April 2007


Reuters

Wealthy Housing Markets Shrug Off Subprime Woes
Affluent urban real estate markets in cities such as Manhattan, San Francisco, and parts of Los Angeles seem to be evading the housing slowdown so far.  "To be living in West L.A., to be able to afford it, you have to have a fairly high wage," says Stephen Cauley, research director at the Ziman Center for Real Estate, UCLA Anderson School of Management.  This article appeared on Apr. 29 and was reprinted on MSN Money.com.

CNBC - National
Fast Money
Adam Epstein, UCLA Anderson MBA 2008, appeared on the Fast Money segment "Grade the Trade" in which the show's traders ask questions of guest MBA students from across the country.  Each MBA participant had 30 seconds to respond to their trading-related question and each response was graded.  Mr. Epstein received an A.  This show aired on Apr. 27.

Press-Enterprise
As Growth Slows, Expert Questions Whether Consumers Will Keep Spending
As reported in the first quarter of 2007, a faltering housing market coupled with slower trade figures and lower government spending resulted in the worst economic growth in four years.  "Exports have been very strong for the U.S. economy in the previous quarters," says Edward Leamer, director, UCLA Anderson Forecast.  "It went down in the most recent quarter, which was very surprising."  This article appeared on Apr. 27.

Los Angeles Times
LAUSD Sees a Future in Career Ed
The troubled Los Angeles school system wants to reintegrate vocational education, missing from the curriculum since the late 70's and 80's, so that high school graduates can be both college-prepared and career-ready.  "There really are important opportunities here," says William Ouchi, professor of human resources and organizational behavior, UCLA Anderson School of Management, and the author of "Making Schools Work".  This article appeared on Apr. 27.

La Opinion
Y 15 Anos Despues (And 15 Years Later)
On the 15th anniversary of the Los Angeles riots, La Opinion investigates the economic impact the riots have had on the city. "We lived through difficult times because unemployment was high and racial tensions between communities in the south were not calm," says Jerry Nickelsburg, an economist with the UCLA Anderson Forecast.  "The jury decision simply set off a community that was feeling displaced, discriminated against and economically, it was one of the strongest blows."   Two articles appeared on Apr. 26.

The Sacramento Bee
Budget Rides Market Wave
A strong stock market generating capital gains taxes may help California cut away at its budget deficit, but also exposes a tax structure that may rely too much on personal income tax.  "When you place the major onus of paying taxes on the richest people in the state, then a significant portion of that is going to come from non-wage income," says UCLA Anderson Forecast economist Ryan Ratcliff.  "Those non-wage earnings tend to be more volatile."  This article appeared on Apr. 26.

Chinese Daily News (World Journal)
Top business leaders from the All-China Federation of Industry and Commerce (ACFIC) visited the UCLA Anderson School of Management and were treated to a panel discussion about how China can fund high-tech companies (SMEs).  Two stories, one highlighting the visit and one detailing the panel discussion, appeared in this international publication on Apr. 25.

Sing Tao Newspapers - Los Angeles
A story about the ACFIC visit and presenting panelists appeared in this Chinese publication on Apr. 25.

Voice of America - Chinese Branch
A story about the ACFIC visit and presenting panelists appeared in this Chinese publication on Apr. 25. 

Los Angeles Times
Toyota Ends GM's Reign as Car Sales Leader
Years of missteps by U.S. based automakers have allowed Toyota to grab the lead by producing high-quality cars that consumers like.  "I don't see that there's any other company that will be able to exceed Toyota in terms of scale in the near future," says Marvin Lieberman, professor of policy, UCLA Anderson School of Management.  This article appeared on Apr. 25.

MSN.Money
Rising Foreclosures Have Widespread Fallout
The number of foreclosure filings continued to surge in March, increasing 46% from the same period a year earlier.  "We are forecasting another leg down in the housing market," says David Shulman, an economist with the UCLA Anderson Forecast.  "This could last into 2009 or 2010."  This article appeared on Apr. 23.

Contra Costa Times
Lenders to Offer Subprime Bailout
Fannie Mae and Freddie Mac pledged at least $20 billion to help homeowners caught in the subprime meltdown, but the bailout is aimed at homeowners who have good credit and not for those in any stage of foreclosure.  "It's cruelly cosmetic for California," says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Apr. 20.

Daily Bruin
Growing EU Brings International Leaders and Issues to UCLA Anderson
In a symposium hosted by UCLA Anderson School of Management, panelists from Several Central European countries spoke favorably of their countries' integration into the European Union (EU).  "For these countries, joining the EU was historically momentous, full of promise, and as we look back, has been generally successful," says Judy Olian, dean of the Anderson School.  This article appeared on Apr. 19.

San Diego Union-Tribune
Where Foreclosures Hit Hardest is Panel Focus
With the rising foreclosures rate, lending giants Fannie Mae and Freddie Mac are developing new loans to help borrowers at risk of default, but according to Edward Leamer, director of the UCLA Anderson Forecast, the move comes too late.  "We should have had some kind of system in place a year or two ago to prevent people from getting in over their heads."  This article appeared on Apr. 18.

Sing Tao Newspapers - Los Angeles
Returning from the recent World Trade Organization meeting, U.S.-China trade expert Undersecretary Franklin Lavin shared his views on Beijing's trade policies and the future of U.S.-China trade relations at UCLA Anderson School of Management.  An article highlighting Lavin's discussion appeared in this Chinese publication on Apr. 17.

Chinese Daily News (World Journal)
Another article detailing Undersecretary Lavin's recent Anderson School appearance appeared in this international Chinese publication on Apr. 17, accompanied by a photo of the Undersecretary.

Los Angeles Times
Foreclosure Pace Nears Decade High
Foreclosures and defaults are at their highest points in nearly a decade, and some economists say home values will soon be affected, as prices fall.  "It surprises me, the speed at which all of this is evolving," says Edward Leamer, director of the UCLA Anderson Forecast.  "The housing sector is in trouble for a considerable period."  This article appeared on Apr. 17.

Channel-18 (Chinese - L.A.) Evening News
Undersecretary Lavin's UCLA Anderson School appearance and discussion was highlighted in a segment produced by Los Angeles Chinese television station Channel 18 for their evening news program.  Segment aired on Apr. 16.

BusinessWeek.com
Invasion of the Helicopter Parents
Business schools across the country are seeing an increase in parental involvement for incoming MBA's in everything from the application process, to academic progress, to job fairs.  And that's not necessarily a bad thing says Linda Baldwin, director of admissions at UCLA Anderson School of Management.   "The young people are including them in the process and making it a collective, joint type of activity."   This article appeared on Apr. 16.

Los Angeles Business Journal
Builders Cut Prices to Sell New Homes as Market Softens
In today's economy, private sellers of real estate approach sales very differently from large builders who are more willing to cut prices.  "An owner is not under any economic pressure to make a sale," says Ryan Ratcliff, economist with the UCLA Anderson Forecast.  "A builder has Wall Street breathing down his neck and if he is going to sell he needs to cut prices to do it."  This article appeared on Apr. 16.

The Orange County Register
Not Another Supermarket Strike, Right?
If neither the unions nor the supermarket employees want to go through another strike like they endured three years ago, then why are both sides so eager to show they are ready for one?  "Both sides are trying to signal to the other that 'We're not going to be patsies this time, just because it was painful last time,' says Daniel J.B. Mitchell, professor, UCLA Anderson School of Management.   This article appeared on Apr. 13.

The Associated Press
U.S. Housing Aid Needed, Schumer Says
Amid new signs that the housing slump is worsening, key Democrats are proposing federal aid to assist homeowners at risk of foreclosure, while Boston-based Neighborhood Assistance Corporation of America is working to convince big lenders and Wall Street investors to help consumers obtain loans they can afford, and avoid foreclosure.  "The real question is how big is the (housing market's) drop going to be," says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Apr. 11 and was reprinted in over 25 publications including The Boston-Herald, The Detroit News, The Orange County Register, Forbes, The Houston Chronicle, The Atlanta Journal-Constitution and The Miami Herald.

Daily Bruin
Lender Adopts Code of Conduct
Sallie Mae, one of UCLA's preferred student lenders and America's largest provider of student loans, announced it will adopt a code of conduct for its relations with universities as part of a settlement to a five-month investigation into possible malpractice.  "These guidelines are going to make the market fairer and a little more competitive," says Avanidhar Subrahmanyam, professor of finance, UCLA Anderson School of Management.  "Lenders will be truly competing for students' business, and there will be fewer deals going on behind students' backs."  This article appeared on Apr. 12.

Daily Bruin
Science & Health: Addicted to Staying Awake?
In a study conducted by the National Coffee Association, 54 percent of American adults drink coffee daily, while another 25 percent drink coffee occasionally.  "Coffee consumption has increased because it brings people together socially, and it is thought of as an appropriate alternative to smoking cigarettes," says Harold Kassarjain, professor emeritus of marketing, UCLA Anderson School of Management.   This article appeared on Apr. 11.

San Francisco Chronicle
Lennar Corp. Dominates Redevelopment in S.F.
Real estate development company Lennar Corp. controls most of the Bay Area's remaining undeveloped land, and expects to reap hundreds of millions of dollars from projected projects.  But Eric Sussman, a lecturer at the UCLA Anderson School of Management, cautions that Lennar's desire to make money will conflict at times with the city's social goals.  "There's always going to be cost overruns and contingencies, and the developer is going to say, 'it's out of our hands.'  This article appeared on Apr. 10.

San Francisco Chronicle
Hiring is Up - Offshoring Too
The Bay Area region's technology resurgence has yielded job growth that has outpaced the nation's, and much of the growth has been in high-paying jobs in professional and technical services.  "That's largely a Bay Area phenomenon in the tech side of the service sector in Silicon Valley," says Ryan Ratcliff, economist, UCLA Anderson Forecast.  This article appeared on Apr. 9.

The New York Times
Housing Slump Pinches States in Pocketbook
As a result of the housing market slowdown, state tax revenues nationwide are growing far more slowly this year.  "Real estate is going to be a drag on the rest of the economy," said Ryan Ratcliff, an economist with the UCLA Anderson Forecast, referring to California's situation.  This article appeared on Apr. 8.

The Washington Post
Jobless Rate Falls For a Second Month
Housing prices may be down and gas prices may be up, but the U.S. economy is still putting people to work and wages are still rising.  According to Edward Leamer, director of the UCLA Anderson Forecast, "the problems in housing will stay in housing" instead of leaking out to damage the larger economy.  This article appeared on Apr. 7.

Los Angeles Times
Pink Slips Litter Loan Industry
The tumult in the subprime mortgage sector has hit some of the industry's employees, with more than 3,679 mortgage industry jobs lost in the first quarter of this year, and an estimate of over 70,000 construction jobs that could disappear over the next two years.  "Each of these finance jobs is worth at least two construction jobs," says Ryan Ratcliff, economist, UCLA Anderson Forecast.  This article appeared on Apr. 6 and was reprinted in The Chicago Tribune.

The Orange County Register
Big Grocery Chains Sign Mutual-Aid Pact
Following a vote by union members to authorize a strike, Ralphs, Vons and Albertsons agreed they will lock out union members if the United Food and Commercial Workers union call a strike.  "Management is saying if you're prepared to do it again so are we," says Daniel J.B. Mitchell, professor, UCLA Anderson School of Management.  "That doesn't mean they won't settle it without a strike."  This article appeared on Apr. 5. 

The Associated Press
Supermarket Unions Leave Contract Talks over Strike-Lockout Pact
Union officials representing supermarket workers walked away from contract talks after three major chains said they would lock out employees at their Southern California stores if any of the chains are targeted by a strike.  "You have to take all of this with a grain of salt," says Daniel J.B. Mitchell, professor, UCLA Anderson School of Management.  "It could lead to a strike, but it doesn't necessarily mean it has to go down that route."  This article appeared on Apr. 5 and was reprinted in The Press-Enterprise.

Real Estate Southern California
West L.A. Today, Tomorrow
The perspectives of UCLA Anderson Forecast economist Ryan Ratcliff are detailed in this one-on-one interview about what the future holds for West Los Angeles real estate.  "We've seen price growth really slow down but remain slightly positive in this area."  This article appeared in the April 2007 magazine issue.

UCLA Anderson Forecast - April 2, 2007
"Solutions for Our City"
In its first quarterly report of 2007, UCLA Anderson Forecast economists continue to predict that a recession is not imminent.  Prominent local leaders also discussed Los Angeles' future and how to improve education, transportation, affordable housing, land use and poverty.  Articles about the report and discussion appeared in the following publications:  Associated Press, Reuters, Bloomberg, Los Angeles Times, Contra Costa Times, Los Angeles Business Journal, San Francisco Chronicle, USA Today, The Houston Chronicle, Investor's Business Daily, The Denver Post, The Sacramento Bee, The San Jose Mercury News, The Monterey County Herald, Los Angeles Daily News, San Diego Union Tribune, The Orange County Register, The Press-Enterprise, The Long Beach Press-Telegram, The Whittier Daily News, and the Arizona Daily Star and received radio and television coverage on the following stations: CNN-TV Lou Dobbs Tonight, CNBC-TV Closing Bell, KCBS-TV (CBS) L.A., KNBC-TV (NBC) L.A., KTTV-TV (FOX) L.A., KTLA-TV (CW) L.A., KSL-TV (NBC) Salt Lake City, KGO-TV (ABC) S.F., KRON-TV (IND) S.F., KTVU-TV (NBC) S.F., KPIX-TV (CBS) S.F., KRIS-TV (NBC) Corpus Christi, KGET-TV (NBC) Bakersfield, KQED-FM (NPR) S.F., KCRW-FM L.A., KFWB-AM L.A., KNX-AM L.A., WINS-AM N.Y., KROQ-FM L.A., WBZ-AM Boston, RLD-AM Dallas/Fort Worth, KGO-AM S.F., KOVCR-AM Sacramento, KNUS-AM Denver. 

Media Relations