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A New Accounting Rule On Loan Losses Could Be Disastrous For The Economy - By Joshua Ronen
Beginning in 2020, the Financial Accounting Standards Board (FASB) will require large financial institutions and smaller banks to estimate and report loan losses upon origination according to the Current Expected Credit Loss (CECL) standard, commonly referred to as the loan-loss rule.
—— Opinion
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Bipolar Markets in the “New Mediocre” - By Nouriel Roubini
Financial markets tend to undergo manic-depressive cycles, and this has been especially true in recent years. During risk-ons, investors – driven by “animal spirits” – produce bull markets, frothiness, and sometimes outright bubbles; eventually, however, they overreact to some negative shock by becoming too pessimistic, shedding risk, and forcing a correction or bear market.
—— Opinion
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Lessons from Our Polluted Past - By Walker Hanlon
Policymakers in developing countries face the difficult task of coping with the challenges introduced by rapid urbanisation. These policymakers, however, are uniquely positioned to glean key insights from the historical experiences of cities in developed countries. For example, an important set of historical studies highlight the key role that water purification and sewerage infrastructure investments played in reducing mortality rates in cities across the US and Europe.
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Stress Testing Networks: The Case of Central Counterparties - By Richard Berner & Kim Schoenholtz
In a recent study, NYU Stern Executive-in-Residence and Adjunct Professor Richard Berner and Professor Kim Schoenholtz analyze the use of financial stress tests from a network perspective.
—— Research Highlights
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To Change the Way You Think, Change the Way You See - By Adam Brandenburger
“Think Different,” said the famous 1997 Apple advertisement. Excellent advice, obviously, to all creators, innovators, and entrepreneurs. But, along with thinking differently in order to come up with revolutionary new ideas or products, there is also seeing differently. Great creators, innovators, and entrepreneurs look at the world in ways that are different from how many of us look at things. This is why they see opportunities that other people miss.
—— Opinion
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Speaking Up and Moving Up: How Voice Can Enhance Employees’ Social Status - By Elizabeth Morrison
In recent research, NYU Stern Professor Elizabeth Morrison found that, contrary to received wisdom, employees who constructively challenge the status quo and raise suggestions, concerns or opinions on workplace issues are likely to enjoy greater social status in the eyes of their colleagues.
—— Research Highlights
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Yes, the UN Sustainable Development Goals Are Sexy - By Tensie Whelan
If you are most people, you hear the words “United Nations Sustainable Development Goals” and your eyes start rolling back in your head. Sounds like something a bunch of people spend hours talking into microphones about and maybe something governments are supposed to be working on, but nothing to do with you as an investor. But you are oh so wrong.
—— Opinion
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How Mark Zuckerberg Really Needs to Reform Facebook - By Michael Posner
In the last two years, Facebook asserts, it has focused more attention on “content governance and enforcement issues” than on any other topic. Independent assessments, such as a 2018 NYU-Stanford study, confirm a dramatic reduction of what researchers called “fake news” on Facebook’s platform. And yet despite this measurable progress, the company continues to send mixed signals on undertaking reform and resists making a few basic changes that would fundamentally address some of its core problems. On Sunday, in The Washington Post, Facebook CEO Mark Zuckerberg called for “new rules” to govern the Internet. While he focused on many of the right issues, the key reforms he proposed miss the mark.
—— Opinion
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How Monetary Policy Shaped the Housing Boom - By Alexi Savov & Philipp Schnabl
A decade after the financial crisis, questions remain about the role monetary policy played in the housing boom that precipitated the crisis. A recent study from NYU Stern Professors Alexi Savov and Philipp Schnabl provides an answer.
—— Research Highlights
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The Sacklers: Charitable Giving Does Not Excuse Improper Business Conduct - By Michael Posner
For decades many of the world’s leading art museums have been the proud beneficiaries of large financial contributions from the Sackler family of New York. Sackler wings display world-class art in the Louvre in Paris, the Metropolitan Museum of Art in New York, the National Gallery in London, and numerous other museums and university art collections. These donations stem from the Sacklers’ remarkable financial success in the pharmaceutical industry, which allowed them to build a family fortune now estimated at more than $13 billion.
—— Opinion
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How Can We Trust Artificial Intelligence to Fly and Drive? - By Vasant Dhar
Current data from the tragic Lion Air and Ethiopian Airlines crashes may not be sufficient to establish what caused the accidents, but initial evidence is pointing to an automated anti-stall feature designed for high altitudes that isn’t sufficiently familiar—even to experienced pilots.
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An Asymmetrical ‘President-in-Power’ Effect - By Vishal Singh
Polarization along political and ideological lines among United States citizens is at its most extreme since perhaps the Vietnam War era, with trust in government threatening to become an obsolete concept. NYU Stern Professor Vishal Singh recently researched the extent to which this downward trend in the level of trust in government varies along political or ideological lines.
—— Research Highlights
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The Economic Consequences of Global Uncertainty - By A. Michael Spence
The global economy is weakening, in no small measure because of a deep, widespread sense of uncertainty. And a major source of that uncertainty is the ongoing Sino-American “trade war.”
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Sustainable Finance and ESG Investing – By Tensie Whelan
Professor Tensie Whelan, director of NYU Stern's Center for Sustainable Business, teaches executives how to examine key issues in sustainable business, how to measure and monetize Environmental, Social and Governance (ESG) performance, and how to devise sustainable investment strategies in NYU Stern’s upcoming short course, taking place April 8-9, 2019.
—— Multimedia
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Understanding the Fed’s Dovish Turn - By Nouriel Roubini
The US Federal Reserve surprised markets recently with a large and unexpected policy change. When the Federal Open Market Committee (FOMC) met in December 2018, it hiked the Fed’s policy rate to 2.25-2.5%, and signaled that it would raise the benchmark rate another three times, to 3%-3.25%, before stopping. It also signaled that it would continue to unwind its balance sheet of Treasury bonds and mortgage-backed securities indefinitely, by up to $50 billion per month.
—— Opinion
