Experience Stern | News & Events

Excerpt from The Wall Street Journal -- "Yakov Amihud, a finance professor at New York University’s Stern School of Business, says, 'When market liquidity is expected to be lower than normal, expected return should be higher than normal. This may apply for Rosh Hashana.'”

Exerpt from LiveMint -- "At the V-Lab in New York University’s Stern Business School, we estimate the capital needs of banks in future stress. We use market data to assess the downside risk of banks and assess their gearing in a stress scenario by comparing their book liabilities to market value of equity after taking account of the downside risk. Our estimates suggest that in the event of a minus 40% correction to the global market over a six-month period, as seen in the Great Depression and the Great Recession, publicly traded Indian banks and financial firms will require over $80 billion of equity capital to maintain a market equity ratio of 8% relative to their assets."

Excerpt from Bloomberg TV -- "The thing I’m watching for, or I think the most interesting event is Apple’s launch of a discount phone – the 5C. They’ve effectively been relegated to the high-end market. Apple became the largest market cap company on the backs of one unbelievable phenomena. They became the low-cost producer at the premium price; the biggest market share, lowest price. That would be like if Ferrari had the market share of Toyota – that’s a very powerful cocktail…"

Excerpt from Bloomberg TV -- "They registered pretty substantial market share gains, Microsoft Windows phones this quarter. That's the good news. The bad news is the number 4. That's their market share. So it's 80 - 14 - 4. Android, iOS and then Microsoft Windows-powered phones. But they do have a foothold in the market now."

Excerpt from The Huffington Post -- "In a paper to be published in Psychological Science, we propose that another way to influence people's behavior towards protecting the environment is to emphasize the long life expectancy of a nation, rather than its imminent downfall. ... If people perceive their country or planet's remaining time to be very short, then they rationally shouldn't place too much importance on making these present-day sacrifices. But if a long future is seen, sacrifices today for a brighter tomorrow for ourselves and our offspring make more sense."

Excerpt from the LA Times -- "'This is the first stage of something more profound, which is the ability of people to structure their lives around doing multiple sharing-economy activities as a choice in lieu of a 9-to-5, five-day-a-week job,' said Arun Sundararajan, a professor at New York University. 'This is technology-driven progress,' he said. 'This is what it's all about.'"

Excerpt from Livemint -- "What should perhaps come as a surprise is that until recently, the investor view and pricing of India’s currency and markets hardly seemed to reflect the ground reality. The expansion of monetary base due to unconventional central bank policies in the Western economies, especially in the US, found its way readily into the Indian debt and equity markets. These flows, however, abruptly reversed themselves since the announcement in May of the potential tapering of the US Federal Reserve’s expansionary policies. The sentiment on India has since turned bearish, its asset and currency markets have suffered quick and massive depreciations, and its structural weaknesses for generating future growth have all of a sudden come to the fore."

Excerpt from Details -- "'If you're a Brazilian billionaire, moving money offshore into a Manhattan apartment is a good idea,' says Stijn Van Nieuwerburgh, the director of the Center for Real Estate Finance Research at NYU Stern School of Business. 'The market hasn't peaked yet. It's a stable currency. And these foreign investors aren't looking for a 5-to-7-percent return on their investment. It's a trophy asset, a luxury good.'"

Excerpt from Advertising Week -- "Pick a company and a business superstar that resonate with you. It's like becoming a loyal fan of a rock star. Create a virtual shadow of these entities and learn everything you can so you will be ready when it's time to be introduced."

Excerpt from Project Syndicate -- "In the United States, three sources of policy uncertainty will come to a head this autumn. For starters, it remains unclear whether the Federal Reserve will begin to “taper” its open-ended quantitative easing (QE) in September or later, how fast it will reduce its purchases of long-term assets, and when and how fast it will start to raise interest rates from their current zero level. There is also the question of who will succeed Ben Bernanke as Fed Chairman. Finally, yet another partisan struggle over America’s debt ceiling could increase the risk of a government shutdown if the Republican-controlled House of Representatives and President Barack Obama and his Democratic allies cannot agree on a budget."

Excerpt from The Washington Post -- "William Baumol, who is, amazingly, still an active economist at age 90 and just released a book on these very issues, realized in a series of papers in the 1960s (many coauthored with future Princeton President William Bowen) that industries that didn’t see productivity increases might still see costly wage increases. 'The insight that Baumol and Bowen had was that there are some industries where productivity growth is very likely and some where it’s not,' Robert Archibald, an economist at the College of William & Mary, explains."

Excerpt from WIRED -- “'We need to clearly understand how the sociology of sharing evolves,' says Arun Sundararajan, a professor at New York University’s Stern School of Businesses whose recent research focuses on the sharing economy. Sundararajan says that the act of sharing a possession such as your car or apartment changes the meaning of that thing."

Excerpt from NPR -- "Americans are big believers in equal access to opportunity and letting outcomes fall where they may if there's a level playing field. And right now there isn't a level playing field and I think the statistic that captures it best is the fact that if you're born in the United States in the top 25% of the income distribution, you have an 85% chance of going to college. If you're born in the bottom 25% of the income distribution, you have an 8% chance of going to college. That is not equal access to opportunity. In the private sector, if we want to be a country that continues to grow, then we've got to take joint responsibility and the private sector ought to say, 'Gee, we've got a role in actually making higher education more accessible to the masses in order to level the playing field, because, again, the key equalizer is education. That's what transforms people's lives."

Excerpt from Marketplace -- “'There is a constant exchange in a very small group of people who tend to actually increase the prices,' Serdari says. 'We have alligator bags that have hit the market that go as high as $130,000, which is absurd.' Soaring prices are driven by a strong demand from luxury consumers in Asia, Serdari says."

Excerpt from Bloomberg -- “'There are some patterns in currencies that are very similar to what I have seen in other markets, such as the way the price-fixings’ effects disappear so often by the following day,' said Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business, whose August 2008 paper, 'Libor Manipulation?,' helped trigger the probe into the rigging of benchmark interest rates. 'You also see large price moves at a time of day when volume of trading is high and hence the market is very liquid. If I were a regulator, it’s certainly something I would consider taking a look at.'”

Excerpt from Bloomberg TV -- "I think the SEC should look at this and say, well, you know, there were two smaller rivals to NASDAQ and NYSE, they're getting together now. They're going to be right in between NASDAQ and the NYSE in terms of trading, so in some sense the competitive environment might be getting stronger, not weaker, by this merger."

Excerpt from NBR -- "Certainly when investors are lacking confidence in a CEO and that CEO leaves, there's going to be a bump in the stock price. When we think about what some of the major reasons why you would see a big bump like Microsoft, there's often the sense that there's a big amount of value in the organization, whether it be cash or cash flows from things like Windows and the Office suite and there's a concern that the CEO is going to waste that money, going to spend it frivolously trying to chase down some new opportunity and so when that cash and that treasure is kind of protected, the investor is certainly going to react very positively to that kind of a change."

Excerpt from AFP -- "'Our most probable scenario is elections in early 2014 but we do not exclude even sooner than that. The markets are reasoning in a similar way,' Roubini said in an interview with La Repubblica daily."

Excerpt from Bloomberg TV -- "This new CEO is going to have a really difficult time because there's two challenges they're facing. One is how to keep the existing core business profitable and keep on milking that for all it's worth. And at the same time, completely tear down and re-vision what they're going to do in mobile and operating systems from that perspective. And that's a very big challenge to try and do both and will require a very unique skill set to try and do that."

Excerpt from Crain's New York Business -- "'There's a whole government structure that has evolved to handle this analog way of sharing,' said Arun Sundararajan, a professor at New York University's Stern School of Business who has written on the peer-to-peer economy. 'The complexity of the city is greater. But the need and demand [for sharing services] is also greater, and whether we'll lead the way or it will take longer [to adapt] depends on which of these forces dominate.'"

Excerpt from Barron's -- "With the outbreak of World War I at the end of July 1914, Treasury Secretary William G. McAdoo ordered the New York Stock Exchange closed in order to prevent massive liquidation of U.S. stocks by British investors seeking to raise cash. (At the time, the Treasury Secretary was the de facto central banker; although legislation to create the Federal Reserve had been passed the previous year, it was not yet up and running.) The U.S. then was operating under the gold standard, so the proceeds of sales of American assets could be readily converted to gold, which could flee the country. (This account comes from When Washington Shut Down Wall Street, a 2006 book by William L. Silber, an economics professor at New York University and—full disclosure—a professor of mine in grad school.)"

Excerpt from CNC World -- "The dropout rate, the switching rate of people from BlackBerry to Apple and Android is very high and as early adopters of BlackBerry start ditching those phones for the smarter ones, they are going to lose their install base very quickly. They already lost a lot. At some point when the install base comes down to single digits, that’s as good as bankrupt."

Excerpt from AP TV -- "I think the lesson of these recent trading problems...is that everybody who's using them has to check on the software and the people have to be highly trained who are pressing the buttons to execute the trades or the algorithms they build in the trading strategies. So a lot more work has to go into making sure those things don't have errors in them. I don't think the problem can go away entirely, but I think some of it is avoidable and it will cost them a little money, but they need to spend that money because the whole market system is involved in this and if people lose confidence in the markets, then these very important markets won't function as well as they should and our economy will be the worse for it."

Excerpt from Bloomberg -- "Other economists, including Mohamed El-Erian, chief executive officer of Pimco, Kenneth Rogoff of Harvard University and Nobel laureate Michael Spence, aren’t as pessimistic. 'The American economy still has great strengths in terms of innovation,' said Spence, a professor at New York University’s Stern School of Business. 'It’s very flexible and adjusts relatively quickly.'”

Excerpt from Jamaica Observer -- "The [Jamaican] Government, we submit, would be wise to heed the advice of world-famous Jamaican economist Professor Peter Blair Henry, dean of the Stern School of Business at New York University. Professor Henry in his new book Turnaround: Third World Lessons for First World Growth (2013) states: 'Although there is not one single path to prosperity, one thing leaps out of the evidence -- discipline.'"