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Booth in the News; Spring 2012, Vol. 4

(Covering April 17 to May 4, 2012)

Here are highlights of the latest Booth news coverage. The digest below represents only a portion of recent coverage. Questions about this summary should be directed to Allan Friedman, executive director of communications, by reply e-mail or by calling 773-702-9232.

Section 1: News coverage of Chicago Booth.

  • CHICAGO TRIBUNE. Booth’s Social Enterprise Initiative was featured in an article about MBA students using business practices to solve social problems in a for-profit or nonprofit context. The new Initiative supports classes and extracurricular activities that focus on using business practices to change the world for the better, the May 18 article said. “Young people today have been exposed to doing volunteer work throughout their lives, often in high school, through church groups and in college,” said Deputy Dean Robert Gertner, co-director of the Social Enterprise Initiative. “Being engaged in some kind of social activity is a part of their lives, and they … are eager to find opportunities to use their learning in a way that’s productive.” 
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  • FINANCIAL TIMES. Associate Dean Julie Morton participated in an online “Ask the Expert MBA Job Clinic,” May 23 on the newspaper’s website. In addition to answering readers’ questions, she talked about how Booth helps students in their career searches. “We spend a good deal of time with students on the self-assessment and then the market assessment process,” she said. 
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  • SOUTH CHINA MORNING POST (Hong Kong). Booth’s executive MBA program “is a perfect fit for executives looking to take their leadership skills to the next level,” according to an article published May 12. Booth students receive “an extremely solid foundation and a set of analytical and reasoning skills to provide sound solutions to any business problems they are presented with,” said Rich Johnson, managing director of Booth’s Asian campus in Singapore. 
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  • TV ASIA. Booth’s India Leadership Summit was featured in a story on this national network. The Summit was organized entirely by Booth students. 
    Watch video
  • PATRIMONI (Italy). Booth’s fundraising efforts were featured in an article published May 21. “The core of our fundraising priorities are student scholarships, faculty recruitment and research, and the programming needs of our 11 research and learning centers,” said Joseph Buck, associate dean of alumni affairs and development. 

Section 2: News coverage quoting Chicago Booth faculty.

  • FINANCIAL TIMES. Professor Raghuram Rajan published an op-ed titled “Sensible Keynesians know there is no easy option,” May 23. “We should be wary of populist Keynesians, who parrot ‘in the long run we are dead’ to justify short-sighted action,” he wrote. “We should weigh stimulus policies not just on their immediate effect but on their consequences over time. Sensible Keynesians recognize this.” 
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  • THE NEW YORK TIMES. Professor Richard Thaler published an op-ed titled “Slippery-Slope Logic, Applied to Health Care,” May 12. “Given how flimsy slippery-slope arguments can be, it is downright scary that they might play an important role in the Supreme Court decision on the new health care law,” he wrote. “We would be better off as a society if we could collectively agree to ignore all slippery-slope arguments that aren’t accompanied by evidence that said slope exits. If you are opposed to a policy, state your case based on the merits – not on the imagined risk of what else might happen down the road.” 
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  • FINANCIAL TIMES. Professor Raghuram Rajan published an op-ed titled “Stop beating up on Ben Bernanke,” May 8. “The path to a sustainable recovery does not lie in restoring irresponsible unaffordable pre-crisis spending, which had the collateral effect of creating unsustainable jobs in construction and finance,” Professor Rajan wrote. “Sensible policy lies in improving the capabilities of the workforce across the country so that they can get sustainable jobs with steady incomes. That takes time, but it may be the best option left.” 
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  • BLOOMBERG NEWS. Professor Luigi Zingales published an op-ed titled “How Political Clout Made Banks too Big to Fail,” May 29. “In the last decade, (the financial sector) has become too concentrated and too powerful, which has damaged not only the economy but the financial sector itself,” he wrote. 
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  • BLOOMBERG NEWS. Professor Tobias Moskowitz published an op-ed titled “Let Data, Not Politics, Guide Regulation,” May 23. “Several years after the global financial crisis, the fierce debate over regulation continues to be driven by strong belief – largely uninformed ones – rather than hard facts,” he wrote. “Some believe more regulation is necessary other that it would cause the downfall of our markets. No one, however, seems to be talking about the evidence for or against regulation.” Research conducted by Professors Moskowitz and Steven Kaplan was cited in the article. 
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  • BLOOMBERG NEWS. Professor Harry Davis published an op-ed titled “Successful Leaders Must Learn to Act Many Parts,” May 16. “Metaphorically speaking, leaders appear in many ‘plays’ as part of their duties, leading a tense meeting on reducing costs or guiding a team charged with exploring growth opportunities,” he wrote. “Leaders also take on different roles throughout their career, evolving from specialists in a given function to generalists who must view the company as a whole.” 
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  • BLOOMBERG NEWS. Professor Reid Hastie published an op-ed titled “Our Gift for Good Stories Blinds Us to the Truth,” May 9. “We know there was no single cause or event that set in motion the (financial) crisis and that the truth is complex and multicausal,” he wrote. “So why do we keep seeking the easy answers? It may be that we are hard-wired to do so.” 
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  • THE WALL STREET JOURNAL. Professor Steven Kaplan was quoted in a front page article headlined “CEO Pay Moves With Corporate Results,” about the newspaper’s analysis of recent CEO pay packages. Pay was “highly correlated with performance,” said Professor Kaplan, who reviewed the Journal calculations. On average, for every additional 1% a company returned to shareholders between 2009 and 2011, the CEO was paid 0.6% more last year, the analysis found. For every 1% decline in shareholder return, the CEO was paid 0.6% less. The article was published May 21. 
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  • THE NEW YORK TIMES. Research by Professors Erik Hurst and Chang-Tai Hsieh was featured in an article headlined “Equal Rights Make Sense for U.S. Economy,” published May 17. As much as 20 percent of the growth in productivity in the U.S. over the past 50 years can be attributed to expanded opportunities for women and blacks, their research found. This, however, has resulted in “some cost for the white men,” Professor Hurst said. 
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  • THE WASHINGTON POST. Professor Raghuram Rajan was right in his 2005 prediction of a financial crisis, a May 7 article said, and he is back with another warning. In this month’s Foreign Affairs, Professor Rajan wrote “The industrial countries have a choice. They can act as if all is well except that their consumers are in a funk and so what John Maynard Keynes called ‘animal spirits’ must be revived through stimulus measures. Or they can treat the crisis as a wake-up call and move to fix all that has been papered over in the last few decades and thus put themselves in a better position to take advantage of coming opportunities.” 
  • THE ECONOMIST. Research by Professor Chang-Tai Hsieh was featured in an article headlined “The great realtor rip-off,” published May 5. American real estate brokers cause “social waste” of $8 billion a year via overcharging and inefficiency, he found. 
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  • THE NEW YORK TIMES. Professor Steven Kaplan was quoted in an article headlined “After Buildup, a Modest Start for Facebook,” published May 18. Accel Partners notched the biggest venture capital victory in the IPO, the article noted. “Venture Capital involves luck and skill,” Professor Kaplan said. “There are no guarantees.”
    Read article 
  • CNBC. Professor Randall Kroszner said it is unlikely the Federal Reserve will provide a third round of quantitative easing, despite continuing euro zone problems. It would take a dramatic shift in the value of the U.S. dollar for the Fed to alter its policy, he said during an appearance on The Kudlow Report May 29. 
    Watch video
  • BLOOMBERG TELEVISION. Professor Raghuram Rajan talked about the European sovereign-debt crisis and global economics during an interview May 17. Job creation is the key to improving global economic conditions, he said. 
    Watch video
  • CNBC. Professor Austan Goolsbee discussed the recent trading losses at JP Morgan Chase and the response of Jamie Dimon, the bank’s CEO. “I’m glad that he’s not trying to cover up what’s happened,” Professor Goolsbee said in the May 14 broadcast. 
    Watch video
  • CHICAGO TRIBUNE. Professor Emeritus Marvin Zonis published an op-ed titled “Realistic optimism on nuclear talks with Iran,” May 23. “The major obstacle to any deal with Iran may actually come from Israel and its supporters rather than from the ayatollahs,” he wrote. “But the stars appear to be aligning for progress.” 
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  • PHILADELPHIA INQUIRER. Professor Erik Hurst was quoted in an article headlined “Economic recovery remains elusive,” published May 27. There will not be a big turnaround in housing prices soon, no “big bounce” in consumption, no increase in manufacturing, and continued unemployment issues, Professor Hurst said. Unemployment will be especially high for men with only a high school education or less, he said. 
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  • THE ECONOMIST. Professors Harry Davis, Erik Hurst, Steven Kaplan, Richard Thaler and Luigi Zingales met with a senior reporter for this magazine during his campus visit May 11. The reporter talked about current faculty research. Dean Kumar also met with the reporter.
  • BLOOMBERG NEWS. Professor Steven Kaplan was quoted in an article about President Barack Obama’s campaign attacks on Mitt Romney’s tenure as head of Bain Capital. “The fact is, a number of the private-equity investors, even some of the big names, are Democrats,” Professor Kaplan said. “You can always find a deal that didn’t work.” The article was published May 21. 
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  • THE WALL STREET JOURNAL. Professor Austan Goolsbee was quoted in an article headlined “Election 2012: Jobs Report Will Provide Fodder for Campaigns,” published May 4. “Eventually, the economy will put together enough consistent performance that we can declare an honest trend,” he said. “So far, though, it’s mainly been mixed – with some advances but also some setbacks.” Professor Goolsbee headed the White House Council of Economic Advisers and still advises President Obama, the article said. 
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  • CHICAGO TRIBUNE. Professor Steven Kaplan was quoted in an article about CEO pay. “Generally, it’s been under control,” he said. “It skyrocketed really through 2000. If you look at (Standard & Poor’s) 500 companies in the last 10 years, the average grant-date value of (stock and options) has gone down 40 percent (and) is somewhere between $8 million and $10 million … While it’s a lot of money, it isn’t crazy,” Professor Kaplan said in the article published May 19. 
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  • MARKETPLACE RADIO. Clinical Professor Scott Meadow was featured in a story about the $1.5 billion value placed on Pinterest, a social networking site where users create online scrapbooks. “It certainly has nothing to do with any economic value that any rational economist could justify,” Professor Meadow said. The story was broadcast May 17. 
    Listen to broadcast
  • CHICAGO TRIBUNE. Clinical Professor James Schrager was quoted in an article headlined “When Sears, the Facebook of its era, launched its IPO,” published May 13. When Sears went public in 1906, shares sold for more than $2,000 apiece in today’s dollars, the article said. “The (Sears) catalog was the Internet of the day,” said Professor Schrager. “Sears was Amazon.” 
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  • THE ATLANTIC. Separate research by Professor Chang-Tai Hsieh and by Professor Marianne Bertrand with Assistant Professor Adair Morse was featured in an article headlined “The 100% Economy: Why the U.S. Needs a Strong Middle Class to Thrive,” published May 18. The rising income gap in the U.S. fueled a surge in recent years of what Professor Bertrand and Morse call “trickle-down consumption” – middle-class families drained their savings and maxed out their credit cards to keep up with the lifestyles of those above them, the article said. 
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  • NATIONAL POST (Canada). Research by Professor Chad Syverson was featured in an article headlined “Freakonautos; The secret to productivity is in the details, not policies,” published May 10. The research was conducted with Professors Steven Levitt and John List from the University of Chicago Department of Economics. 
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  • SEEKING ALPHA. Excerpts from Professor Eugene Fama’s remarks at the annual conference of the CFA Institute were posted May 15. “I don’t think it was a financial disaster that caused an economic disaster,” he said. “I think you can’t reject the hypothesis that it was an economic disaster that caused the financial disaster.” The article was headlined “Eugene Fama Defends Investor Rationality and Market Efficiency.” 
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  • BOSTON REVIEW. Adjunct Assistant Professor John Paul Rollert published a commentary titled “The Primal Ache, What Adam Smith Knew about Inequality,” May 23. “Being wealthy and feeling rich are often inversely correlated,” he wrote. “This lesson is often overlooked in the ongoing debate over income inequality.” 
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Section 3: Booth students and alumni in the news.

  • CHICAGO TRIBUNE. Imran Ahmad, MBA ’13 and Shawn McCoy, MBA ‘13 were photographed in a special section on MBA programs published May 20. “With an MBA, it’s a lot of networking and meeting as many people as possible and building your own brand,” Ahmad said. While enrolled at Booth they are building Edit Huddle, a new venture that is an editing tool for blogs and websites. 
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  • ASSOCIATED PRESS. Daniel Shani, MBA ’12 was featured in an article about job prospects for new graduates. Up next for Shani “a job heading his own company, Energy Intelligence LLC, an alternative energy startup based in Massachusetts,” the article said. “You absolutely need a very high tolerance for risk,” he said. “I have given up amazing opportunities in terms of recruitment on campus ... (But) I’m more excited about building something from nothing.” The article was published May 23 and appeared in newspapers across the U.S. 
  • THE TIMES OF LONDON. Alexandre Penet, MBA ’09 (EXP-14) was featured in an article about MBA graduates who run family businesses. He is owner and CEO of Penet-Chardonnet Champagne in France. Since graduating from Booth, Penet has expanded his business into new markets, the article said. “Previously we sold almost 100 per cent of our wine in France, but in the past three years we have established the brand in 12 countries.” The article was published February 21.
  • CRAIN’S CHICAGO BUSINESS. A Chicago-based software company started by Uzi Shmilovici, MBA ’11 raised $6.8 million in a second round of venture capital, according to an article published May 11. The company, Future Simple, placed second in Booth’s New Venture Challenge in 2010. 
    Read article
  • TechCrunch also ran an article on the news. 
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  • THE WALL STREET JOURNAL. Tom Doctoroff, ’89 published a commentary titled “What the Chinese Want,” May 18. “Consumers in China are increasingly modern in their tastes, but they are not becoming ‘Western,’” he wrote. The article looks at how the selling of coffee, cars and pizza sheds light “on a nation racing toward superpower status.” Doctoroff is the North Asia director and Greater China CEO for J. Walter Thomson. 
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  • THE NEW YORK TIMES. Toshihiko Irisumi, MBA ’05 was quoted in an article about the reluctance of Japanese companies to hire applicants who have studied overseas. “Japanese companies (in Japan) are missing out on the best foreign talent and it’s all their fault,” said Irisumi, who runs Alpha Leaders, a Tokyo-based consulting firm that helps match young talent with employers based in Japan. 
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  • CRAIN’S CHICAGO BUSINESS. TalentStreet, the new website founded by second-year students Arthur Garber, Kirill Osipenko and Lev Joffee was featured in the New in Chicago column May 22. The site helps businesses find talented MBAs to run short-term projects, the article said. 
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  • INSTITUTIONAL INVESTOR MAGAZINE. Dean Curnutt, MBA ’96 was named one of the magazine’s “Rising Stars of Hedge Funds” for 2012. Curnutt is CEO of Macro Risk Advisors.
  • THE WALL STREET JOURNAL. Enrique Torres, MBA ’08 took the top ranking among hotel and casino analysts in this year’s Best on the Street contest. Torres is a senior associate at Green Street Advisors. At 29 years old, he is among the youngest category winners, according to the article published May 10. 
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