Experience Stern | News & Events

Excerpt from The New Yorker -- “For how long can consumption grow much faster than income and households run down their savings as income growth in Q1 was very mediocre?”

Excerpt from Dow Jones -- "Acharya has his doubts that the FDIC has the expertise to resolve a financial institution with significant exposure to the shadow banking system. 'At the midnight hour, we call the FDIC, but these institutions are more complex than the FDIC can handle,' Acharya said."

Excerpt from Bloomberg -- "Looking back two centuries to the presidential administration of Madison, who was first elected in 1808, long- term municipal yields have averaged 4.65 percent, according to Kozlik. He used data from 'A History of Interest Rates' by Sidney Homer and Richard Sylla for his calculation."

Excerpt from Index Universe -- "Not only are index fund owners experiencing extra risk in the form of low-frequency detachment; index-based trading creates more risk at higher frequency."

Excerpt from The Wall Street Journal blog -- "Abigail B. Sussman, a doctoral candidate at Princeton, and Adam L. Alter, an assistant professor of marketing at New York University’s business school, conducted several experiments to explore how people think about 'unusual and infrequent' expenditures."

Excerpt from The Globe and Mail -- "The RED offers a new way to think about development assistance, one that, like trade, relies on mutually beneficial exchange rather than charity. It’s an effort to build on the success of existing special zones based around the export-processing maquila industry."

Excerpt from The Wall Street Journal -- "Mr. Sundararajan said the results point to 'excellent' targeting by the UID program so far. 'It’s validation of the fact that this is not a digital infrastructure for the privileged. It’s for the people who aren’t included,' Mr. Sundararajan said."

Excerpt from BBC -- " ... as the recession deepens, resulting in even wider fiscal deficits, another round of austerity will be needed. And now, thanks to the fiscal compact, even the euro zone's core will be forced into front-loaded recessionary austerity."

Excerpt from Project Syndicate -- "China’s role is changing: once the West’s low-cost supplier, it is now becoming a major customer for Western products. This represents a major opportunity for advanced economies to re-balance their growth and employment, provided that they are positioned to compete for the appropriate parts of evolving supply chains."

Excerpt from Financial Times -- "A 2011 study led by Stephen Brown, a professor at New York University Stern School of Business, suggested that at least 14 per cent of hedge funds distribute unverifiable or inaccurate performance data."

Excerpt from The New York Times -- "Although a school’s quality depends on much more than the size of its budget, additional resources can obviously help. And given the vast sums of money that some parents now have at their disposal, an explosive — and largely unproductive — arms race is inevitable."

Excerpt from The Economist -- "David Yermack of Stern Business School uses corporate-jet flight data and holiday-home records to reconstruct 230 holidays of big-company bosses between 2007 and 2010. He finds that firms tend to release good news just before their bosses leave and shortly after they return, with few announcements in the middle."

Excerpt from Haaretz.com -- "Money managers can, and must, demand better financial conditions in their contracts for the purchase of the bonds, and they should refuse to acquire bonds at an interest rate that doesn't compensate for opportunistic conduct on the part of the issuer. If bondholders stick to their demands, the issuers will be forced to agree to better financial provisions for the bondholders."

Excerpt from Harvard Business Review blog -- "Collaboration now occurs all the time at personal desks and in hallways, or virtually via internet or smart phones, and it's often spontaneous and informal, rather than planned in advance. Unfortunately our legacy work environments — dominated by offices or cubes — rarely match this new reality."

Excerpt from Bloomberg -- "I didn't sell it because I thought it was overvalued or because I thought Apple has gone up too much. I sold for a very strange reason. ... I sold because I'm a little uncomfortable with the other people that are holding Apple shares right now. The new investors who have come into Apple scare me. They're momentum investors. They've shifted the game. The rules of the game have shifted and I'm not comfortable with this game."

Excerpt from BBC -- "There's not one particular thing that we associate with Yahoo the way we associate search with Google and social networking with Facebook, so Yahoo needs to pick one of their properties and focus on making it the thing that the company puts most of their resources behind."

Excerpt from Bloomberg -- "...Dodd-Frank failed to heed a fundamental law of architecture: Form must follow function. For financial regulation to be effective, it should focus on economic function, rather than legal form. If it doesn’t, institutions will quickly find new forms that free them of regulatory constraints. What walks like a duck and quacks like a duck must be regulated as a duck, even if it is legally a goose."

Excerpt from Bloomberg -- "'People of status and power have an illusory sense they can control more than they do,' said Pettit. 'That leads to unrealistic optimism, increased risk-taking and decreased inhibitions.'"

Excerpt from VoxEU -- "The deadliest aspect of the Eurozone crisis is the tripwire linking the riskiness of banks and governments. This column provides evidence of the link and explains how it arose. It argues that given the near-chaos-like interaction, the zero risk weights on sovereign bonds should be revisited"

Excerpt from The Huffington Post -- "So why has Wall Street gotten so inefficient, flying in the face of market theory? Philippon offers one possible reason: Technological advancements have actually increased trading activity, which makes more money for Wall Street, but doesn't do anything for its efficiency."

Excerpt from The Economist -- " ... a group of American academics circulated a paper showing that banks’ individual estimates of their borrowing costs were surprisingly close, given their different levels of risk. That suggested something fishy but was not conclusive proof, according to Rosa Abrantes-Metz of New York University Stern School of Business, one of the paper’s authors."

Excerpt from The Washington Post -- "The entry of Craigslist produces a transformative shift in casual sex-seeking behavior,' Jason Chan and Anindya Ghose write in 'Internet's Dirty Secret: Assessing the Impact of Technology Shocks on the Outbreaks of Sexually Transmitted Diseases.'"

Excerpt from MSNBC -- "As the balance of power tilts even more toward the Kindle platform, book publishers will lose bargaining power, [Sundararajan] added, and eventually, as it gathers more market power, Amazon.com will be able to raise prices."

Excerpt from Project Syndicate -- " ... the recession on the euro zone’s periphery is deepening and moving to the core, namely France and Germany. Indeed, the recession will worsen throughout this year, for many reasons."

Excerpt from Barron's -- "Back when Nouriel Roubini was a teenager, Kaufman was the original Dr. Doom whose bearish -- and prescient -- pronouncements about interest rates and inflation regularly shook the markets."