Michael Ehrlich

From mining coal to mining Bitcoin, a market is always prone to collapse, triggering all types of questions, including: What were the warning signs? How will you know when it has hit bottom? At what point will investors look to capitalize? Is a subsequent upswing temporary or sustainable long-term? NJIT’s Michael Ehrlich speaks authoritatively on market failures, as director of the university’s Henry J. and Erna D. Leir Research Institute for Business, Technology and Society. He also brings real-world expertise, having run his own business and managed units of Salomon Brothers and Bear Stearns. Moreover, Ehrlich excels at explaining the most complex financial issues in plain English. To interview him, simply click on the button below.

The coronavirus has already sent ripple effects through the global economy, according to Michael Ehrlich, professor of finance at New Jersey Institute of Technology. Reports of Wall Street reacting, automakers scrambling to avoid major disruptions and the Mobile World Congress cancellation has demonstrated the effects of COVID-19. According to Ehrlich, some of the biggest indirect impacts of the virus will be felt in tourism and travel, supply chain disruption and the flight to quality. Airlines have begun to cut routes to destinations with high risk, and tourism in major European countries have forecasted a decline, as much as 30-40% in France according to a report in Forbes. "We're already seeing people decide to not go on cruise ships or not to travel on airplanes because of the coronavirus," said Ehrlich. Supply chains are being met with challenges due to China's factory shutdowns. "The real impact of where it's going to affect the economy is supply chain. China is the factory of the world, and those factories are being shut down in order to contain the virus and slow down the transmission of the virus," said Ehrlich. Finally, the third impact is a phenomenon called flight to quality. This is when investors move capital from risky investments to safer ones, a reaction when there is uncertainty in international markets. The move, according to Ehrlich, can see investors take up more U.S. stocks, bonds, and dollars that are viewed as more stable long term investments. The downstream effect could lead to a boost in the U.S. economy as it allows national manufacturing sectors to better compete in a marketplace where they are in higher demand. Michael Ehrlich is an expert on financial markets and institutions, with an emphasis on market failures. Simply click on the button below to arrange an interview. 

There’s an old saying we all know about those who don’t pay attention to history … they’re doomed to repeat it. Over and over and over sometimes. One would think after the 2008 housing crisis that nearly decimated the American and global economy – that we’d all be somewhat wiser. According to some, that may not be the case. America is once again approaching the same cliff it took a decade to climb up from. The measures that were put in place to prevent massive amounts of foreclosures a decade ago are now coming home to roost. “This massive problem of underwater homeowners could not be resolved only by shutting off the spigot of foreclosures. That is why a total of 25 million permanent mortgage modifications and other so-called 'workout plans' were put in place from 2008 until June 2018 according to data provider Hope Now.   Modifying mortgages as an alternative to foreclosure just kicked the can down the road. It succeeded in bringing these delinquent homeowners into current status. Yet millions of them are re-defaulting on these modified mortgages. The number of re-defaults is increasing relentlessly around the U.S. Worse yet, many re-defaulters are on their secondor third mortgage modification.” MarketWatch Mortgages once again are vulnerable as the housing market remains painfully out of sync with the rest of the economy. As well, with millennials facing massive student debt, a shortage of new builds means fewer people can enter the market nor can they afford to. Combine that with salaries flatlining and not keeping pace with the rising price of goods – it’s not a sunny forecast. Are you covering this potential financial crisis? What will America have to do to course correct and ensure we don’t have a repeat of the 2008 meltdown? And how did the country’s leaders allow this to happen? Did no one see this coming? There are a lot of questions and that’s where an expert from New Jersey Institute of Technology can help. Professor Michael Ehrlich's research focuses on financial markets and institutions, with an emphasis on market failures. He has written about the unintended consequences of financial market innovation and is Associate Director of the Leir Center for Financial Bubble Research. To reach Michael, simply click on the button below.