Experience Stern | News & Events

Excerpt from Marketplace -- “'Effectively what’s going on here is Amazon is disrupting the entire retail industry,' Galloway says. According to Galloway, eBay is trying to compete with Amazon’s Prime service, which offers free two day shipping to its members. While Amazon is trying to sell more of its customers on Prime where for $79 a year, customers get free shipping. Galloway says Prime is a great deal, for Amazon. 'What Amazon prime really is, is an entry point or membership into the Amazon franchise.'”

Excerpt from Bloomberg TV -- "I don't think there's a lot more than meets the eye...I think they want to migrate people or incent them to go to Amazon Prime which has actually become pretty much a big hit for them, a big win... Supposedly about a third of their operating profit comes from Prime customers and it's taken off -- over ten million of them -- so I think they're trying to move them up to Amazon Prime."

Excerpt from Bloomberg TV -- "Apple had an opportunity to own this market. If they had reduced their margins, they could have made it almost impossible for anyone to come in here and instead they've created a ton of delicious margin that has attracted a ton of great competitors. I think that this was a huge error."

Excerpt from Forbes -- "What’s more, consumers are also more willing to spend lower-denomination bills than bills of higher denomination. That is, our brains find it easy to break $5s, $10s and even $20s but will balk at breaking a $50 or $100. This is because the smaller bills are a psychological equivalent of a petty cash account, and so spending them is much more justifiable."

Excerpt from Fast Company -- "As was predicted, the promotion-primed people were more assertive and better regarded than the folks who reflected on their duties or commutes. But even more startling, Kilduff and Galinsky continued research that showed how those initial interactions set up long-term dynamics."

Excerpt from Forbes -- “'You can look at this as a clear result of the Justice Department delivering on Obama’s charge to bring justice for all the recklessness and bad behavior demonstrated during the crisis,' says NYU finance professor and former Goldman Sachs partner, Roy Smith."

Excerpt from Bloomberg TV -- "First of all, you have to be diversified. You have to put some of your money in the US, some of it abroad: Europe, emerging markets. I would say that gradually long-term interest rates are going to rise, so you might want to be underweight in bonds. I think that a global recovery is going to occur so you might want to be marginally overweight in equities. You probably want to be underweight today in emerging market equities."

Excerpt from Bloomberg TV -- "The conjecture is that she's been offered the successor spot. I think it's actually bigger than that. I think what they've told her is that in the next few years, Apple is going to be the world's dominant luxury fashion brand and they want her to spearhead those efforts. I think this is a big signal of a pivot or a complement in Apple strategy."

Excerpt from The New Yorker -- "What makes Banksy’s subversive stunt so compelling is that it forces us to acknowledge how incoherently humans derive value. How can a person be willing to pay five hundred times more than another for the same art work born in the same artist’s studio?"

Excerpt from Financial Times -- "I think the key lesson that western economies can learn from former third world countries, as they turned themselves around and became today's emerging markets that are driving global growth, is discipline. And discipline does not mean fiscal austerity. Discipline means a sustained commitment to what I like to call pragmatic growth strategy that is both vigilant and flexible and that values what's good for the nation as a whole over what's good for any individual, interest group or person running for political office."

Excerpt from Financial Times -- "His diverse background is one he hopes to instill in the MBA programme at Stern, which is now home to students with very different aspirations. 'There are people who want to run [state] schools and there are people who want to be financiers and everyone in between.' But even those that choose a career in hardcore finance should address issues of social responsibility, he believes. 'If you want to do finance, think of the big opportunities. There is a way of doing well for the world and well for yourself. Business is a force for creating value over a wide spectrum.'"

Excerpt from The Wall Street Journal -- "Mr. Gabaix and fellow researchers have developed a theory that predicts, over long periods, how many daily price drops of various magnitudes will occur over long periods. For example, their theory forecasts that a 20% daily drop in the market will occur, on average, once every 100 years, a 15% plunge once every 50 years and a 10% drop once every 13 years. Mr. Gabaix says that the theory has been found to be quite accurate when tested against U.S. stock-market history back to the early part of the last century, as well as against the stock markets of Japan and Hong Kong."

Excerpt from The Wall Street Journal -- "New York University professor and valuation expert Aswath Damodaran says that it doesn't make sense that a fund firm would keep Twitter's price constant throughout 2012, even as prices of other social-media companies changed sharply. 'What it effectively means is that the old investors of the fund are going to lose money to the people who are able to buy the fund now at a depressed price,' Mr. Damodaran says. 'It's not fair to existing shareholders if others can exploit dated pricing.'"

Excerpt from NBC News -- “'There are lots of people who are hesitant about posting on Airbnb because of the lack of clarity about what’s legal and what’s not; this will only add to that,' said Arun Sundararajan, a professor at NYU’s Stern School of Business. 'It may also give people who may be coming to the city pause about whether it’s OK or not for them to stay at an Airbnb.'”

Excerpt from CNNMoney -- "Aswath Damodaran, a professor of finance at NYU, thinks Congress's latest deliberations over the debt ceiling didn't change anything for the dollar or U.S. bonds."

Excerpt from Project Syndicate -- "The global economy faces tremendous trials in the coming years: growth, employment, and distributional challenges in many advanced and developing countries; far-reaching institutional reform in Europe; the complex middle-income transition in China; and the continuing need to reduce poverty worldwide. Managing them effectively requires designing a system of global governance in which one country’s internal politics cannot jeopardize all countries’ prospects."

Excerpt from AP TV -- "If it just kicks the problem down the road a week, that's a little bit of a relief, but at least we didn't go over the cliff this week, but gee, now we have to worry about next week."

Excerpt from Stern Opportunity -- "Will universities fight or embrace the sea change coming to higher education? I hope they will embrace the change. Of course, the skeptic will say: 'Wouldn’t universities, in this case, be acting against their own self-interest?' I think not. It is surely the smart bet to be a part of a revolution that will bring affordable education to more and more of the planet. Opportunities to make a living from such a grand enterprise will surely emerge – and it will surely be much harder to take advantage of these opportunities from the sidelines."

Excerpt from CNBC -- "Here's what I think is the key thing. Angela Ahrendts has always been ahead of the curve in redefining things. She took Burberry from a $2 billion market capitalization company to a $7 billion market capitalization company through innovation. And so I think you have to assume that somebody as smart as she is knows what she's doing this and in her view is a new challenge. She's breaking the mold yet again."

Excerpt from VentureBeat -- “[The layer design] is not confusing. We all now expect bright colors. We are increasingly addicted to more stimulation, gradation, nuances. Everything has temporariness to it, short shelf life. We’re not looking for anything fixed [or] stable. We came to terms with instability… [It feels like] sometimes it’s there, sometimes not. It’s not committed. It’s reflective of the times.”

Excerpt from Institute for New Economic Thinking -- "If Congress and the White House fail to raise the debt ceiling this week and the United States defaults on its debt, what can we expect and how can we protect ourselves against these events?"

Excerpt from Bloomberg TV -- "In developed markets, who drives luxury? Affluent people. In emerging markets, it's actually middle-class consumers. The average luxury consumer in the U.S. has $175,000 in income, she's 53 and it is a she. She spends $3,000 a year on handbags. The average luxury consumer in China makes $17,000, is 33 and spends $2,000 on handbags. The emerging middle class in these developing markets loves luxury."

Excerpt from Crain's New York -- "'The role of elite business schools should be to identify those big issues that have material relevance in the world,' said Mr. Henry, 44. 'If you have a deep interest in finance, we can make you a far more effective allocator of capital and a more impactful professional.'"

Excerpt from Bloomberg -- "JPMorgan has been singled out by regulators with 'unprecedented aggressiveness,' NYU’s Smith said in an e-mail. 'Most of these settlements either would not have been necessary or would have been for much lesser amounts in Weill’s time.'”

Excerpt from Forbes -- "[Baumols' Cost Disease] is the idea that it’s much easier to improve productivity in some areas than it is in others. Specifically, Baumol is addressing the difficulty of improving labour productivity in services as against the ease with which it can be increased in manufacturing. It is this which tells us that we should expect health care and college costs to rise faster than general inflation because these are largely services provided by human labour."