Spring Break
Nobel laureate speaks to students
Kyle Hansen
Issue date: 4/16/07 Section: News
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A large crowd of students packed the Engineering building auditorium last Thursday for a speech by Nobel Memorial Prize winner Myron Scholes.
Scholes received the 1997 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and came to San Jose State University to discuss the roles of leaders in today's speculative economic world.
The lecture was part of the ongoing Silicon Valley Leaders Symposium sponsored by the College of Engineering.
"He was very knowledgeable," said Andrew Horton, a senior majoring in economics. "A lot of that stuff was definitely over my head. It was geared at a more professional audience than an SJSU one."
Scholes compared the finance world to his media center. He said that when he was in college he had a stereo system that was one piece, all in one box. Then, as technology changed and he got more equipment, the system got bigger and bigger.
Recently, he had a professional come make him a new entertainment system, and he ended up with everything in one box again, but this time it was one customized box exactly how he wanted it.
"Finance is always the media center," Scholes said. "That's what it is - it is the box that defragments and comes apart and into pieces because it's not efficient to have the box. … So it's destruction, reconstruction, destruction, reconstruction.
"Now we are seeing all these pieces - like all the derivatives and all the components that you had for your stereo system - and you're starting to see people put it back together again, but its more efficient every time you put it back together."
Scholes said that the changes in the finance world are similar as companies transfer risks and speculate on finances.
College of Engineering Dean Belle Wei said that Scholes' work is significant to all students.
"There are many university students here who may wonder why Dr. Scholes' work is of interest or importance to you, I think there are three reasons," Wei said.
Scholes received the 1997 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and came to San Jose State University to discuss the roles of leaders in today's speculative economic world.
The lecture was part of the ongoing Silicon Valley Leaders Symposium sponsored by the College of Engineering.
"He was very knowledgeable," said Andrew Horton, a senior majoring in economics. "A lot of that stuff was definitely over my head. It was geared at a more professional audience than an SJSU one."
Scholes compared the finance world to his media center. He said that when he was in college he had a stereo system that was one piece, all in one box. Then, as technology changed and he got more equipment, the system got bigger and bigger.
Recently, he had a professional come make him a new entertainment system, and he ended up with everything in one box again, but this time it was one customized box exactly how he wanted it.
"Finance is always the media center," Scholes said. "That's what it is - it is the box that defragments and comes apart and into pieces because it's not efficient to have the box. … So it's destruction, reconstruction, destruction, reconstruction.
"Now we are seeing all these pieces - like all the derivatives and all the components that you had for your stereo system - and you're starting to see people put it back together again, but its more efficient every time you put it back together."
Scholes said that the changes in the finance world are similar as companies transfer risks and speculate on finances.
College of Engineering Dean Belle Wei said that Scholes' work is significant to all students.
"There are many university students here who may wonder why Dr. Scholes' work is of interest or importance to you, I think there are three reasons," Wei said.
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