More News from IWER
Seriously, stop worrying about market concentration
Right now, given the recent stumbles in AI-related stocks, the hand-wringing over concentration is particularly common again. Senior lecturer Mark Kritzman and co-author put out a paper on this last year. It forms another part of the literature telling people to stop worrying about this. "In the US stock market, the buy-and-hold strategy generated more than twice as much wealth as the dynamic strategy from January 1936 to June 2025, and it did so with less risk," they wrote.
Gensler sees market repricing ahead
Professor of the practice Gary Gensler joined Bloomberg "Open Interest" to discuss what a change in Congress could mean for financial oversight. He also warned that Washington isn't moving fast enough on AI risks and predicted a possible repricing of equity and debt markets.
Report: More care is going unpaid at Wisconsin hospitals
On a national level, it's hard to know who is receiving care that goes uncompensated. But assistant professor Benjamin Vatter said there are some clues. "It tends to be younger people, a lot of working-age people," Vatter said. "In states that did not expand Medicaid, it's often the people that fall into these gaps that exist between Medicaid and the exchange's subsidies." Vatter said unpaid care can also come from people who are "underinsured," whose insurance plans still leave them responsible for a large portion of their care.
How do banking supervisors deal with failing banks?
Professor Emil Verner and co-authors wrote: "Banking supervision seeks to safeguard the health of the financial system by monitoring financial institutions and enforcing regulatory compliance. Our analysis starts with the premise that supervision has two core economic purposes in dealing with distressed banks. The first is information production. The second is discipline."
This hot Framingham startup just raised $2.1 billion, a record venture capital round for Massachusetts
The Framingham company Re:Build, co-founded by Miles Arnone and Jeff Wilke (both Leaders for Global Operations '93), said last week that it raised $2.1 billion from investors, bringing total equity invested in the startup to more than $4 billion since its founding in 2020. "What we're trying to do is develop a manufacturing footprint that can be worldwide competitive in high labor-cost environments," Arnone said. "Because frankly, we want to pay people well."
MIT finds billions in potential grid savings
Research by associate dean Christopher Knittel, senior postdoctoral associate Juan Ramon Senga, and postdoctoral associate Chaitanya Vuppanapalli has identified technologies that could save the United States as much as $1.34 billion annually in electricity system costs by making better use of existing transmission lines. The study examined how improvements to existing transmission infrastructure could increase electricity delivery without relying entirely on expensive and time-consuming construction of new lines.
Equity must be considered when building resident 311 services, expert says
As officials look to expand residents' access to and use of digital government services, equity in how such tools are designed must remain a priority, according to new research by professor Catherine Tucker and co-authors. While increasing the number and types of touchpoints with which residents can interact with public services can "definitely be a tool for efficiency," such efforts can impose an "inadvertent twist" on how different communities are served, said Tucker.
AI agents can move money. Can businesses verify their decisions?
Research scientist Christian Catalini sees a business opportunity in taking responsibility for AI-generated work. He called the model "liability as a service. I think a lot of these AI products eventually will come with insurance," he said.
Does it pay to go green? Let us count the ways.
Associate dean Christopher Knittel joined this podcast to discuss the costs and benefits of clean energy. "We should continue to subsidize rooftop solar, but we should do it in a way that's not regressive, that is not leaning harder on those homes that cannot install solar," Knittel said.
Nvidia's web of AI bets: Smart strategy or bubble risk?
Nvidia's $3 billion investment in Meta's share sale is the latest addition to a portfolio of stakes, loans, and guarantees that has made the chip giant what some analysts describe as the central bank of the artificial intelligence boom. "They're essentially becoming a bank," said professor Michael Cusumano. "Channeling it back to infrastructure investment tied to purchases of Nvidia equipment is a smart thing."