Experience Stern | News & Events

Excerpt from The New York Times -- "We must ask those who would repeal Obamacare how they propose to solve the adverse-selection problem. That problem is not an abstraction invented by economists to justify trampling individual liberties. As experience in most countries around the world has confirmed, it is a profound source of market failure that renders unregulated insurance markets a catastrophically ineffective way of providing access to health care."

Excerpt from BBC Capital -- "Tax-haven status can be a real boon for countries without natural resources, a large industrial base or significant tourist income. If a company has a large office in a tax haven, there can be a big benefit for the local community, from jobs to better infrastructure that’s built to support the needs of multinationals, said Damodaran."

Excerpt from Reuters -- "Too much style drift can be a worrisome sign, says Marcin Kacperczyk, an assistant professor at New York University's Stern School of Business who studies mutual funds. Though some managers end up with big company stocks because of short-term liquidity issues, 'it's a big red flag that makes you wonder what else the manager is doing.'"

Excerpt from Westchester County Business Journal -- "Last September, Gambardella enrolled in New York University’s Langone Master of Business Administration Program for Working Professionals, which is administered at the SUNY Purchase campus. Gambardella has kept a full-time job while taking businesses courses in leadership and organization, statistics, firms and markets, accounting and marketing while employed full-time at her company."

Excerpt from CCTV -- "At this point, given this very very high unemployment, the European Union has to set some money aside to help Greece, Spain and Portugal create jobs, especially Greece. And I think one way to do it is to allow Greece not to pay interest for a few years on the loans that it owes to the EU area countries."

Excerpt from LiveMint -- "What a unified regulator allows you to do is take a very holistic view on the system, not just a banking view or insurance view or a markets view. A unified regulator typically does consist of representatives from these different regulatory agencies and they all come together and can take a holistic view. The downside is that if this unified regulator becomes in some sense the authoritative regulatory figure, then you might see very little regulatory innovation, which is often necessary because as the institutions change, as the markets change, the regulators have to evolve their policies and usually this works much better with a decentralized regulator than with a single central regulator."

Excerpt from The Washington Post -- "Today, corporate profits account for 12 percent of GDP, while net investment has shrunk to 4 percent. When Asker, Ljungqvist and Farre-Mensa looked into this anomaly, they unearthed a startling fact: While publicly traded firms devote 3.7 percent of their total assets to investment, comparable privately owned firms devote 6.8 percent. Using a new database that provides more information on more privately held firms than had previously been available, the economists discovered a problem at the heart of this nation's shareholder version of capitalism."

Excerpt from Business Insider -- "'Should you sell short? I personally would not, since it is entirely possible that the momentum game that was so firmly against Facebook last year might work in the other direction now,' he added. 'There may be investors who will be drawn in to the stock if it crests the $38 IPO price, though there is really no economic or value significance around the number.'"

Excerpt from Bloomberg -- "A number of large users of aluminum in the U.S., including the Coca-Cola Co. and MillerCoors LLC, allege that big banks -- some of which own aluminum warehouses and play a big role in the market -- have intentionally created bottlenecks, with the end effect of driving up prices and boosting their profits. In recent Senate testimony, MillerCoors estimated that the practice cost buyers of aluminum about $3 billion last year alone."

Excerpt from CNBC -- "I have done five valuations of facebook in the last year and the lowest number I have got is $24 and the highest number I have got is $28. So the value of the company hasn't actually wavered that much over the last year and three months. I don't share the euphoria that people have about mobile monetization because I think they needed to do that. If they hadn't done it, it would have been disastrous. So at $38, I think the stock is richly priced."

Excerpt from Bloomberg Businessweek -- "'People ask if this is exaggerating GDP, and the answer is precisely no,' says Kim Schoenholtz, director of the Center for Global Economy and Business at New York University’s Stern School of Business. 'What you’re seeing is just a better reading on the state of the economy. Our measurement science is improving.'”

Excerpt from Financial Times -- "A fascinating series of posts over at Aswath Damodaran’s Musings on Markets. Damodaran has been looking at risk and equity valuations in emerging and developed markets. He began with a round up of risk in emerging markets, where he found investors believe emerging markets are getting riskier. He concluded by using three different multiples to look at how investors price risk and return – and found he had much to learn."

Excerpt from Bloomberg Businessweek -- “'Demand for analytics training courses is rising quickly,' says Anindya Ghose, co-director of the Center for Business Analytics at New York University’s Stern School of Business. 'There is a huge focus on the quality and quantity of data and how it can be harnessed to take businesses to the next level.'”

Excerpt from Barron's -- "In spite of the QEs, inflation is going to remain low because growth is weak, and therefore all this extra money is going into the reserves of the banks, as velocity is collapsing. If anything, inflation is now falling both in emerging and advanced economies. So buying gold as a hedge against inflation, in spite of all these QEs, is not a good investment."

Excerpt from Scientific American -- "Previous work on connectedness, most notably work by both Bartels and Hal Ersner-Hershfield and their colleagues, has demonstrated that increases in connectedness are associated with making better financial decisions for oneself–the kind of financial decisions that pay off in the long run. People with strong connections to their future self are willing to save more, spend less, and forgo immediate cash rewards in exchange for future cash rewards of greater value."

Excerpt from Bloomberg TV -- "The only cloud around Facebook right now is that our research shows that they aren't generating a lot of traffic that converts to actual sales. So it's that top-of-the-funnel advertising-like impressions that have been under a lot of pressure of late over the last couple years. CPMs are dropping, so it will be interesting to see if they can maintain that kind of velocity to justify what is a healthy valuation if you were just to take out the first day IPO price."

Excerpt from The Gleaner -- "This account is given in Henry's just-released book Turn-Around: Third World Lessons for First World Growth, already being hailed as a significant publication. Peter Blair Henry is a significant person. He served on President Obama's transition team in 2008 and is a member of the prestigious Council on Foreign Relations. He is the first black dean of New York University's Stern School of Business, one of the leading business schools in the United States."

Excerpt from Financial Times -- "Jennifer Wynn is an MBA student at New York University Stern School of Business and a founding teacher of the Achievement First East New York Middle School, a charter school in Brooklyn where she served as dean of students. This summer she is on an internship with the Harlem Children’s Zone, a non-profit organisation for children living in poverty, which is being funded through Stern’s Social Impact Internship Fund."

Excerpt from Bloomberg Businessweek -- "'It got me back into school mode,' says Lindsey Melki, a second-year student at Stern who participated in Summer Start last year. 'Having taken the courses before the fall freed me to dive into clubs.'"

Excerpt from Fox Business -- "More than 60% of consumers are accessing the ecommerce world from their phones and tablets, according to Anindya Ghose, co-director of the Center for Business Analytics and professor at NYU Stern School of Business. ... 'Bargain shoppers will likely seek deals on third party sites, and a site like Wanelo reduces our search costs by letting people choose products for us,' Ghose says. 'Plus, its online community format satisfies the basic human need to socialize.'"

Excerpt from Yahoo! Finance -- “'It’s the first show based on the collective wisdom of what people actually liked,' says New York University business school Professor Arun Sundararajan, who studies how digital technology affects society. Data-driven shows could be more compelling, though Sundararajan fears that, over time, the techniques might also lead to homogenization. 'People are always looking for something different,' he says."

Excerpt from the TODAY Show -- "'I think it's very widespread,' she told us. 'You feel smart, you feel happy, and you feel you've got a great deal.'"

Excerpt from Bloomberg Businessweek -- "Most B-school students know they’re signing up for classes in subjects like accounting and finance, but they probably don’t expect to see human rights on the syllabus. Professor Michael Posner wants to change that. Posner came to NYU’s Stern School of Business after four years at the Department of State to head the first-ever human-rights center at a business school."

Excerpt from The Hill -- "While the incentive auction is important and deserves the attention it is receiving from the commission and Congress, attention should also be paid to another category of spectrum: the Mobile Satellite Service (MSS) spectrum. This is the most immediately available spectrum—indeed, the only significant block of spectrum that is already licensed but not deployed."

Excerpt from Project Syndicate -- "Watching for progress on these key elements of structural change and reform seems to be the right stance. If markets are confused or pessimistic about China’s longer-term agenda, but if the direction of structural change and reform is positive, there may be investment opportunities that were absent in the more exuberant recent past."