NJIT in the News

Approaching the anniversary of Lehman Brothers’ demise, NJIT Finance Professor Michael Ehrlich, an expert on market failure, says that the Feds made the right move when they allowed the investment firm to go bankrupt. 

Three outstanding students in the undergraduate business program at NJIT placed third overall in the 2009 DFJ East Coast Venture Challenge (ECVC) hosted at Columbia University. The student team of Quaison Carter (shown at left), Louis Noto and Paulius Skema finished ahead of teams from Yale, Columbia and Johns Hopkins, among others, for their presentation of the company Fetchfire, which was founded by Carter. The ECVC business plan competition offers student entrepreneurs from top universities across the East Coast the chance to pitch their ideas to a panel of venture capital judges from DFJ and DFJ Gotham.

NJIT finance professor Michael Ehrlich predicts that the strong profits reported by banks in the first quarter will soon be followed by more losses. Ehrlich, a market failure expert, notes that the unexpectedly strong profits reported in the first quarter by many large banks were the result of significant accounting manipulation. 

“Wall Street Meltdown: A Look at What Happened Last Week and What To Expect Next” will be the subject of a four-way panel talk with finance specialists from NJIT’s School of Management. The discussion, set for Oct. 20, 2008, from 3-4:30 p.m., in the Campus Center Atrium, will focus on macroeconomics, hedge funds, credit default swaps, savings and retirement strategies and more.

NJIT Finance Professor Michael Ehrlich warns the Federal Reserve to leap ahead of the curve.  Ehrlich, a market failure expert, sees the serious devaluation of Fannie Mae and Freddie Mac preferred stock—held widely by many US banks—as a serious bail-out consequence. 

The Federal Reserve may have caused Bear Stearns to fail, said NJIT School of Management professor Michael Ehrlich. 

The fat lady isn’t singing yet, believes finance professor Michael Ehrlich at NJIT’s School of Management.  Based on academic research and Ehrlich’s experience working at Bear Stearns and Salomon Brothers, he predicts more financial distress and a new crisis in the municipal bond market. 

"The worst is yet to come," said Michael Ehrlich, a finance professor in NJIT’s School of Management. Ehrlich, who specializes in market failure, predicts $30-$50 billion more in losses, due to Structured Investment Vehicles (SIV). The SIV rescue attempt will not stop the losses, Ehrlich said.

Michael Ehrlich, a finance professor in the School of Management at NJIT, isn’t concerned about the current crisis in sub-prime mortgages. The former Wall Street managing director, who has had first-hand experience with stock market roller coasters, predicts that the Federal Reserve will respond to the crisis by injecting liquidity.