August 2007


Forbes.com

Anderson Professor Says Housing Starts Should Play Prominent Role in Nation's Monetary Policy
UCLA Anderson professor Edward Leamer, who is also the director of the UCLA Anderson Forecast, was one of five experts invited to present papers at the Federal Reserve Bank of Kansas City's annual Economic Symposium.  Inviting the Fed to do more than just "make us happy" Leamer presented his paper "Housing and the Business Cycle" before an audience of prominent central backers, policymakers and economists.  This article appeared on Aug. 31.  

Bloomberg
Fed Gets 'F' for Failures on Housing, Leamer Says
According to Edward Leamer, director of the UCLA Anderson Forecast, Federal Reserve policy makers underestimated the role that housing plays in triggering recessions and he gives them an 'F' grade for their failure.  "What I'm calling for is monetary policy which at this point in the cycle would be stimulative because you're trying to keep the housing sector from crashing," says Leamer.  This article appeared on Aug. 31.

National Public Radio
Marketplace
There are millions of unsold homes sitting on the market right now because people can't get the home loans needed to buy them.  Edward Leamer, director of the UCLA Anderson Forecast, is confident that the loan market will loosen up, but what concerns him is that home sellers are holding out for the high prices of a few months ago.  "There's a sort of stand-off between buyers and sellers," says Leamer.  This segment aired on Aug. 27.

Sacramento Bee
Housing Crisis - No End in Sight 
According to Stuart Gabriel, professor of finance and director of the Ziman Center for Real Estate at UCLA Anderson School of Management, the current meltdown in the mortgage business may take the economy into a recession.  "The longer this credit crunch persists ... the more likely we will have a general economic downturn," says Gabriel.  This article appeared on Aug. 26.

KNX-AM 1070 (CBS) Los Angeles
Business Hour
Edward Leamer, director of the UCLA Anderson Forecast, commented on the current state of California's housing market on this afternoon news program.  This segment aired on Aug. 24.

Ventura County Star
New Drinking Habits Are Being Encouraged
Bottled water, once the ultimate yuppie accessory, has suddenly become public enemy number one for people concerned about the environment.  But, says Aimee Drolet, professor of marketing at UCLA Anderson School of Management, the environmentalist backlash won't hurt bottled water sales.  "I think consumers are more inclined to talk about the environment, but less inclined to do something at the individual level," says Drolet.  This article appeared on Aug. 23.

Associated Press
California Budget Battle Over, But Outlook Bleak for Future
California's continuing slump in both the housing and mortgage markets, along with an increasingly volatile stock market means less revenue will be available to cover the state's $145 billion budget.  "We've been sounding the alarm on this for quite some time," says Ryan Ratcliff, an economist with the UCLA Anderson Forecast.  This article appeared on Aug. 22 and was reprinted by the San Jose Mercury News, The San Diego Union-Tribune, the Orange County Register, and the Fresno Bee.

KNBC-TV CH 4 (NBC) Los Angeles
Today in LA; News Nightside; News At Six
Edward Leamer, director of the UCLA Anderson Forecast, commented on the ongoing mortgage crisis and the announced lay-offs by industry giant Countrywide Financial.  Segments aired on Aug. 20 and Aug. 21.

Business Week
Cog or Co-Worker?
Even though some management gurus in today's business arena proclaim that organizations of the future will have to adapt to their employees, not the other way around, don't expect the workplace to suddenly go New Age in the coming decade.  According to Sanford M. Jacoby, management professor at UCLA Anderson School of Management, "system-centered thinking" will remain a potent rival to "people-centered thinking."  This article appeared in the Aug.20 & 27 issue of the magazine.

Channel 6 - Tokyo Broadcasting (Tokyo)
News 23
Edward Leamer, director of the UCLA Anderson Forecast, discussed the U.S. housing market and the ripples Japan might feel from the current crisis.  Segments aired on Aug. 21 at 5:00pm and 10:00pm. 

Daily Bruin
Anderson Students Go Global
In partnership with the National University of Singapore, UCLA Anderson School of Management offers an executive MBA program (UCLA-NUS Global EMBA) which gives students an opportunity to further their business studies in a global context.  " ... when we prepare global leaders ... it has to be in markets that are going to be the dominant market of tomorrow, not just today," says Judy Olian, dean of UCLA Anderson School of Management.  This article appeared on Aug. 20.

The New York Times
No Applause, Please    
According to research by Geoffrey Tate, assistant professor at UCLA Anderson School of Management and Ulrike Malmendier, assistant professor at UC Berkeley, CEOs who receive awards and other kinds of public praise for their business efforts almost always see their company's stock performance suffer afterwards.  Not surprisingly, the "CEOs themselves did just fine" receiving higher compensation than other CEOs.  This article appeared on Aug. 18.

Los Angeles Times
Hospital Overseer Still Has a Mission
After the shutdown of Martin Luther King Jr./Drew Medical Center last week, Dr. Bruce Chernof, the man who was brought in to save it less than a year ago as head of LA County's Department of Health Services, will now likely face a healthcare catastrophe ignited by the hospital's closing.  Victor Tabbush, an adjunct professor with UCLA Anderson School of Management, who worked with Dr. Chernof at UCLA, says Chernof has "one of the most difficult jobs in all of medicine."  This article appeared on Aug. 18.

The New York Times
Big Changes and Big Loan for Lender
Stock for Countrywide Financial, the nation's largest mortgage lender, recently received a "sell" rating by a Wall Street analyst, hinting that liquidity problems could force the company to seek bankruptcy protection in severe circumstances - a fate already experienced by dozens of smaller lenders.  "This is a credit crunch and crisis created independently of individual companies," says Eric Flamholtz, professor at UCLA Anderson School of Management.  "All these companies are getting crushed, some for no reason."   This article appeared on Aug. 17.

The Daily Breeze
El Segundo Attracts Relocating Businesses
With office space declining and rents rising across Los Angeles, companies are looking at El Segundo as a new home.  "In general, as you get densification and increased rents, there is a tendency to try to relocate firms," says Paul Habibi, a lecturer at UCLA Anderson School of Management.  This article appeared on Aug. 17.

National Public Radio
Morning Edition
Carol Scott, professor of marketing at UCLA Anderson School of Management, commented on Mattel's recall of toys manufactured in China and what the repercussions for Mattel might be.  This segment aired on Aug. 17.

KCBS-AM 740 (CBS) San Francisco
News
David Shulman, senior economist with the UCLA Anderson Forecast, commented on the downturns in the U.S. economy and whether a recession is looming.  Segments aired on Aug. 16 at 5:00pm and 9:00pm.

Los Angeles Times
Family Enterprise Wants to Expand to Next Level
When Burbank-based breast pump company Limerick, Inc. saw sales increase dramatically this year, company founders credited their participation in the UCLA Anderson School of Management's Management Development for Entrepreneurs Program (MDE).  MDE enables entrepreneurs to develop essential management skills, strengthen their ability to build and manage effective and profitable organizations, and access the greater UCLA Anderson alumni network.  This article appeared on Aug. 16 and featured business consultant Andrea Garfield who advises MDE program participants.

UCLA Today
Collegiality Comes Naturally To Him
When UCLA Anderson School of Management professor Charles Corbett was recently awarded the UCLA Staff Assembly's 2007 Faculty/Staff Partnership Award, he wasn't sure why he deserved to win it.  The award honors a faculty member who has shown a commitment to the values of collaboration and collegiality by developing partnerships with staff.  " ... it feels a lot like getting an award for what you should be doing anyway!" says Corbett.  This article appeared on Aug. 14.

The McKinsey Quarterly
Strategy's Strategist: An Interview with Richard Rumelt
Richard Rumelt, professor with UCLA Anderson School of Management, knows a thing or two about business strategy - he has been teaching about, researching, and consulting on business and corporate strategy for over 35 years.  "A good strategy ... is one that is responsive to change and that builds, builds upon, and stretches the resources that yield competitive advantage," says Rumelt.  This article appeared on Aug. 13.

Los Angeles Times
Housing Woes Afflict Many
For months, the subprime mortgage crisis and volatile financial market has been taking money out of millions of workers' pockets.  According to UCLA Anderson Forecast economist Ryan Ratcliff, during California's last housing boom (2003-2005) the construction and real estate industry accounted for nearly a third of all new jobs created in the state.  Today, he says, they account for "about 10%".  This article appeared on Aug. 11.

The New York Times
Shaky Markets Prompt Rumors of Who's in Trouble
Losses from subprime and other mortgage-related securities are being revealed on a global scale, by banks, hedge funds and public companies.  "The good news is that the losses will be widely distributed across different owners of these pools of securities," says Stuart Gabriel, a finance professor at UCLA Anderson School of Management.  "The bad news is ... we have a situation where there is a severe lack of liquidity in the mortgage market and that has created an extremely dangerous situation for our economy and the global economy."  This article appeared on Aug. 10.

Los Angeles Times
Effect of New Zoning is Up in the Air
In a bid to spur more housing development Los Angeles city officials are easing zoning rules downtown, allowing developers to build larger and denser projects.  " ... it's one of the solutions to the housing affordability issue," says David Shulman, senior economist with the UCLA Anderson Forecast.  "The housing supply has been artificially constricted by planning and zoning constraints for the past 35 years in Southern California."  This article appeared on Aug. 9.

KCBS-AM 740 (CBS) San Francisco
News
Stuart Gabriel, professor of finance and director of the Ziman Center for Real Estate at UCLA Anderson School of Management, discussed the U.S. mortgage market and the continuing fallout in the lending market.  This segment aired on Aug. 7.

Los Angeles Times
Banking on the American Dream
East West Bancorp CEO Dominic Ng is profiled in this piece about achieving the American Dream.  Ng serves on the UCLA Anderson School of Management Board of Visitors.  This article appeared on Aug. 5.

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