Ethics
Stillman News
International News
School Spying with Laptop: Invasion of Privacy or Right of Ownership? See p. 8
As his MBA service project, Charles Bruno, will sell boxes of Girl Scout cookies to be sent to U.S. troops abroad. See p. 6
Earthquake hits Chile causing a series of tsunamis across See p. 15 the Pacific coast
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Gonzalez Inspires All By Kayla Mjaatvedt, Sports Assistant Editor Ruben Gonzalez, 47, made history in Vancouver by becoming the first person to compete in four Winter Olympics in four different decades. Gonzalez attributes much of his success in life to his beliefs that life is an adventure and that you must chase your dreams. When he was a boy, Gonzalez read countless adventure books that instilled in him a desire to live an adventurous life. Gonzalez always dreamed of competing in the Olympic Games. “I respected the Olympians because they were an example of all I believed in - they were willing to commit to a goal, willing to risk in the pursuit of it, willing to fail and to keep on trying until they succeeded,” he said. Gonzalez was always just an average athlete. He was a second stringer on his college soccer team. But, at the age of 21, Gonzalez watched Scott Hamilton win the Olympic gold medal at the Sarajevo Olympics. Here he found the inspiration to begin training in a sport for the Olympics. In 1984, Gonzalez started training for the 1988 Calgary Winter Olympics to compete in luge, hurling down an icy track at over 80 MPH. Most Olympic luge athletes began luging at the age of 12, but Gonzalez did not sit on a luge sled until the age of 21. He even claims that he was terrified of the luge until two years ago. The challenges he had to overcome make his story powerful. He has been called “the Rudy of the Olympics”. Many crashes and many broken bones later, his dream became a reality when he qualified to compete in the Calgary Olympics. Gonzalez went on to compete in the Albertville Olympics and in the Salt Lake City Olympics at the age of 39. Outside of the Olympics, Gonzalez is a motivational speaker, as well as an author of several books, one including “The Courage to Succeed”. Equipped with the same energy and dedication that he put into his athletic career, Gonzalez brings a truly unique and memorable performance to his audience that teaches, inspires, and motivates. Contact Kayla at kayla.mjaatvedt@student.shu.edu
INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Top front cover images courtesy of Christine Wotton, Web Manager
TUESDAY, MARCH 2, 2010 - VOL. 6 NO. 10
D.C. Sets New Plastic Rules The Credit Crunch
By Stefano D’Urso, Money & Investing Writer Your next credit card statement is going to contain an ugly truth: how much that card really costs to use. Last Monday, the Credit Card Accountability Responsibility and Disclosure Act of 2009 was finally put in effect, which requires credit card companies to treat their customers more fairly, and that is a clear victory for consumers. However, even with this new security, there are still many ways in which you could wind up paying more than you should for your charge cards. Thanks to the long-awaited law, consumers will know if they pay the minimum on a $2,000 balance with a 13 percent interest rate, it could take 10 years to pay off. Over the past nine months, credit card companies have raised interest rates, added new fees, and lowered credit lines. They also closed down millions of accounts because customers could not keep up with payments. What was supposed to be one of the most impactful pieces of consumer legislation in years has made it even more difficult
for Americans to get credit, and made that credit even more expensive. Unfortunately, when President Barak Obama introduced this bill last May, it was supposed to protect card users from unexpected interest rate hikes, unwarranted fees, and other tricks that companies used to increase their profits. Because lawmakers took nine months to discuss certain changes with the Federal Reserve, card companies used that time to make adjustments that ended up hurting customers instead of helping them. Despite the actions taken by credit card companies, consumers are expected to save close to $10 billion a year from curbs on interest rate increases. So what are some benefits of this new law? It will prohibit most retroactive interest rate hikes. In the past, when card companies increased your rates, it applied to your current card balance - even if you made purchases at a previously lower rate - and to future transactions. Continued on page 2...
Europe Sees Influx of Mergers and Acquisitions as Greece Falters By Ian Mehok, Assistant Managing Editor Despite the recent Grecian troubles and worries of a continually failing Euro, companies across the world are continuing to invest in European business. As Greece continues to worry about an increasing deficit, other companies and countries in the European Union have been quite busy, with several notable mergers and acquisitions over the last week. The first major news came from two telecom businesses based out of France and Germany. France Telecom, along with Deutsche Telekom, has merged their British operations, including the well-known TMobile UK. The deal, which was originally
scheduled to proceed in mid-February, will allow the two companies to have a joint understanding in an area that neither company considered part of long-term targeting. Outside of the telecommunications industry, Bank of America has moved into a joint venture with Barclays Bank Plc to acquire a construction, mining and engineering services company, DSI International Luxembourg. The two firms were part of a larger investment group to take on control of the firm, which will continue operations as normal during the transition. These movements counter a large sentiment in American markets that the European Union is beginning to see signs of a large scale meltdown. Continued on page 16...
Busy Week in Washington Bears No Fruit By Rachel Ressler, Domestic News Editor As Democratic and Republican leaders struggled to find some common ground in the healthcare debate on Thursday, February 25, the House of Representatives fought a job bill that was unsatisfactory on both sides of the aisle and the Senate attempted to keep unemployment insurance and COBRA health benefits from expiring. President Obama’s seven and a half hour televised healthcare summit on February 25 was supposed to be a bipartisan effort to resolve key disputes over reform. Some critics have claimed victory for Republicans and others have said that Democrats came out ahead. Most, however, agree that the summit ended up highlighting the wide ideological chasm that still needs to be bridged. Though Republicans and Democrats see the same fundamental problems with the American healthcare system, their proposed solutions cling closely to their party lines. Democrats want regulation, Republicans want a market system, and neither side has shown willingness to cross the aisle. After the summit, most critics, including Fox News, noted that Obama seemed not only to be well-informed about healthcare policy but also spent the summit in full professorial mode. From chastising Senator John McCain that they were “not campaigning anymore,” to calling out Republican whip Representative Eric Cantor of Virginia on his prop of the 2,000-plus page bill stacked in front of him, Obama generally attempted to keep the discussion on track and constructive. This did not, however, stop both Democrats and Republicans from attempting to spin the summit events after, with Senate majority leader Harry Reid calling Obama “patient and responsive,” and the meeting “issue-oriented.” On the Republican side, Senator McCain said that “it was good to have that conversation,” while Senate minority leader Mitch McConnell says he still does “not believe there will be any Republican support for this 2,700 page bill.” Most of the participants felt that the summit had been worth their time, though no decisions were made and none seem likely to emerge in coming weeks. If compromises are not made, Democrats have indicated their willingness to pass the bill regardless. At the end of the summit, President Obama said that if it came to it, Democrats would pass the bill by any means necessary and take their chances with the voters because “that’s what elections are for”. If House Democrats will accept the healthcare legislation that the Senate has already passed, administration and Democratic leaders have stated that they may resort to “budget reconciliation,” a maneuver that would allow the bill to be passed by a simple majority and avoid filibustering. Continued on page 14...
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Money & Investing
NEWS BRIEFS
2010 Population Totals
• Toyota President, Akio Toyoda appeared in Beijing Monday to reassure Chinese consumers that Toyota is committed to making safe vehicles. • Berkshire Hathaway Inc.'s fourthquarter profit bounced back sharply, thanks largely to an unrealized $1 billion gain on derivative contracts and investments. • Billionaire Warren Buffett, in his annual letter to shareholders, sternly urged companies to develop harsh penalties for executives who get into trouble with risky investments. • Premier Wen Jiabao promised Saturday to control inflation and keep China's economic recovery on track and expressed hope for an end to tensions with the U.S. regarding trade and currencies. • Brazil’s president says he plans to provide funding for the construction of an additional 1 million homes that will be owned by the poor in Latin America's largest nation.
Earnings Stock to Watch: Atlas Energy, Inc. (ATLS) Graph courtesy of Yahoo! Finance
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The New Plastic Rules ...continued from page 1 The new law forbids this practice unless you do not make payments within 60 days. The bank can still raise interest rates on future purchases, but only in advance notice of 45 days. This allows customers to decide whether they want to accept the new rates, or close the account and apply for another credit card. Another benefit for new card holders is that their interest rates cannot be raised for the first 12 months. Credit card companies such as MasterCard, VISA, and American Express, are anticipated to cut back on rewards offered such as airline miles, big screen television’, and vacation prize packages. Also, they are required to send credit card statements 21 days before the due date, instead of the typical 1014 days that most companies followed. One of the more important aspects of the new law worth pointing out, especially for college students, is that minors cannot have credit cards if they are under the age of 21, without the signature of a co-signer. This should help college students across the nation avoid falling into debt at such an early age, which will force them to become more financially responsible. When it is all said and done, a law that was supposed to clamp down on credit card companies might have actually done the reversal. They found the necessary loopholes to continue to rake in large profits, at the customers’ expense. The Credit Card Accountability Responsibility and Disclosure Act of 2009 is a bitter sweet victory for credit card holders nationwide.
Contact Stefano at stefano.d’urso@student.shu.edu
All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
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TUESDAY, MARCH 2, 2010
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Simon Property Group “Malling” Competition By Scott Giveans, Money & Investing Writers The battle is on between Simon Property Group and General Growth Properties Inc., the two largest mall owners in the United States. Simon Property is attempting to gain control of the downtrodden General Growth, where as General Growth is just trying to survive. On February 16, Simon Property Group, the number one mall owner in the U.S. , made a $10 billion hostile bid for the second-largest mall owner in the U.S.,
General Growth. The bid has emerged out of General Growth’s yearlong struggle to overcome the billions of dollars of debt on its balance sheet and Simon’s attempt to capitalize on General’s discounted assets. Simon’s bid offer would enable General Growth to escape Chapter 11 bankruptcy and in the process give Simon a third of the malls in the U.S., in addition to half of the top-quality outlets. If Simon is fortunate enough to acquire General, then it will have absolute negotiating power with retail stores and therefore
have the ability to charge increased rents. However, although General appears desperate, they do have other options that do not result in a takeover. The prominent bankruptcy exit plan is being financed by Brookfield Asset Management which would force General to turn over 30 percent of stake. This consists of a $2.625 investment from Brookfield and a $15 per share valuation of General’s stock, greater than Simon’s $9 per share offer. The deal would also repay all $7 billion dollars of unsecured debt to current bondholders
Simon Property Group Stock After Takeover Bid
along with interest. Simon deal’s consists of the same payment to all unsecured creditors but also included a $3 billion compensation package for all shareholders. Although Brookfield has intervened, Simon very well could sweeten its offer in hopes of enticing General to accept its bid. Some analysts believe that Simon submitted a low-ball offer in an attempt to capitalize on General’s recent woes. According to Robert Gadsden, portfolio manager at Alpine Realty Income & Growth Fund "I don't think David Simon is going to say it's his best and final (offer)," Gadsden said. "It was a start. At least we're starting to make some progress." The two recent bankruptcy plans are another swing in the company’s recent roller coaster year where in April it became the biggest real estate failure in history when it filed for Chapter 11 bankruptcy. Over the next week it will decision time for General Growth. It faces two options that will send the company in one of two entirely different directions. The ailing company must determine whether the company can make it on its own again or if it is better to be conservative and take the money and run. Contact Scott at scott.giveans@student.shu.edu
Graph courtesy of Yahoo! Finance
Home Depot and Lowe’s fight back: Home improvement sector finally beginning to stabilize By Spencer Lawrence, Money & Investing Writer While the housing market continues to struggle, Home Depot Inc (NYSE: HD), the nation’s largest home improvement chain along with its rival Lowe’s Cos Inc. (NYSE: LOW) reported earnings results that beat analyst expectations. Demand for Home Depot’s kitchen, bath, paint, and flooring products increased at year-end as the company realized its first same-store sales gain in almost four years. Sales in the fourth quarter were $14.57 billion leading to a profit of $342 million, or 20 cents a share, reversing a year-earlier loss of $54 million, or 3 cents a share. In order to make up for lost ground against Lowe’s, Home Depot has implemented measures to improve its supply chain, cut costs, and is benefiting from a renewed strategy. Instead of shipping directly from suppliers to stores, Home Depot is in the midst of completing a network of regional distribution centers which will combine ship-
ments, lower costs, and reduce truck trips to stores by up to 50 percent. The company also announced in January that it is cutting 1,000 jobs and getting rid of three underperforming pilot stores while consolidating various back-end functions. Company CEO, Frank Blake, has initiated a new campaign which includes lowering prices, keeping more merchandise in stock, and most importantly, improving customer service. Over the past few years, Home Depot has gained a reputation for lackluster customer service as their sales representatives are often too busy to cater to the needs of all of its customers. Its most affective plan thus far is to spend $60 million on hand-held devices which allow workers to check on the spot whether or not something is in stock, hoping to tackle the perception that workers are always too busy to help. Fellow home improvement retailer Lowe’s has been consistently gaining market share for years over its rival, partly due
to its strong reputation of quality customer care. Former home builder Mitch Ross, in Richardson, Texas finds shopping at Lowe’s much more pleasant although Home Depot is closer to his house. “Both have cut back on the number of customer service people, but for some reason Lowe’s people go out of their way to help” he said. Lowe’s recent performance also exceeded analysts’ expectations. The company’s fourth quarter profit increased 27 percent, rising to $205 million, or 14 cents a share, from $162 million, or 11 cents a share, a year earlier. Lowe’s has seen its share price double in the past decade, whereas Home Depot witnessed its shares lose half their value over the same period. CEO Robert Niblock is confident his company can maintain a competitive advantage especially in supply chain management. “We have a sophisticated distribution network that has better capabilities than what Depot is putting in,” Mr. Niblock said. As the housing market continues to
struggle, consumers have shifted their focus to remodeling their existing homes. Both Home Depot and Lowe’s benefited from increased sales on big-ticket home projects such as painting, new flooring, and redoing their kitchens. Due to shifts in consumer demand and better than expected results, both companies have also projected a rosier outlook for the future. Home Depot raised its quarterly cash dividend by 5 percent, its first increase since 2006 and “a testament to our confidence in the company's strategic initiatives,” said Blake. Lowe’s stated it plans to buy back as much as $5 billion of shares in a new repurchase program and raised its full year forecasts. Executives from both companies are optimistic and see the home improvement sector getting better in the near future. J.P. Morgan analyst Christopher Horvers agrees as he wrote, “The sector is rebounding and is one to own in 2010.” Contact Spencer at spencer.lawrence@student.shu.edu
Paper: A New Technology to the Rescue By Christine Wotton, Web Master One of the most pressing problems thatt developing third-world countries face is providing medical care. George Whitesides, a Harvard Chemistry professor, thinks he has the solution with a paper chip that he explained at this year’s TED conference in Boston. The paper chip is made using layers of paper with comic book ink to test for a variety of illnesses such as HIV, malaria, tuberculosis, hepatitis and gastroenteritis. The design that he proposes is a simple square that is smaller than a fingerprint and costs less than a cent to make. George Whitesides realized that one could not bring a state-of-the-art lab to low income places, nor could traditional methods for testing be used. He realized that we first make something, and then substitute parts to make it
cheaper. So Whitesides reversed the thought process, he used the least expensive materials that he could find, then figured out a way to make them work. Photo courtesy of witched.com
New technology is allows to the possibility of a paper chip smaller than a stamp to be able to help keep the world healthy.
Whitesides also eliminated another major cost from the equation; the doctor. These tests can be photographed and sent via cell phone to an offsite doctor for a diagnosis. The doctor can be anywhere in the
world as long as there is cell reception. His featured chip is in the shape of a tree, which holds up to four tests. He is currently developing a paper chip that can hold up to 16 different tests. Dr. Gaby Vercauteren, coordinator of diagnostics and laboratory technologies at the World Health Organization, said, “Today, many people don’t get the necessary diagnosis that will lead to access to the right treatment because diagnostic tests and lab tests are, most of the time, out of pocket...People don't have the money to buy that. Therefore, often, diseases are not diagnosed or only diagnosed far too late.” George Whitesides has introduced a solution that is not only cost conscientious but health conscientious. His paper chips needs only one drop of blood, eliminating the need for needles. With major AIDS epidemics in many countries this elimination can keep the epidemic from continuing to progress.
Using paper for testing is a clever solution that has been sitting in plain sight. Pregnancy tests are made in the same way as his proposed tests. Like the typical pregnancy test, these tests are accurate enough to be used in mass quantity. The other advantage of paper chips are their portability. The tests can be shipped easily in mass quantity, and be transported to remote locations without difficulty. This technology is a very viable solution to the medical situation in many countries where medical care is sub-standard. The only costly part of the technology is the research still needed to standardize the paper chips. As Whitesides said “I think it's real. It can be very useful, but it's not the fanciest manifestation of lab on a chip by any means, if it works and it’ss cheap, it's good for everybody.” Contact Christine at christine.wotton@student.shu.edu
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Money & Investing
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Federal Reserve Optimistic as Bernanke Delivers to Congress By Lee Duan, Money & Investing Writer The Federal Reserve announced optimism as “continued improvement in financial market conditions” signal the closing in on the eventual tightening of credit. Given economic stabilization and gradual recovery, the Fed announced an increase of the discount rate, the interest rate charged to depository institutions who borrow reserves from the central bank, from 1/2 percent to 3/4 percent. The spread of the discount rate over the target federal funds rate was originally lowered to 1/4 percent on March 16, 2008 in response to the financial crisis and banking institutions’ need for primary credit. Primary credit loans were also given extended maturities for a maximum of 90 days. On December 12, 2007, the Fed created a new discount window program called the Term Auction Facility (TAF) to auction off credit to banking institutions in order to protect the banks from “the stigma of conventional discount window.” This strategy strategically injected the financial system with necessary liquidity without creating additional pressure on institutions from their creditors. The February 18 announcement increased the spread between the discount rate and the
more attractive. The policies are “not expected to lead to tighter financial conditions for households and businesses.” The Fed is transitioning the role of the discount rate window back to its original purpose as an emergency backup source for credit. The target federal funds rate remains at The Fed has announced an increase of the discount rate. The Fed created 0 to 1/4 percent as the a new discount window program called Term Auction Facility (TAF) Fed reiterated that top range of the target federal funds rate of economic conditions remain fragile. 1/4 percentage to 50 basis points. This The central bank reaffirmed previous increase in spread is still well below the reports by reiterating that the Federal Open spread of 100 basis points in place before Market Committee believes economic conthe implementation of aggressive monetary ditions will result in “exceptionally low levpolicy in 2007. els of the federal funds rate for an extended Primary credit maturities on loans, period.” which were reduced on January 14 to a Bernanke’s biannual testimony to maximum of 28 days, are being shortened Congress promised unchanged rates for further to overnight; the new policy will be several more months in order to support a implemented on March 18. The final TAF struggling economy plagued by high unemauction will be taking place on March 8 ployment and weak lending. before it is dissolved. However, anticipated inflationary presThe Fed believes these changes will sures will eventually result in additional make financial institutions’ reliance “on pri- monetary controls by the Fed. A February vate funding markets for short-term credit” 10 statement by Fed Chairman Bernanke set Photo courtesy of CEOworld.biz
GM Selling Saab; Possibly Others By Steven Paramo, Money &Investing Writer General Motors Co. recently sold Saab Automobile to the racecar company Spyker Cars of the Netherlands, helping to save the 72-year old Swedish car from extinction. According to Bloomberg, Spyker Cars has agreed to pay $74 million in cash and $326 million in preferred shares in the new Photo courtesy of BusinessWeek
Saab has recently been in limbo, waiting for General Motors to decide if it wants to go through with the sale to Spyker Cars.
company, which will most likely be called Saab Spyker Automobiles. “The transaction secures the future of Saab Automobile and signals the start of an exciting new era for the iconic brand,” Spyker said in a statement after Chief Executive Officer Victor Muller and Saab CEO Jan-Aake Jonsson signed the final papers in Stockholm. From the sale, General Motors is able to drop a brand that was hard to vend during this tough time for the automobile industry, given its expensive pricing. This sale allows 3,500 people to keep their jobs, and it also will help keep 1,100 dealers worldwide in business. The sale comes as no surprise, GM has been looking to trim its U.S. brands from four to eight, as it has also been looking to get rid of Hummer, Pontiac and Saturn in addition. This also provides hope for General Motors, since the Hummer deal with Sichuan Tengzhong Heavy Industrial Machinery Company fell through due to its
failure to secure government approval. Saturn and Pontiac, along with Hummer, are all likely to go extinct, as hardly any company is able to reach a compromise to save the struggling automobiles. However, this deal is GM’s first successful sale of an unprofitable unit in a year since GM decided to downsize their operations. The other is that this sale helps save the Saab Automobile from near extinction, but to what extent? The extent of the entire Spyker Company and those who are investing and backing it? Spyker Cars is a company that usually sold about only a few dozen cars a year, but now is faced with the task of selling upwards of 100,000 cars just to “be fine”, according to a statement released by Muller. If everything goes according to plan and they can ramp up sales, Saab should become profitable again in 2012. A lot is going to be riding on Muller and Spyker Cars, since it now must focus on selling mass amounts of car, quite out of custom from its usual few dozen. Muller has reportedly given Gm the $50 million due on the closing, and he says he will have “no problem” raising the $24 million due on July 15. Financial Times (FT.com), Spyker says it has secured the $1 billion needed to return Saab to profitability by 2012, including a $540 million loan from the European Investment Bank, guaranteed by the Swedish government. Muller has also reported that the acquisition adds about 15 euros per share in equity and 60 Euros in assets to Spyker. Bloomberg reports that Spyker rose 3.6 percent to 3.60 Euros in Amsterdam trading. The stock has surged 69 percent this year. So while we all watch to see what unfolds, one thing is for sure: GM dumps a failing company for a profit; Hummer, Saturn, and Pontiac are likely to become extinct, and Saab will be profitable before the Mayans predict the world will end. Contact Steven at steven.paramo@student.shu.edu
forward possible plans to exit “from the extraordinary lending and monetary policies.” This includes placing upward pressure on short-term interest rates by paying 1/4 percent interest on excess bank reserve balances. Other possibilities include reverse repurchase agreements, a contract in which the central bank would sell securities to institutions with a promise to repurchase them at a later date, and term deposits, a financial instrument similar to a certificate of deposit auctioned to banks in order to reduce the money supply. These recent actions and announcements raise questions regarding the speed at which monetary policy will tighten. Although Federal Reserve Bank of New York President William Dudley announced that the change in the discount rate is “really an action about the improvement in banks,” it is undeniable that there is a growing confidence in economic conditions. As the Wall Street Journal’s David Cottle put it, “although this is not the beginning of the end for Fed’s post-crunch intensive care program, it is very clearly the end of the beginning.” Contact Lee at li.duan@student.shu.edu
Teachers Personalizing Textbooks By Michael Pernal, Money & Investing Writer A stunning, page-turning event has come to the world that is college textbooks. Macmillan, one of the five largest textbook and trade book publisher, has recently introduced called DynamicBooks, which will allow college professors to edit digital editions of textbooks, and customize them class by class. According to Brain Napack, president of Macmillian, “Basically they [professors] will go online, log on to the authoring tool, have the content right there and make whatever changes they want. And we don’t even look at it”. As designed, professors will be able to reorganize or delete entire chapters; upload course syllabuses, notes, videos, pictures and graphs. Most notably, professors will be able to edit individual paragraphs down into single sentences. Many publishers have allowed customizable print editions of textbooks for years, where instructors were allowed to reorder chapters or insert content from other sources or their own writing. But, DynamicBooks is the first textbook software that gives professors the ability to edit an entire textbook without consulting the original author. Other publishers who offer professors some level of customization, such as Pearson Learning Solutions, are hesitant on letting individual paragraphs and sentences of textbooks be edited. Pearson Learning Solutions does not allow individual paragraphs and sentences to be changed as its chief executive, Don Kilburn, states “There is a flow to books, and there’s voice to them”. In August of this year, Macmillan plans to start selling about 100 titles through DynamicBooks. Included in this first release are titles such as “Psychology,” by
Daniel L. Schacter, Daniel T. Gilbert and Daniel M. Wegner; “International Economics,” by Robert Feenstra; and “Money and Banking,” by Laurence Ball. According to Napack, there are ongoing discussions with other publishers to allow them to sell their titles through DynamicBooks. The customizable electronic editions of the books sold through DynamicBooks will be much cheaper than regular printed textbooks. For example, “Psychology” has a list price of $134.29, but will sell through DynamicBooks for $48.76. Print on demand versions of the professor customized textbooks will also be made available, but at prices closer to traditional textbooks. Students will be able to purchase the books through dynamicbooks.com, in college bookstores, and through CourseSmart, a joint venture among five major textbook publishers that sell electronic textbooks. The books can be read online or downloaded on any computer. The books are also able to be read on the Apple iPhone. Clancy Marshall, general manager of DynamicBooks, says, “The company has plans to negotiate an agreement with Apple so the books can be read on the new iPads”. It is unclear at this point if any Seton Hall University professor will be using any of these textbooks during the next academic year. But, professors at other educational institutions who have tested the software have said they liked the option to fine-tune the textbook to their specific teaching style. Macmillan believes that sales of the new customizable books will replace the sales of used textbooks. They also believe that students will be attracted because of the low cost of the textbooks. Come next semester, Macmillan will know if it indeed has developed the future of college textbooks.
DynamicBooks will allow college professors to edit digital editions of textbooks, and customize them class-by-class.
Contact Michael at michael.pernal@student.shu.edu
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Retail Sector Shops for New Industry Leaders By Danielle Hudson Money & Investing Writer The once almighty Sears has been feeling the effects of the lower consumer spending in today’s turbulent market. The one stop shopping spots known as Sears and Kmart are being forced to close locations across the nation. Earlier in the week, Sears Holdings (Nasdaq: SHLD), which owns both Sears department stores and Kmart announced that they planned to close an additional twenty-one stores by the spring. This will bring the total number of stores closed during the past year to fiftysix. Could this ultimately be considered another win for Wal-Mart? The news, which will cost over 1,000 people their jobs, was announced by Sears Holdings spokeswoman Kimberly Freely who maintained, according to USA Today, that the closings were just part of normal operations. Tell that to the men and women who are now unemployed. The news comes just as Sears Holdings announced its numbers for 2009, which ultimately, would lead one to believe that the company was on stable footing.
Although the company has seen its ups and downs as of late, along with most retail companies, its fiscal fourth quarter earnings nearly doubled. This encouraging news can be attributed to the fact that the company’s business lies in a wide array of businesses and brands from auto repair to retail stores and the web. Even with the improvement that the company has seen in the profit and loss statements, Edward Lampert, the chairman for the company believes that there is still room for great improvement. Out of the twenty-one stores set to close by spring of this year, eight of them will be stores bearing the trademarked Sears name, while the thirteen others will be Kmart stores. Among the stores slated to close will be one in South Plainfield, New Jersey and one in Marlton, New Jersey. With the closing of these stores, it appears as though another Wal-Mart (NYSE: WMT) competitor may be throwing in the towel, at least for now. As Sears Holdings watches its underperforming stores close their doors, Target (TGT) continues to gain steam as a leading competitor of Wal-Mart. Even though Target is a significantly
smaller company than Wal-Mart, it offers virtually the same services, but with a
to $936 million according to Yahoo Finance. For the wise investor, stocks like those of WalMart and Target make sense in investing in during times like these because they are discount retailers who cater to the customer seeking a deal, and let’s face it, most college students are out there looking for the best deals possible. Target’s strong brand appeal has allowed it to surpass the likes of Sears and Photo courtesy of Sears will allow it to continue to Sears is one of many retailers who are seeing customer-spending compete with companies drop in this market where most people are living paycheck to pay- such as Wal-Mart in the long run. check. The outlook for the future stronger emphasis on quality. appears to be a positive one: Strong compeBoth discount retailers have seemed to tition in the retail industry will allow comfinally find a way to rebound from their panies to rebound and continue to grow economic slumps; however, the difference throughout the next few years. lies in the fact that Target has found a way to do so by employing innovative initiatives for the future. Target, who recently Contact Danielle at announced its fourth quarter earnings, saw danielle.hudson@student.shu.edu an increase in net earnings of 53.7 percent
Grecian Yard Sale: Come Get Your Bad Debt! By Kyle Connell Money & Investing Writer Greece heads of state and economic advisors gathered this weekend on the coast of the Mediterranean Sea outside of Sparta to institute its three part operation Project Default Avoidance. PDA, as the Greeks have dubbed it, is needed to raise €25 billion for the Greeks to juke the ludicrous debt primed to slap them in the face. The plan will share the love and be put into action globally, but its main operations will come out of Greece. Part one, a yard sale, commenced this Saturday morning and continued through Sunday evening. It was complete with sharpie written cardboard signs posted around the Mediterranean, continental Europe, and the Middle East saying, “GREECE YARD SALE: THIS WAY,”
accompanied by a directive arrow. Despite such effective marketing, the weekend spent on the lawn was largely wasted as they only raised €52.16. A portion of the poor results appear to be in connection with the goods available for sale. The only sales came from the collection of the limited editions of My Big Fat Greek Wedding, 300, and Spartacus. Two pair of Homer’s reading glasses and the thirteen Greek Gods, though, went untouched. In regards to the selection, customer Johnny Chreaster said, “Polytheism is so BC, why would I want any of that?” With this customer attitude, even the late Sunday evening yard sale ending specials such as, “we will give you all of Greece for €5,” were laughed at. A large group of Jewish people reportedly searching for the Greek sale ended up in Egypt after Demas Markopolis, a govern-
ment staff intern, drew the arrow pointing in the wrong direction on the cardboard sign coming out of Israel. Greek Prime Minister, George Papandreou, angry at the mistake, made the public statement, “Pharaoh, Pharaoh, let my customers go”. In a private interview, Papandreou also faulted Greece’s neighbors Turkey, Bulgaria, Macedonia, and Albania for not participating in the neighborhood yard sale. He felt more participants would have produced more customers. Turkey and Bulgaria responded saying they had a soccer tournament this weekend. Macedonia and Albania simply had nothing to sell. The disappointment must be set aside quickly though. PDA will continue next weekend with part two in an effort of coordinated lemonade stands across Europe, northern Africa, and the Middle East. Because the yard sale failed to produce the
expected results, the stands will be offering twelve ounce ice cold lemonade for €25 instead of the typical 25 cents. The third part was a last minute addition to the PDA project plan. With the the majority of the northeastern United States under multiple feet of snow, Greece has made arrangements to shovel its driveways. The Greeks see great opportunity in the northeast. Since climate change has officially been proven wrong, it seems only logical that snow will continue forever, thus they have a steady stream of revenue. In the event that all of PDA completely flops, Greece is also exploring options with a 50/50 raffle, a partnership with the Girl Scouts for their cookies, and local gas stations for future car washes. Contact Kyle at kyle.connell@student.shuedu
Fannie Mae Asks For Additional $15.3 Billion mortgage funding in the nation. They have been in charge of the process which gets the money back to the banks and other The housing crisis has beaten lenders that originate the loans. down the mortgage and finance Because of this process they company Fannie Mae. Now they are a key role in President are asking the federal government Obama’s efforts to decrease forefor another $15.3 billion in bailout closures and keep people in their money. homes around the Country. The government now controls However, problems are still the giant Fannie Mae (NYSE: FNM), which has recently reportcontinuing for Fannie Mae’s mortgage portfolio. 5.38 percent of its ed a fourth-quarter loss of $16.3 single-family loans were more billion. $1.2 billion is also includthan 90 days late, this is up 2.42 Photo courtesy of Fannie Mae percent from a year earlier. The total nonperforming loans were $216.5 billion at year-end, compared with $198.3 billion in the prior quarter and $119.2 billion in the prior year end. Fannie has After already receiving billions in taxpayer bailouts, Fannie Mae is still asking the government for reported that the another $15.3 billion to help it stay afloat in this troubled economic time. number of loans By Bryan Murawski Assistant Editor
ed in dividend payments to the Treasury Department. This is down from $25.2 billion a year earlier and $19.8 billion in the third quarter. Fannie has had their losses blow up in recent years. In 2009 they had losses of $74.4 billion, this compared with $59.8 billion in 2008. Over the last year, Fannie Mae and its smaller sister company, Freddie Mac (NYSE: FRE), have been the primary source for
turning into seriously delinquent cases has began to stabilize. It predicts that the credit card expenses in 2010 will be much lower than in 2009. This of course is assuming no other economic troubles come our way. Fannie is still working on reducing credit losses. They are doing this by helping homeowners avoid foreclosure. During 2009 it completed 200,339 loan workouts and initiated 333,3000 trial modifications under Obama’s loan modification program. The government took over Fannie Mac in September of 2008. Ever since, Fannie has received $60.9 billion from the Treasury Department. Freddie Mac reported its fourth quarter loss on Wednesday. The loss was $7.8 billion, compared to $23.9 billion the year prior. The company has lost $21.6 billion for the year, that is an improvement from the 2008 loss of $50.1 billion. Freddie Mac has not requested any additional money since it received its initial $50.7 billion in
taxpayer funds. The Treasury Department lifted the $200 billion limit on the amount it was ready to put towards the two mortgage firms in late December. Some are asking that even after all that the taxpayers have spent to get these companies out of debt, why do they continue to have these huge losses? Yes it is understandable that it isn’t easy to make huge profits in this economic climate, but to lose so much and then to ask the taxpayers for more seems to some a little outrageous. Fannie Mae is banking on this money to come through to continue operating as normal. The money they hope to receive could possibly drag the company up from the dirt and turn it around in the turbulent housing market. Contact Bryan at bryan.murawski@student.shu.edu
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TUESDAY, MARCH 2, 2010
MBA Student Seeks Cookie Donations to Support U.S. Troops Abroad By Gerardo Pecoraro, Managing Editor As the United States increases military efforts in Afghanistan and Iraq, soldiers are in greater need of supplies and aid. Noticing this need, Charles Bruno, Stillman MBA student, has moved forward with a special community service project to help these soldiers where he will sell and collect Girl Scout cookies during the month of March here on campus and ship them to U.S. soldiers serving abroad. At $4 a box, students, faculty and administrators can purchase boxes of Girl Scout cookies and choose to either donate a box to soldiers, take one home, or both. Much different than the typical way Girl Scout cookies are sold, the boxes of cookies will be on site ready for purchasing; there is no waiting for your order. “It’s a cash and carry transaction. People can stop by and pick up one, two, or even five boxes of cookies…I’ll have a fully stocked assortment of cookies,” Bruno commented.
At $4 a box, students, faculty and administrators can purchase boxes of Girl Scout cookies and choose to either donate a box to soldiers, take one home, or both. Bruno’s goal is 150 donated boxes of cookies. He believes he will reach his goal because not only will he be asking for customers to donate whole boxes, but any partial or additional donations he receives will be put together to donate more whole boxes. All Stillman MBA students must complete 20 hours of community service to a project of their choosing in order to attain their respective degrees. Bruno got his idea for his project from a discussion with Dean Karen Passaro about the Mahwah Marine Moms and North Jersey Military Moms – two organizations that work in the local area to collect and ship supplies to troops serving abroad on active duty. “After hearing about these organization and being an Eagle Scout myself, I felt a calling to design my community service project around this idea,” Bruno mentioned, “I have family and friends serving abroad currently, so this really hits home for me.” All the cookies that Bruno collects will be combined with the cookies that were collected by the Mahwah Daisy Troop 4330 – the Girl Scout troop Bruno is working with – and all cookies will be turned over to the Mahwah Marine Moms to add to their care packages for this month. “The Mahwah Marine Moms have a well-run organization. After reading many newspaper stories about the group over the years and a first-hand visit to one of their locations, I was astonished at how much they do. They ship goods year-round, but specifically in March, the Moms collect Girl Scout cookies for the enlisted,” Dean Passaro stated. Bruno will have a table set up to sell cookies throughout the last two weeks of March, but orders can be also be placed via e-mail (charles.bruno@student.shu.edu) until March 30. Letters and cards for soldiers will also be collected for those wishing to donate. Contact Gerardo at gerardo .pecoraro@student.shu.edu
Stillman News
THE STILLMAN EXCHANGE
Former Alumnus Turns Hobby into Successful Enterprise By John Ceniza, Stillman News Writer Richard Posluszny, a 2009 Stillman School of Business alumnus and entrepreneur, was the guest speaker for the Entrepreneurship Club’s event on February 22 which took place in the Faculty Library of Jubilee Hall. Like many others, Posluszny graduated and got his Finance and Information Technology Management degrees in 2009. As if being a double major was not enough, what makes him truly stand out is the fact that he turned his hobby into a profitable enterprise. As Posluszny addressed the group of approximately eighteen students, he started talking about the steps he had taken to get where he is now. He has always had a passion for automobiles leading him to create his own blog and eventually he worked for an automobile website. Posluszny stressed that it is important to build relationships within the company one intern’s with and how it is imperative that one sets both longterm and short-term goals. As the event progressed, Posluszny encouraged the audience to ask questions at any time. Eventually, the main focus of the discussion was geared toward Posluszny’s “8 keys to success.” While he claims that all eight points are important and necessary, he emphasizes two particular aspects. The fifth key to success, one of the most important ones, was to be “intellectually curious,” he said. He encouraged the students to try to expand their knowledge on all kinds of subjects because one may never know when it may become useful. The eighth key to success, which he also emphasized, was to “be your own harshest critic”. The point he was trying to get across was that there will always be people that will negatively criticize one’s work, and in order to be successful, one cannot let negative comments slow or bring one down. So to “be your own harshest critic” means that other people’s criticism should not be as important as one’s own.
JC: How exactly are you trying to incorporate your degree in Finance in your future goals? RP: The great thing about my double major - finance and information technology management - is that it provides plenty of opportunity for daily application. Whether I am sifting through 10Qs of the major automobile firms and trying to set a target price for their equities, or using my knowledge of HTML while writing stories and repairing the website I run, I always find its usefulness somewhere. Also, I am working on a couple of other secret projects that I cannot disclose at the moment that will put my degree to more than enough use Photo courtesy of Richard Posluszny Richard Posluszny’s passion for automobiles led him to pursue his hobby after graduation rather than take the typical route into the corporate world.
After the event, The Stillman Exchange followed up with Richard Posluszny in a brief interview: John Ceniza: If given the opportunity, would you suggest a person convert his or her hobby into a profession and put his or her major aside? Richard Posluszny: In my post-graduate pursuits, there has been one thing that continues to show itself consistently; passion. In some cases, students may have made an error in their major and are not truly passionate about what it is they will be doing. That does not breed success. Taking this into consideration, if an opportunity presents itself and there is sincere passion for the position, I would say go for it because if there is any time to do it, it is when you are young and have zero obligations. Luckily, I have a voracious passion for a variety of topics, which allows me to love things from as simple as automobiles to more complex matters, like my majors in finance and ITM
JC: Since you’re a car expert, what car, that you’ve reviewed, would be the best bang for the buck for a fresh college graduate? RP: Well, it is impossible for me to suggest one car for the masses as everyone has different needs, wants and budgetary concerns. With that said, the car that I would pick would not be an Audi, BMW or MercedesBenz. It would be the 2010 Volkswagen Golf TDI. It offers a lot of utility and has a class-leading interior that features a touchscreen interface and top-notch plastics in the cabin. The best part is that I obtained around 35 MPG in real-world testing and I have a lead foot. This means that 40 MPG is not out of the question. Another plus is that diesel fuel prices have stabilized and have come down from their highs of recent years; you can find diesel fuel for about the same price as a middle-tier octane gas. Richard Posluszny has truly achieved remarkable success and is a great example of young entrepreneurial spirit. Contact John at johnalex.ceniza@student.shu.edu
Speakers Convince Students They Can Do Well While Doing Good By Constanza Lasso, Stillman News Writer February is public service month and as such there were many events held by the Career Center to inform students of the potential careers within nonprofit. “Doing Well While Doing Good,” sponsored by the Career Center with the help of Rotaract and Silent Praise, was held on Tuesday February 23 in the Chancellor’s Suite. The event involved a panel discussion with representatives from many of the well known surrounding nonprofit organizations, such as the South Mountain YMCA, Community Food Bank of New Jersey, South Orange Rotary, and the Superior Court of NJ Essex Vicinage. One name that was not easily recognized, however, was the Grupo Cajola represented by Caryn Maxim. This is a community-based organization located in Morristown, NJ and Atlanta, GA. This nonprofit’s main function is to help Cajola families located in the United States and Guatemala maintain and protect their equal rights. Their main focus also involves encouraging women to receive better edu-
cations and create their own business where possible. During the discussion many students requested suggestions on how to best break into nonprofit. Kamili A. Williams, Vice President of Programs and Services at the Community Food Bank of New Jersey, stated that “the best way is to tailor your resume towards the nonprofit organization you are applying to”. Researching the organization’s current projects and knowing their mission is key during the application process. Toby H. Feller from the South Mountain YMCA also added that “creating a functional resume would be very helpful for students and professionals who are switching industries”. Each representative also placed strong emphasis on the fact that all nonprofits are a business. Many students are under the impression that in order to work for nonprofit one must be either a volunteer or work for free, when the reality is very different. “Certainly if you are a volunteer you are more likely to hear about opportunities first,” said Williams. Also, if you really enjoy working for a specific nonprofit, then asking information on positions that are
available should be easy. In many situations, if there are no positions available, than one might be made available for you. Feller also stressed that many nonprofit agencies are looking for people with specific skills sets. “People specializing in the area of business, such as marketing and finance, are especially needed,” said Feller. It is not beneficial to avoid nonprofit networking events because one does not believe they will not be compensated. Majority of these positions are paid and can be a good starting point for one’s career. The panelists ended the discussion by stating the benefits of working for nonprofit versus corporate. According to Giusseppe Fazari, from the Superior Court of NJ Essex Vicinage, “I wanted to do something where I could put my heart and soul into it.” Williams stated “you can make money doing anything, but you can’t always change a life doing anything”.
Contact Constanza at constanza.lasso@student.shu.edu
Stillman News
THE STILLMAN EXCHANGE
Senior Allen on a Journey to Success By Rory Manning, Stillman News Writer
Photo courtesy of Rich Allen
One of this week’s Stillman Standout Seniors, Richard Allen is heavily involved on campus. An information technology management and political science minor, Rich has made Dean’s List for all semesters at SHU. As a Resident Assistant, Rich is a role model for freshmen and upperclassmen as well. As part of his work study with alumni relations, he launched My Time, the Seton Hall Traditions Project that records alumni, students, and faculty memories. He developed and executed the Pirate Pride Drive to collect items for alumni serving overseas. Rich is a member of the Community Standards Review Board, National Residence Hall Honorary, and the Leadership Development Honors program. Rich shares with The Stillman Exchange how his activities has impacted him presently and for the future. Rory Manning: As President of the Student Alumni Association, what experiences have you had that you will take with you when you venture into your future career? Richard Allen: My involvement with the Student Alumni Association is something that has shaped my time at Seton Hall the most. Out of all of my experiences at Seton Hall, It has given me the most opportunities. From SAA I have definitely learned how to manage myself and to lead other volunteers in the pursuit of one goal. Most importantly, I have learned the art of networking. When interacting with Alumni in various capacities it is important to be able to clearly communicate with them. One of the most important lessons I have learned is to take advantage of the skills of those around you. In your life you will meet people who can help you in tremendous ways, you just can't be afraid to ask them for help. RM: How has being a member of the Leadership Development Program impacted your time here at Seton Hall? RA: Being a member of the Leadership Development Program, I have learned that if you don't feel like you are getting what you want out of a program it is okay to move on. I feel like a lot of times people join many groups but are afraid to leave any. We only have a certain amount of energy and we need to learn when we have reached the maximum. RM: What advice would you offer to underclassmen to help them succeed in Stillman? RA: I would tell an underclassman to get out there and start networking. Join a few core organizations that you will get involved in. Get to know your professors, especially the ones that have experience in what interests you. In terms of job hunting, get out there and find internships. Get as many as you can, and try to diversify them
TODAY!
Rich Allen actively participates in activities that allows him to give back to the community as well as on campus.
to get as much experience as possible. Finally, and most importantly, don't be afraid to follow what interests you. College shouldn't be 100 percent about finding a job. Have as much fun as you can, and live for the experiences. You never know when you might find a passion from something you never thought before. RM: How has being a Resident Assistant here at Seton Hall impacted your experience here? RA: Being a Resident Assistant has given me so much that I could have never expected. Before I became an RA I never thought I would enjoy the job as much as I did, but it was just something that I fell in love with. The job of an RA gives you so much that no other jobs can give you. For me, I learn from specific situations and not in a classroom setting; so it has been the perfect way for me to get real world experiences in making decisions that affect more than just myself. It is the only job that I know of where you are given control of a variety of emergency situations at 3:00am. In the job you learn to think quick and stick to your decisions. The leadership skills that you gain from the job are something that can't be taught. It has given me a new outlook on responsibility and how one should look out for more than themselves. It has been great at teaching me how to work with a variety of departments and in a team environment. From the RA position I have met some of my best friends and had some of my greatest experiences. RM: What are your plans after graduation? RA: I am still looking at what to do after graduation. I have applied to a variety of jobs; IT jobs, non-profit jobs, and jobs at other Universities. I have realized that I am still not sure what I want to do with my life and that it’s okay. I'll just see where the journey takes me; eventually I will end up exactly where I want to be. Contact Rory at rory.manning@student.shu.edu
4th Colloquium in Supply Chain Management
Guest Speaker: Joe Curto President, New York Shipping Association, Inc. Jubilee, 6th Floor Faculty Library - Tuesday, March 2 Event Begins at 6:15 PM
TUESDAY, MARCH 2, 2010
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Young Entrepreneur Plans to Invest Future in Trading By Rory Manning, Stillman News Writer
Nicholas Magone, finance major and economics minor, has studiously made Dean’s List consistently throughout his four years here at Seton Hall. Currently, he is the Stillman Trading Room Director, participating in the managing of the Stillman Center for Trading Research and Analysis and he previously interned at a midsize accounting firm, Couto, DeFranco & Magone. He impressively founded his own business, Nick’s Exotic Detailing, which provides car detailing services to customers, where he created a business model, a marketing campaign, and has been monitoring profitability monthly, maintaining a remarkable 90 percent gross margin. Nick shares what he has learned from his four years at SHU with The Stillman Exchange. Rory Manning: Under your new position as President of the Investment Club, what changes have you made and why were they made? Nick Magone: As Co-President along with Jason Benson, we have made a significant number of changes to the club. First, we created templates that standardized our research to make equity analysis for our analysts easier and more efficient. Second, we are in the process of working with Professor Kinslow to transform the club into a Student Managed Fund. This will most likely transform the club into a class and give students the opportunity to manage real dollars. Lastly, we are currently holding an in-club trading competition where members are competing in the management of a $1,000,000 portfolio on Updown.com. RM: You are the new director of the Stillman Trading Room, what changes have you made to it? And what skills have you learned from this position that will help you after graduation? NM: As Director of the Trading Room, I coordinate ideas and future plans with Professor Elven Riley. The trading room has been given a face lift with new computers and software such as Telemet Orion. We are also in the process of adding an additional Bloomberg terminal. This position has taught me to adapt to a changing work
Photo courtesy of Nick Magone
Nick Magone plans to utilize his finance degree to pursue a career in investing.
environment and problem solving skills with respect to technology malfunctions. RM: What is an Assistant Index Maintenance manager, and what do you do? NM: I assist Professor Rothbort in the daily up keeping of his two food chain indexes. Basically, we update the indexes after market close by exporting data from Yahoo! Finance into excel. RM: What advice would you give to underclassmen to help them succeed in Stillman? NM: I would tell them to get involved in student organizations right away. This will help them gain knowledge outside of the classroom and begin to build a social network that will benefit them in the future upon graduation. RM: What are your plans after graduation? NM: Post graduation I plan to be an equity or options trader at a major financial institution. Currently I am waiting to hear back from a few companies such as Knight Capital, regarding a position as a trader. Contact Rory at rory.manning@student.shu.edu
Executives in Leadership: Beyond 9-5 Come find out what activities Wednesday, March 24 high-level executives participate Reception: 8:00 PM in outside of work to further Event Begins at 8:30 PM Jubilee Hall Auditorium their professional career goals.
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TUESDAY, MARCH 2, 2010
Ethics
THE STILLMAN EXCHANGE
School Spying with Laptop: Invasion of Privacy or Right of Ownership? “Parents of a Pennsylvania high school student are suing the school district for using a school-owned laptop to spy on the student while he was at home. Is this within the school’s right as the owner of the computer, or is it an abuse of technology?” David Guzik: Sophomore, Political Science Major
The Principal Should Stay After School In the Lower Merion School District of Pennsylvania, a question of privacy through the use of school computers has been posed. The school district, trying to solve the lack of computers in the district had created a sign out laptop system, where students would sign a form and pay for insurance in order to have a computer at home. However, the school had also implanted a new technology into the computers that allowed them to access the location of a laptop through the webcam if it was reported lost or missing. To access this camera, one would need to state a reason and request authorization to do so. Charges were filed against the assistant principal for spying on a boy at home through the webcam. The boy, unaware of this occurrence did things that were normal to his daily life. In addition to being watched, the assistant principal utilized a photo taken on the laptop to discipline the student for his “wrong doings.” Neither the boy nor the parents were informed that this sort of technology existed in the computers. A court case was filed against the district of directors and the superintendent for unlawfully tapping into the computer. This infringes on rights to privacy and it is unethical for the school to have been watching the boy for no apparent reason when his laptop was clearly not misplaced, but rather at home and in his use. The existence of this technology does seem to be rather helpful locating many missing laptops. In this case however, the laptops mechanism was not used for the right reasons. How the boy acts at home should not be compared to the way he acts in school. If there is misconduct in the grounds of this school surely disciplinary actions can be taken. However, he was in the privacy of his home and free to act how he wished. Also, the access to this webcam seems to have been too easy if the assistant principal was able to track this student at his own comfort. The use of such technologies should be re-evaluated by the district, as well as a creation of a stricter policy of allowing access to the webcam. This misconduct this time was on behalf of the assistant principal, not the student. Contact David at david.guzik@student.shu.edu
Caitlyn Cafferty: Senior, Psychology Major
1984, Anyone? A Pennsylvania youth and his family are taking his school district to court. The charge? The family claims that the district was using the laptops they had distributed to students to spy on them without consent. As I sit here and type on my Seton Hall University laptop, I can’t help but wonder how the district thought this was okay. Every single day, I do countless things while my laptop is open and in view that I would never want broadcasted to other people, let alone a school official. It is not a matter of illegality, but privacy. How many students would think twice about getting dressed in front of their laptop, or having private conversations with a friend while typing on their computer? Hardly any. This issue becomes even larger when the student’s age is taken into account. The school claims that they want to prevent their student’s from participating in illegal activities, but I would ask the district to consider their role. That should be the responsibility of the parents.
As I began to think about the different features used by this school district, I saw where they crossed the line. The implementation of a tracking device is understandable, since the school wants to protect their property and ensure it will get returned to them. I could even agree with the district using security settings to monitor internet use, for instance, while a student is supposed to be in class. I might even go as far as to say that the district would not be out of line to block certain types of websites in the interest of preventing harm to their computers. All of these security features would be related to computer usage, and fair, since the district does in fact own the computer. However, using the computers as a tool to spy on students activities outside of the classroom and away from the computer without their knowledge is simply unacceptable and disgusting. This type of technology cannot be put into the hands of just anybody, and should never be used without proper consent. As we delve further into the technology age, George Orwell doesn’t seem as paranoid anymore. Contact Caitlyn at caitlyn.cafferty@student.shu.edu
Christina Bosco: Senior, Marketing Major
Parents Should Have Read the Fine Print Recent allegations have been made by a student’s family in Pennsylvania claiming that the student was unknowingly being watched at home by a school official through his laptop’s webcam. Now, we can agree on one thing- using a webcam for unprofessional reasons, such as spying on a minor is not only disturbing but also a direct violation of privacy and in some cases, even the law. Let’s keep in mind though, that the laptops issued to the students in this district are of school property. So the question begins with whether or not the school has the right to secure the proper usage of its own property. My personal opinion is that it does. Not that that by any means justifies violating a student’s privacy by spying on him or her without proper consent. It does, however, explain the necessary security-tracking features that the school enabled on each laptop. It has been made clear that the school enables security software to ensure the proper usage and safety of each laptop. For instance, when students first receive their laptops, their families must sign an agreement that defining the usage of security features and stating the school’s ability to monitor the computer’s hardware when deemed necessary. The only suspicious activity and the underlying issue of this whole situation here is that the specific type of security software was not explained as well as it should have been, leaving most parents in the dark. For that reason, had the school official thought it necessary, she would not be so much as spying on the student’s activity, as she would be monitoring the hardware if any suspicious activity were to occur.
Photo courtesy of pcworld.com
Something, by the way, that cannot even be done without requested permission. For example, the district may choose to access a laptop if it is reported lost or stolen. If that were the case, the school would not be allowed to view the webcam’s history automatically, primarily because it does not have that ability to begin with. Instead, the official would have to request authorization from the IT department. Only after its request had been approved, would the official then be able to use the security feature to access the webcam’s footage. According to the district, this has happened 42 times in the past year, none of which involve this particular student. Case in point: the official could not monitor the student without a reasonable request and without IT being aware. As for not specifying the security-tracking features more clearly in the agreement form, the school has already admitted its mistake and as has disabled all related software. In the future, perhaps the school should clarify the specifications of every feature active on the laptops more thoroughly to avoid such problems. Yet in the end, the fact remains that it was impossible for the school to even access that sort of webcam footage without proper permission in the first place. Contact Christina at christina.bosco@student.shu.edu
Kimberly Bolognini: Sophomore, Journalism Major
Invasion of Privacy is Unacceptable Harriton High School of lower Philadelphia, Pennsylvania distributed 1,800 Mac laptops to students that included webcams. Families and students were not given a notice letting them know that the school district had the hardware to allow them to look at and listen to what students were doing outside of school. This disgusting act that the high school participated in was a serious invasion of privacy. The school district felt that they meant well buying the laptops and hardware to make sure students were not doing anything illegal. Meanwhile, did they realize that they were the ones doing something illegal? A lawsuit is in action stating that the district acted unlawful by using their ability to access students’ private lives through the webcam. On November 11, 2009 a student was told by the assistant principal that he was engaging in “improper behavior” at home. An image was taken of him with the webcam. If I were a student from this school district, I would be absolutely mortified. The thought of staff and board of education members watching me to make sure I was not doing anything illegal is absurd. They have no right at all invading in innocent students’ privacy. I’m sure many students change their clothes while their laptop is open in their room not even thinking anything of it. I really do feel bad for these students; they must feel so violated and embarrassed. The FBI is taking serious measures with this case to make sure the school district gets what they deserve. This school year, 42 laptops were stolen and 18 were found because of the built in tracking software which was another feature that students and parents were not aware of. Obviously, the school district is going to try and defend their actions. In my opinion, they are extremely wrong on so many levels. A school is supposed to make sure students feel safe and protected, not invading the little privacy they have at that age. They did not even notify anybody that they were going to be attacking student’s privacy. Overall, I feel that all staff that were aware of and took part of watching students should be fired and not be hired in any school district. It is going to take a while for students to feel safe and for staff members to win back the students’ trust.
Contact Kimberly at kimberly.bolognini@student.shu.edu
The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics. These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.
THE STILLMAN EXCHANGE
TUESDAY, MARCH 2 , 2010
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Editorials Budget Strains Stun Seton Hall Track and Field By Danielle Storm, International News Editor Seton Hall’s winning tradition in Track and Field was ended abruptly this past Wednesday as Seton Hall President Monsignor Robert Sheeran officially
announced that all four Seton Hall Track and Field teams will be eliminated as of July 1. While the track and field teams have had a rough season they bear a winning historical legacy. Track and Field Coach John Moon, who has dedicated the past 38 years
of his career to breeding Seton Hall champions, produced 71 All-Americans, seven NCAA champions, six Big East team titles and 19 Olympians. Following the announcement, a shocked Moon told the Star-Ledger, “Today was the first day I heard; I didn’t even have an inkling. There were no rumors. Nothing. I was really blindsided by this.” While Moon was offered a position as the cross country coach, it seems completely unprecedented and unprofessional to make such a drastic decision without first consulting those whom it will affect. Why was there no prior frank discussion about budgetary problems? If the Seton Hall community and the sports teams had been aware of the financial turmoil facing the institution, perhaps other solutions could have been proposed and enacted. In the few days since the announcement, the track and field teams have rallied together protesting the decision and discussing possible negotiation strategies. While it is understandable that Seton Hall, like the majority of Higher Education institutions in America, is facing a fiscal crisis, this hardly seems to be the best solution
for cutting back on budgetary spending. Moon questioned the decision stating “It’s not like we mismanage money, not in my program. We win Championships. We’re always Big East champs, what other sports have that at Seton Hall?” The athletes were particularly disappointed and perplexed by the unexpected news. As one anonymous track runner informed me, “I want to run but I don’t want to leave.” She indicated that many of the athletes consider Seton Hall and their team to be a family. For them, this shocking decision is an act of abandonment. While the administration is prepared to honor their scholarships, many want to continue in their sport. In the long run this decision may be financially logical but were there other options? Seton Hall, once a New Jersey track and field idol, now faces a scarred history with this vibrant sport torn swiftly from its legacy.
Contact Danielle at danielle.storm@student.shu.edu
YouTube Celebrates Five Years, Live Broadcasting to Come By Alex Cohen, International Business Editor
The Stillman Exchange The Official Business Publication of Seton Hall University Executive Board Managing Editor Gerardo Pecoraro Assistant Managing Editors Ian Mehok Margaret Reilly
Editorial Board
Assistant Editors Money and Investing Bryan Murawski Stillman News Beverly Makarios Ethics David Guzik
Money and Investing Ian Mehok
Sports Kayla Mjaatvedt Travis Tosoni
Stillman News Tiffany Dindial
Domestic News Morgan Tornetta
Ethics Caitlyn Cafferty
International News Kaitlin Tonti
Editorials Anthony Crisci Sports Rich Kimsey
Faculty Advisers Karen Boroff, Ph.D., Dean Michael Reuter, M.B.A.
Domestic News Rachel Ressler
E-ma il stillmanexchange@shu.edu
International News Danielle Storm
Website www.stillmanexchange.com
International Business Alex Cohen
Twitter stillmanXchange
Webmaster Christine Wotton
Fa cebook The Stillman Exchange
About The Stillman Exchange is the first undergraduate published business newspaper in the United States. The Stillman Exchange is published on a bi-weekly basis from the Center for Securities Trading and Analysis in the W. Paul Stillman School of Business at Seton Hall University.
YouTube celebrated its fifth birthday in February, and a new guest at the party was the Indian Premier League (IPL), the country’s top cricket competition. The invitation comes in the form of a deal in which the website would stream live cricket matches from the competition. There are a number of reasons why this move is beneficial to the site, the league, and the users involved. Firstly, YouTube will see greater advertising revenue as companies will feel more secure about the kind of videos with which their advertisements will be coupled. As the Sydney M o r n i n g Herald states, “It’s all part of Google’s attempt to steer YouTube towards a more controlled internet environment that will attract larger advertisers.” The next Toyota ad, for example, will be coupled with more professional content, rather than a Fail Blog video (although that may have been more appropriate). Secondly, successes like these will have a snowball effect, in which more and more professional content comes in to replace the “homemade” footage from cell phone cameras. I still remember the first video I ever saw on YouTube; it was a 16second clip called “dude falls through the ceiling.” In a very possible future, I could instead be watching videos called “New York Giants vs. Oakland Raiders” or
“District 9.” The idea has already been proven to have success, with a U2 concert in October being streamed to 10 million viewers on the site. Another benefit is, of course, to the IPL, which will attract greater global interest. Its teams include players from Australia, South Africa and England, among others. By moving to the internet, the IPL will now be able to reach fans across the globe, which will have built-in interests as they watch their hometown Photo courtesy of YouTube
heroes play abroad. Finally, the greatest benefit will be given to the users. There is no question that YouTube will continue to host the “viral” videos that have become central to pop culture in the 21st century. However, each person will now have the added bonus of watching live sports, concerts and popular television and movies. With this first step, in the form of the IPL, YouTube is not just celebrating its birthday, it is also growing up.
Contact Alex at alexander.cohen@student.shu.edu
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THE STILLMAN EXCHANGE
Sports Business
Olympics offer opportunity for NHL hospitality By Travis Tosoni, Assistant Editor The National Hockey League shut down its operations for two and a half weeks to allow 140 of its players the chance to play for their respective countries at the Olympic Winter Games in Vancouver. While future Olympic participation by the NHL is still uncertain, the league did its best to impress some key partners with a bit of Olympic hospitality. February 21 was dubbed “Super Sunday” by Olympic broadcasters, with three hockey games that pitted world powerhouses against each other. All three games were rematches of previous gold medals games. Russia played the Czech Republic in
a rematch of the Nagano final, the United States battled Canada in a replay of the Salt Lake City gold medal game, and Sweden clashed with Finland for the first time since the gold medal game in Torino. The NHL used these three games to treat current and perspective clients to a good time. The league hosted a party at Club Bud in downtown Vancouver. Stars such as singer Michael Bublé were in attendance for the NHL party. The league also had big-name partners such as Budweiser, Cisco, Energizer, Kraft, McDonald’s, Pepsi, Scotiabank, and Visa at the party. Aside from the party, the NHL also offered up tickets to all off the big games on
Sunday to its’ partners in attendance. The league was able to pull all of this off without the use of a hospitality agency of any kind. This was just the NHL being a great ambassador of the Olympic Games. The main reason the NHL has been such a major part of the Olympic hockey event is a credit to the proximity of the Games. Not only is Vancouver close in comparison to Torino, Italy, it also happens to be a city with an NHL team. The league was operating in familiar territory in Vancouver. Not only were corporate partners treated to a special time at the Games, the NHL also hosted its’ team owners and presidents, and even some celebrities. There were more than nine owners attending the USA-Canada
contest, along with actors, Seth Rogen and Will Arnett, and swimmer, Michael Phelps. At the Olympics, the NHL also was able to provide digital content for its website. “NHL All-Access Vancouver” offers exclusive interviews, as well as a behind the scenes look at the players during the tournament. The NHL’s presence at the Vancouver Games provided a great time for executives, sponsors, and hockey fans alike.
Contact Travis at travis.tosoni@student.shu.edu
Overexposure for athletes may cause problems for sponsors By Anthony Crisci, Editorials Editor
Sometimes overexposure can cause more problems than no exposure at all, for some companies. The sports industry is making an impact with athletes and their off field contracts. Before the modern day era of
sports, athletes practiced, played games, and went home, that was it. Nowadays athletes are making millions from companies that simply want their face on an advertisement. One of the biggest honors for an athlete is the Disney World parade, for the most valuable player of the Super Bowl. This season Drew Brees was the guest of honor at the parade, appeared in multiple Dove for Men ads, and was involved with the first lady’s campaign “Let’s Move”. These endorsements and sponsorships are producing a bad trend within the NFL and other major sport leagues. Overexposure is a significant problem, and athletes are earning upwards of 10 million dollars a year for appearing in a couple commercials. Peyton Manning currently leads the NFL in off the field earnings, with a reported $13 million. Manning earns this from companies including MasterCard, Sony, Gatorade, and General Mills’ Wheaties. There is no problem with exposing athletes, as it can promote products for companies in a very positive way. Unfortunately this exposure gets to be a little too much and causes potential dilemmas. One of those problems is that many people, because they see the famous face every day, simply remember the athlete and not the product he is promoting. One of the most famous athletes of the decade has been overexposed more than any other athlete in sports. Tiger Woods, ignoring recent headlines of infidelity, has earned around $90 million dollars annually from companies including Nike, Gatorade, and Gillette. The problem Woods is having now is regaining this exposure after recent headlines. The most important thing these athletes do is the way the produce on the field of play. But because of the popularity of superstar athletes there spokesman abilities are also pressured. There is a significant importance to being a contributor to the world outside of sports.
Brees added exposure from earning the Super Bowl MVP will force him to manage his personal brand closer to avoid potential pitfalls.
Contact Anthony at anthony.crisci@student.shu.edu
Athletes these days are more known for their exposure off the field than their actual ability on the playing field. Photo courtesy of boston.com
Verizon, Red Bull walk line with Olympic tweets and posts By Matt Bartel, Sports Business Writer Ambush advertising has been an issue at the 2010 Winter Olympic Games in Vancouver as web sites such as Twitter and Facebook are used to support company’s athletes. This problem exists because the companies in question are not official sponsors of the Olympic Games, but are still tweeting and posting about the athletes they sponsor, who are competing in Vancouver. Companies aren’t
allowed to mention the Games or athletes involved, whether they sponsor them or not, unless they pay official sponsorship costs, which total tens of millions of dollars. Both Verizon Communications and Red Bull are the latest of these ambush advertisers. Verizon’s Facebook has several posts about the Games, and their Twitter page titled Verizon Newsroom featured a tweet celebrating the U.S. lead in the medal count. Red Bull sponsors U.S. snowboarding and skiing superstars
Shaun White and Lindsay Vonn. Their twitter page has featured tweets wishing their spokespersons good luck and celebrating their accomplishments. The tweets have since been removed from the site. Both Verizon and Red Bull’s actions are clear offenses of the Olympics’ advertising policy. The Olympics aren’t the first sporting organization to deal with ambush advertising. This past season the NFL suffered from this form of marketing courtesy of the alcohol manufacturing company Diageo.
The manufacturer produces the Captain Morgan brand of rum, and promised $10,000 to the charity of a player’s choice if they incorporated the “Got a little Captain in You?” stance in their touchdown celebration. Philadelphia Eagles tight end Brent Celek caused controversy when he complied with their offer on a nationally televised Sunday Night Football game this past November. The International and United States Olympic Committees haven’t contacted any of the companies about the possible infrac-
tions, but the removal of the postings and tweets show that the companies are wary of possible repercussions. The future of ambush marketing in sports may be unclear as rules surrounding it are ambiguous and undefined. Until these matters are resolved companies and athletic commissions will continue to be at odds and be unable to take action or reach an agreement on this growing discrepancy. Contact Matt at matthew.bartel@student.shu.edu
Sports Business
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TUESDAY, MARCH 2, 2010
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“Dewmocracy” campaign uses sports to increase brand awareness By Robert Szeluga, Sports Business Writer Mountain Dew has found a new and edgy way to market its product in what it calls its second “Dewmocracy” campaign. The campaign focuses on fan interaction, where fans decide new aspects of its future products. The campaign also encourages fans to give feedback on the new flavors through online sources such as Facebook, Twitter, and 12seconds.tv. The idea began in 2009, when Mountain Dew's marketing team decided move their entire marketing budget online. Mountain Dew gains much of its media attention through sponsorship of sports events nationwide, most prominently extreme sports. Therefore, it may not be surprising that the company identified that its average consumers were actively-online males between the ages of 18 and 39. Athletes sponsored by the company include skater Paul Rodriguez and snowboarder Danny Davis. The company used this information to its advantage using a marketing technique known as “Crowdsourcing”. The central idea behind this is to let fans cover many of the marketing aspects for a company, in this case through online media giants. The campaign kicked off with a contest to receive home-tasting kits of seven potential flavors. Consumers responded with 110 videos submissions and 150 e-mail submissions vying for the kits. Fifty winners were chosen from the group, all of whom were asked to recount their tasting experiences on YouTube. Mountain Dew then asked its consumers to vote on the color, names, and packaging designs of the chosen products. The colors with the most votes was announced via a live Ustream event on Facebook, names were determined by number of followers on Twitter, and packaging design was determined through votes on the company’s website. Advertising then came into question, as the impending products were results of fans, not Mountain Dew. The company once again turned towards online media, holding a contest on 12seconds.tv. Over 200 ads were submitted and three small shops won out.
Photo courtesy of ESPN The Mountain Dew Tour allows the brand to use extreme sports to market to the youth demographic and increase the view of the soda.
Throughout this entire process, Mountain Dew representatives claim that not a dollar has been spent on media, and that it has been 100 percent earned media. “Dewmocracy” is a first for beverage-marketing and a model for how a package-goods marketer can get consumers involved, if they're willing to take the risks. The three fla-
vors will be available to all consumers starting in April of this year. Contact Robert at robert.szeluga@student.shu.edu
MLS, players still at odds over structure of new CBA By Scott Kim, Sports Business Writer
play,” Klein said. “I wouldn't even take away the rights from [New England] to be able to keep that player, but I believe a veteran player in our league should have some freedom of movement.” The league has given in on the fact that they are willing to provide more guaranteed contracts and fewer one-way league options, but this isn’t enough for the players because they feel like players such as Steve Ralston deserve better treatment than what he has been given. The players in the MLS are being denied a basic right that players in sports leagues across the world have. “You have a guy who gets terminated, who more or less gets fired, and his former employer holds his rights, so his next employer has to give compensation,” Los Angeles Galaxy player Todd Dunivant said. “It just doesn't make sense to us.” If the two sides aren’t able to come closer upon this issue and no agreement is reached by Thursday, the MLS is likely to have its first strike ever to deal with.
With the collective bargaining agreement between the Major League Soccer players and the league ending this upcoming Thursday and no deal in sight, the players are alarmingly close to going on strike. Both sides seem to be holding onto principles that they believe must be put into the new agreement and neither side seems willing to budge on those aspects. If nothing does happen, the players will go on strike this Thursday. The season doesn’t start until March 25, though, so if they were to go on strike, no games would be missed until then. This gives the two entities a bit more of a grace period to work a deal out, but if the league holds it stance on not allowing limited free agency within MLS, this might not matter. The players’ most desired new provision that they want inserted into the new collective bargaining agreement is to implement some form of limited free agency. Under the current rules the league operates as a single entity and negotiates all player contracts. Chris Klein, a current player as well as financial adviser for the MLS, uses what has happened to Steve Ralston as an example as to why free agency needs to happen. “A structure that I would [like to] see is a player who has played for a while in this league, take Steve Ralston, would have the opportunity to decide where he wants toPhoto courtesy of ESPN
Contact Scott at william.kim@student.shu.edu
South Africa assures globe it will be ready for World Cup By Ian Baker, Sports Business Writer The most popular sporting event in the
Photo courtesy of BBC
world, the World Cup, is quickly approaching and many are skeptical as to whether or not South Africa will be ready to host the
event in time. FIFA General Secretary, Jerome Valcke, believes that the facilities will be ready on time and will more than adequate for the teams competing in the 2010 World Cup. He assured skeptics that the facilities have all the amenities that modern hotels have. Valcke also recognized that there are still tickets to be sold. Not only are all the camps not finished being built, Soccer City in Johannesburg, the site of the Opening and Final matches, is not yet complete. FIFA ensures that they would win the race against time and that all 32 team camps and Soccer City will be ready in time for the World Cup. After a previous unsatisfactory visit to the English training camp at Royal Bafokeng Sports Campus, Coach Fabio
Capello returned to the site of the English camp to see if he would have to switch camps at the last minute. However, after his most recent visit, he is content with the condition of the camp. Capello is happy with the improvements being made to the camp. He believes the pitches will be in good shape come the World Cup. He thinks the hotel is nice and suitable for his team and he said that the medical center would be done in two months. Many still remain skeptical on whether the camps and Soccer City will be ready in time for the World Cup but only time will tell if South Africa can pull through and be ready to host the 2010 World Cup. Contact Ian at ian.baker@student.shu.edu
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Stillman Sports
THE STILLMAN EXCHANGE
Seton Hall cuts men’s, women’s Track & Field teams By Kevin Fountain, Stillman Sports Writer This past Thursday, Seton Hall students were put into complete and utter shock when President Monsignor Robert Sheeran announced a plan to cut costs that nobody had seen coming. In an e-mail to the University community, Sheeran regretfully informed the Seton Hall community that “Four athletic teams, men’s and women’s indoor and outdoor track and field, will be eliminated, effective 1 July 2010.” Due to budget restraints, spending cuts, and plans to refinance all departments on and off campus, Seton Hall will be removing these four teams from their NCAA arsenal, leaving them with only 14 competing teams in the NCAA. Just as with any major change to the university, this announcement caused a major uproar among students, and even more importantly among the athletes themselves. Fans of Seton Hall athletics could be heard campuswide making remarks about the decision, not being afraid to voice their opinions, and even went as far as creating a
Facebook group “Save Seton Hall Track and Field.” For the Track and Field head coach, John Moon, this season will mark the end of a 38-year career, saddened to see his four champion teams removed in such a manor. With athletes enraged from the cuts, the university has taken steps in order to assist their needs as stated in Sheeran’s announcement. “We will certainly honor the scholarship commitments we have made to current student-athletes. If any decide to transfer to another university we will allow them an immediate release, according to National Collegiate Athletic Association rules,” it read. With the removal of this program, Sheeran looks to adhere to NCAA Title IX rules to maintain 14 sports team, and add a Seton Hall women’s golfing team next year.
Contact Kevin at kevin.fountain@student.shu.edu Photo courtesy of SHU Athletics
Canada’s top Olympic Games Stillman Sports curler compared to Jordan Super Seven By Anthony Holesworth, Stillman Sports Writer The Winter Olympic Games offer a range of interesting sporting events of varying popularity. Some of the most popular events are figure skating, hockey and, most recently, snowboarding. Some big names in the Olympics are Shaun White, Sidney Crosby, and Apolo Anton Ohno. Now, curling is a sport that is often forgotten and ignored by today’s sports fans. However, this year’s Olympic host country, Canada, claims curling as its second-most popular sport behind hockey. In fact, the country even has its own curling superstar - the 43-year-old Kevin Martin. Kevin Martin, known in the curling world as “Old Bear,” has been in the sport of curling for three decades. He has a world title, three national titles, and countless other wins and honors as a curler. He has been referred to by opponent, U.S. curler John Shuster, as curling’s
Michael Jordan. All that’s missing in the legacy of Kevin Martin is Olympic gold. In all of Martin’s matches, chants of “Don’t wake the bear! Don’t wake the bear!” have been heard from the crowd directed at opposing curling teams. Last Saturday night, in a curling match against England, Canadian fans broke out into a spontaneous rendition of “Oh, Canada.” In Martin’s home country, with the Canadian fans whole-heartedly supporting him, the time has never been better for Martin to get that Olympic gold medal he has been waiting for. The attainment of the curling gold medal would put a final feather in Kevin Martin’s cap, and would put a storybook ending on the legendary career of Canada’s “Old Bear”.
Contact Anthony at anthony.holesworth@student.shu.edu
MLB taking steps to eradicate HGH from all levels of the game By Tony Cramond, Stillman Sports Writer Major League Baseball is taking a big step by enforcing blood testing for HGH in the minor leagues. This is something that has never been done before by any professional sport. The league is trying to get any possibility of cheating out of the sport. This is a major step for all sports that are trying to crack down on participants that are trying to get an edge in their sport. This step is being taken to deal with the numerous amounts of reported HGH users in baseball. Testing for HGH is not something that has been a problem for all of the major sports up until now. Blood tests have been introduced to sports thanks to the 2004 Olympics, but major sports have questioned the validity since there has never been a positive test. That all changed Monday when the British Anti-Doping authority announced that British rugby player Terry Newton tested positive for HGH, and as punishment, he will serve a two year ban from the sport. Many major league baseball players have stood up and said that they are will to summit to blood tests so that they can clear their name and get the cheaters out of the game. Players like Bronson Arroyo, Derek Lee, and Ryan Dempster have said that they would all welcome the new policy. World Anti-Doping Agency board member Gary Wadler said MLB has long been negligent on HGH testing. “There was always a valid test, but now that we have a positive, their argument no longer carries weight,” Wadler said. Hopefully now with this positive test, MLB will be able to realize that this kind of testing actually works and that they can finally try to clean up the sport. Contact Tony at anthony.cramond@student.shu.edu
7. Purdue basketball will lose junior forward Robbie Hummel for the rest of the season due to an injury to his ACL during the Purdue versus Minnesota game. The team will now face difficulty in attempts to win the Big Ten title, gain the top seed in the NCAA tournament, and reach the Final Four. 6. Viktoria Rebensburg takes Germany’s 8th overall gold medal in the women’s giant slalom, breaking a three way tie with the U.S. and Canada. U.S. team member, Lindsey Vonn was fastest through the third intermediate run, until she skidded off course and crashed into a safety net, breaking her finger. 5. Mark McGwire is upset over his brother, Jay McGwire’s new book about his use of performance-enhancing drugs. McGwire restated that he only took the drugs to heal from injuries. McGwire doesn’t believe reconciliation is possible with his brother after this revelation. 4. The NFL will be giving a baseline brain activity exam, called the ImPACT test to all 329 players at the NFL scouting combine. With this test, the league will be able to evaluate players and collect data about repeated hits to the head in a more standardized way. 3. The U.S. women’s bobsled team earned the bronze medal last Wednesday night. This is the third consecutive year in the Olympics that the team has earned a medal. 2. Americans claimed the gold and silver medals in the Nordic combined large hill competition. Billy Demong took gold and Johnny Spillane took silver for the U.S. men’s team. This was Spillane’s third silver of this year’s Olympic Games. 1. Derek Jeter of the New York Yankees is entering the final season of a $189 million, 10-year deal. He’ll have to wait until the end of the season to make another deal with the Yankees because of team policy. He only wants to play for the Yankees and has no interest in being a free agent.
Russian Biathlon faces concerns over international leader By Kayla Mjaatvedt, Assistant Editor The Russian Biathlon team has been faced with a number of questions and scandals during this Olympic Games in Vancouver, Canada. Within the last year, more than six of the Russian Biathlon and Cross-Country athletes have tested positive for synthetic hormones in their blood. This has led to concerns that the Russians aren’t taking enough steps to prevent doping among their elite athletes in these sports. In addition to dealing with the specter of this doping issue, of a more serious concern to the global Biathlon community is the continued presence of Alexander Tikhonov, second in command at the International Biathlon Union, the sport’s governing body. Tikhonov had won individual and team medals in Olympic Games from 1968 through 1980, and was a celebrated biathlete in the former Soviet Union. In 2000, Tikhonov was arrested and charged, along with his brother, of arranging the murder of a local governor. His brother was convicted of the crime and in 2002 and served a four-year sentence. In the meantime, Tikhonov fled to Austria. While in exile, he was elected to the vice-president position of the international biathlon union. In 2006, the American representatives tried to run a candidate in opposition to him, but Tikhonov returned to Russia for the vote and won a second term. While in Russia, the government again took up his case, and in 2007, Tikhonov was convicted of arranging the murder and was sentenced to three years in prison. However, under the terms of an amnesty law passed in 2000, he was immediately released. Tikhonov has always maintained his innocence and alleged that his arrest was a political plot. Through the amnesty law he is now a free man. Many members of the International Biathlon Union are concerned about the reputation of the organization suffering through the association of a convicted criminal. They feel that Tikhonov’s case reflects poorly on their sport, which is extremely popular in countries like Russia, Norway and Germany. There has been a concerted effort made to diminish Tikhonov’s influence on the Union and many believe that he will lose in his bid to be re-elected in the fall of 2010. It will be a situation worth watching. Contact Kayla at kayla.mjaatvedt@student.shu.edu
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Domestic News
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Vermont Senate to Close Nuclear Power Plant News Briefs By Amanda Genabith, Domestic News Writer
that a plant leaking tritium and cobalt is providing clean energy.” However, the owner of the Vermont Yankee reactor, Entergy Corp., a New Orleans-based company, released a statement which said “we remain determined to prove our case to the legislature, state officials and the Vermont public. The plant is vital, safe and reliable source of clean power in Vermont… and we will continue
more fuel to opponents of nuclear power. Jim Riccio, Greenpeace’s nuclear policy analyst, stated that “the nuclear renaissance The Vermont Senate decided to shut is dead on arrival. We can retire old, down one of the state’s nuclear power decrepit, and leaking reactors like Vermont plants on Wednesday, February 24, in the Yankee and help usher in the energy revoluwake of President Obama’s speech on tion that America needs.” Tuesday, February 16, in which he disIn order for the Vermont Yankee power cussed his plan to allocate government plant to be relicensed, both the state House money to build two new nuclear power and Senate would need to approve of it. plants in Georgia. Photo courtesy of cleanenergy.org With midterm elections coming Instead of renewing the up, relicensing may become a poslicense of the Vermont Yankee sibility if Republicans take the reactor, the state Senate voted 26 majority from the Democrats. to 4 to let the current license finOpponents of the plant, however, ish and retire the plant in March have expressed concern about of 2012. Entergy’s plans for a spinoff comSafety concerns were cited pany that will allow it to sell stock as the main reason for the decion Wall Street. Such a move might sion. In 2007, a cooling tower allow the corporation to escape collapsed and a tritium leak was legal liability for any problems the discovered. plant may have. Prior to this discovery, two The Nuclear Regulatory state panels had heard testimony Commission will also be investifrom plant officials who claimed gating the company’s false claims, that no underground pipes at the but was prepared to give the plant reactor could leak tritium, a another 20 years. Of the 104 radioactive isotope which if connuclear power plants in the U.S., A cooling tower at the Vermont Yankee nuclear reactor collapsed in sumed in large amounts, could 59 of them have been relicensed 2007. result in cancer. for another 20 more years and there There is now a criminal investigation communicating to…keeping the plant oper- are still 19 more, including the Vermont regarding this testimony. Though the leak ating beyond 2012.” Yankee reactor, that are waiting for relihas not been determined to have contamiNews of the closing comes just a week censing. nated any drinking water, it was a deciding after the announcement of President It has been 20 years since the last factor for the Senate. Obama’s new plan to spend $8.3 billion to nuclear power plant shut down in Peter Shumlin, president pro tem of the open two more nuclear plants in Georgia. California. state Senate, said, “It’s pretty tough to con- The plan has been widely debated, and the Contact Amanda at vince the environmental community here closing of the Vermont Yankee has given amanda.genabith@student.shu.edu
Pentagon Moves to Allow Women to Serve Aboard Submarines By Morgan Tornetta, Assistant Editor
on a submarine alone—there would always be at least two women on the vessel at a time. Some suggestions include having a female junior officer bunk with a female senior officer, who would act as a kind of mentor. The same exclusions that currently apply to pregnant women on surface vessels
“I strongly support the Navy's decision to integrate women into our submarines forces. We want the best and brightest on board our submarines,” Sen. Jack Reed (DThe Pentagon has approved the lifting R.I.) said Wednesday, Feb. 23. “Female of a long-standing ban on women serving sailors are already serving, and in some aboard U.S. Navy submarines. cases commanding, every other type of Since the United States first began its naval ship. Attitudes toward women serving submarine force in the early 20th in the military have century, women have not been Photo courtesy of CBS News changed and our policies allowed to serve on a submarine, must change too.” even after being integrated into the Vice Admiral Kenneth Navy and onto other vessels. This Carr, former commander of would mark the first time in Navy the Atlantic submarine history that women are allowed to force, disagreed: “My feelserve on submarines. ing is, as long as the Navy Defense Secretary Robert can man them with men, Gates sent a letter informing you shouldn't go looking Congress of the Navy’s intention for women to man subs.” to allow women on submarines Few sailors seem to be sometime next year. against this change in poli“This is fundamentally a Navy cy. Many feel that the initiative, which they recently demands made by life servbriefed to the secretary of defense. ing on a submarine is keepGates supports it and he notified ing interest in the assignCongress of the Navy's plans,” ment low, and that barring Pentagon Press Secretary Geoff women from serving on Morrell said. submarines is needlessly Congress, upon receiving the limiting reducing the The Pentagon decided to allow women to serve aboard submarines, which are letter, has a 30 day period in which number of qualified currently staffed only by men. to discuss the Navy’s new proposal, sailors. and can potentially pass legislation barring would apply to those on submarines. Representative Ike Skelton (D-Mo.), the policy change. This is part of an initiative to give chairman of the House Armed Services Women would be allowed on gradually, women even more chances to have an active Committee, believes that the change in polwith women first being allowed on larger role in the military. Though women are still icy, which would require adjustments to submarines and later, then on to smaller not allowed to fight on the front lines, poliexisting submarines, such as separate bunkones. Also, the process would start with allowing female officers on the vessels first, cy changes like this will give them more ing areas and bathrooms, are going to be difficult, but not impossible, for the Navy to as officers are separated from enlisted per- opportunities than they had before. However, opinions are divided on letovercome. sonnel when on a submarine. ting women below the surface, despite supContact Morgan at There would also be restrictions on the port from the Pentagon. morgan.tornetta@student.shu.edu plan. Women would not be allowed to serve
Paterson Abandons His Campaign New York Governor David Paterson announced the termination of his campaign for another term as governor, which only recently began in earnest. This follows reports that Paterson had pressured a woman to drop allegations of domestic abuse against one of his top aides. He says this move was “being realistic about politics,” but also swears that he has never abused his office and is innocent of any allegations. Paterson took over the governorship after Governor Eliot Spitzer resigned in the aftermath of a prostitution scandal.
White House Social Secretary to Resign President Obama and the First Lady have issued a statement confirming the resignation of Social Secretary Desiree Rogers. There are debates as to whether or not the gate-crashing of the administration’s first state dinner has to do with Rogers’ resignation. How long Rogers’ departure has been in the works is unknown. Rogers, who was one of a tight group of advisers Obama brought with him from Chicago, will be returning to the private sector.
Whales Perform After Attack on Trainer On Saturday, February 27, the orcas at Sea World performed for the first time since trainer Dawn Brancheau was attacked and killed by the whale Tilikum. Though the show is still being performed, there have been some major changes made to the performance. The trainers are no longer allowed in the water with the whales, meaning they will no longer surface from underwater on the whales. Tilikum has been involved in the death of two trainers. He will not be released into the wild, which has been described as an unviable option for a variety of reason.
University of California Campus Struggles with Race Relations A group of students organized a cookout in honor of Black History Month at the San Diego campus of the University of California, which some have called racist. Students were invited to wear fake gold teeth and baggy athletic clothes, in the same way rappers do, as well as eat watermelon. The situation became more heated when a satirical campus television station aired clips from the event and used a racial epithet to denounce black students. The events have caused tension on the predominantly white campus.
Iris Scans May Be Used to Prevent Mistaken Prison Releases The federal government will pay for iris scanners to be placed in prisons in hopes to create a nearly impenetrable security system. The U.S. Justice Department has given a $500,000 grant to the National Sheriff’s Association, who is breaking it down into smaller grants to give to 45 agencies across the county. This comes after a prisoner serving three life terms for murder managed to escape by impersonating his cellmate. He was arrested days later.
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Second Amendment May Apply to State Laws By Liam Brereton, Domestic News Writer The Supreme Court this week will review a controversial handgun ban in Chicago, Illinois, and its suburb of Oak Park, in order to determine if the right to own a gun is a state as well as a federal right. Though the right to weapons is protected by the Second Amendment, it has not been determined if it applies to states or only federal laws. The argument, which will be heard on March 2, will allow the Court to determine the validity of gun control laws that are stricter than those proscribed in the Constitution and federal legislation. In 2008, the Supreme Court ruled that a total ban of hand guns by the District of Columbia was unconstitutional. Washington, D.C., however, is a federal enclave, which meant that only federal laws were subject to the ruling. Over a century ago, a Supreme Court ruling held that the Second Amendment applied only to federal laws. Many states, including New Jersey, have laws that place limits on the sale, possession and use of firearms. Some states, including Massachusetts and Virginia, are reexamining gun laws after the 2008 ruling, using it to loosen restrictions. In the last few weeks of February, Virginia’s House of Delegates voted to repeal its ban on buying more than one handgun per month. Since Obama took office, many conservative states have prepared for potential federal structures by enacting
Domestic News
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Supreme Court Puts Time Limit on Miranda Rights attorney to suggest that Shatzer was coerced into confessing. The Court of Appeals of Maryland ruled Shatzer’s favor. The Supreme Court ruling overturned the court’s deciIn a 7-2 decision, on Wednesday, February 24, the sion. All nine justices agreed that Shatzer’s statements proSupreme Court ruled in favor of allowing police to interro- vided a substantial basis for his conviction, but only seven gate a suspect who previously invoked his or her Miranda of the nine judges agreed upon the 14 day period. rights, as long as 14 Photo courtesy of the Associated Press Justice Antonin Scalia, who wrote the opinion days have passed since of the majority, said, “That provides plenty of time his or her release from for the suspect to get re-acclimated to his normal police custody. life, to consult with friends and counsel, and to Under the Miranda shake off any residual coercive effects of his prior rights, a suspect has the custody.” right to remain silent Justices John Paul Stevens and Clarence and the right to a lawyer. Thomas disagreed. While Justice Stevens believes This ruling will allow that the 14 day break was too short, Justice Thomas second questionings by argued that it was too long. police. In his filed opinion, Justice Stevens said, “The This ruling was most troubling aspect of the court’s time-based rule based on a case involvis that it disregards the compulsion caused by a secJustice Anthony Scalia wrote the majority ing a Maryland man ond (or third, or fourth) interrogation of an indigent opinion. who was suspected of suspect who was told that if he requests a lawyer, child abuse. one will be provided for him.” In 2003, Michael Shatzer was in a Maryland state Jeffery Fisher, a member of The National Association prison when he was visited by the police. Having received of Criminal Defense, and a Professor at Stanford a tip that Shatzer had sexually abused his 3-year-old son, University, said, “ When you have a two-week merry-godetectives attempted to question him. However, by invok- round that the police can now run, there has to be a concern ing his Miranda rights, Shatzer chose to remain silent and that if the guy invokes the right to counsel and the police requested a lawyer. keep coming back, that right doesn't mean much.” After new evidence was discovered in 2006, Shatzer According to USA Today, 37 states and the was re-interrogated and he “waived his Miranda rights,” Department of Justice were in favor of Shatzer’s convicadmitting that he had abused his son. tion. Shatzer’s attorney attempted to dismiss his client’s statements by citing the 1981 Edwards vs. Arizona case, Contact Padmavathy at which states that a person cannot be interrogated if counsel padmavathy.sonti@student.shu.edu has been requested. This violation compelled Shatzer’s By Padmavathy Sonti, Domestic News Writer
“A well regulated militia being necesBusy Week in Washington Bears No Fruit sary to the security of a free State, the right of the People to keep and bear arms shall not be infringed” -Second Amendment, United
They will continue to discuss the bill next week, though Democratic leaders do not believe it will gather It has been used only 22 times before – 16 of them by enough votes to pass. the GOP – to pass major legislation, but Republicans The Senate, however, does not have the option of conunsuccessfully attempted to wrest a promise from Obama tinuing negotiations into next week, as a single senator that the Democrats would not resort to its use. Senator from Kentucky effectively killed funding for several measMcCain stated that passing the bill using such tactics would ures meant to bring down the unemployment rate. be “cataclysmic”. Senate Democratic leaders had hoped to renew the Democratic leaders also came under fire from their funding for programs that include unemployment insurpeers on Thursday, as it became clear that a jobs creation ance, COBRA health benefits and federal flood insurance, bill sent back to the House from the Senate had been sig- on Friday, February 26, but Republican Senator Jim nificantly changed, Bunning blockaded to the dissatisfaction the measure. of both Republicans “I am going to and Democrats. object every time Originally a because you will not $154 billion bill pay for this and you passed by the House propose never to pay and meant to create for it…We have a jobs, the piece of legdebt of $14-plus trilislation has been lion… We cannot returned from the sustain it,” said Senate as a $15 bilBunning. lion bill which is He proposes to more about tax cuts use unspent than jobs. Troubled Asset Chair of the Relief Program Congressional Black (TARP) funds to pay Caucus Barbara Lee for the program Photo courtesy of CNN (D-CA) said, “We extensions, but implore leadership to would not propose stop calling this ‘the Representative Jim Bunning single-handedly blocked funding for multiple federal a vote for an programs meant to lower unemployment rates. jobs bill.’” amendment, though For Republicans, even the $15 billion measure costs the chance to do so was offered by Senate majority whip too much and requires too many compromises in terms of Richard Durbin (D-IL). Bunning said he might lose if he budget and deficit control. For Democrats, the bill does not brought the matter to the floor. do enough to directly create new jobs – $13 billion of the Durbin issued a statement saying that the Senate will bill is designated for tax cuts for business owners who hire attempt to renew the funding as soon as possible after the new employees—and gives too much money to highway weekend, in order to minimize any effect or disruption for creation in certain states. over 1 million people utilizing unemployment benefits. Chairman of the House Transportation and Infrastructure Committee, Representative James Oberstar of Minnesota said the section of the bill which reauthorizes a highway bill would give California, Illinois, Louisiana Contact Rachel at and Washington, among others, a disproportionate amount rachel.ressler@student.shu.edu of funding. ...continued from page 1
States Bill of Rights legislation protecting the Second Amendment rights of their residents. Montana and Tennessee have passed laws that declare that guns made, sold and used within state borders are not subject to federal jurisdiction. In at least three other states, similar legislation has been discussed. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives has informed Montana and Tennessee that federal law still takes precedent over their state laws. Advocates for stricter gun control have expressed disappointment at the rapidly loosening laws. Expected to be a supporter of tougher laws, President Obama has not passed the gun control laws he proposed while campaigning. Instead, he has signed bills loosening restrictions on firearm possession in national parks and on Amtrak trains. Despite exhortations from organizations like the Brady Center to Prevent Gun Violence, the Supreme Court is expected to say that the Second Amendment does apply to state laws as well as federal laws, which would take away the right of states to make laws limiting gun possession.
Contact Liam at liam.brereton@student.shu.edu
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TUESDAY, MARCH 2, 2010
International News
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Taliban’s No. 2 Furor over Dubai Killing Grows Amid Chile Rocked by Earthquake Man Captured Accusations of Identity Theft By Ashish Vaid, International News Writer A Pakistani judge recently denied the extradition of the highest Taliban member ever captured to both Afghan and U.S. authorities. However, lawyers are continuing to work towards finding an appeal. Capturing the Taliban’s number two in command, Mullah Abdul Ghani Baradar, demonstrates a change in Pakistan’s cooperation with the United States. Baradar was reported to have been detained by a joint U.S. Pakistan intelligence operation in the Pakistan city of Karachi around February 15; though it may have been earlier as all details have yet to be released. Baradar was appointed to his position by Mullah Omar in 2002, and his responsibilities included running Omar’s military strategies. He was assumed to be operating along the Afghan Pakistan border until the recent increase in drone attacks prompted him to find sanctuary in Pakistan. For security reasons, detailed information about his capture has also not been released. He is currently being held for interrogation in Pakistan by U.S. and Pakistani agents. Even though the President has ordered that Baradar not be subjected to harsh procedures while imprisoned, the Pakistani methods have a reputation for their brutality. The capture of this top commander is not only considered an important breakthrough on the war on terror, but also a start for growth in US Pakistan relations in regards to Afghanistan. Analysts believe Baradar’s capture could provide a major blow to the Taliban due to his knowledge of their strategies, the links they held within Pakistan, and his close relationship to Osama bin Laden. Another positive factor resulting from Baradar’s capture is the proposed talks the U.S. and Afghan governments seek with Taliban leaders who are willing to conform to the Afghan constitution. Visiting U.S. Senator John Kerry, who is the chairman of the Senate Foreign Relations Committee, said the capture of the Taliban's top military commander is proof of a "stronger cooperative effort" between the United States and Pakistan. He said the arrest is a signal that Pakistan will pursue militants “who engage in violent extremist acts" against its people. For American intelligence agencies this arrest comes only a few weeks after the CIA suffered a devastating event as they lost seven operatives at their Afghan base to a suicide bomber who posed as a double agent. These events coincide at a crucial point as offensive operations are concluding in the central Helmand province as part of Operation Moshtarak. The joint venture which involves American, British, Canadian, Danish, and Estonian forces are seeking to eliminate the last insurgent controlled areas in the Helmand province. Forces are currently in the holding phase of the operation which has been underway for two weeks.
By Raphael Baseman, International News Writer
places at risk the security of our citizens.” French magistrates will also hold investigations into how forged French passports came to be Australia has joined the growing list of used, while the European Union condemned the countries to register outrage at the use of fraudu- use of EU passports. This identity fraud raises concerns regarding lent European passports by suspects in last the integrity of the entire passport system, not to month’s killing of a Hamas leader in Dubai. mention the danger and emotional impact this On Wednesday, Dubai police added 15 suswill have on the lives of pects to the growing list Photo courtesty of nytimes.com those whose identity has of persons involved in been stolen. the planning and execuIsraeli diplomats, in tion, making for a total reaction to the outrage of the of 26 suspects. Suspects five countries have respondinclude 12 with British ed that there is no proof of passports, six with Irish, Israeli involvement in four with French, three Mabhouh’s death. Michael with Australian, and one Oren, Isreal’s ambassador to with a German. Six of the United States said that the British citizens livDubai is the only country ing in Israel claim they that has accused Israel of have no knowledge of involvement, and asserted, the incident and believe “I personally know nothing their identities to have about it.” been stolen. While Israel has Governments of all declined to either confirm or five countries have deny any role in the killing, declared all the passDubai police have said the ports to be forgeries, murder of Mahmoud aland have conducted Mabhouh in a Dubai hotel investigations into their on January 20 was almost use. Mahmoud al-Mabhouh, assasinated while residing certainly carried out by As of Thursday, the at a hotel in Dubai Israel’s Mossad agency. Australian government They said the hit appears to have been carried out summoned the Israeli ambassador in Canberra, by a professional squad using disguises including Yuval Rotem, to explain how Australian passports came to be used in the act. "I made it crys- wigs and false beards. All the suspects immedital clear to the ambassador that if the results of ately fled the country by various means, and none that investigation cause us to come to the conclu- have been apprehended. Al-Mabhouh was the founder of Hamas’ sion that the abuse of Australian passports was in military wing, the Izz al-Din Qassam Brigades, any way sponsored or condoned by Israeli offiand had participated in the kidnapping and murcials, then Australia would not regard that as an der of two Israeli soldiers in the 1980s. Since act of a friend,” said Australian Foreign Minister 1989, al-Mabhouh had lived in Syria, and while Stephen Smith. in Dubai was suspected to be negotiating an arms Most of the countries listed have actively deal. Dubai police said an investigation reveals condemned use of their passports in the assassihis death resulted from electrocution followed by nation, with the Irish Foreign Minister Michael strangling. Martin saying, “Whoever did this forged the Contact Raphael at passports. We are angry about that because it vioraphael.baseman@student.shu.edu lates the integrity of our passport system and
Mexican Drug Lord Faces Secret Sentencing by American Judge By Danielle Storm, International News Editor
On February 24, the infamous Mexican drug lord, Osiel Cardenas Guillen, was sentenced to 25 years in prison by an American Judge, Hilda G. Tagle, in a secret sentencing in Houston. Cardenas pleaded guilty to money laundering, drug dealing, and the attempted murder of federal agents. He also surrendered $50 million in personal assets. Before announcing his sentence, Judge Tagle stated bluntly, “Kidnappings, extortion, gun battles in the streets, a desperate economy, innocence lost — that is your legacy to your country, to our communities on both sides of the border, and to society.” Cardenas expressed his remorse before the court and apologized to Mexico, America, his family and the families affected by drug trafficking. Since his arrest, he has been cooperating with U.S. drug experts, offering information regarding the structure of the cartel but he has not given any names. Contact Ashish at While Cardenas sentencing marks a victory ashish.vaid@student.shu.edu in the war on drugs, his brutal armed force, Los
Zetas, continue trafficking drugs and now additionally specialize in the bulk sale of counterfeit merchandise and the kidnapping of Central American migrants. At the request of the Prosecutor, a number of documents in the case have been sealed making them unavailable to the public. Additionally, at the unexplained request of the U.S. Marshals Service, the hearing was closed to the public supposedly to maintain the safety of Mr. Cardenas and others involved in the cartel. The American public and the media have protested this unexplained secrecy. Historically, the sentencing of organized crime figures and the majority of cases are open to the public. While the lead prosecutor would not comment on the secrecy of the case, he informed the media that “The successful prosecution of Cardenas-Guillen underscores the joint resolve of the United States and Mexico to pursue and prosecute the leadership of the drug trafficking cartels, dismantle their organizations and end the violence and corruption they have spawned.”
Contact Danielle at danielle.storm@student.shu.edu
By Kaitlin Tonti, International News Assistant Editor On February 27, at 3:34 AM, an 8.8 magnitude earthquake struck central Chile causing several repercussions including tsunami warnings for the coast of Hawaii. President Michelle Bachelet has already declared a state of emergency as the country’s major airports and seaports are currently out of service. Concepción, which is the second largest metropolitan area in Chile, was the most devastated by the earthquake. Located only 70 miles from the quake’s epicenter, Concepción has reported impassable roadways, destruction of buildings and temporary loss of telephone services. The country expects to see a significant rise in the death toll over the next few days. The Chilean Cable News Networks have already reported 147 deaths only hours after the initial hit.
Photo courtesy of NY Times Apartment building splits in two after an 8.8 earthquake strikes Chili.
Aside from the massive destruction in Chili, a tsunami swept over Robinson Crusoe Island, which is approximately 410 miles from the Chilean coast. As of Saturday afternoon, three deaths were reported from this tsunami. Meteorologists predict this tsunami will sweep mercilessly, reeking destruction across the pacific coast. Hawaii, Ecuador, Colobmia, Panama, Chili, Peru, and Antarctica have all been issued warnings from the NOAA Pacific Tsunami Center with the most urgent of those warnings existing for Chili and Peru. In Hawaii the evacuation alarm sounded at 6:00 AM, alerting citizens to take refuge, especially for highly populated tourist areas such as Waikiki and Kauai. However, if a tsunami occurs, the areas most affected will most likely be Hilo Bay on Hawaii Island, and Kahului Harbor, located in Maui. Brian R. Shiro, who works as a geophysicist with NOAA, stated that, “In those areas, the tsunami waves could reach as high as 6 to 10 feet,” while the rest of the Hawaii would only see waves reaching three feet. Although the effects of the earthquake are wide spread, Chile is not a stranger to this type of natural catastrophe. They have previously experienced magnitudes of 7.8 and 9.5, the latter of which caused a series of tsunamis killing people in both Hawaii and Japan. The overall damage caused by this most recent quake has yet to be thoroughly analyzed. Analysts predict it most likely caused more damage and deaths than the earthquake which took place last January in Haiti. Contact Kaitlin at kaitlin.tonti@student.shu.edu
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TUESDAY, MARCH 2, 2010
THE STILLMAN EXCHANGE
International Business
Mergers & Acquisitions Rock Europe as Euro Falls have begun to consolidate in an effort to reduce costs in anticipation of continued The areas that are being focused on, slumps. Innolux Display Corp is slated to including engineering and merge with two firms; Chi Mei telecommunication, are Optoelectronics Corp and TPO not the attractive businessDisplays Corp, in part to limit es that would see high costs that could come from an growth in typically stable increasing workforce in a markets. decreasing European market. The propensity of The future of Europe still mergers and acquisitions hinges on what happens in the in matured markets points next few weeks with Greece, to the possibility that firms but one bailout will not save the believe the problems with entire sinking ship. As firms the Euro could adversely turn away from investing in impact growth markets. high-risk sectors, the focus has This makes sense, Photo courtesy of MaximumPC returned to a low-profit, growth given that most of the and risk mindset fueled by countries struggling, A merger between Japanese LED panel manufacturers could be preceding exports like clothing and food. including Greece, focus on With Greece looking to a meltdown in Europe, but could benefit U.S. clients in the interim. matured market exports. In acquire funds, do not be other words, rather than exporting technol- could cause a continent-wide loss in inno- shocked to see many European corporaogy, pharmaceuticals or other innovations, vation. tions looking to acquire help as well; This slowdown in investment could whether through bailouts, mergers or even countries like Greece focus on textiles, spread to other countries as well, especially more bankruptcies. clothing and food products. If indeed companies are beginning to those that have a stake in European growth avoid high-risk sectors like bio technology companies. Contact Ian at Already, several companies in Japan and pharmaceuticals with European Union ian.mehok@student.shu.edu ...continued from page 1
countries, it could stunt more than the value of the Euro. With a lack of investment in growing businesses, the deficit in Greece
Oil Interests Reignite Controversy in Falkland Islands By Alexandra Hauenstein, International Business Writer Conflict over the sovereignty of the Falkland Islands was reignited last week when a British oil rig sent by Desire Petroleum began drilling in the area’s disputed waters. A press release issued by Desire Petroleum on February 23 announced that the British oil rig Ocean Guardian arrived in the Falkland waters on February 19 and “spudded” an exploration well on February 22. Since the Guardian rig’s arrival, shares in Desire Petroleum have climbed more than 25 percent according to The Wall Street Journal. In 1982, a brief and undeclared war ensued between Argentina and the U.K. over the rights to the Falkland Islands, located 300 miles off the coast of Argentina, and the Islands’ natural resources. Despite the persistent denial by Argentina, the bloody war resulted in a British victory. When oil prices fell twelve years ago to $10-per-barrel, tension in the region eased as the six oil wells in the North Falkland Basin were abandoned. But since then, oil prices have risen to about $75-per-
barrel while drilling and extraction technologies have improved. These events have encouraged oil companies to return to the area and have brought the remote Falkland Islands back to the international spotlight. As maintained by Desire Petroleum’s website, there is a recoverable oil potential exceeding 3.5 billion barrels in the North Falkland Basin. This vast quantity, coupled with the consistently high oil prices, means significant earning potential for the country with rights to the region. Additionally, the Falkland Islands Government Department of Mineral Resources receives a “Corporation tax [of] 26 percent on all profits from exploration Photo courtesy of Reuters and extraction activities” as stated on its website. Argentina is seeing red over sights like this Britain asserts that their oil exploration is sanctioned by international law views the dispute as strictly a bilateral and has requested U.S. endorsement in its issue, Argentina received the backing of claim to sovereignty over the islands. numerous Latin American countries, such Despite the longstanding close alliance as Venezuela, when Foreign Minister Jorge with the British, a State Department Taiana took Argentina’s case to the Rio spokesman declared, “We are aware not Group of Latin American and Caribbean only of the current situation but also of the Nations. history, but our position remains one of neutrality.” Contact Alexandra at Although the Obama Administration alexandra.hauenstein@student.shu.edu
European Energy Firms Look to Cut Costs By Nicole Blackford, International Business Writer In association with the current economic situation, European companies have been trying to reduce costs, specifically in the oil industry. German company E.ON Ruhrgas and Italian energy firm Eni have been in the process of renegotiating the contracts with their Russian supplier Gazprom. According to the New York Times, recent studies have shown that natural gas consumption has decreased and that levels are currently 30 percent lower than the amounts included in contracts. Demand for natural gas and oil has decreased in numerous places around the world, as well as the United States, for several reasons. Individuals have decreased their consumption because prices are too high for the currently weak economies, energy efficiency has become a primary concern, and alternative methods of energy have been discovered. As a result of this decrease in demand, companies like Eni and E.ON Ruhrgas are being forced to pay for the amounts of gas
included in their already-existing contracts with Russia’s natural gas giant, Gazprom. Gazprom, however, has recognized that renegotiation has become necessary due to the economic issues facing countries throughout Europe. It is believed that Gazprom may have agreed to negotiate for other reasons. The company is now facing competition from other suppliers as well as from the environmental breakthroughs in energy production. The contract negotiations have made it possible for Eni and E.ON Ruhrgas to purchase from Gazprom at prices that are much more flexible and able to adjust to the demand of natural gas. E.ON Ruhrgas and Eni are both still in the process of working on the final agreements but the basic structure of the contracts has already been determined. According to the Wall Street Journal, Chief Executive Paolo Scaroni of Eni hopes that the contracts will provide long-term stability of the European gas market. Contact Nicole at nicole.blackford@student.shu.edu
Turkey Hopes Innovation Can Overcome Obstacles By Alex Cohen, International Business Editor Turkey currently faces problems in the form of EU protectionism and unemployment, but the country’s recent technological innovations could work to rescue the rising power. In terms of protectionism, the EU has stipulations that cause difficulties for outside countries that try to sell their products in Europe. Turkey is one such country, and until it can gain its dream position as an EU state, it must grapple with this issue. Ali Babacan, the deputy prime minister in charge of the economy of Turkey, spoke to the International Investors Association and stated, “We have said capital has no color or ethnicity; it is an international concept. This is the approach we will continue to maintain.” He expanded his refutations of the European policies by saying that the EU’s founding members were working to degrade the same freetrade policies that the organization was initially built around. A further risk for Turkey is its unemployment. The country currently has 13 percent of its population without work. According to Ulrich Zachau, who spoke on behalf of the World Bank at the Fourth International Risk Management Summit, “The recession has left its mark on the economy and unemployment is high.” He added, “This is one of the main risks for Turkey.” Furthermore, Turkey’s position as a key emerging market may be challenged. Although it has progressed positively after the recession, other countries are catching up: “Turkey has not objectively declined, but other emerging markets have improved more than Turkey. This is both an opportunity and a challenge for Turkey.” One way Turkey has begun to rise to this challenge is in terms of technological innovation. A recent example is the Tivibu service put out by Türk Telekom, the country’s largest fixed-line phone operator. The product allows customers to access television and movies from their computers, and can be used for live viewing, delayed viewing, or even downloading. This service would also be combined with internet and telephone access. A further example of Turkey’s strides in technology is its research in nanotechnology, which allows for improvements in a number of sectors, from cosmetics and medicine to energy and the military. Turkish scientists are also working to share these advancements, via workshops, with neighboring countries in the Balkans, Central Asia, North Africa and Eastern Europe. Innovations such as those in telecommunications and nanotechnology could be the source of power needed by the Turks in their bid to recover after the recession. Additionally, by looking toward the surrounding countries, Turkey is creating a situation in which it is a regional power, rather than an “also-ran” in the European economic setup. Contact Alex at alexander.cohen@student.shu.edu