Experience Stern | News & Events

Excerpt from Reuters -- "'It strengthens the hand of investors in other price-fixing cases based on benchmarks that were reached in collaborative, or outright collusive, arrangements,' said Lawrence White, a professor at New York University's Stern School of Business."

Excerpt from Bloomberg -- "'The Greek parliament approved significant increases in taxes and reductions in pensions, which are likely to intensify the recession, and also approved selling a large swath of state assets to partially pay for its debt,' said Nicholas Economides, professor at Stern School of Business at New York University. The IMF and the EU are too far apart on the issue of debt relief to converge by the May 24 Eurogroup meeting, Economides said, 'therefore the likely outcome is an approval of an installment of the EU part of the Greek loan with the IMF’s position to be clarified at a later time.'"
 

Excerpt from Bloomberg -- "'The EU put again temporal political considerations above the long terms interests,' Nicholas Economides, professor of economics at Stern School of Business, New York University, said by e-mail. 'There is a real danger that, by the time decisions on Greek debt are made in 2018, interest rates would have risen sharply, eliminating any chance of eventual recovery for Greece.'"

Excerpt from CityLab -- "For respondents who report that they regularly talk to their friends about whether property is a good investment, we find a strong relationship between their friends’ house price experiences and their own assessment whether property in their own zip code is a good investment."

Excerpt from NPR -- "To see how quickly the rising tide of 'effective AI' may smash into daily life, consider the legal ramifications of machines behaving in ways we don't understand. How do we create regulations (i.e. robot law) when the possibility of robot decisions we don't understand must be included. As Dhar asks, 'Who is responsible for the actions of a robot that designs itself and learns to get better over time?' Better yet, who is responsible if a network of robots, acting in a way consistent with their design, carries out actions that turn dangerous — or even deadly?"

Excerpt from The New York Times -- "'His roots and connections on Wall Street are fairly shallow,' said Roy C. Smith, a former partner at Goldman Sachs who teaches finance at New York University."

Exerpt from CNBC -- "Eliminating forced labor in seafood is a monumental task that will require more from public and private actors. First, governments need to do more, both in consuming countries in North America and Europe, and in sourcing countries like Thailand. In the United States, Secretary of State John Kerry has launched an important new initiative, the Our Ocean Summit, aimed at protecting ocean resources. This initiative dovetails with new standards proposed by the National Oceanic and Atmospheric Administration to include data reporting to ensure seafood traceability from harvest to import."

Excerpt from Forbes -- "To increase casual interactions, everyone enters on the 12th floor. The first impression to hit you is the positive and productive energy—people seem genuinely happy. At the center of the top floor is a café and cafeteria, in some ways the heart of the office, with tables scattered around for drinking, eating, and impromptu meetings. Thirty screens mounted high around the center perimeter feature photos of the talent teams that work on each account, rotating along with client names and creative work highlights."

Excerpt from Pew Research -- "The reason why all the regulatory scrutiny [thus far] has been from city agencies is because the most salient services involved – mobility and accommodation – have historically been governed at the local level. As I discuss in my book, there’s a misfit between regulatory interventions that were necessary in the past and the new models. So the conflict isn’t surprising. Nobody’s in the wrong – it’s just that we need to rethink and reinvent regulation, rather than trying to retrofit."
 

Excerpt from Kathimerini -- "The IMF and the US now state that the Greek debt is unsustainable after its increase by 87 billion. With the July 2015 memorandum, the IMF proposed an extension of maturities of Greek obligations to Europe and a significant extension of the grace period in which Greece does not pay interest."

Excerpt from The New York Times -- "They’re not so much agents as accomplices, new tools for ancient impulses, part of 'a long sequence of technological innovations that enable us to do what we want,' noted the social psychologist Jonathan Haidt, who wrote the 2012 best seller 'The Righteous Mind,' when we spoke last week. 'And one of the things we want is to spend more time with people who think like us and less with people who are different,' Haidt added. 'The Facebook effect isn’t trivial. But it’s catalyzing or amplifying a tendency that was already there.'"

Excerpt from Barron's -- "Xavier Gabaix, a finance professor at New York University, has derived a crash-frequency formula that he believes captures a universal trait of all markets, not just equity markets or those in the U.S. According to that formula, the odds of a 12.8% crash in any given six-month period are 0.92%, almost as low as the actual frequency in the U.S. stock market over the last century."

Excerpt from Marketplace -- "The Japanese central bank is so desperate to spur growth that they’ve gone over to negative interest rates, and Japan has suggested it would like to devalue its currency to promote growth — which doesn’t sit well with the U.S. The aspect of Abenomics that calls for structural reforms and economic liberalization has been very slow to materialize, which NYU Stern Business School professor Gian Luca Clementi said is key to growing the country’s economy. 'There are lots of small banks that give loans on very dubious criteria, and lots of companies that are definitely not the most productive, but they are entrenched politically. [They] receive continuous financing for projects of dubious productivity,' he said. 'On the other hand, smaller entrepreneurs, younger entrepreneurs have a harder time getting financing.'"

Excerpt from Fast Company -- "Failure to fix Airbnb's regulatory problems in New York and elsewhere would hurt the $25.5 billion-valued company’s prospects with future investors, public markets, and the public. 'The prospect of having to face regulatory risk questions every time they announce earnings, it’s just going to stymie the growth of the company,' says Arun Sundararajan, an NYU professor and the author of a recent book about the sharing economy."

Excerpt from Business 2 Community -- "There’s a phenomenon known as the illusion of explanatory depth, and the idea is that there are certain things that we assume we understand much better than we do. If you ask someone how well can they can explain how a bicycle works on a scale of one to ten, people will between an eight and a ten out of ten."

Excerpt from The Wall Street Journal -- "Academics have previously found a more significant two-day effect [of hedge fund investments on stocks], but that is for fast-moving day traders, not investors. Over a month, a study a few years ago by Stephen Brown of New York’s Stern School of Business and Christopher Schwarz of the University of California found no impact from 1999 to 2008."

Excerpt from The New York Times -- "Most of us have no difficulty recognizing luck when it’s on conspicuous display, as when someone wins the lottery. But randomness often plays out in subtle ways, and it’s easy to construct narratives that portray success as having been inevitable. Those stories are almost invariably misleading, however, a simple fact that has surprising implications for public policy."

Excerpt from The Wall Street Journal -- "[Kotkin's] answer to 'How should we live?' is: amid an 'urban pluralism' that 'encompasses the city center as well as close-in suburbs, new fringe developments, and exurbs.' I find this quite sensible and level-headed but worry that the middle ground—the place we used to come to and to sit and reason together and agree on the common good—seems to be more and more difficult to get to these days."

Excerpt from Fortune -- "Now it turns out that those women who have reached the top have probably been out-earning their male counterparts for years. That’s because companies making a genuine effort to increase diversity in senior management have apparently been holding on to 'high-potential' women — meaning those perceived as having the right skills and talent to move up — at least in part by paying them more than 'high-potential' men. On average, says a new study, high-potential women earn 10% more annually than their high-potential male colleagues."

Excerpt from The New York Times -- "In his heyday in the 1990s, Mr. Weill was 'a Sun King — one of the most powerful and successful financial individuals in New York,' said Roy Smith, a finance professor at New York University business school. Mr. Weill gained that status as a deal maker, with a series of ever-larger mergers culminating with Citicorp and the Travelers Group forming the behemoth Citigroup in 1998. The last deal helped knock down the Depression-era Glass-Steagall Act, which separated banking from the riskier securities business."

Excerpt from Barron's -- "...this year, the recovery rate in high yield bonds has been extremely low — just 13.9%, reports Marty Fridson, chief investment officer at Lehmann Livian Fridson Advisors, in a Tuesday report published Wednesday on S&P Capital IQ LCD. This continues a trend that started last year. Drawing on academic research, primarily done by Edward Altman of New York University Stern School, Fridson reports that the junk bond default rate was 2.83% in 2015, lower than the long-term mean of 3.33%. Normally, the recovery rate is higher when defaults are low. But in 2015, the recovery rate was just 34%, far below its historical average of 46%."

Excerpt from CNBC -- "I think the pathway for Amazon to be worth 700 is there. But it's a very narrow one. I've always called Amazon a 'field of dreams' company, which is if you build it, they will come--the building being the revenues and the profits. And I think what they've had going for them, they've always had that consistent story, which is we're going to go for revenues first and we'll get profits later. So it's built on that trust, and I don't think they can deliver the margins you would need to get to this 700. So that's the basis for my valuation."

Excerpt from Fortune -- "...Thomas Philippon, professor of finance at NYU’s Stern School of Business, argued at the symposium that taxing leverage makes sense, but is easier said than done. He argues that banks could hide their leverage using complex financial instruments like contingent assets or derivatives, avoiding Clinton’s tax while still bulking up on risk."

Excerpt from the Harvard Business Review -- "I propose a risk-oriented framework for deciding when and how to allocate decision problems between humans and machine-based decision makers. I’ve developed this framework based on the experiences that my collaborators and I have had implementing prediction systems over the last 25 years in domains like finance, healthcare, education, and sports. The framework differentiates problems along two independent dimensions: predictability and cost per error."

Excerpt from the Business Standard -- "He quotes the economist Paul Romer of New York University about macroeconomics being plagued by 'mathiness' and thus failing to progress as a true science should, and that current debates among economists are often as pointless as those between 16th-century advocates of heliocentrism and geocentrism - whether the sun or the earth was at the centre of things."