Experience Stern | News & Events

Excerpt from Bloomberg TV -- "I think these guys [at Twitter] have carved out a really nice niche for themselves, and again to go from 30 million to half a billion [in revenue] in three years? This is an impressive company. One of the things to mention: 2,000 employees. They've been hiring 50 people a month for the last three years."

Excerpt from PBS -- "I'm like Warren Buffett. I don't buy something if I don't understand it. And for all I know, the person who created Bitcoins would be like King Henry VIII in Britain, who decided suddenly to double the amount of British money units around, and there was a big inflation."

Excerpt from China Daily -- "'The supply side shifts are important and necessary, but for China not sufficient. The demand and income side restructuring is also a key component,' [Spence] says. He agrees that there should not be major credit expansion to fuel consumption but higher domestic consumption is a fundamental part of rebalancing the economy."

Excerpt from Bloomberg TV -- "There are spillover effects [from the government shutdown] on growth, especially in relatively weak areas these days such as Europe, but in the far east as well. So growth is going to slow down worldwide because of the government shutdown. And there is also the impending risk of the debt ceiling not being raised in time."

Excerpt from The New York Times -- "The best science book I read was Adam Alter’s 'Drunk Tank Pink,' which is a really provocative look at how much our behavior is contextually determined."

Excerpt from This View of Life -- "NYU Stern’s Business & Society Program and the Evolution Institute co-hosted a one-day symposium 'Darwin's Business: New Evolutionary Thinking About Cooperation, Groups, Firms, Societies' featuring an international roster of experts on evolution, economics, and human nature. Participants and audience members assessed the possible applications of evolutionary thinking for business and business ethics."

Excerpt from Xinhua -- "If the U.S. government couldn't pay the obligations or at least not on time, the holders would not be sure if they want to continue to hold U.S. treasury bills, which could be really disruptive, said White."

Excerpt from BBC Capital -- "'With an election, there's a lot of anticipation ahead of time,' said Lawrence White, professor of economics at New York University's Stern School of Business. 'Markets try to anticipate elections by looking at the polls and trying to anticipate the consequences of the future.'"

Excerpt from Harvard Business Review -- "We analyzed the earnings calls of 2,113 publicly held U.S. firms based in the Eastern and Central time zones from January 2001 to June 2007—a total of 26,585 calls. We used linguistic algorithms to measure positivity, negativity, and uncertainty during the Q&A. Tone grew more negative and less resolute as the morning progressed and improved slightly at midday, presumably because participants recharged at lunch. Negativity increased during the afternoon but fell off after the market’s closing bell—probably because the close reduced participants’ stress. Overall, calls originating late in the afternoon were more negative, irritable, and combative than calls made early in the morning, even after controlling for factors such as industry norms, financial distress, growth opportunities, and the news that companies were reporting."

Excerpt from CreditCards.com -- "The Credit CARD Act of 2009 succeeded in cutting fees for cardholders to the tune of about $20 billion per year -- without boosting interest rates or drying up the availability of credit, according to a new study based on 150 million accounts. 'We find that regulations to limit fees were highly effective,' said the authors of the working paper posted online Sept. 26 by the National Bureau of Economic Research."

Excerpt from Bloomberg TV -- "Big companies typically don't want to disrupt themselves. I would argue both Steve Jobs and Ballmer were innovators. Constant product innovation that they were able to get a higher price. But the problem is when you raise your prices faster than inflation...you make yourself vulnerable to startups who will come in and give you a bad version of Word, in the Cloud, for free. Free is a really attractive price. Those disruptors go after the customers that Microsoft doesn't want and slowly start nipping at their heels and nipping at their shins and before they know it they're taking the whole torso into the great white shark of a disruptor. So both companies [Apple and Microsoft] are vulnerable to disruption."

Excerpt from Adweek -- "The increased visibility of social also amplifies the potential risk of such deals. For one, it raises the bar for what passes as a convincing celeb-marketer marriage, said Chris Raih, managing director of Los Angeles agency Zambezi, which this summer launched a Popchips ad starring Katy Perry (an investor and creative partner in the company). Or a brand may find itself entangled in a fiasco on the scale of the Mountain Dew-Tyler, the Creator dustup, the Rick Ross lyrics controversy or the Paula Deen meltdown. Still, 'it doesn’t happen that often,' said C. Samuel Craig, professor of marketing at NYU’s Stern school, plus brands can usually distance themselves quickly."

Excerpt from Project Syndicate -- "A little more than a year ago, in the summer of 2012, the eurozone, faced with growing fears of a Greek exit and unsustainably high borrowing costs for Italy and Spain, appeared to be on the brink of collapse. Today, the risk that the monetary union could disintegrate has diminished significantly – but the factors that fueled it remain largely unaddressed."

Excerpt from Los Angeles Times -- "Years of experience with Amazon.com have accustomed us to transacting business online, and eBay has given people confidence that a business deal 'doesn't have to have a brand name on the other side,' says Arun Sundararajan, an expert in digital technologies at New York University."

Excerpt from Reuters -- "Separately, an academic study said people reacted best to the challenge of climate change if it was not presented as doom and gloom. 'The best way to encourage environmentally friendly behavior is to emphasize the long life expectancy of a nation, not its imminent downfall,' according to the study of 131 nations led by NYU Stern Professor Hal Hershfield."

Excerpt from Bloomberg -- "Japan, South Korea, Taiwan, Hong Kong and Singapore are the only economies that have moved from middle-income to developed nation status while maintaining relatively high growth rates, according to Nobel laureate Michael Spence, a professor at New York University’s Stern School of Business."

Excerpt from Bloomberg TV -- "[Global growth] is going to be hard for the next few years because the process of deleveraging that started after the global financial crisis still continues. In the Eurozone you still have high debt ratios of the banking system, of the housing sector, in the United States we have not done much of the fiscal adjustment yet. Therefore I think that you'll have slow economic growth in most advanced economies for the time being."

Excerpt from PCWorld -- "So what, apart from the money itself, does crowdfunding offer a fledgling venture? In an April 2013 paper coauthored by Burtch, Anindya Ghose of NYU’s Stern School of Business, and Sunil Wattal of Temple University’s Fox School of Business, one clear benefit stood out: Crowdfunding gives new ventures an opportunity to generate valuable publicity. 'Crowdfunding helps to create a lot of buzz, word-of-mouth, and awareness of a project, which then eventually helps in the final demand or consumption of that project,' says Ghose."

Excerpt from Luxury Daily -- “'Think of a microsite as an enhancement of brand DNA,' said Thomai Serdari, director of research and adjunct associate professor at NYU’s Leonard N. Stern School of Business. 'Being able to excite the consumer in the luxury market is one of the most important things,' she said."

Excerpt from Reuters -- "There are a number of factors why the commodities supercycle is probably over. First of all, China is slowing down. The growth rate may be as low as 6 or 7% in the next few years and the growth rate is going to be less resource intensive as they move away from capital intensive to consumer society... Additionally, we have a slow recovery in advanced economies and monetary policy is going to be tightened, however gradually. The Fed eventually is going to start tapering, eventually is going to go away from zero policy rates and that increase in short and long rates is going to soften commodity prices as well."

Excerpt from TIME -- "As crowdfunding expands, some worry that deregulation of startup investing will lead to inexperienced investors being duped into bad deals. 'That’s the flip side of opening this up to the rest of the world,' says Anindya Ghose, a professor of information, operation and management sciences at New York University who also studies crowdfunding. 'You might end up hurting a lot of people who don’t need to be hurt.'”

Excerpt from CNBC -- "It's almost impossible to value the company as it stands right now, because you know so little about the company. In fact, all we know are the revenues it made over the last 12 months. So valuation is almost impossible. But the focus of my post, which I had on Twitter, was that when you can't value the company, you can price it, price it based on what other companies are trading at. So for instance, if you looked at Facebook and LinkedIn and you looked at the revenue multiple that those companies trade at, which is about seventeen-and-a-half times revenue, you come up with about 10 billion...simplistic, but that's pretty much what pricing is. You base it on very simple metrics and numbers that you already know."

Excerpt from Financial News -- "So far, the argument against spin-offs of troublesome investment banking units has been that the banks derive too much of their consolidated profits from them and that significant capital may have to be added before allowing them to become independent. But the Amex deal showed that these issues can be resolved. And a spin-off can be beneficial to shareholders who made significant gains from the increases in the stock prices of both units. The share prices of Citigroup, Bank of America, Barclays and Deutsche Bank are, on average, still 75% lower than they were in January 2008. Their boards could do well to monitor closely GE’s proposal and keep an open mind."

Excerpt from Bloomberg -- "Is there a way that we can explain supporting Medicare while cutting Medicaid, Social Security but not welfare checks, farm subsidies but not food stamps? For readers of Jonathan Haidt’s amazing book, 'The Righteous Mind,' the answer should be 'yes.' It lies in reciprocity."

Excerpt from CNBC -- "'The U.S. is much more advanced and has much more success than other economies. The growth in the U.S. is going to be much faster than Europe, the U.K. and Japan,' Roubini said. 'Gradually the dollar is going to increase in value rather than collapse the way some dollar doomsday folks believe.'"