Experience Stern | News & Events

Excerpt from the Heartland Institute -- "'Many banks and nonbanking financial institutions took too much risk in the years leading up to the financial crisis, and the government felt obliged to save them to protect the broader economy,' Tuckman said. 'The solution, however, is not to reduce the scope and usefulness of bank activities in ways that will not necessarily reduce risks to the financial system.'"

Excerpt from CNBC -- "'Amazon has algorithms that go out and look for the lowest price per ounce ... then demand that their brands offer that same price or better per ounce in any package or within a nano second, or they will kick you off,' said Galloway."

Excerpt from Council on Foreign Relations -- "The Dodd-Frank Act grew out of a need to 'address this increasing propensity of the financial sector to put the entire system at risk and eventually to be bailed out at taxpayer expense,' said a 2011 report by New York University’s Stern School of Business. ... 'The Fed has a great deal more responsibility,' says Thomas Cooley, a professor at New York University’s Stern School of Business and one of the editors of the 2011 report. 'It is the primary watchdog for identifying systemically risky institutions of all types,' he explains."

Excerpt from TheStreet.com -- "'The Dow ended up losing something like more than 40% of its value from the peak [from early 1973 to October 1974], which occurred right after Nixon's reelection,' Sylla said. 'This would qualify as a major market down-move.'"

Excerpt from Bloomberg -- "After years of rising wages eroded its position as the world’s bargain manufacturer, China is striving to build its own brands and improve product quality and design. Those advances are crucial to maintaining the high growth needed to make the leap from middle- to high-income status -- a jump only five economies have managed, including Taiwan, Hong Kong and Singapore, according to Nobel laureate Michael Spence."

Excerpt from Nikkei Asian Review -- "In an interview with the Nikkei Asian Review in Hong Kong on May 5, Brenner said the perception that the VIX has "predictive power" is something promoted by '[news]letter writers and analysts, people who write to the clients." But for him, "I just use the word nonsense. It doesn't have predictive power.' Brenner was in Hong Kong to commemorate the 10th anniversary of a joint master's program on global finance involving NYU and the Hong Kong University of Science and Technology which he teaches."

Excerpt from The Atlantic -- "Arun Sundararajan, a professor at New York University and the author of The Sharing Economy, notes that these companies might have an edge over automakers when it comes to winning over consumers’ trust. 'Wouldn’t you be more inclined to rely on the software and cybersecurity ingenuity of Google, Uber, Didi, Lyft, Amazon, Apple or Tesla (the exception), rather than trusting the digital capabilities of Ford, Toyota, Daimler or BMW?' he asked rhetorically in a comment shared with reporters."

Excerpt from The New York Times -- "[President Trump] is thus the all-time record-holder of the Dunning-Kruger effect, the phenomenon in which the incompetent person is too incompetent to understand his own incompetence."

Excerpt from Crain's New York -- "'Previously these systems had to be programmed, and they did one task and they did what they were programmed to do,' Dhar explained. 'Now you've got machines that are capable of learning on their own. They can learn how to learn, and therefore they can displace humans in pretty large numbers.'"

Excerpt from The New Yorker -- "'Someone who’s hosting on Airbnb might say, "Well, this is my space. I only want a certain kind of guest in my spare bedroom,"' Arun Sundararajan, an N.Y.U. business professor, says. Is that unreasonably discriminatory? In a new book, 'The Sharing Economy,' he proposes a halfway measure like Airbnb’s: self-regulation in collaboration with government."

Excerpt from Bloomberg View -- "Named after psychologists David Dunning and Justin Kruger, the effect describes the way people who are the least competent at a task often rate their skills as exceptionally high because they are too ignorant to know what it would mean to have the skill."

Excerpt from The New York Times -- "Data posted by Aswath Damodaran, a New York University finance professor, for example, shows that since 1928, stocks returned about 9.5 percent, annualized, compared with only 4.9 percent for 10-year Treasury bonds and 3.5 percent for three-month Treasury bills. In that horse race, stocks won by a mile. 'Many studies have shown that stocks outperform bonds over all, and I don’t question that data at all,' he said in an interview."

Excerpt from the Financial Times -- "Using data from Aswath Damodaran, which covers the full set of listed Japanese companies excluding financials, the EV/EBITDA ratio is about 7.4, compared to more than 12 for the US. (For Western Europe, the figure is about 9.4.)"

Excerpt from The Economist -- "He helped move economics beyond the narrow ideal of perfect competition by introducing the idea of contestable markets, in which competitive pressure comes from the worry that rivals will swoop in to vie for a market if incumbents are anything other than ruthlessly efficient. Perfectly contestable markets should be just as efficient as perfectly competitive ones, even if only a handful of firms dominate a business. His framework gave economists a way to model what they previously could not: why some industries have lots of firms and others have just a few. Firms should enter the market until all are operating at the most efficient scale (so they cannot cut costs by selling more or fewer units). He was not preaching the Panglossian infallibility of markets. Rather, he helped economists understand why some industries might be more concentrated than others—and when oligopoly is a consequence of corporate chicanery rather than market efficiencies."

Excerpt from The Economist -- "Investors, whose priority is usually citizenship rather than a financial reward, have shown themselves willing to accept returns of less than 1%. After intermediaries have taken their cut, the cost of capital to developers is typically 4-6%, about two thirds lower than conventional sources of finance for the industry, according to Gary Friedland, a real-estate expert at New York University. Kushner Companies will save $30m-40m by financing 15% of its new property with EB-5 visas, he estimates."

Excerpt from The New York Times -- "Professor Baumol, who taught for decades at both Princeton University and New York University, identified what has come to be known as Baumol’s cost disease. This so-called affliction is actually a critically important economic insight that explains why the cost of services, like haircuts and college educations, rises faster than the cost of goods, like T-shirts."
 

Excerpt from Luxury Daily -- "'It allows McLaren to gain brand equity through a new channel of communication, namely gaming, an area still out of limits for most luxury brands,' [Serdari] said. 'McLaren is pioneering a bridge between the real and virtual worlds in a way that no other luxury brand has attempted before.'"

Excerpt from The Daily Beast -- "[Haidt's] latest project, The Viewpoint Diversity Experience, 'takes students on a six-step journey, at the end of which they will be better able to live alongside—and learn from—fellow students who do not share their politics.'"

Excerpt from Barron's -- "In a recent conversation with Barron’s, Lev pointed to one such clue for Amazon: Though it holds fewer patents than Alphabet, its patents are cited more often in filings by others, suggesting they’re more valuable. ... Amazon has changed the relationship between companies and investors by replacing profit with growth and vision, according to a colleague of Lev’s, Scott Galloway, an NYU marketing professor and founder of digital-research platform L2. 'Loss is the new black,' he told attendees at a conference last month, citing the willingness of upstarts like Uber to lose steep and growing sums. 'You can argue this might not end well…but the reality is retail investors love this model.'"

Excerpt from The New York Times -- "For the moment, the stock market remains entranced with what Apple is doing financially, and for understandable reasons. Apple may no longer be a great growth company but it is still extraordinary, said Aswath Damodaran, a New York University finance professor, who has analyzed Apple’s earnings closely since 2010. Come what may, he said, Apple churns out staggering quantities of money with metronomic regularity. 'Apple is the greatest corporate cash machine in history,' he said in an interview. 'We should appreciate that amazing achievement. The problem is, it’s not growing much. It’s a slow-growth cash-generating machine.'"

Excerpt from The New York Times -- "'It is important to remember when we talk about investors in the bond market, we’re not talking about Mom and Pop sitting around the dining room table figuring out what to do with their 401(k),' Professor White said in an interview. 'The overwhelming bulk of bond holdings are by institutions that you’d expect would have enough expertise to figure out who’s a good advisory firm.'"

Excerpt from WIRED -- "'Airbnb is clearly the market leader in home sharing, and it has its eye on the public market in the not-so-distant future,' says Arun Sundararajan, a business professor at New York University who studies the so-called sharing economy. 'It’s good for them not to have outstanding lawsuits—it reduces the perceived regulatory risk.'"

Excerpt from Bloomberg -- "More lenders may be interested in these kind of deals as data continues to show 'that companies with good sustainability performance tend to have lower risk and thus lower cost of capital,' Tensie Whelan, director of the Center for Sustainable Business at NYU Stern School of Business, said May 1. 'It is a win-win — it rewards better sustainability performance by companies, reduces risk for lenders, and provides value to society.'"

Excerpt from The Economist -- "A book published in March by academics at the Stern School and NYU’s law school, 'Regulating Wall Street: CHOICE Act vs Dodd-Frank', compares the two acts, section by section. It argues that Dodd-Frank has made the American financial system safer, both since the crisis and relative to those of other large countries; but its many pages and associated rules have not got to the heart of systemic risk, and are more burdensome than necessary."

Excerpt from Reuters -- "'This is central to Uber,' said Arun Sundararajan, a professor at New York University and author of the book 'The Sharing Economy,' noting that Uber has more at stake than some of its rivals. 'If Google can't launch their self-driving car for 10 years instead of five, this will be a little blip in Google's multibillion-dollar revenue. Uber is the one that really depends on it.'"