March 2007


Wall Street Journal - Asia

India’s Boom is Boon for Business Schools
Facing a mounting managerial shortfall, India’s hunger for business education has sparked interest from the nation’s top business schools.  But is there a large enough market in India to pay the tuitions that they demand?  That is one of the variables yet to be determined according to Judy Olian, dean of UCLA Anderson School of Management.  Dean Olian visited India last December to explore educational opportunities.  This article appeared on Mar. 30 and was reprinted in The Wall Street Journal on Apr. 4.

San Francisco Chronicle
Project’s Housing Would Meet Need
San Francisco’s plan to build a new stadium at the Hunters Point Shipyard could also revitalize surrounding neighborhoods, like L.A.’s Staples Center has done.  “The nearby downtown area blossomed in its wake,” says Paul Habibi, a lecturer at UCLA Anderson School of Management.  This article appeared on Mar.27.

Los Angeles Business Journal
Carlyle Group is Going to Movies
Private investment firm, The Carlyle Group, one of the largest in the world, continues to expand its investment strategies with its recent purchase of Manhattan Beach Studios.  “They’ve got a tremendous amount of capital that their investors are expecting them to put to work,” says Eric Sussman, a lecturer at UCLA Anderson School of Management.  This article appeared on Mar. 26.

KNX-AM 1070 (Los Angeles)
Business Hour
Edward Leamer, director of the UCLA Anderson Forecast discusses home sales and their fall to a seven year low this past February.  Segment aired on Mar. 26.

CNN.com
Educating Future Education Leaders
In the first Education Leadership Case Competition, teams of MBA students from top business schools were tasked with developing a financial plan for California’s Oakland Unified School District, a financially troubled educational authority.  UCLA Anderson School of Management professor, William Ouchi, author of “Making Schools Work” was one the competition judges.  This article appeared on Mar. 26.

MoneyShow.com
Expert Money Advice on the Markets
As home prices fall, defaults rise, and subprime lenders continue to bite the dust, the overall economy may be adversely affected, with housing-related jobs continuing to disappear.  “The fuel that kept the housing market going is gone,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 23.

Hollywood Reporter
Gamble Needs Others to Go All In
Fox and NBC are joining forces to launch online venture Newco, a new video distribution platform.  According to Gigi Johnson, a lecturer at UCLA Anderson School of Management, the real winners will be participating portals.  “This allows them to parlay their existing footprint and really put their defenses up against Google,” says Johnson.  This article appeared on Mar. 23.

Contra Costa Times
Buyers, Brokers Face Mortgage Meltdown
With the implosion of the nation’s subprime market, many homeowners carrying these loans may face defaults, and California’s real estate boom may be on the wane.   “It’s essentially eliminating 15 to 20 percent of the market,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 22.

San Jose Mercury News
Higher ARM Rates Increasing Default Risk
Many economists warn that the current mortgage crunch could further dampen home prices in California, which would impact strapped borrowers who are waiting for prices to climb so they can refinance or sell.  “The housing market needs some energy to move forward,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 19.

San Fernando Business Journal
Valley Firm Becomes Asset in Video-on-Demand Market
On-demand video entity Movie Gallery Inc. has acquired Disney’s  MovieBeam, Inc. as the company moves forward with its plan to provide fee-driven digital content.  “You’re asking the consumer to have yet another device on their TV set and pay a fee on top of that,” says Gigi Johnson, a lecturer at UCLA Anderson School of Management.  This article appeared on Mar. 19.

Detroit Free Press
Auto Industry Gets Sunburned
The downturn in the nation’s housing market is having a negative effect on auto sales across the country.  “I think it’s going to be a tough year for housing and it’s a tough story for autos,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 17 and was reprinted in the Los Angeles Daily News on Mar. 20.

San Francisco Chronicle
Home Sales Fall- Prices Are Flat
Home prices in the Bay Area remain flat and sales keep falling, and some suggest it’s simply due to low inventory – but that doesn’t factor in the subprime crisis.  “In all likelihood, what’s going on in the subprime market will make things much worse in terms of both volume and prices,” says David Shulman, senior economist with the UCLA Anderson Forecast.  This article appeared on Mar. 16.

The Chronicle of Higher Education
Real-Estate Scholar Moves Across Town, to UCLA
This June, leading real-estate expert Stuart A. Gabriel will move from USC to UCLA where he will be a professor of finance and director of the Richard S. Ziman Center at UCLA Anderson School of Management.  “The opportunity presented to me at UCLA offered a chance to build a world-class program at one of the premier universities in the country,” says Dr. Gabriel.  This article appeared on Mar. 16.

East Bay Business Times
Going, Going, Gone
In the latter half of 2006, instead of low prices new-home buyers in the Bay Area were offered a range of incentives to sign on the dotted-line, but the lack of takers forced builders to adjust their pricing this year.  “The chance to get a free trip to Hawaii along with a house brought in some buyers, but not enough for a full market turnaround,” says Ryan Ratcliff, economist with the UCLA Anderson Forecast.  This article appeared on Mar. 16 and was reprinted in over 50 Business Journal publications nationwide.

National Public Radio (National)
To the Point with Warren Olney
The subprime mortgage industry may have increased homeownership, but will the current loan crisis threaten the whole economy?  “Typically, housing is only six percent of the economy,” says David Shulman, senior economist with the UCLA Anderson Forecast.  “The subprime market is like the bottom of the food chain and you have to have the starter home in order to get the start—somebody has to start the starter home so somebody can move up.”  This hour-long show aired on Mar. 15.

Washington Post
When The Wolf Comes Knocking
As housing foreclosures mount, aftershocks are rippling through the economy.  “The question now is whether the pathology of the housing market is going to infect the rest of the economy,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 15, and was reprinted in the San Diego Union Tribune on Mar. 16 and the Las Vegas Review Journal on Mar. 17.

KABC-TV (Los Angeles)
Eyewitness News
Edward Leamer, director of the UCLA Anderson Forecast, discusses the ongoing troubles in the real estate market, its relation to the recent stock market plunge, and problems with foreclosures and mortgages.  Segments aired on Mar. 13, 14, 15 and 18.

New York Times
Bad Loans Put Wall St. in a Swoon
Stocks fell broadly and sharply after a report on mortgage defaults indicated that the troubled housing market will continue to weaken.  According to Edward Leamer, director of the UCLA Anderson Forecast, the center of the country is exhibiting an “early warning sign of an infection that will quickly enough get to the coasts.”  This article appeared on Mar. 14 and was also reprinted in the Houston Chronicle.

National Public Radio (Los Angeles)
The Business with Matt Holzman
Gigi Johnson, lecturer at UCLA Anderson School of Management discusses the latest trend in movie investing – hedge funds.  “Other people’s money has been the driving force in Hollywood for a very long time,” says Ms. Johnson.  This hour-long show aired on Mar. 12.

Associated Press
A Primer on Subprime Mortgage Meltdown
As the decades housing boom grounds to a halt, and subprime borrowers bear the brunt of the pain, most experts still feel prices won’t fall dramatically, as most owners simply won’t sell.  “There are going to be a number of borrowers feeling a lot of distress,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 12.

Bloomberg.com
Foreclosures May Hit 1.5 Million in U.S. Housing Bust
A five-year housing surge that ended in 2006 has given way to rising defaults, failing subprime mortgage companies and an increasing number of unsold homes.  “The market needs new money in order to appreciate, and all of that money is gone for a very long time,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 12.

New York Times
Local Rule
William Ouchi, professor of management at UCLA Anderson School of Management, contributed this opinion piece about incorporating equity, empowerment and choice in school districts nationwide, and voiced his support for Mayor Bloomberg’s plan for improving New York City’s public schools.  This opinion piece appeared on Mar. 11.

Fresno Bee
Organic Foods Grow in Popularity
One of the strongest forces shaping the choices made by farmers, grocery store chains and food producers is the boom in the organic food market.  According to Ely Dahan, assistant professor of marketing at UCLA Anderson School of Management, “a significant portion of the population has a preference for natural food.”  This article appeared on Mar. 10.

The Economist
Villaraigosa’s Frustration
Mayor Villaraigosa’s battle for control of Los Angeles public schools hasn’t been very successful, but there are signs of progress with the area’s more than 100 charter schools.  According to William Ouchi, professor of management at UCLA Anderson School of Management, the charter schools have introduced much-needed competition into the school district.  This article appeared on Mar. 8.

KNX-AM 1070 (Los Angeles)
Money 101
Edward Leamer, director of the UCLA Anderson Forecast, discusses subprime mortgage loans and how the housing market looks moving forward.  Segment aired on Mar. 6.

Chicago Tribune
Bright Side to Housing’s Slide
A flattening in real estate values may actually benefit a homeowner’s larger financial picture, as we return to more “normal” expectations about returns – and homeowners get a dose of reality.  According to Edward Leamer, director of the UCLA Anderson Forecast, it was not just a coincidence that the housing boom took off just when the tech bubble burst.  This article appeared on Mar. 4.

Los Angeles Times
Troubles Mount for Subprime Lenders
As the subprime industry has roiled, federal regulators are considering stricter guidelines for government-insured banks and thrifts that make subprime loans.  “It’s about time, don’t you think?” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 3.

San Diego Union Tribune
Tougher Rules Pushed for Subprime Loans
Under mounting pressure, federal banking regulators have urged lenders to tighten their standards for issuing subprime loans to home buyers.  “I think people were encouraged to buy homes they could not afford,” says Edward Leamer, director of the UCLA Anderson School of Management.  This article appeared on Mar. 3.

Washington Post
Clouds Added to Many Economic Forecasts
After several days of financial market turmoil and conflicting economic reports, many analysts see rising risks of inflation and weak economic growth on the horizon.  “I think the odds of a recession have gone up in the last two weeks,” says David Shulman, senior economist with the UCLA Anderson Forecast.  This article appeared on Mar. 2.

Wall Street Journal – Europe
U.S. Manufacturing: Back in Gear?
Fueled by consistent consumer spending, the U.S. manufacturing sector is edging up, surprising many economists.  “It looks like manufacturing is not positioned to lose much in the way of jobs even with a sluggish economy,” says Edward Leamer, director of the UCLA Anderson Forecast.  This article appeared on Mar. 2 and was reprinted in the Wall Street Journal – Asia.  

Personal Real Estate Investor Magazine
L.A. Investment Story
In the last four years, real estate prices in Southern California have gone up 100 percent, but now with sales at a 10-year low, some are wondering what the future portends for L.A.’s real estate market.  “While I don’t anticipate any large-scale value declines, I do think prices will go sideways for a few years, at least until incomes catch up to prices,” says Paul Habibi, a lecturer at UCLA Anderson School of Management.  This article appeared in the magazine’s April issue.

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