Experience Stern | News & Events

Excerpt from Project Syndicate -- "Recent technological advances have three biases: They tend to be capital-intensive (thus favoring those who already have financial resources); skill-intensive (thus favoring those who already have a high level of technical proficiency); and labor-saving (thus reducing the total number of unskilled and semi-skilled jobs in the economy). The risk is that robotics and automation will displace workers in blue-collar manufacturing jobs before the dust of the Third Industrial Revolution settles."

Excerpt from The Times of India -- "'I believe that markets often get the macro trend right but get over-optimistic about the micro trends. There'll be a day of reckoning, where investors will start demanding results and start re-pricing these companies. There'll be a shaking out of the sector and the wheat will be separated from the chaff,' says Aswath Damodaran, professor of finance at the Stern School of Business at New York University."

Excerpt from American Banker -- "Tom Cooley, professor of economics at New York University's Leonard Stern School of Business, said the idea of investigating asset management is not necessarily wrong on its face. But he said the FSOC's approach opened it up to criticism and made the council look weak. 'That was just kind of wrongheaded in the way you think about asset managers,' Cooley said. 'They kind of got it wrong and kind of jumped the gun, and [it] got a lot of people who don't like Dodd-Frank to jump down their throats.'"

Excerpt from Bloomberg -- "[Teen retailers] have been caught in a situation where there have been two real problems. One, they've had these CEOs who have been very outspoken, controversial, gotten themselves into trouble. But we're also seeing a real shift in the generations and the needs and wants of the teenage population. What worked for these companies 5-6 years ago is just not working at this point in time. They need to find a way to connect to a bunch of consumers who don't spend as much money on clothing, who aren't as interested in having the absolute hottest new item on the market, but they still need to find a way to appeal to these consumers."

Excerpt from BBC -- "'The idea that we can go on indefinitely with very low interest rates doesn't make much sense,' said Lord King. However, he warned that if interest rates rose now, it 'would probably lead to another downturn.'"

Excerpt from Beijing Review -- "According to research by the Commission on Growth and Development led by Nobel laureate Michael Spence, after World War II, 13 economies utilized the latecomer advantage to achieve annual GDP growth of 7 percent or more for 25 years or longer, more than double the growth rates of developed countries."

Excerpt from MarketWatch -- "Earlier this year, TWC and Comcast announced plans to merge. (TWC has approximately 11 million video subscribers, and Comcast CMCS, +166.98% has around 22.6 million video customers.) More movies, television shows and live sporting events being produced by one company means less competition and more seller power, says Samuel Craig, director of the Entertainment Media and Technology Program at New York University’s Stern School of Business."

Excerpt from LinkedIn -- "In his excellent book on moral philosophy The Righteous Mind, Jonathan Haidt argues that social binding is one of the secrets of the human race’s extraordinary rise, and that some cultural attributes of human society, such as religion or patriotism, actually inspire people to be willing to sacrifice their very lives for the benefit of the larger group. Military exercises such as marching in step together work well for armies precisely because they trigger our 'hiving' instinct."

Excerpt from CCTV -- "'As long as we we continue to see solid labor market data, it’s pretty likely that you’re going to see a Fed increase, [in the] third or fourth quarter of 2015,' professor Joseph Foudy of New York University’s Stern School of Business said. 'It would take some pretty significant negative surprises to push that off. Similarly speaking, we’d have to see sudden strong increases in inflation, particularly wage inflation, before you got any talk of moving it earlier.'"

Excerpt from The Wall Street Journal -- "The market is a victim of 'the ladder of pricing,' says Aswath Damodaran, a professor of finance at the Stern School of Business at New York University and an expert in corporate valuations. Investors and founders are arguing that if 'A' is worth 'X' billion, then their own company, which has just as many 'eyeballs,' or just as much revenue, or just as big of a market opportunity, must be worth near or above 'X,' he says."

Excerpt from Project Syndicate -- "A remarkable pattern has emerged since the 2008 global financial crisis: Governments, central banks, and international financial institutions have consistently had to revise their growth forecasts downward. With very few exceptions, this has been true of projections for the global economy and individual countries alike. It is a pattern that has caused real damage, because overoptimistic forecasts delay measures that are needed to boost growth, and thus impede full economic recovery. Forecasters need to come to terms with what has gone wrong; fortunately, as the post-crisis experience lengthens, some of the missing pieces are coming into clear focus."

Excerpt from Bloomberg -- "'Syriza’s program includes blackmailing the European Union by not paying the debt Greece owes to European countries,' Nicholas Economides, an economics professor at New York University’s Stern Business School, said in an e-mail. 'It also includes significant increases in salaries, pensions, and the number of civil servants. None of these actions are feasible with Greece in the euro zone.'"

Excerpt from San Francisco Chronicle -- "'Twilio is one of the hidden giants of the sharing economy,' said Arun Sundararajan, an NYU business professor who studies the emerging sector in which people rent, sell or share assets with others. 'They are a critical piece of the infrastructure.' The reasons are clear, he said. Peer-to-peer marketplaces need to facilitate trust among participants, since their core businesses require people to get into strangers’ cars or stay in strangers’ homes, for instance. But at the same time, participants may want to shield aspects of their identity."

Excerpt from Clear Admit -- "Operating in close partnership with Stern’s Volatility Institute, the Volatility Institute at NYU Shanghai (VINS) is designed to provide opportunities for researchers focused on Chinese markets specifically, as well as financial markets around the world."

Excerpt from NPR -- "I think Uber's master plan is: 'If we have enough people who care about Uber service, and they vote, then we can get these regulations changed.'"

Excerpt from CNC World -- "So a natural progression as a country gets wealthier is that the growth rate has started to slow down. The other thing is that China is facing a number of tradeoffs since it's grown over the last several decades. Particularly in things like the environment. So it's really time for China to sort of think about what is the quality of growth. And I think anything in the 5 to 7 percent range is actually quite healthy as long as the economy is reforming, moving to a consumption-based economy and moving to an innovation-based economy. So I think it's good news."

Excerpt from Barron's -- "There’s no doubt that the strong deterioration of the Russian economy — which is just starting to happen now but will continue over the course of 2015 in a strong way — is going to hurt Putin’s popularity. But if you ask me to project into 2018: will there be more social discontent, more serious opposition, will he require more force domestically to ensure a smooth election? The answer to all those things is yes."

Excerpt from Sovereign Wealth Center -- "'If you’re trying to build a large position in an asset, you don’t want to to see a run up in the price of the asset,' says Robert Whitelaw, chairman of the finance department at New York University’s Leonard N. Stern School of Business. 'People will front-run you. Conversely, if people know you have a long position, they may know you’re going to sell and front-run by shorting on the way down.'"

Excerpt from Nightly Business Report -- "What's interesting is that [the sharing economy] is also expanding the set of people who can get access to nice things... if you look at the demographics of people who are using Rent the Runway, they're very different from the demographics of the buyers of this high-end apparel."

Excerpt from The Huffington Post -- "According to a working paper by Alexander Ljungqvist and Michael Smolyansky, economists at New York University, corporate tax breaks at the state level don’t help create jobs. There’s one exception: Tax cuts do help create jobs and boost incomes when they are implemented during recessions, the paper says."

Excerpt from CBS News -- "Raghubir cautions against falling for marketing tricks such as limiting quantities or availability of certain items in order to create a sense of urgency. 'Anything which crunches time or crunches the availability of a product is something that consumers then want to exert their independence on... and then,, oh, it's only available now. I better rush and get there before this deal is over,' says Raghubir."

Excerpt from Bloomberg -- "In the short run, what's happening is that technological innovation is increasingly capital-intensive, skill-biased and labor saving. So, take the factory of the future... You might have 1000 machines or 1000 robots, one or two workers manning those machines, and a third guy sweeping the floor. And even the guy sweeping the floor right now can be replaced by a Roomba robot who can do it faster and cheaper."

Excerpt from Financial Times -- "I think that there's been a tremendous focus in business school space on relying on purely experiential methods as a way of getting some interesting content about globalization across to students and so, huge emphasis on getting interesting people together and taking them to interesting places. But the notion is, if that's all we do, then we should probably just confess that we're a specialized branch of the travel and hospitality sector unless we can actually identify things that happen in our classrooms that complement these experiential activities."

Excerpt from Nightly Business Report -- "I think it's a potentially very significant effect in the sense that these products become a political argument for a terror group or a foreign government or an ethnic group that disagrees with a certain idea and to the extent that these creative companies are going to back down and cave to these wishes. This is going to have an effect in many ways on the creative side of the business in the sense that if I'm a producer or an actor or a writer, engaging one of these politically sensitive subjects becomes very risky for me because if my movie never gets out, I may never get paid for having produced the movie in the first place."

Excerpt from China Economic Review -- "In a way, volatility is a bad thing, especially when you see what it’s doing in Russia. But it’s also a good thing, in that it’s the markets responding to new information. And if the markets don’t respond to new information, then they don’t provide their correct function. With the collapse in oil prices, for one thing, that’s probably good news for China, and you’d expect the Chinese economy to respond positively to that because its cost of energy is going to go down. So volatility is a risk to investors, but it’s also essential to the functioning of the economy."