Experience Stern | News & Events

Excerpt from Barron's -- "But is Etsy another sign of the seeming technology bubble? Not necessarily, according to Aswath Damodaran, a finance professor at NYU’s Stern School. There should be more truth in labeling, he writes on his blog: 'In my book, Tesla Motors [TSLA] is an automobile company, Uber is a car service (or transportation) company, and Lending Club [LC] is a financial-services company, and none of them should be categorized as technology companies. The fact that these firms use technology innovatively or to their advantage cannot be used as justification for treating them as technology companies, since technology is now part and parcel of even the most mundane businesses.'"

Excerpt from The New York Post -- "'The market’s negative reaction Friday tells you just how great the jobs report is,' said New York University economics professor Joe Foudy. 'It’s now betting on a 50-50 rate hike in June.'"

Excerpt from The New York Times -- "Cecchetti and Schoenholtz argue that given a little time banks or other financial institutions ought to be able to store currency for clients at very low cost — as they say, turning back into the goldsmiths from which banks as we know them evolved — and might even be able to provide some checking-like services on the side."

Excerpt from Fast Company -- "New York-based KitSplit is a self-declared 'Airbnb for creative equipment' that allows production companies, studios, and individual artists to lease out their unused equipment for short-term periods. The company, which launched in December, takes a 15% commission from the rental of equipment leased online. As of this writing, more than $1 million worth of cameras, drones, and other high-end creative equipment are available through the service."

Excerpt from Mashable -- "Startups like Uber and Airbnb, which form the core of the new 'sharing economy,' can have a particularly positive effect on people with lower incomes, according to a new report. The study, from New York University professor Arun Sundararajan and research scientist Samuel Fraiberger, analyzed data from two years of transactions provided by Getaround, a peer-to-peer car rental startup."

Excerpt from International Business Times -- "'It’s exactly the fact that these banks all collapse at the same time that led to the collapse in the economy,' Engle said. The stress tests grade banks individually, leading some to worry whether the Fed might be overlooking broader issues. The alternative test Engle and his colleagues have designed provides an example of what a more systemic approach might look like. Dubbed the V-Lab, the process uses publicly available metrics to gauge how individual banks, and their underlying equities, might react to overall shifts in the market."

Excerpt from Vox -- "Asia’s recovery following its financial crisis was more rapid and robust than Europe’s, and the decision by policymakers in the two regions to adopt very different fiscal strategies provides a leading explanation for why this was the case. Although the impact on growth and employment of Europe’s pivot to austerity could have been exacerbated by the absence of other policy levers such as exchange rate flexibility and monetary policy independence, the data seem to corroborate the wisdom of countercyclical fiscal policy."

On March 6, NYU Stern's Luxury & Retail Club and Social Enterprise Association will co-host the annual Think Social Drink Local event. 

On Friday, March 6th, NYU Stern's Latin American Business Association(LABA) hosted the 6th Annual LABA Conference, themed, “Reinventing Latin America: The Road to Sustained Prosperity.”

Excerpt from The New York Times -- "'The thing that is scary about ISIS is that they have clearly taken content production to a level of quality beyond other terrorist groups,' [Galloway] said. 'The videos they have produced are the production quality of MTV.'"

Excerpt from The New York Times -- "Professor Sylla suggested that investors, now twice burned by market plunges in 2000 and 2008, were far more cautious than in the late 1990s. 'The dot-com bubble was just 15, 16 years ago, so just about everyone 35 or older, an age when people begin to have money to invest, remembers it,' he said. 'These folks have learned some lessons about bubbles, fortunately. So current valuations, while high by most historical standards, are more reasonable than they were 15 years ago.'"

Excerpt from CNBC -- “So, I actually broke these companies down to old tech, middle aged tech, young tech and baby tech. And I think the old tech companies actually look like some of the better bargains in the market. If you are a value investor, old tech is where you might want to go.”

Excerpt from Bloomberg -- "'Greece has already run out of money and lives with emergency compulsory borrowing from pension funds and from European agricultural support money in transit to farmers,' said Nicholas Economides, a professor at Stern School of Business, in New York. 'Unless there are new loans from Europe or alternatively the ECB allows Greek banks to buy more Greek debt, Greece will default at the end of March,' Economides said in an e-mail."

Excerpt from Business Insider -- "Galloway says he believes 'pure play' retailers that focus on either digital or brick-and-mortar sales cannot survive. He thinks e-commerce companies will be forced to open stores or 'go out of business' and that retailers need to be excellent at digital or they will 'go out of business.'"

Excerpt from Bloomberg -- "'Spinoffs are accompanied by a fairly predictable pop in the parent company’s share price,' Marti Subrahmanyam, a senior professor at New York University’s Leonard Stern Business School who co-authored the study, said in a telephone interview. 'Yet there seems to be little focus on this area. Authorities need to adopt a more systematic approach and acknowledge that every type of announcement is fraught with the possibility of insider dealing.'"

Excerpt from LinkedIn -- "As malls crumble and Amazon ascends, Department Stores have been on deathwatch. Yet brick-and-mortar retail remains relevant. While growth in clicks outpaces bricks, 90% of retail sales take place in a physical store. Over the next five years, Department Stores will grow 22% globally, with most of the growth coming from emerging markets, specifically China. Department Store brands, including Nordstrom, are seeing big bets on digital begin to pay off, while brands like Sears and JCPenney are looking to digital as a lifeline."

Excerpt from The New York Times -- "For about 150 years, finance has essentially charged a 2 percent fee on financial assets, like stocks, bonds and loans, according to research by a New York University economist, Thomas Philippon. That 'fee' adds up the total costs that investment bankers, asset managers, brokers and other financial middlemen charge their clients. Even as financial assets in the economy doubled over the last few decades, that fee percentage stayed remarkably flat."

Excerpt from The Huffington Post -- "While the Federal Reserve Transparency Act of 2015 - aka, the 'Audit the Fed' Act - doesn't shut down the Federal Reserve, it would go a long way to putting Congress directly in charge of monetary policy and to weakening the Fed's effectiveness as a lender of last resort."

Excerpt from The Wall Street Journal -- “Technology is now the largest single slice of the equity market,” [Damodaran] writes. “Just as growth becomes more difficult for a company as it gets larger and becomes a larger part of the economy, technology collectively is running into a scaling problem, where its growth rate is converging on the growth rate for the economy.”

Excerpt from Financial Times -- "To hear enthusiasts describe them, economic sanctions are trusty swords. By excluding hostile governments and their senior officials from western financial markets, America and its allies can pursue diplomacy with a streak of coercion. The number of US sanctions programmes has doubled in recent years, and they now target the personal assets of a rogue state’s political and economic elite."

Excerpt from Bloomberg -- "While China probably will avoid prolonged Japan-style stagnation, a major crisis could expose weaknesses that aren't apparent now, according to Smith. 'Most people today are talking about China displacing the United States as the great power of the 21st century,' he said in a telephone interview last week. 'My view is that it is more likely to end up like Japan - that is, the status of a former would-be superpower that isn't.'"

Excerpt from The Wall Street Journal -- "'I don’t see the lunacy I saw in the dot-com bubble,' said financial historian Richard Sylla of New York University’s Stern School of Business. 'Computer clicks are still important in our lives, but we don’t use the number of clicks to decide how promising a company is, as people did then. Investors are much more circumspect about thinking, is this thing really going to pay off?'"

NYU Stern’s Berkley Center for Entrepreneurship and Innovation hosted a conversation with Regina Dugan, leader of Google’s Advanced Technology and Projects Group, this March.

Academics, practitioners and policymakers gathered at NYU Stern on March 2 for a roundtable discussion on “The Biggest Change in Accounting Rules Ever: Proposed Global Standard on Accounting for Leases,” hosted by the Vincent C. Ross Institute of Accounting Research. 

Excerpt from The Washington Post -- "Alexander Ljungqvist, one of the authors of that study and an economist at New York University, said that investors are not necessarily at fault for the inertia at public firms. When the leadership of a publicly traded corporation becomes aware of a new opportunity to invest, they have to find a way to explain their plans to shareholders without divulging any sensitive information their competitors can use against them, he noted. That could be one reason why public firms hesitate to invest."