Booth in the News, Autumn 2010, Vol. 3
(Covering October 26 to November 12, 2010)
Here are highlights of the latest Chicago Booth news coverage.The digest below represents only a portion of recent coverage.
Section 1: News coverage of Chicago Booth.
- BLOOMBERG BUSINESSWEEK: Chicago Booth ranked first in the 2010 ranking of the best business schools, published November 11. "Recruiters say Chicago has the most effective career services office," according to the article accompanying the ranking. Recruiters gave Booth graduates A+ ratings for their general management skills and analytic skills. Booth students graded the school's teaching A+ and career services A+. The top five schools in the ranking were 1) Booth, 2) Harvard, 3) Wharton, 4) Kellogg, 5) Stanford. Booth was also #1 in the previous two Businessweek rankings. View the rankings
- BLOOMBERG TELEVISION. A two-hour live broadcast originated at Booth's Harper Center November 12 in recognition of the #1 ranking in Businessweek (see item above.) Interviews were conducted with Deputy Dean Stacey Kole and Professors Eugene Fama, Steven Kaplan and Randall Kroszner. Bloomberg Radio did a live interview with Dean Davis about our #1 ranking November 12.
- BLOOMBERG BUSINESSWEEK. Chicago Booth was featured in an article headlined "MBA Job Placement Rates Trending Higher," published November 4. "Many of the top-ranked schools hit hard by the financial crisis last year have started to bounce back, including Harvard, Wharton, Kellogg and Booth," the article said. Read more
- FINANCIAL TIMES DEUTSCHLAND (Germany). Booth was featured in an article about executive M.B.A. programs published October 27. "With its (three campus) model, Chicago Booth did well during the crisis," the article said. While many schools complained about decreasing application numbers, Booth attracted a higher proportion of qualified applicants, according to the newspaper. Glenn Sykes, Associate Dean for Europe and Asia was quoted in the article.
- SMALLBIZ CHICAGO.COM. "The University of Chicago's Booth School of Business would be a dream school for any student entrepreneur," an article posted on this entrepreneurship site October 28 said. "The atmosphere is heady with innovation, and the potential to start a business at the U. of C. is bolstered by the connections a student entrepreneur has available, between peers and graduates at the Booth School of Business." Read more
- THE WALL STREET JOURNAL. A speech at Booth by Brazil's Central Bank President Henrique Meirelles made news November 4 when he became that country's latest official to criticize the U.S. Federal Reserve Board's move to stimulate the U.S. economy by buying bonds from the market. The move has "negative consequences for other countries, which is the case for Brazil," Meirelles told reporters after his speech to Booth's Latin American Business Group. Read more
Section 2: News coverage quoting Chicago Booth faculty.
- THE WALL STREET JOURNAL. Professor John Cochrane wrote an op-ed headlined "Geithner's Global Central Planning," published October 26. "Economists are full of bad ideas," Professor Cochrane wrote. "Terrible ideas seem to emerge when the gurus get together to talk about coordinating their bad ideas. Last week's public letter from Treasury Secretary Tim Geithner to the G-20 finance ministers is a great example." Read more
- THE NEW YORK TIMES. Professor Richard Thaler wrote the Economic View column headlined "Estate Tax Issue Offers Quick Test for Congress," published November 7. "After their election victory on Nov. 2, Republican leaders in the House promised progress on many fronts, including a turn toward more fiscal discipline and less economic uncertainty," he wrote. "They have a chance to start work on these goals almost immediately, because the lame-duck Congress soon will face a pressing issue that directly concerns both themes: the estate tax." Read more
- FINANCIAL TIMES. A feature article devoted entirely to Professor Raghuram Rajan headlined "The optimistic doomsayer," was published November 2. Professor Rajan's latest book, Fault Lines: How Hidden Fractures Still Threaten the World Economy, was named the Financial Times/Goldman Sachs Business Book of the Year and "merits the close attention of politicians, central bankers and business leaders," the article said. Read more
- THE GUARDIAN (London). An editorial headlined "In praise of … Raghuram Rajan," was published October 29. Professor Rajan's latest book, Fault Lines "should be essential reading for policymakers and practitioners alike," Lloyd Blankfein, CEO of Goldman Sachs, said in the editorial. Read more THE WALL STREET JOURNAL published an article about the book October 28, headlined "The Best Business Book of 2010: 'Fault Lines.'" Read more
- THE ECONOMIST. Research papers by Professors Anil Kashyap, Randall Kroszner, Raghuram Rajan, Amir Sufi and Luigi Zingales were cited in a special report on the world economy headlined "The cost of repair: A battered finance sector means slower growth," published October 7. Read more
- CNN. Professor Raghuram Rajan discussed what can be done to fix the U.S. economy during an appearance on the Fareed Zakaria GPS program November 7. The White House expended too much political capital on healthcare legislation, he said, adding that banks cannot support a recovery without more capital. Professor Rajan also said attention needs to be focused on mortgage problems facing banks and homeowners. The interview, which also featured Princeton economist Paul Krugman, begins four minutes into the program. Read more
- THE WALL STREET JOURNAL. Professor Randall Kroszner was quoted in an article headlined "Good News Won't Alter Fed Diagnosis," published November 6. One encouraging jobs report isn't likely to change the Federal Reserve's view of the economy, the article said. "The Fed's forecast doesn't just jump around with every new number that comes out," said Professor Kroszner, a former Fed governor. Read more
- THE WALL STREET JOURNAL. Research by Professor Ayelet Fishbach was featured in the Week in Ideas column October 30. She suspected that forcing people to eat healthy food might have unintended side effects, the article said. In her new study, Professor Fishbach showed that "imposed" healthy eating can cause people to feel hungrier and to eat more. The research was conducted with Stacey Finkelstein, a Ph.D. student at Booth. Read more
- THE NEW YORK TIMES. Professor Anil Kashyap was quoted in an article headlined "Fed Chief Defends Action in Face of Criticism," published November 5. "It's already well understood that things could have gotten much worse in 2008 if the Fed hadn't gone to the mat, and I think Ben (Bernanke) will be viewed as a hero," Professor Kashyap said. "I think history will treat the Fed pretty well." Read more
- THE ATLANTIC. Research by Associate Professor Amir Sufi on the "Cash-for-Clunkers" program was featured in an article published October 28. The incentive program to spur auto sales cost far more than any benefits received, he found. "Most of the vehicle purchases induced by the program were borrowed from purchases that would have otherwise occurred in the very near future," Professor Sufi's research showed. Read more
- EL MERCURIO (Santiago, Chile). Professor Randall Kroszner was featured in a Q&A interview on banking issues published October 30. A photo of Professor Kroszner and Ben Bernanke, chairman of the Federal Reserve, accompanied the article. Professor Kroszner was a Fed governor from 2006 to 2009. The article in Spanish can be seen here: Read more
- BBC NEWSNIGHT (London). Professor Raghuram Rajan discussed the latest round of quantitative easing by the U.S. Federal Reserve Board during a live TV interview November 3. Earlier in the day the Fed announced that it would pump $600 billion into the banking system in an attempt to stimulate the economy.
- LES ECHOS (Paris). Professor Randall Kroszner was featured in a Q&A interview headlined "Randall Kroszner: The Motor of the American Economy Isn't Broken," published November 3. The article in French can be seen here: Read more
- EL MERCURIO (Santiago, Chile). Professor John Huizinga was quoted in an article about whether the Federal Reserve's $600 billion stimulus (see item above) would have the desired effect on the U.S. economy. The article was published November 4. Here is an English version via Google: Read more
- BLOOMBERG BUSINESSWEEK. Professor Randall Kroszner was featured in an article headlined "Kroszner Says Fed Bond Buying Is 'Insurance' Against Deflation," published November 3. He said the Federal Reserve's plan to buy an additional $600 billion of Treasuries through June provides a backstop against the risk of deflation. Read more
- THE STRAITS TIMES (Singapore). Professor Raghuram Rajan was quoted in an article headlined "Economists slam Fed policy," published November 12. The Federal Reserve's latest quantitative easing "is fighting an enemy which I don't think is that serious," Professor Rajan said during a speech at Booth's Singapore campus as part of an event to mark the school's 10th year in Asia.
- FOX BUSINESS NETWORK. Professor Randall Kroszner discussed the latest action by the Federal Reserve during a live appearance November 3. The latest quantitative easing "provides the necessary foundation" for economic improvement, but "it is not sufficient" to solve all of our economic problems, he said.
- THE WASHINGTON POST. Professor Raghuram Rajan was featured in an article about a November 6 conference by the Federal Reserve Bank of Atlanta. Professor Rajan was picked as moderator of a panel discussion featuring Fed Chairman Ben Bernanke, former Fed Chairman Alan Greenspan, and former New York Fed President Gerald Corrigan, the November 5 article said. Read more
- LBLOOMBERG BUSINESSWEEK. Research by Assistant Professor Eugene Caruso was featured in an article headlined "Future Seems to Be Viewed More Harshly Than Past," published October 27. When it comes to feelings, new research suggests that the past is not always prologue, the article said. People tend to have worse and more intense views on events that might happen down the road than identical events that have already taken place. Thinking about future events simply tends to stir up more emotions than events in the past, Professor Caruso said. Read more
- BBC RADIO FOUR (London). Professor Randall Kroszner discussed possible moves by the Federal Reserve Board during the Today program, November 3. "I actually feel it's beneficial to have some dissent" among members of the Fed, he said. "It's important to have some difference of opinion that suggests we have to be concerned about inflation getting too far out of hand," he said. Professor Kroszner's remarks begin at 15:45 into the broadcast, which can be heard here: Read more
- SCIENTIFIC AMERICAN. Research by Associate Professor Aparna Labroo was featured in an article headlined "Clenched Muscles Assist Self-Control," published October 20. People who clenched a muscle were able to increase their will power, Professor Labroo found. Read more BLOOMBERG BUSINESSWEEK also published an article about Professor Labroo's research October 21. Read more
- BLOOMBERG BUSINESSWEEK. Professor Steven Kaplan was quoted in an article headlined "Hawaiian Telcom Exits Bankruptcy With Lower Debt, Sheds Carlyle Interest," published October 28. Carlyle bought the phone company in 2005 "in the period where things were beginning to be frothy, where lenders were willing to lend you money at relatively low interest rates," Professor Kaplan said. Read more
- THE ECONOMIST INTELLIGENCE UNIT. Research by Professors Matthew Gentzkow and Jesse Shapiro on competition and truth among news organizations was featured in an article posted November 8. Competition between news outlets can bring their audience closer to the truth, they found, but consumers' own preference for news that is more entertaining than informative may push them further away. The research appeared earlier in Capital Ideas, a Booth publication that highlights faculty research.
- AUSTRALIAN BROADCASTING CORPORATION (Sydney). Professor Randall Kroszner commented on the latest quantitative easing by the U.S. Federal Reserve during a November 4 broadcast. "I see this as, in some sense, buying some insurance against (deflation) tail risk, and I think that's the main thing that it'll be doing to give people confidence that we're very unlikely to get into that scenario, that kind of Japan-style or 1930's-style scenario," Professor Kroszner said. Read more
- NPR MORNING EDITION. Professor Merle Ericksen was featured in a story about Professor Austan Goolsbee, new chairman of the White House Council of Economic Advisers, titled "Serving Up Economic Advice, with a Smile," broadcast October 8. Professor Goolsbee "has a gift for taking things that are very complex and making them understandable, interesting, applicable, and he's just an entertaining person because he has a great sense of humor," Professor Ericksen said. Read more
- CHICAGO TRIBUNE. Professor Randall Kroszner was quoted in an article headlined "Fed poised to buy more bonds to try to aid economy," published November 2. One of the goals of the bond-buying program is to blunt any deflationary trends, the article said. "(Fed Chairman) Bernanke knows the lessons of Japan and the Fed's own mistakes in the 1930's," Professor Kroszner said. "He doesn't want to repeat them." Read more
- BLOOMBERG BUSINESSWEEK. Professor Steven Kaplan was quoted in an article headlined "Carlyle Sees Profit in Public Markets with Bargain Cash Flow," published November 3. U.S. corporations, excluding financial institutions, are forecast to generate free cash flow next year, or money left over after capital expenditures, amounting to about 6.9 percent of their share prices, the article said. "A high percentage of cash flow relative to valuation combined with relatively cheap debt are the hallmarks of a market ready for more buyouts," Professor Kaplan said. Read more
- CFO MAGAZINE. A feature article devoted entirely to Professor Raghuram Rajan headlined "Top Economist to CFOs: Get Happy," was published October 26. Despite pessimism about the U.S. economy, in fact "the cup is more than half full," he said. Even though the U.S. economy will grow no more than 2.5 percent annually for the next two or three years, that will buy enough time for the world's emerging markets – which are already providing a majority of demand growth – to save the day, Professor Rajan said. Read more
- FINANCIAL TIMES. Professors John Cochrane and Eugene Fama were among the signers of a letter to the editor titled "Healthy banking system is the goal, not profitable banks," published November 9. Read more
- CHICAGO TRIBUNE. Professor Randall Kroszner will participate in a debate on the economy November 17 sponsored by the newspaper, according to an article published October 26. The debate, will be moderated by Bruce Dold, editorial page editor of the Tribune. Read more
- EXPRESSO (Lisbon, Portugal). Professor John Cochrane was featured in a Q&A interview about the financial crisis October 30.
- CHICAGO TRIBUNE. Adjunct Professor Warren Batts was quoted in an article headlined "Business to Springfield: Get house in order," published November 4. "I think we'll see tax increases to balance the budget, so it will be a little tougher for businesses to operate," he said. Read more
- MORNINGSTAR.COM. Professor Randall Kroszner discussed the recent $600 billion economic stimulus plan from the Federal Reserve during a video interview. When asked "Will it be effective?" he responded, "It's already been effective." The interview can be seen here: Read more
Section 3: Chicago Booth students and alumni in the news.
- THE WALL STREET JOURNAL. Ashish Rangnekar, MBA '11 was featured in an article about Watermelon Express, a company he co-founded. The company, which won Booth's 2010 New Venture Challenge, offers test preparation applications for the iPhone, computer and, soon, the iPad. The article was published November 1. Read more
- THE NEW YORK TIMES. Matt Maloney, MBA '10 was quoted in an article headlined "GrubHub Gets a Cash Delivery," November 8. Maloney is co-founder and CEO of GrubHub, a search engine for restaurants that deliver food. The Chicago company recently raised $11 million from Benchmark Capital, according to the article. GrubHub tied for first place in Booth's New Venture Challenge in 2006. Read more
- CHICAGO MAGAZINE. Michael Polsky, MBA '87 was profiled in the November issue. He is founder, president and CEO of Invenergy, one of the largest developers of alternative energy projects. While he says purely entrepreneurial skills cannot be taught, "having education in some fields is very helpful, regardless of whether or actually practice (in those fields). The study of entrepreneurship is helpful regardless of where (you) work."
- TOP EXECUTIVE GUIDE. Michael Fogarty, MBA '08 was one of three executive MBA graduates profiled in the Winter/Spring issue of this magazine. He is founder and principal of Kokopelli Communications Group. The international exposure he received at Booth was a highlight of the program, he said. "I flew down the learning curve on international business in months. So much so, I established a presence in Switzerland and have worked with several EMEA (Europe, Middle East and Africa) clients," he said.