YouSaid · the spoken record

Allison Schrager

lines on the record: 103
first: 2019-07-19
most recent: 2019-07-19
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“Well, yeah, well, you get a basic understanding of risk if you learn finance because finance is all the principles of risk. Because finance and economics is just how economists study risk It just happens to be in financial markets because that's where the data is. So I think it should be undergraduate macro micro finance”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“It is actually, you know, people don't talk about this because other things get attention. But I just went to a conference two or three weeks ago that Lars Hanson and Andy Lowe put on about how can we incorporate finance into macro? How can we put risk into macro models? And I think this was amongst academics the big takeaway from the financial crisis that a lot of macro models have no meaningful role for financial sector. So how are you going to even capture systemic risk? So this is really where like hardcore economists they've been working on post-crisis and it's a hard problem because any economic model has to make choices and once you bring risk in, they get more complicated. This is a controversial thing to say. I mean, not going to sound as sexy to most people, but to small group economists, I now feel strongly, although I don't think anyone agrees with me, that finance, basic finance should be part of basic economic straining.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's when I was starting grad school. And, you know, I chose macro and macro traditionally has not incorporated risk at all. I didn't realize how fundamental that it was to the economy. I thought, you know, I was studying sort of either the neoclassical Keynesian or New Keynesian models where, you know, if you do government spending, this is what happens. Where if I was doing finance, I would think of how does that impact markets? What are the range of things that happen? So I wish I knew about risk because I didn't really.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, it's just very different. I mean, their brains probably form differently to some degree, but again, I think ultimately even college students, the ones I've interacted with from teaching are also really open to debate in new ideas and even uncomfortable ideas. Again, it's just the noisy outliers.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I think they're the same as every other generation. You get some noisy outliers, and I think with social media, the noisy outliers, voices are amplified.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, when you're in a job, I said find the smartest person in the room and it should never be you, or there's something wrong, and try to get them to mentor you. And be open to it. And you know, anyway, contrary to all these perceptions of millennials being know it alls, I find that the millennials I work with are always looking to learn. Maybe I've just been lucky.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“I hang technology I mean, everyone else is sort of scared of it, but I think it's going to sort of take us to some interesting places.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“I'm part of this great bridge group of all these intellectuals. There's a field medal winner, the last one. But mixed it, but it's this are very humble, low-key group.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, and it was like a head time to you get to retake them. And when I got to finally rest and have all that knowledge sort of marinate in me, I realized how much I knew. And I mean, I think what I learned from that experience is, you know, if you really want something, you know, I mean, there's a point you have to cut loose. You can't take the first failure because no one remembers that you failed your first year exam All they remember is that you graduated.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“And yeah, it was horrible. I was such an unhappy person. I kind of started developing weird social ticks. And then I went through all of this, never slept for a year, just working through math textbooks. And I still just failed everything. And I mean, that was obviously, I was devastated”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I was just reading math textbooks in my free time, which wasn't all much. I wasn't sleeping. I was just reading working through entire math textbooks to try to do my homework.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“No, I mean, my first year of grad school, I think I failed almost all my comps. I mean, largely because I was doing a quantitative PhD with no math backgrounds. And it was the hardest failure I've ever gone through because it was the biggest intellectual achievement I'd ever done, which is I taught myself six years worth of math myself in my free time, my first year of grad school. I never intellectually had grown so much of him or anything. I never achieved so much. And I still, you know, at the end of the day, you're still taking a math exam and you're being judged against Korean math champion, no matter how much math you learn quickly. You're not going to stack up, so you're going to fail.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“She takes advantage. I mean, and it's like this extreme level of diversification where she literally any opportunity that comes her way, she seizes on it and she does work hard. There's nothing like strategic. Or it's sort of as well like a Donald Trump thing. It's like, well, if this blows up, I have something else to distract people with because I've got 90 gazillion things going. So it's like we have a debit card that rip poor people off. But oh, look, here's a sex tape. But I remember I was reading her book on the subway and I had this realization like I've never read Anna Carena. But I've read this”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, when I was doing book research, I had this idea that Chris Jenner was this risk mastermind, because look at what she's built. And so I read her biography thinking maybe I'll include her. And it turns out she didn't have a good wrist strategy, so I couldn't.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Give us one more book. So you mentioned. It's a stressful question because I feel like it's so personal and revealing. Yes.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“I love just kids by Patty Smith. I just read Educate It, which I hate loving popular books, but I really loved that. Oh, is it Terra Westover?”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“And it was a great experience for me because I was working on a project that they were all very interested in. So every two weeks, I would have these meetings with Gene Fama, Ken French, Merton, David Booth, and Eduardo Rapetta, who was the And we would just because we were having to calibrate this very complicated interest rate model I was working on and we would just debate the path of interest rates. And I learned, that's where I learned a lot of my finance was just seeing obviously Gene and Bob go at it with the influences of David Booth, who's just a real market guy.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“He was. It was a very sort of long, intense postdoc. I had good training as a graduate student, too, but it sort of readied me to really fully embrace all of his lessons.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, he just taught me finance, which, you know, I went to, I did an econ PhD, so it wasn't like I wasn't exposed to it, but in my program, it was very empirical. So I just thought financial economists just crunch data is looking for deviations of the efficient markets hypothesis. And I thought it was not very interesting and sort of corrupt. But then when I met Bob and learned what financial theory was, it really turned me on to theory too, in a way I was always much more empirically oriented of how to think about the world and how to see the world in terms of a risk lens and how to see risk problems everywhere and how they're driving all markets, not just financial markets.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, you wouldn't know from the book title, but I'm just really a risk nerd. I mean, I guess I don't know if that's not surprising.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think when people look at the outcome from education, they are too short-sighted because you don't often, like, I mean, I didn't enter the labor market really officially until I finished grad school. I was almost 30. And my earnings, well, actually my first job was unpaid, we know, weren't that great, but we're looking, when you think of the payoff from human capital, it's your lifetime earnings. And often out of school, you're going to earn less than someone who didn't go to college. But the trajectory of your earnings is it follows a much steeper path.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, definitely they're getting. Well, it's hard to say. I mean, we can't predict the future. I mean, so far, it does seem, I mean, I'm not sure if there's much value in going to a $60,000 school over Stonybrook, probably you're going to do just as well going to a good public school.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“I think about all your assets. So I think of human capital, which in life cycle economics is the value of your future earnings. So, for me, the idea that people, that millennials don't own houses, and instead they have student debt doesn't seem to me like they've made a huge investment in their future earnings.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, it's like we need to have standards. And, you know, as he said, you know, yeah, we might have a longer wait before cure for cancer, but he's like, but what about the behavior he did all along? Maybe someone would have come up with a cure for cancer even earlier and he discouraged them. And maybe we'd have had a cancer cure for cancer 15 years ago”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Not at all. And I didn't honestly know the answer, so I spoke to a philosopher, which was just, I love talking to philosophers because they always remind you you know nothing about anything. And he pointed out that if you are doing important work, like scientific works, either economics or hard science, and you're on the verge of really making the world important, is actually the pressure on you to behave well as even higher. Because you're letting down, especially no good work happens alone. You're letting down everyone's effort. And not everyone gets the opportunity and resources to perform research like this. And so if you're threatening it with your behavior, actually you should be held to an even higher standard.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“So here's the question If someone's doing research that's socially important or supposed they're on the verge of a cure for cancer and we find out they're a pig, you know do we should they still have a career Positive externalities for society.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“This is terrible. But, and in his, what he always defended himself with, and this is a valid point, although doesn't excuse his behavior in any way, is I do research that socially critical. He was the economist, was leading the charge of understanding why a lot of minority students don't do well in school.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so they have a program where you can give some of that money to charity, and they had, they did a study where it came with a card and one said, you know, warm your heart. The other is like, improve Alaska, and the other just was nothing. And they found the warm the heart group donated the most and were most likely to donate.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“So I think it was John List who I mentioned earlier did a study of Alaska. You know, Alaska is just ripe for a lot of economic studies because they get the dividend payment.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and people, I mean, the $400 for emergency saving figure is a little controversial, but I don't think it is a stretch to say people really don't make emergency savings enough of a priority.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Risk. So people think about saving as something that they're going to, you know, often for something that's going to happen in the future that they want to do. But when they looked at people at the end of their life or in retirement, the reason why they think they wish had more money, they don't wish they could have gone on better vacations when they retired. They wish they could have a better lifestyle. It was, I didn't realize that divorce would blow all my savings.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, but and you know, they don't like that. I used to work for a company that was far outside my cluster, and they kept trying to get me to move there. And I'm like, but you're asking me to give up a very valuable option. You're going to have to compensate me for it. never really resonated with them. But it seems counterintuitive that Amazon would want to be close to their job competition, but it's also what they need to do to attract talent”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. So, if you want to maintain competitively in the labor market, you have to be part of sort of these clusters of people that allow you to move around.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I mean, it worked before when you had people who are more middle skilled and also back before when you had technology was such before where the skills you would learn would be very idiosyncratic to the company you worked for.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, well, and you can see why, because if you are talented, I mean, human capital, you know, is something you have to work towards your whole career. You don't just go to Harvard and then you're just set for life. You have to manage a network. You have to keep your skills sharp. And that's why you want to be around not just be limited to your own company, be around other people and talented companies. That way you keep your skills fresh. You have the option of changing jobs. That's always a very valuable option. I mean, if Amazon moved to a place where there were no other good jobs, you're kind of stuck at Amazon and you give up the option of job switching. You have to compensate people for that.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, on the high skill tech workers, I mean, they're kings of the labor market. And they compete a lot for it, which is one of the reasons why Amazon probably wanted to come to New York. It wasn't just the tax incentives. It was that you could get talent who wanted to move here. It's really hard to get a cluster of talented young people to want to move to the middle of the country.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, so this is the Richard Florida argument that any way you think anyone would want to work for Amazon, the competition for sort of really good talent is still very stiff. And it is does occur globally.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, they'd always be surprised. You may wait for these celebrities for like six or eight hours. And after maybe an hour or two, I'll just get bored. And I'm like, well, I've had a good story here. I'm going to go home. And they'd be shocked. They're like, but GG hasn't appeared yet. I'm like, well, I'm here for you. Supermodel.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“This is weird. You know, I was telling someone to say, you know, as I'm like crouching behind a garbage can waiting for Alec Baldwin. I'm like, this is just not what I expected when I went to grad school to end up here of all places. But, you know, again, they also have a fascinating risk story that's going on behind the scenes you would never know. Because as you can imagine, they face just crazy amounts of idiosyncratic risk. The risk that you're going to get that one money shot in a new one day is so large, they have to form these complex alliances. So they're always reforming and breaking up these alliances so they all hate each other. So, this is something you see the paparazzi on the street and you're like, this is a much more interesting story that's going on with this lineup of paparazzi than you would ever know.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“You know, there was every chapter sort of, I guess, had those moments. I mean, there was certainly when the time I spent following around the paparazzi where I'm like.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, back and forth Yeah, you may get the worst qualities of both. So if you, I thought it was one guy explained to me. He's like, getting that perfect heart in the wrong horse could be like having an engine for Ferrari and a subaroo. So it's really hard to predict. So, this is why that chapter is about modern portfolio theory. By the way,”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, although you have to be careful because horse, it's like everything to be like a racer, sort of this freakish combination of factors have to come together. It's like being a Nobel Prize-winning supermodel. It's like you just need all these genetic components in perfect alignment.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, to some degree, you're right that it is just impossible to know. I mean, you're getting more information now with technology because you're able to do the genetic profiling of the horses, which gives you some information. You can tell, I guess, the horses that are best suited for the Kentucky Derby or these hybrid half sprinter, half distance runners, and you can test for that.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I think it's at the incentives off. So, you know, what people, when they breed a horse, they're looking for something that's going to sell after one year, which is very different from a horse that's going to win a Kentucky derby.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“No, because what you really want is you want a horse. Well, actually, the real money in horses is not winning races. It's from the breeding, the stud fees. But, you know, a good race career is necessary for that. But none of those things are necessarily correlated with the, there's been studies on this, on the prices that you sell for as a year old yearling.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. So the fact that there's less return to long term capital gains and they want to realize the returns from their risk earlier means now that everyone sells a horse when it's one year old when they don't have complete information about how good a race or it's going to be. The only information you have is who its parents are. So this has led to this increase in inbreeding.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“So I didn't realize that after 1986 the tax reform changed the whole dynamics of horse breeding, the economics of horse breeding”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, I don't again, I kind of went after things. I didn't really have much knowledge of before. And I've never been like a horsey person. I wasn't like one of these little girls who rode horses.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“But then the flip side of that is this is a potentially life saving piece of technology. Are you going to deny people buying it? I mean, there aren't easy answers to this, which is why I think it's such a debate. But, you know, if you go to a finance conference and you debate systemic risk, there are no easy answers there either.”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and so this, because they're new and just starting to be sold, I think I mentioned Greg Long, this famous surfer, who's in Flabelfest and Open, that was, I think he had a sort of an early version. But now they're being widely sold. And this is really tearing up the surf community of who should be allowed to buy these. Is it irresponsible to allow anyone to have these vests?”
2019-07-19 · Masters in Business · Allison Schrager Discusses Monetary Policy · IDENTIFIED FROM THE TRANSCRIPT · source