Experience Stern | News & Events

Excerpt from Politico -- "Households with the lowest FICO scores had the highest willingness to borrow. Despite lower-cost capital, banks were reluctant to lend to these potential borrowers. The authors estimate that a one percentage point reduction in the costs of funds for banks raises optimal credit limits by only $127 for consumers with low FICO scores. … A bank’s propensity to lend is negatively correlated with a household’s propensity to borrow (i.e., the more likely a household is to borrow, the less likely a bank is to grant additional credit)."

Excerpt from Investor Wired -- "The idea of a volatility index, and financial instruments based on such an index, was first developed and described by Prof. Menachem Brenner and Prof. Dan Galai in 1986. Professors Brenner and Galai published their research in the academic article 'New Financial Instruments for Hedging Changes in Volatility,' which appeared in the July/August 1989 issue of Financial Analysts Journal."

Excerpt from China Daily -- "'Didi Kuaidi has 80 percent of the market to dwarf Uber in China and remember, it's the biggest ride-sharing market in the world,' said Sundararajan."

Excerpt from CNN -- "[Tsipras is] attempting to make a government with one coalition partner, and extreme, right-wing party called Independent Greeks... Its main platform is to be against the deal with Europe, so it's a kind of paradox that Mr. Tsipras is making a government with a sworn enemy of that deal. And I think he would have been much stronger in negotiating with the Europeans if he had made a much more broad coalition of the pro-European forces into his government."

Excerpt from Bloomberg -- "I think people have been tired of the whole situation... Day after day, they are hearing bad news, and they had put all their hopes on Tsipras in January and he made a huge U-turn. So people are now disappointed, but the absence of a very good political alternative from the center right made Tsipras win."
 

In a new study, Professor Johannes Stroebel of the NYU Stern School of Business, Sumit Agarwal of the National University of Singapore, Souphala Chomsisengphet of the Office of the Comptroller of Currency and Neale Mahoney of the University of Chicago Booth School of Business find that government policies aimed at stimulating the economy by reducing banks’ cost of funds, so that they will extend more credit to households, are relatively ineffective.

On September 21, the NYU Stern Center for Global Economy and Business hosted a panel discussion on "The Future of European Monetary Union," featuring Professors Alberto Bisin, Luis Cabral, Thomas Philippon and Stijn Van Nieuwerburgh.

Excerpt from Chicago Tribune -- "'Look at the symbolism,' Alter said, 'or how it sounds. Does it sound mellifluous or otherwise really appealing?' In other words, does it sound like the thing it represents?"

Excerpt from PayScale.com -- "Two psychologists, David Dunning and Justin Kruger have worked on cluelessness, finding among other things that incompetence is bliss, as well as numerous highly relevant business insights."

Excerpt from PBS NewsHour -- "No, capitalism is not the culprit [for poverty]. Capitalism, when it’s allowed to do its work, some of us would say work its magic, it has a tremendous ability to raise living levels for the people who live under that system. That doesn’t mean it’s perfect, but I think to sort of say that capitalism is the problem, let’s get rid of it, as the pope may be hinting, is to throw the baby out with the bathwater."

Excerpt from Bloomberg -- "The plaintiffs built their case against the 22 primary dealers who serve as the backbone of Treasury trading -- including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley -- using data from Rosa Abrantes-Metz, an adjunct associate professor at New York University who has provided expert testimony in rigging cases."

Excerpt from MarketWatch -- "Kim Schoenholtz, who teaches economics at New York University, will look for clues from the Fed chief on what data will influence the way the U.S. central bank behaves. Data dependency has been the mantra for the Fed this year, he notes. In the wake of the financial market turmoil, data may start to shift in significant ways and how the Fed will view developments is key, he said. Schoenholtz thinks the Fed will stay on the sidelines this week."

While taking a course entitled “Global Economic Trends and Policy Challenges,” with Professor Gian Luca Clementi, MBA students Ian Greenhaus and Noam Lefkovitz developed a plan to tackle two defining issues of the 21st century in the United States – the revitalization of economically stalled cities and immigration reform.

Excerpt from The Washington Post -- "New York University’s Langone part-time MBA program in the Stern School of Business also attracts a diverse array of students, according to Alison Goggin, executive director of MBA admissions. She mentioned a student who came from the beauty industry and now works for Google. A professional dancer recently applied as well. Another example was a doctor who wants to run his or her own practice or become a hospital administrator. 'You don’t have to have taken business classes or quantitative classes or come from a quantitative job to be admissible for the program,' she said."

Excerpt from The New Yorker -- "Ultimately, the mob myth depends on psychological distance, a term coined by the New York University psychologist Yaacov Trope to describe the phenomenon of mental distancing that takes place when we separate ourselves from events, people, emotions, or concepts. In some cases, that distance comes naturally. As painful events recede into the past, our perceptions soften; when we physically remove ourselves from emotionally disturbing situations, our emotions cool. In other cases, we need to deliberately cultivate distance—to 'gain perspective.' Trope likens it to the old cliché of missing the forest for the trees: you can wander around in the trees forever or, through training or external intervention, realize that you need to step back to see the full vista."

Excerpt from Reuters -- "'I wouldn't be surprised if GrabTaxi and Ola were also part of this partnership to bring India and South East Asia into the mix,' said Aswath Damodaran, an industry analyst and professor of finance at New York University's Stern School of Business."

Excerpt from Bloomberg -- "It’s unlikely that La’Zooz will displace such established companies as Uber and Gett because its decentralized nature and virtually nonexistent marketing budget could make it seem unreliable, said Arun Sundararajan, a business professor at New York University whose recent research has focused on the sharing economy. 'There are limits to how far a completely decentralized system like this could go,' he said. 'People will still pay for better logistics, a more trusted system—those are still things that are better done by a centralized platform.'"

Excerpt from Commercial Observer -- "'The CMBS market is very hot. I’m not sure why now would be the right time to' securitize leases, said Stijn Van Nieuwerburgh, director of the Stern Center for Real Estate Finance Research at New York University. Mr. Van Nieuwerburgh said that while securitizing commercial leases is theoretically possible, he fails to see the 'business logic' behind it and questions the appetite for these exotic investments."

Hundreds of aspiring entrepreneurs from NYU’s student, alumni and faculty communities gathered in Paulson Auditorium to hear about this year’s Entrepreneurs Challenge.

Excerpt from The Washington Post -- "The new labels will also include updated serving sizes to better reflect how much people typically consume. But this change may create a troubling unintended consequence: It could actually increase how much food people eat."

Excerpt from US News -- "'It's a complex global economic situation,' Nouriel Roubini, a professor at New York University's Stern School of Business and chairman of consultancy firm Roubini Global Economics, said earlier this month while attending an international economic conference in Italy. 'Certainly, China is slowing down. Emerging markets are slowing down. This has led to global financial market volatility – a tightening of financial conditions.'"

Excerpt from Institutional Investor -- "As the market continues to grow, nonbank originators have the potential to collectively create systemic risk. 'The biggest problem is that they are not banks, and they aren’t as heavily regulated, and our usual defenses of bank regulations and supervision and consumer protection aren’t as strong for those types of institutions,' says Van Nieuwerburgh."

Excerpt from Bloomberg -- "The debate showed that Mr. Tsipras believes that he was successful in the negotiation with the EU, despite the resulting capital controls, reversal of growth to a significant recession in 2015, and severe losses of the public’s money invested in Greek banks,' said Nicholas Economides, a professor of economics at Stern School of Business, in New York. 'Neither candidate committed on specific ways to adjust or modify the agreement and reduce its severity since it was signed at the worst possible point in time for Greece.'"

Excerpt from CCTV -- "It's important to note this is a very long-term enterprise for China. They started SOE reforms in the 1990s, shed something like 25 million jobs. So this is not something for 2015, but something we'll see moving forward. The government's target is for 2020. What they can do now is start to put discipline on managers, and that's why they're trying to increase the amount of shares in Chinese SOEs that are publicly traded. They think they can use that as a tool to... influence managers to focus on profitability and to be more efficient with their asset use... Everything they do on that side is going to be very handy for the Chinese economy."
 

Excerpt from BusinessBecause -- "'Companies like MasterCard are competing for talent with other companies in the traditional tech space such as Facebook, Google, LinkedIn, Amazon, and Microsoft,' says Roxanne Hori, associate dean of corporate relations at NYU Stern School of Business."