recession could be surmounted when the economic fault line – under-capitalization of the global banking system – was tackled. Now, however, the economic emergency will not be resolved until the health emergency is effectively addressed, and that requires coordinated global leadership – now."

Excerpt from Crain's New York -- "'The book marks the beginning of security analysis, or stock picking, as a profession,' said Richard Sylla, a financial historian at New York University's Stern School of Business."

Excerpt from Wealth Management -- Students at every SMIF are lobbying their institutions to add ESG funds to the mix. New York University’s SMIF recently replaced one of its small-cap funds with an ESG fund to better reflect the interests of students passionate about the environment and other social causes. The Michael Price Student Investment Fund (MPSIF) is a family of funds, managed directly by MBA students at the NYU Stern School of Business, which was launched in 1999 through a gift from Michael Price, managing partner of MFP Investors.

Excerpt from The Wrap -- "That’s why Paul Hardart, a former Warner Bros. executive and current head of the... Entertainment, Media and Technology program at NYU, said it’s 'way too early to tell' if Quibi will flourish."

Dean Raghu Sundaram and Professor Scott Galloway engaged in a wide-ranging discussion, touching on everything from how the coronavirus is impacting industries like tech, digital media, retail and startups, important lessons that can be learned when facing adversity, and how global crises can impact future generations of leaders.

Excerpt from Newsday -- “'Life after the virus will be different from before the virus,' said Amy Webb, professor of strategic foresight at the New York University Stern School of Business. 'We have a choice to make: Do we want to confront our cherished beliefs and make meaningful changes for the future, or do we simply want to preserve the status quo?' Webb said."

Excerpt from Marketplace -- "In normal times, it’s a bad look when companies clam up, according to Baruch Lev, professor of accounting and finance at NYU. 'When you stop guidance, the stock price is hit because it increases significantly [the] suspicion of investors. ‘Why did you stop? What’s the reason?’ ' he said."

Excerpt from Fox Business -- “'Target and Walmart and a lot of these places have kind of established themselves as places you can go where you pretty much know you're going to get a good deal, that things aren't going to be so expensive,' Meyvis said. “So people sort of treat it like the grocery store, where they're just putting stuff in their cart.'”

Excerpt from Seeking Alpha -- "The second winner this week is from Prof. Aswath Damodaran, who graciously shares the tools used in his Stern School of Business MBA classes. I recommend his entire 'Viral Market Meltdown' series, but my focus today is on part V, Back to Basics."