Volume 7 Issue 7 - December 7, 2010

Stillman News

Ethics

International Business

UN Secretary-General Ban Ki-Moon Visits Seton Hall.

See p. 6

Is it ethical for retailers to use “Christmas” for marketing to consumers?

See p. 8

Hugo Chavez looks to raise funds by selling state-owned oil firm.

See p. 16

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The Official Business Publication of Seton Hall University

Made possible by the generous support of the O’Brien Family

FTC’s DoNot-Track Proposal

By Meg Reilly, Assistant Managing Editor Banners, Pre-roll, Ads by Google… No matter what the FTC tries, they are still going to be all over the web. But is your private information worth sacrificing in order to see more relevant advertising?

The FTC had certainly hoped that their proposal last Thursday of the “do-not-track” legislation would see as much acceptance as its do-not-call counterpart.

However, Republicans, who will control the House of Representatives in January, were not as receptive.

With the suffering economy in mind, Representative Ed Whitfield, the ranking Republican on the House consumer protection subcommittee, expressed concern that the free services now financed by advertising would be hurt, and that consumers would lose access to ads they want to see.

However, we must not forget that internet users can already do their own tracking prevention and internet advertising continues to grow. Ideally, the FTC hopes that their proposal will yield more user-friendly, web-browser related protection from tracking. Mozilla is already considering creating a do-not-track option for FireFox. Since there have been an increasing amount of privacy issues and identity theft due to information released on the web, many believe that it is about time for the government to step in and regulate how consumer information is stored and used.

But of course, there are also many critics of the new initiative. Editor of trade publication Advertising Age, Abbey Klaassen speaks for the marketing industry in saying, “If consumers were to (use Do Not Track), en masse, the industry could take an enormous hit.”

What is for certain is that the do-nottrack initiative will not be an easy task. As the line between internet and mobile communication mediums continues to blur, donot-track might have to acknowledge the growing beast—mobile commerce.

Although many programs are opt-in, mobile commerce has begun to utilize GPS programs and other targeting mechanisms to deliver the most relevant advertising to the palm of your hand.

So, in this new digital age, has privacy really become a luxury of the past?

Contact Meg at margaret.reilly@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 Front cover image courtesy of Lee Duan

TUESDAY, DECEMBER 7, 2010 - VOL. 7 NO. 7

WikiLeaks Opens Pandora’s Box

By Stefano D’Urso, Money & Investing Writer Pandora’s Box has been opened. The secrets are out; the news has been spread.

One of the most crushing intelligence leaks in United States history has created a debacle for the masses.

On November 26, the nonprofit website wikileaks.com published and commented on confidential documents that allege government and corporate misconduct.

WikiLeaks has stated that it has 251,288 cables sent by American diplomats between 1966 and 2010.

Such leaked papers include orders from U.S. Secretary Hilary Clinton to American diplomats to engage in intelligence-gathering, pressure from U.S. allies in the Middle East for decisive action to neutralize Iran’s nuclear program, conversations about military action against Al Qaeda militants in Yemen, and Washington’s efforts to have highly enriched uranium removed from a Pakistan reactor.

There are also over 70,000 Afghan War diaries enclosing intelligence on Afghan security and Taliban secrets. A 238-page Guantanamo Bay detention camp manual detailing how the U.S. military treats detainees at the camp has also raised controversy.

WikiLeaks, which runs on funding from donors, has been highly secretive about how it operates. But at its core, the idea behind the site is this: People who have access to controversial or classified documents can send them to the site where a

group of volunteer editors decides what information is authoritative and what information is important, publishing it accordingly. The website offers these whistleblowers complete anonymity and to a certain degree, legal protection.

Hilary Clinton spoke out about the website on November 29 stating, “There is nothing laudable about endangering innocent people, and there is nothing brave about sabotaging the peaceful relations between nations.”

She was upset that assessment of foreign leaders by U.S. diplomats, sent in con-

fidential cables, had been leaked, potentially causing a strain on foreign relations.

However, the editor-in-chief of WikiLeaks had a counterargument for naysayers. “Information that organizations are spending economic effort into concealing—that’s a really good signal that when the information gets out, there’s a hope of it doing some good.” Assange makes the final decisions on which documents are released.

How does WikiLeaks influence the money and investing side of the sphere?

Continued on page 3...

Unlikely Celebrity Will Endorse UGG

By Kayla Mjaatvedt, Sports Assistant Editor UGG Australia has secured a deal with New England Patriots’ quarterback Tom Brady that will have him endorsing their new 2011 line of footwear and accessories.

Brady has basked in the light with his supermodel wife, Gisele Bündchen, a successful career with three Super Bowl wins, and has now received a stylish endorsement deal with UGG Australia.

Brady will be the face of UGG’s fall 2011 line, which is to include casual footwear, accessories and outerwear.

Deckers Outdoor Corporation hopes that with the addition of Brady, they will be able to convince society that their brand is fashionable and masculine enough for men, despite being best known as a women’s brand.

“This partnership marks a new season

for UGG Australia, and Tom Brady is the ideal first endorser for the brand,” Chairman and CEO of Deckers, Angel Martinez said. “He embodies the stylish casual attitude that is at the foundation of every product we make, and is as much a style icon off the field as he is a playmaker on it.”

Brady’s responsibility is to not only be the face of UGG, but to also provide “product inspiration” for any of UGG’s future collections.

I have worn and loved the UGG brand for a long time,” Brady said in a statement.

“This collaboration gives me an opportunity to work with a leading global brand with a great history and a true vision for the future of its men’s collection.”

Many people find that UGG should stick to marketing towards women, because there is nothing macho about men wearing the UGG products. Some even think that

Brady is trying to accrue too many endorsement deals, which makes consumers lose more interest in the UGG brand because of the cluttered endorsement portfolio of the star quarterback.

There is a lot of controversy over whether or not this new endorsement deal will kill Brady’s masculine reputation.

However, this collaboration with a leading global brand like UGG will mostly have a positive effect on Brady.

UGG sales hit a record $711.8 million last year. With a popular role model like Brady marketing the brand to a whole new target audience, UGG can look forward to another boost in sales. Brady is already looking forward to a quite a large check, as well as a few more pairs of his beloved Ugg boots.

Contact Kayla at kayla.mjaatvedt@student.shu.edu

India and Syria Create Joint Business Council

By Rebecca Townsend, International Business Writer On November 28, India and Syria set up a Memorandum of Understanding to launch a Joint Business Council between the two nations. Overseen by V.R.S. Natrajan of India, and Syria’s Ali Khwanda, the Council is expected to double bilateral trade and facilitate closer contacts between the two nations’ business sectors. This agreement holds a great deal of promise in launching broader growth in Syria, while continuing strong economic growth in

India.

The necessity of a cooperative business venture between the two countries has been evident for quite awhile. While trade between India and Syria has increased from $30 million in the mid 1990’s, to $528 million in 2009, these levels are still below efficiency. Syria and India are two of the world’s most recently developing economies. Due to effective regulatory devices and economic policies, these nations have weathered the economic crisis, and are now each in a stage of crucial expansion. It is only logical that they should

work alongside each other to successfully continue economic development.

President Pratibha Devisingh Patil of India, according to the Sify News, stated, “Today, we are launching the Syria-India Business Council. The formation of this council [will] add to effects to further strengthen trade and economic ties. The council will function effectively, will disseminate information of opportunities in the two countries, [and] work closely with the governments in addressing the specific problems.”

Continued on page 16...

2

TUESDAY, DECEMBER 7, 2010

Money & Investing

Market Summary

This Week’s Poll Question:

Graph courtesy of Google Finance

How much did you spend on Black Friday and Cyber Monday?

THE STILLMAN EXCHANGE

Unemployment Rate Rises to 9.8 Percent Chart courtesy of The New York Times

A: $0 - $50 B: $51 - $100 C: $101 - $150 D: $151+ Respond at www. stillmanexchange.com

Last Week’s Poll Question: Do you plan to go shopping during Black Friday?

Graph courtesy of Google Finance

Yes, during the day: 15% Yes, as soon as stores open: 33% I prefer shopping online: 39% No: 13%

Sector Summary Courtesy of Google Finance

NEWS BRIEFS

Earnings Stock to Watch: Microvision Inc. Graph courtesy of Yahoo! Finance

• American International Group raised $2 billion in the bond market for the first time since the firm was bailed out during the financial crisis.

• Airbus announced the release of new engines for their A320 planes by 2016 to compete with Boeing. The two new engine choices can result in fuel savings of up to 15 percent in addition to reducing carbon emissions.

• The online payment service provider PayPal has cut off the account used by WikiLeaks to collect donations, serving another blow to the organization just as it was struggling to keep its website accessible after an American company stopped directing traffic to it.

• The S&P 500 index increased 35.31 points this week, or 2.97 percent to 1224.71 on positive news that reduced fear of euro-zone defaults.

World Currencies Courtesy of Google Finance

By Lee Duan, Assistant Managing Editor The Bureau of Labor Statistics reported last Friday that the unemployment rate increased to 9.8 percent, an increase of 0.2 percent over the previous three months.

Nonfarm payroll remained “little changed” with an increase of only 39,000 jobs. This came as a surprise after weeks of positive news suggesting the possibility of a quicker economic recovery.

The number of unemployed now stands at 15.1 million people. Minority groups reported the highest unemployment: the rate for Hispanics rose to 13.2 percent while the rate for blacks stayed unchanged at 16.0 percent.

Many whose temporary jobs ended or those who lost their jobs increased in November by 390,000. Retailers saw a decrease in employment as well, a negative sign given the holiday shopping season.

9,000 jobs were lost in department stores, while an additional 5,000 jobs were lost in furniture retail.

Employment in health services did continue to increase, a sector that has continued to grow even in touch economic conditions. 8,000 jobs were added at hospitals, while the industry gained 19,000 jobs overall.

Nine million Americans are also underemployed in part time employment as a result of not being able to find full-time positions.

2.5 million people were not considered in this unemployment rate calculation as part of the labor force due to not having looked for work four weeks prior to the survey. In addition, 1.3 million of these marginally attached workers are not looking for work “because they believe no jobs are available for them.”

The latest report is disappointing given that non-farm payroll employment has seen an average increase of 86,000 jobs per month since December 2009. In October, the U.S. economy had gained 172,000 jobs.

In an interview with Bloomberg Television, chairman of the president’s Council of Economic Advisers, Austan Goolsbee, stated the need that “we not pull the rug out from under the unemployed that are searching for work, and we extend the unemployment benefits.”

The U.S.’s unemployment rate will continue to play a large role in the speed at which the economy recovers.

Contact Lee at li.duan@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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Money & Investing

TUESDAY, DECEMBER 7, 2010

3

Real Estate Market Shows Two Percent Drop in Q3

Scott Giveans, Money & Investing Writer

The holiday season is upon us. But is it a time of cheer, festivity and good tidings for real estate? Well, it could be if people’s holiday mood carries over into their home buying perception.

On Tuesday, November 30, S&P CaseShiller Home Price Index indicated that home prices had fallen two percent in the third quarter. After having experienced an upward movement in four of the previous five quarters, many people are beginning to fear of a potential double dip in the housing market. Overall, home sales are down 1.5 percent relative to last year.

The apprehensiveness over the market’s step back is more telling of the public’s uncertainty of the housing market than market itself. Simply put, Americans have little faith that the housing sector is out of the woods just yet. And they have little reason to think any other way because the

housing industry is so far off from its record high numbers seen just 3 years ago.

Unfortunately homeowners still suffer from some “irrational exuberance.” The phrase, originally coined by Alan Greenspan, the then-Federal Reserve Board Chairman, and then adopted by economist Robert Shiller, warned people that homes were fundamentally overvalued and would soon retreat to their intrinsic price.

Amidst the housing boom, homes sold for exorbitant amounts of money relative to historical values and people soon began to believe that these “inflated” prices would be the new benchmark for subsequent years.

However, reality set in and individuals are now being conditioned to believe their homes are worth as much as 25 percent more than their value. This simply is not the case and it will take time for people’s perception to change and become more fundamentally sound. Although the housing market is by no means doing great, it has shown signs of stability.

As mentioned before, home prices have fallen once in the previous five quarters. In the first quarter of this year, home prices fell 1.2 percent but the following quarter, homes prices rose again. A drop in one quarter does not necessary mean that the housing market will begin to pace downward. If anything, the market’s ability to rebound following a decline is indicative of its stability.

Unfortunately, many homeowners cannot get that bad taste that the market downfall left them with. Nevertheless, the upturn of the housing sector lies largely in people’s ability to look past the market’s unfortunate decline in recent years.

Luckily, homeowners have made significant strides to do just this since the depths of the downturn.

“Buyers are now afraid that their homes will be worth less a year from now,"”said Mike Larson, a housing market analyst for Weiss Research. “But during the bust, they were afraid their homes would become worthless.”

Although housing facts and figures may demonstrate a different perception of the housing industry at times, homebuyers are certainly shifting their view of the market as a whole. Just as the housing sector did not boom suddenly, it will not recover immediately. It is a progression with bumps along the way and the recent decline in home prices is nothing more than that.

Ultimately the homeowners and homebuyers drive the market while government policies and interventions simply support that. It is up to the people to alter how they perceive the market and believe that their homes will increase in value.

The holiday season is a time of having faith and believing in something that cannot always been seen. If the housing market is to climb upwards, people need to believe the market recovery is real.

Contact Scott at scott.giveans@student.shu.edu

Obama Announces Pay Freeze for Non-Military Federal Workers

By Dhara Patel, Money & Investing Writer On Monday, November 29, President Obama announced a proposal to freeze the pay of federal workers for the next two years, one of many “very tough decisions” made by the administration in its attempts to control government spending and address the federal deficit.

The freeze will apply to all civilian federal employees, including those in various alternative pay plans and those working at the Department of Defense—but not military personnel.

“In these challenging times we want the best and brightest to join and make a difference, but these are also times where all of us are called on to make sacrifices,” Obama said in a statement at the White House.

“And I'm asking civil servants to do what they have always done. Play their part.”

Obama notes the difficulty of the decision saying, “This is not just a line-item on a federal ledger. These are people’s lives.”

“But solving the problem of the mounting deficit will require many Americans to tighten their belts,” he added. “The hard truth is that getting this deficit under control is going to require some broad sacrifice, and that sacrifice must be shared by the employees of the federal government.”

According to the Washington Post, there are approximately 2.7 million civilian employees in the executive branch. The pay freeze would help save an overall estimated $5 billion during the next two years, and $28 billion during the next five years. The White House also projects that the freeze will save more than $60 billion during the next 10 years.

The size of federal salaries had stirred a debate earlier this fall when USA Today reported that the percentage of federal employees making $100,000 or more increased from 14 percent to 19 percent, during the first 18 months of the recession.

According to the Office of Personnel Management, there was a 6.6 percent increase in federal salaries during the reces-

Photo courtesy of csmonitor.com remain locked in their government pay-

scale levels for the next two years. They will still be eligible to receive a pay increase if they are promoted to a higher GS (General Schedule) level.

The Government Reform Chairman, Darrell Issa (R-Calif.), said the pay freeze is “necessary and quite frankly, long overdue.” He also comments that the GOP has been pushing for such cuts in its “Pledge to America,” released this September.

“Today’s action is a clear indicaPresident Obama is seen walking off the stage after tion that the Pledge to America, which annoucing a pay freeze for all federal workers. lays out concrete steps to cut spending sion, compared to only 3.9 percent in the and reduce the size of government, is the private sector. right plan to address the people’s priorities.

However, the Budget Deputy Director Republicans and Democrats don’t have to for Management, Jeffrey Zients, denied that wait until January to cut spending and stop the pay freeze was linked to these reports, all the tax hikes. We can – and should – insisting that the decision was only made start right now.” “in the context of the difficult deficit situation.”

Contact Dhara at Zients explains that the proposed freeze dhara.patel@student.shu.edu does not mean that federal workers will

Senate Fails to Advance Federal Unemployment Extension

By Scott Watson, Money & Investing Writer

The Senate was unable to agree on a bill that would extend the deadline to apply for federal unemployment insurance. With the bill in place, the two million Americans whose benefits run out in December will be able to apply for extended unemployment benefits.

Before this vote, Congress had extended the application four times in the past year alone. In July’s vote, some 2.9 million Americans were scheduled to run out of their benefits, leaving them without support.

If the problem is further delayed to the spring, over six million additional unemployed workers will be in trouble raising the number to almost nine million without ben-

...Continued from Page 1 Computer specialists have warned various businesses that they might be next in the leak.

The danger is that management is seen to have covered up internal fraud or committed a breach of ethics. The sharp drop in the shares of Bank of America this past Tuesday underscores this risk.

The same day, Assange said he intended to make public information available in 2011 that would sink a major U.S. bank.

The clear lesson being sought by Assange is

efits. The problem with this bill is that it has not been backed financially.

Many deficit conscious individuals on Capitol Hill strongly opposed the last benefits extension saying that it should have been paid for by the unused stimulus money that could easily cover the $34 billion tab.

The motion was shut down by Democratic leaders.

This time, the Republicans were able to maintain their anti-deficit spending stance in the Senate. The Democrats again tried to appeal to the unemployed voters who needed this money but were not able to achieve the majority vote.

Representative Scott Brown of Massachusetts was able to block the vote with the opinion that since the bill is not being compensated for by the federal government, it should not be passed. It seems

that this is a reoccurring theme within the Senate since the problem keeps arising time and time again.

During the conversations, the Republicans urged an extension to the Bush tax cuts, which would increase spending by the rich. This ties in with the extension of unemployment benefits because the Republicans will not budge until they are satisfied. The Republican leaders sent a letter to Harry Reid, Senate Majority Leader, stating that they would block any incoming votes concerning unemployment benefits until the Bush tax cuts are extended for all Americans.

Speaker of the House Nancy Pelosi spoke on the issue saying that a tax cut would not create more jobs in this economy.

Instead, by continuing the unemployment benefits, they will be able to create more

WikiLeaks Opens Padora’s Box for firms to follow a code of ethics and have a hotline that whistle-blowing employees can use with confidence so that management is pressured to deal with problems.

Corporate integrity is an intrinsic, controversial issue that has been debated all throughout the financial world.

Hotlines were required for publicly traded companies after the Enron and WorldCom financial reporting scandals rocked the country.

It has been said that it is effortless to locate the records of companies that include emails, documents, databases, and internal

websites containing confidential information about decisions and takeovers.

Since the WikiLeaks story broke, companies like PayPal Inc, the payment processor owned by EBay Inc, and Amazon, have cut access to the website for violating its acceptable use policy. Many other companies are being urged to follow suit.

The damage that the leaked documents has and will cause on U.S. foreign policy is insurmountable. U.S. Companies will be looked upon negatively and countries will avoid doing business with them because they are now viewed as unethical.

jobs which will bolster the economy.

The problem is that while this back and forth political game is going on, the people who are in need of a decision are helpless until politicians can come to an agreement.

The federal benefits themselves are divided into tiers which people need to apply for every time they are moved into a different tier.

After a coverage period of about 26 weeks, the federal jobless payments kick in which last for 73 weeks. The unemployed need these benefits in order to provide for their families and with neither side wanting to fold on their position, it could be awhile before we see a conclusion.

Contact Scott at scott.watson@student.shu.edu

Consumers and clients in America will turn the other way and lose confidence in our financial markets because of this new uncertainty.

There are many more problems that can come out of this, and it is only the beginning of the controversy. WikiLeaks is out for more than teaching the U.S. a lesson. Stay tuned for what leaks next!

Contact Stefano at stefano.durso@student.shu.edu

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TUESDAY, DECEMBER 7, 2010

Money & Investing

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Consumer Confidence Increases to Five Month High

By Brian Daniels, Money & Investing Writer On Tuesday, November 30, The Conference Board posted the highest Consumer Confidence Index in five months. It rose 4.2 points from 49.9 in October to 54.1 in November.

This was the best number since June.

This 54.1 beat expectations from many forecasters, who estimated the forecast would be anywhere from 50 to 53.

The increases can already be seen as Black Friday and Cyber Monday numbers were up from previous years. The conclusion of the findings is that Americans are not as worried about business conditions, although not by much.

The Conference Board is a private research group based in New York. It conducts a random survey that is mailed to 5,000 households per month. It measures how respondents feel about business conditions, the job market, and future expectations for the next six months.

Economists watch consumer confidence levels closely because consumer spending accounts for around 70 percent of U.S. economic activity, and is thus a critical component of economic growth.

Other numbers gathered this month include the Expectations Index which rose from 67.4 in October to 74.2 in November.

Photo courtesy of topnews.net.nz

After months of shaky consumer confidence levels, a new study shows turnaround just in time for the holiday season.

Other indexes rose as well: The Present Situation Index is at its highest level since May, which Advanced to 24.0 from 23.5, The “Jobs plentiful” Index increased to 4.0 from 3.5. Those expecting fewer jobs in the month ahead fell to 18.8 percent of Americans from 22.3 percent. Those expecting more jobs rose to 15.5 percent of Americans from 14.5 percent. Over 10 per-

cent of Americans are anticipating a boost in their incomes.

Clearly, Americans are more upbeat and optimistic about future business conditions and job or income prospects.

However, the current level is volatile, to say the least. It is far from 90, which indicates a stable economy.

A reading of 100 or more indicates

strong growth. The index has not reached that level since 2007. This is why it is said confidence still remains weak by historical standards. Even in May 2010 the Consumer Confidence Index topped 60. At least now, it is headed in the right direction.

Some encouraging signs include decent Black Friday and Cyber Monday sales. In addition, income rose 0.6 percent in October, according to government report released last month.

This came after the publication of stagnant incomes levels in September. At the same time, the pace of layoffs is slowing: initial jobless claims dropped by 34,000 in the week ending November 20, the Labor Department said.

The economy expanded at a 2.5 percent pace in Q3, the commerce department said last week. Consumer spending rose at the highest rate in almost four years. This also comes after ‘QE2’ and the release of encouraging third quarter reports.

On the other hand, there are those who say the slow expansion and improvement cannot be sustained because of low incomes, high unemployment, and a double dip in housing prices. Currently, we can only hope for sustained accelerated growth.

Contact Brian at brian.daniels@student.shu.edu

Fed Names Recipients of $3.3 Trillion in Crisis Aid

By Alex Buonfiglio, Money & Investing Writer Whenever the Federal Reserve is making news, the financial community is carefully listening.

Reports were recently published showing that the Federal Reserve provided greater assistance during the financial crisis than previously thought.

According to Bloomberg News, the Federal Reserve, under orders from Congress, named the counterparties of about 21,000 transactions from $3.3 trillion in aid provided to stem the worst financial panic since the Great Depression.

According to Bloomberg, Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE: WFC) were among the largest recipients of aid from one pro-

gram. The companies received as much as $45 billion each.

In addition, some aid went to U.S. units of foreign institutions, including Switzerland’s UBS AG, France’s Societe Generale and Germany’s Dresdner Bank AG. “We owe an accounting to the American people of who we have lent money to,” said Richmond Fed President Jeffrey Lacker. Other analysts are calling it a “good step forward” in correcting economic troubles.

The recent activities by the Federal Reserve, however, will continue to cause and place political scrutiny on the topic.

There was already heightened political scrutiny on the central bank prior to the release of these reports The role of the Federal Reserve has

already received considerable controversy regarding its role in turning around the U.S. economy. The Fed’s November 3 decision to add $600 billion of monetary stimulus had sparked a backlash from top Republicans in Congress, who said in a November 17 letter to Chairman Ben Bernanke that the action risks inflation and asset-price bubbles.

The recent reports of trillions in aid will result in more backlashes from powerful conservatives. “These disclosures come at a politically inopportune moment for the Fed,” said Sarah Binder, a senior fellow at the Brookings Institution in Washington.

Despite the inevitable political scrutiny, the Fed argues that the loan programs are much needed and will go a long way in preventing devastating and systematic economic problems in the future.

The Fed said in a statement to Washington: “The Federal Reserve followed sound risk-management practices in administering all of these programs” and incurred no credit losses. Michael Duvally, a Goldman Sachs spokesman in New York, said that the Federal Reserves’ actions “were very successful”.

Regardless of one’s political stance, it is a unified acknowledgment that something does need to be done in order to prevent further economic deterioration.

The U.S. can only wait and see if these recent actions turn out to be the answer they have all been looking for.

Contact Alex at alex.buontiglio@student.shu.edu

TARP Cost Down to $25 Billion From $700 Billion

By Doug Demarco, Money & Investing Writer The Troubled Asset Relief Program, better known as TARP, was recently discovered to cost taxpayers a total of $25 billion.

This is much lower than the projected $700 billion the program was going to use to prevent automakers and insurance giants from entering bankruptcy.

In a report from the Congressional Budget Office, or CBO, the reason why the cost of bailing out giant companies was reduced was based on our economic standing.

In their report, the CBO stated, “Because the financial system stabilized and then improved, the amount of funds used by the TARP was well below the $700 billion initially authorized.”

This all ensures the fact that America’s economy has begun to see some growth and is finally making a turnaround. The $25 billion dollar cost also dropped from the last report published by TARP, which had projected a cost of $109 billion for taxpayers.

Another reason for the significant drop has to do with how the bailed out companies handled their situation. General Motors and American International Group, the main tar-

gets of TARP restructured their obligations in major ways since the bailout, and are seeing some positive gains.

TARP was originally designed to purchase toxic mortgagebacked securities from U.S. financial institutions.

However, the program was quickly changed by former Treasury Secretary Henry M. Paulson to focus on cash injections into banks and Photo courtesy of Huffington Post other companies on the Much of the original $700 billion was not needed because the financial brink of failure. system was able to stabilize quicker than expected.

In total, $389 billion has been spent by In addition to repaying their loans, TARP. How then did a plan that cost $389 banks have also repurchased stock warrants, billion only have an impact on taxpayers of which means they are investing in the econ$25 billion? omy.

The improving economic climate has General Motors recently had its initial resulted in a significant amount of the bor- public offering, which helped the company rowed funds getting repaid to the govern- raise $20 billion. This ultimately cut taxment. The result is only a $25 billion loss as payers’ stake in the company in half and a result. also helped repay $12 billion of the govern-

ment loans.

AIG hand has also begun to look further into the future. Despite not having repaid significant portions of its TARP funding, the insurance giant has recently created a plan that will allow the company to escape its dependence on government support.

Not only will AIG become independent from governmental support, it will eventually repay all of the money received and give it back to taxpayers. This also aids in reducing the impact TARP may have on taxpayers.

Another reason why the TARP plan will cost much less than anticipated is a result of the housing industry. A great amount of the TARP plan was to help homeowners avoid foreclosure.

However, not many people took advantage of the program. This lack of participation helped decrease the projected total impact on TARP spending. With the fewer foreclosures that are involved with the program, less money was spent by the government.

Contact Doug at douglas.demarco@student.shu.edu

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Money & Investing

TUESDAY, DECEMBER 7, 2010

5

Bankruptcy Filings Jump 14 Percent in 2010

By Jennifer Crowe, Money & Investing Assistant Editor At the close of the federal government’s 2010 fiscal year, which ended on September 30, the data from the Administrative Office of the U.S. Courts showed that over 1.5 million personal bankruptcies were filed. This number, up more than 14 percent since the end of the 2009 fiscal year, is the highest number of bankruptcies since 2005.

Small businesses, corporations, and personal investments are still in a slump today. The economic recovery has continued to be slow, making it difficult for those with financial woes to recover.

Bankruptcies do not only include individuals and small businesses. In May, the Texas Rangers baseball team filed for bankruptcy protection. After declaring bankruptcy, they went on to win the world series.

Although the trend of business bankruptcy is high, personal bankruptcy is even higher. This comes as a shock to business major, Kevin Matthews, who feels that businesses appear to have a higher bankruptcy rate than individuals.

Matthews states, “I find it hard to

believe that personal bankruptcy is increasing more than business bankruptcy because it seems as though businesses are suffering more than the everyday person.”

2010 has proved to be the highest number of personal bankruptcies recorded since 2005. In 2005, more than 1.7 million people rushed to file for bankruptcy before Congress created the Bankruptcy Abuse Prevention and Consumer Protection Act. The BAPCPA enforced new rules and regulations, one of which making it harder for people to file for Chapter 7 bankruptcy.

Chapter 7 gives people the chance to start over with a fresh financial slate. Even with the tougher rules, fiscal year 2010 saw the number of Chapter 7’s increased from the 2009 year by 15 percent, or 1.1 million people from 2009’s 989,227 people, according to CNN Money.

Business student, Sean Pezza, disagrees with the new regulations made by the BAPCPA that make filing for Chapter 7 bankruptcy harder than before. “It should be an easy process,” Pezza believes, “and these new rules that have been implemented are only making it harder for the common class of people to file for bankruptcy. These are the people who need it the most.”

Photo courtesy of thebankruptcylawguide.com The bankruptcy rate has been steadily climbing since the economic recession began in 2007.

People are defaulting on loans and mortgages and falling deeper into debt as time goes on. Freshman business major, Frank DeVito, reflects on the overall economic recession by saying, “It’s tough to build on a hurting economy when people are unemployed and bankrupt. The foundation of a country’s economy is its citizens.”

DeVito also states, “If the citizens are bankrupt and don’t have a stable income to

support their needs and families, how will our economy get stronger and be able to compete with other nations?”

The projected bankruptcy filings for the 2011 fiscal year have not yet been determined.

Contact Jen at jennifer.crowe@student.shu.edu

State Budget Gaps at $41 Billion; Expected to Worsen

By Steven Paramo, Money & Investing Writer In the wake of the nationwide economic recovery effort, states are reportedly facing a collective $41 billion in budget gaps next fiscal year, according to a survey by CNN Money.

The problem is that these deficits are only being reported by 23 states; while another 11 states need to close a combined $10 billion before their current fiscal year ends.

To combat this, many states will once again have to tighten up their expenses, resulting in even more slashes in education and social service spending, along with hikes in state taxes.

A reduction in state spending is a direct result of the end to the Recovery Act, mean-

ing states will no longer be receiving aid from the federal government. The consequences of this are that many local governments will see a decrease in the amount of aid from the state, and there may be more layoffs for government employees.

This news is a heartbreaker to many Americans, especially during the holiday season, as many unemployment benefits will be expiring for millions by the end of this month.

“Many budget and governor’s offices are telling us that fiscal [year] 2012 could be even worse because so many painful choices have already been taken and more need to be taken as we go further,” said Scott Pattison, head of the state budget officers’ group.

However, amid all this turmoil, there are a few bright spots to hold onto for these

next couple of years. While sales and state revenue have been slow over the past couple years, it has started to pick up, and is expected to continue to rise, albeit slower than most people would like. Along with this, personal income and corporate income taxes are also expected to rise over the next couple of years.

Still, the states have a tough road ahead of them; they are likely to suffer $175 billion in gaps over the next three years, said Raymond Scheppach, executive director of the governors association.

This is compounded by the fact that the states will also lose the much depended on help from the Recovery Act, which results in a loss of about $43 billion, which was primarily used to help fund education and Medicare.

Over the course of next year, we will

see many things happen. For one, families will be hit hardest by the budget gap problem, as they will lose vital services heavily relied upon, negatively affecting the economy.

Additionally, the budget problems are not expected to go away any time soon, as state budget gaps are projected to grow to at least $112 billion for fiscal year 2012.

So while the states face many obstacles in the near and far future, there is hope that the state and local governments will generate higher revenue from greater consumer spending and income.

Contact Steven at steven.paramo@student.shu.edu

Johnson & Johnson’s Tylenol Factory Fails FDA Inspection Photo courtesy of pennlive.com

Tylenol is used by millions of American. There is an apparent health risk if the factory that makes the drug is not in accordance with FDA regulations. Johnson & Johnson had shut down the facility last May after failing an inspection for multiple manufacturing violations.

By Ashley Perrone, Money and Investing Writer Nearly a year ago, the Food and Drug Administration asked Johnson & Johnson’s (NYSE:JNJ) drug making factory to improve the quality of their product. Today, they still have not managed to take this order seriously.

In 2009 Tylenol was found to have a moldy, musty odor. Forty nine customers

complained about the issue and asked for actions to be taken.

The FDA noted in their recent inspection that Johnson & Johnson has inadequate quality controls; they lack safeguards to isolate “rejected” raw materials and drugs, and human error resulting in product mix ups. Such errors could result in costly mistake that affect the health of customers.

In the last month, Johnson & Johnson’s

McNeil Consumer Healthcare reported eight violations. The company has failed to correct these errors even after it was bought to their attention.

FDA spokesman Christopher Kelly said in an e-mail to CNN Money: “It appears that the company has failed to correct certain quality control and procedural problems documented in prior inspections and cited in a January 2010 warning letter to the company.”

In early May, McNeil temporarily shut down a facility in Fort Washington, PA after the FDA issued a scathing inspection of that plant, citing multiple manufacturing violations.

After the closure of Johnson & John’s subsidiary plant, consumers were faced with a shortage of non-prescription liquid pediatric pain and colds medicine over the summer. The company is currently under criminal investigation by the FDA. The CEO of Johnson & Johnson, William Weldon, has been faced with two congressional hearings about the recalls.

They have responded by admitting that the firm has let the public down and that they have not served their customers efficiently. The question still remains: will Johnson & Johnson continue to disregard these warnings or will they begin to work on addressing these issues?

McNeil spokesman Marc Boston has said that in his last inspection in January

2010, he has noticed improvements. He stated that McNeil has been working diligently to ensure that the manufacturing operations meet the level of quality that consumers and the FDA expect.

It is safe to say that the company has made an improvement and that they are committed to improving quality controls by investing all necessary resources to achieve this goal.

As the flagstones continue for McNeil, some industry watchers are wondering why the FDA’s patience has not yet run out.

Given Johnson & Johnson’s slow move towards change, FDA officials have stated their intent to take a tougher enforcement position in the future.

It is their intention to pressure Johnson & Johnson into meeting quality control regulations and protect customers from possible harm resulting from defective consumer products.

David Rosen, who worked at the FDA for 14 years, expressed his concern about this matter by stating that, due to the quality control issues at many Johnson & Johnson’s facilities, it is disconcerting that the problems persist and that the FDA has not taken further regulatory actions.

Contact Ashley at ashley.perrone@student.shu.edu

6

TUESDAY, DECEMBER 7, 2010

Stillman News

UN Secretary-General Ban Ki-Moon Visits Whitehead School

By Raphael Baseman, International News Assistant Editor On Monday, November 29, UN Secretary General Ban Ki-Moon visited Seton Hall’s Whitehead School of Diplomacy and International Relations to receive an honorary degree, and address about 900 assembled students and faculty of Seton Hall as part of the Whitehead School’s World Leaders Forum.

After an introduction by the Whitehead School’s namesake – Ambassador John C. Whitehead – Ban spoke for about threequarters of an hour, on a range of topics, including the role of the UN in international affairs, his attempts to bring more women into positions of leadership at the UN, and the growing importance of human assistance. In his address, the Secretary-General emphasized the “special relationship” of Seton Hall and the UN, calling them “natural partners”.

Ban focused in detail on three issues he considered most important for the UN, currently: climate change, poverty, and helping assuage the effects of natural disasters.

He spoke of the “double life” of the UN, as half the world seems to want the UN to do more and half less, and said that the “UN must constantly recreate itself” in order to remain useful and relevant. He called climate change a “science fact” and hailed the 2009 Copenhagen Summit as a sign that climate change had finally been recognized by the world’s governments.

Photo courtesy of patch.com

On Friday, December 3, Bob Ley, a Seton Hall graduate, ESPN commentator, and host of ESPN’s “Outside the Lines,” came to speak to Seton Hall students about his recent experience at the 2010 World Cup games.

Ley began the presentation with a brief exclusive video from ESPN. The video highlighted many aspects of the World Cup; like the various soccer games and the great culture of South Africa.

The video also showed many of the U.S. soccer team’s matches, including their first game against England which ended in a 1–1 tie. The game versus Slovenia was also shown – a match which resulted in the first comeback at the World Cup from two goals down to tie – in United States’ soccer history.

One of the most talked about aspects of the 2010 World Cup was also mentioned in the movie: the refereeing. In many of the matches, there were controversial calls made by the referees, specifically in the match between England and Germany, a game which included a goal for England that was not called.

Ley mentioned how this controversial call will most likely lead to goal line technology to help referees make calls on goals they may not have the best angle to view.

In addition to showing the different games that took place at the World Cup, the video depicted the vast culture of South Africa. From the abundant wildlife, to the numerous indigenous tribes across the nation; it highlighted the uniqueness of South Africa.

There are bustling towns teeming with tourist, and then, directly across a highway,

Speaker Fahmy Steers Accounting Students to Success

By Tara Stafford, Stillman News Writer

Ban Ki-Moon, UN Secretary General, speaks at the Whitehead School’s World Leaders Forum and discusses the major issues affecting the world today.

On the role of women in international affairs, Ban said, “We need women leaders – we need the women of civil society to push for change, to be healthy and educated as is their right.” He also referenced the new UN Women agency led by former Chilean President Michelle Bachelet.

Ban also addressed the students directly, saying, “You here today are not spectators. You are a crucial part of this story. You come from all over, and you live in a country of immense opportunity. You attend a distinguished institution of higher learning, and you are good neighbors of the United

Nations. That means you have what it takes to help us deliver…I appeal to you: Keep working with us. Keep pushing us. Keep inspiring us. Help shape the world. Help us to deliver what the world needs at this crucial moment.”

After his speech, Interim President Esteban presented the Secretary-General with an honorary degree in Humane Letters from the University, and a crystal globe (a product of New Jersey).

Contact Raphael at raphael.baseman@student.shu.edu

ESPN’s Bob Ley Gives Students a Journey Through the World Cup

By Andrew Weinstein, Stillman News Writer

THE STILLMAN EXCHANGE

Photo courtesy of WikiCommons

Ley showed students pictures of Soccer City Stadium in Johannesburg, South Africa.

one can enter into a village of desperate poverty.

This video showed how one game can help to bring together an entire nation. As mentioned in the movie, “kinship, not conquest, is the truth the Cup contains.”

After the movie, Ley walked the students through pictures he took from his journey leading up to and during the World Cup. These pictures included scenes of the construction of Soccer City, the main stadium located in Johannesburg. Ley described how the construction workers were promised tickets to the games. However, many of them did not receive tickets for their efforts.

During one of his two visits to South Africa prior to the World Cup, Ley and his team followed two sixteen-year-old South

Africans for several days. Pictures of their school and homes were shown as well, both of which were in terrible condition as a result of the extreme poverty in many areas of South Africa.

Once the matches officially began, Ley spent six weeks in South Africa covering the World Cup for ESPN. According to Ley, ESPN spent hundreds of millions of dollars for the rights to cover the World Cup and tens of millions on production costs.

When asked about his time in South Africa, Ley said that “it was the most rewarding professional experience of my life.”

Contact Andrew at andrew.weinstein@student.shu.edu

On Monday, November 15, the Accounting Club gave students the opportunity to meet Stillman alumnus, Sherif Fahmy, who provided students the inside scoop on making the transition from college to full-time employment.

Sherif Fahmy graduated from Seton Hall as part of the Class of 2006. He currently holds the position of senior at Ernst & Young auditing insurance firms; he is also on track to becoming a manager. He allowed students to ask questions that usually are not asked in interviews but were in this informal and more comfortable setting.

Fahmy explained his experience in working with both public and privately held companies at Ernst & Young. He also spoke of his personal experience on passing the CPA exam in August 2007. A task he considers to be one of his best accomplishments in life.

As far as studying the material, Fahmy described his experience of juggling a new job and studying for the CPA examinations.

First, “You must start off with a plan,” said Fahmy. “Find what works best for you in terms of studying and stick with it.”

He set aside months for studying a few hours after work and a minimum of five hours for each day of the weekend.

Roughly, he estimated his studying time to be about 500 to 570 hours in total. Fahmy urged students to think realistically and set reasonable goals because no one will want to finish a long work day to go home and study for hours.

“If you don’t put the time into it, you aren’t going to do well,” Fahmy repeated.

He suggested students to take the CPA exam as early as possible, preferably as soon as they graduate from college.

Fahmy completed an internship at KPMG in 2005 and also attended a summer leadership program at Ernst & Young, where he established relationships and stayed in contact with his employers and co-workers.

From this experience, he reminded students to have a good attitude about the internship experience. “No one is expecting you to know everything, so ask as many questions as possible.” As cliché as it may sound, he reminded students that there are no such things as stupid questions because as an intern, you are there to learn.

Fahmy stated that having an internship only leads to more opportunities, so take advantage of them. “It’s not what you know, but who knows you,” was the main point Fahmy wanted students to take away from this event. You can know as much information as you want, but without knowing other people, you won’t get anywhere. Make sure to establish relationships with people that know how well you work.

Seton Hall holds many events like this one, with professionals such as Sherif Fahmy, in multiple fields. Attending these events will without a doubt give you more information regarding possible future career paths, and provide you with a wonderful networking opportunity.

Take advantage of these informal, yet informational events to set you in the right direction for success.

Contact Tara at tara.stafford@student.shu.edu

Stillman News

THE STILLMAN EXCHANGE

TUESDAY, DECEMBER 7, 2010

7

AT&T Global Network Operations Center Hosts Fifth Supply Chain Colloquium

By Penina Orenstein, Assistant Professor, Guest Writer

The fifth Supply Chain Colloquium took place at the AT&T Global Network Operations Center (GNOC) located in Bedminster, New Jersey.

AT&T welcomed Seton Hall University’s graduate and undergraduate students. The visit was arranged by Dr. Penina Orenstein as part of the graduate “Introduction to Supply Chain Management” class, but also attracted Stillman undergraduate and graduate students in different programs.

The facilitator, Stephen Moser of AT&T, welcomed the visitors and then proceeded to a fascinating hands-on display of technology and its application. The tour began with a visual representation of the AT&T backbone and the future of mobility in this network.

It was obvious from the demonstration that Supply Chain Management takes on a whole new perspective in the light of ubiquitous mobility. Take for example, inventory control: when this operation is entirely mobile there is seamless control and room for increased collaboration.

Mr. Moser pointed out how traffic in the network has increased to previously unforeseen levels: the popularization of the

Photo courtesy of Dr. Orenstein

Students attending the fifth Supply Chain Colloquium received hands-on demonstrations at the AT&T GNOC.

iPhone device alone can be attributed to a 5000 percent increase in data traffic, and the network continues to grow! The challenges this poses for traffic managers is immense and the role of the GNOC is critical in ensuring the smooth operation of the AT&T backbone.

The supply chain network at

AT&T’s GNOC was then discussed via a hands-on demonstration of the facility. The audience watched in fascination as a total of 141 screens showing the network, its performance and possible threats to its security were explained with detailed examples.

Being Cyber Monday, the students were able to see first- hand the impact of ecommerce on network traffic. In addition,

the presenter displayed numerous screens to highlight AT&T’s proactive, rather than reactive, approach to traffic management and emphasized the complexity of the supply chain problem at hand – that is in delivering service (bandwidth) at the right place, at the right time and in the right quantity.

Mr. Moser also pointed out how network traffic is typically extremely predictable, which means that the key to efficient traffic management is to examine anomalies in the network and apply solutions before disaster has set in. Mr. Moser concluded his demonstration with some enthralling examples of such anomalies, for example, traffic on 9/11, traffic when American Idol takes place, traffic when the OJ Simpson verdict was announced and countless other historically interesting situations.

The students asked many important questions, such as how data is used to make intelligent decisions about the network and how do operators make use of the forecast feeds which contributed to a discussion. In the words of one student “this visit really makes supply chain management come alive!”

Contact Dr. Orenstein at penina.orenstein@shu.edu

Senior Tomlin Excels in Service and Leadership

By Beverly Makarios, Stillman News Assistant Editor Stefanie Tomlin, this week’s Stillman Standout Senior is a Sports Management and Marketing major. Her love for sports and business has given her the opportunity to work with some of the most notable people in sports. She has also been given several honorable leadership positions. Stefanie currently interns within the Human Resources Department of the New Jersey Nets. She is also the manager of the Seton Hall Men’s Basketball Team. Her proven dedication in helping urban youth has led her to participate in organizations such as the Children’s Defense Fund Freedom Schools program where she leads, mentors, and is an overall role model to young children. A student of leadership, great work ethic, and an even greater dedication to community service, Stefanie excels both in her academics and extracurricular life. The following interview gives a personal look into Stefanie’s internship experiences and achievements.

Beverly Makarios: Who or what influenced you most in pursuing a career in Sports Management?

Stefanie Tomlin: I’ve always had a passion for sports. I was an athlete for most of my life and still have an immense appreciation for all sports. My interest in the business and management side just came from my desire to be involved behind the scenes of this exciting and ever-changing industry.

BM: How were you able to attain your current internship position with the Nets? What does your position entail?

ST: In my sophomore year, I was honored with the David Gerstein Scholarship for Entrepreneurship. Mr. Gerstein is a distinguished alumnus of Seton Hall as well as a previous owner of the New Jersey Nets. He is also a very wonderful and dynamic person who I respect immensely. This past summer, I applied for an internship with the Nets. I emailed Mr. Gerstein to let him know that I had done so and he sent an email to Brett Yormark, CEO of the Nets

organization. I went in for an interview, was offered a position, and the rest is history. I work in Human Resources as an intern.

Some of my job duties include interviewing prospective interns, screening resumes, assisting with payroll, employee moral boosting activities, and working games with various other departments within the Nets organization. I love my job!

BM: As a sports management major, what are some of the experiences you’ve gained from working within the field with the Nets that you normally would not have experienced in the classroom?

ST: This is a very aggressive industry. It’s a lot of fun to be in, but it’s also a lot of work and a lot of stress. I’ve learned that not only from working at the Nets, but also as a manager for the Seton Hall Men’s Basketball Team. There are no real set hours in sports and what you get out of these kinds of jobs is what you put in. You can come in, work 9 to 5, then leave, but you won’t learn as much and the experience will be far less rich. The industry rewards people who bend over backwards and go the extra mile.

BM: What was your experience like as a Servant Leader Intern with the Children’s Defense Fund Freedom Schools?

ST: This is one of the most rewarding experiences I’ve had in my entire life. Every summer, I work with the Children’s Defense Fund Freedom Schools as a level four Servant Leader Intern. I teach an Integrated Reading Curriculum as well as Social Action and enrichment activities to high school age students, but most importantly, I act as a mentor to these youth. I have observed throughout my life that many kids in the urban core do not have positive role models in their lives. Their heroes are usually athletes or rappers. I just wanted to be someone they could look up to, and touch their lives in some way. I feel I did that and I still stay in touch with my scholars to make sure they are doing well.

BM: You show consistent dedication to community service. Why is this aspect so important to you and in what ways do you

hope to continue your service to the community in the future?

ST: Service is a value that my family has instilled in me from a very young age. I was taught that I had a responsibility to give back to the community because I have been abundantly blessed. When I was younger, my mother made it a point to expose us to those who were less fortunate so that we were able to gain the understanding that people are not less, by any means, simply because of their circumstances. We are all children of God. So, in my adulthood, it has become important to me to be a woman for others. My passion is working with children

and young people. In the future, I intend to continue to volunteer my services to various organizations that work with inner city youth. Eventually, I would like to marry my love for sports and service by founding a non-profit organization that acts as a bridge between at-risk youths and athletes. I think that athletes have a responsibility to be of service to their respective communities in more ways than one and they have the ability to make a positive impact on the lives of many.

Contact Beverly at beverly.makarios@student.shu.edu

8

TUESDAY, DECEMBER 7, 2010

THE STILLMAN EXCHANGE

Ethics Is it ethical for retailers to use “Christmas” as a marketing tool?

With stores coming out with huge Black Friday blow out sales that have a strong emphasis on the Christmas season, are companies such as WHO.A.U of the Garden State Plaza unfairly utilizing the Christian holiday of Christmas and attempting to make a profit from it? Does this discriminate against other individuals who do not celebrate Christmas? Is this ethical?

Joan Orejuela, Political Science Major

Capitalism’s Favorite Season In our capitalistic society, it would be naïve to believe that the holidays and the traditions we enjoy are not financially benefiting corporations and small chains alike.

The Christmas season, in particular, creates frenzy over brand new electronics or that one children’s toy of the season that is sold out everywhere. Stores are filled with more and more people from Black Friday, the day after Thanksgiving, until December 25.

“The fact of the matter is that capitalism in the United States trumps whatever our religious practices or traditions may be.”

Wherever you turn there is a new sale, 30 percent, 40 percent, or 50 percent off merchandise, which lures customers in to take advantage of the holiday specials.

In a grim economy, these signs are what most Americans want to see.

However, these sales do raise an important question: do sales in the name of Christmas or any other holiday take away the sanctity we as individuals hold to those days? Or are they just cleverly timed business opportunities that hold no significance

to our religious activities?

It is my belief that buying a sweater on sale during Christmas season does not mean that you are belittling the holiday or its significance and neither does it mean that the corporations who produce those sales are exploiting our religious traditions. If this were the case, the heart shaped candy sold for Saint Valentine’s Day would be distasteful as would be the leprechaun hats sold for Saint Patrick’s Day, both of which are celebrated by Americans who probably have no concern over their religious origins.

The fact of the matter is that capitalism in the United States trumps whatever our religious practices or traditions may be. In our society, wherever there is a dollar to be made, someone is already looking for ways to gain it, even if that means playing on the fact that Christians want gifts under their tree.

In a distorted way, the abundance of sales during these holiday seasons can act in a way that unifies us all, regardless of religion, creed, or what have you. Walking into stores, it does not matter whether or not you celebrate Christmas, as you are still able to enjoy the sales that come from it. The sales of these stores, whether looked at as ethical or not, do not discriminate against the customer.

No one will ask you if you are Christian, no one will care if you are Jewish; all that matters is that you are a paying customer in that store and it doesn’t matter what you are celebrating when you leave.

Contact Joan at joan.orejuela@student.shu.edu

A recent poll of 166 Seton Hall students who were asked the question: Is it ethical for Christmas to be exploited to benefit retail stores?

David Zolezzi, Biology Major

Christmas Earlier and Earlier “It’s the most wonderful time of the year.” That may be true but it is also a time that means a lot of different things to different people.

It is Christmas, Hanukah, Kwanza, New Year’s and a different holiday for many religions and belief systems. For businesses however, this time of year means big sales and even bigger profits. Every year retailers across the country start the “holiday season” earlier and earlier so that kids are making their Christmas lists before they say “Trick or Treat.”

This seems like a win-win for everyone involved. Shoppers get the deals they crave, corporations make the money they need to survive, and the economy prospers. But what effect does this materialistic focus have on the religious meanings of these holidays, which are the reason for them in the first place? Does getting in the Christmas spirit make you a bad Jew? Does catching a holiday bargain make you a hypocritical atheist?

The short answer is no. It may cause consumers to lose focus of what the holidays are really supposed to be about but this is not the company’s goal. They care about turning a profit and making up for slower times during the year. Black Friday is named after the day that companies are supposed to come out of the red and into the

Photo Courtesy of David Guzik

A “Christmas-Heavy” display in the Gardent State Plaza promoting the new brand “WHO.A.U”.

Joe Hopkins, Political Science Major

The Customer is Always Right The Holiday Season represents a variety of things for a variety of people.

However, the most transparent aspect of the season is the focus on buying and receiving gifts. Black Friday is perhaps more anticipated than Thanksgiving itself, and outlet stores everywhere are ready to meet the demands of their enthusiastic customers.

While everyone loves receiving gifts for the holidays, the real winners of the holiday shopping season are retail stores across the country. While some economists believe that the “Great Recession” is over, the economic crisis is still lingering in the minds of many people affected by it.

Despite money troubles, malls were packed and online retailers showed growth from last year, proving that not even tough times can keep people out of stores.

Although shopping is likely the foremost thought on people’s minds in December, one must not forget that the month has a spiritual message for the vast majority of Americans. Christmas and Hanukkah are two of the most important religious holidays for Christianity and Judaism, respectively, and are met with great jubilation by the faithful. black. Retailers like Abercrombie who don’t do holiday deals are not doing so out

“ Every year retailers across the country start the holiday seaon earlier and earlier so that kids are making their Christmas lists before they say Trick or Treat.” of religious observation but out of a stubborn, out-of-date mindset that being overpriced is cool. Newer, forward thinking retailers like Who.A.U took full advantage of the holidays and offered phenomenal

For religious followers, it is not farfetched for them to feel as if the holiday season’s spiritual message has been overshadowed by the material aspects of season. Among the most vocal critics of the media’s focus on materialism has unsurprisingly been Pope Benedict XVI. His Holiness has expressed disappointment on the loss of spiritual focus during Christmas, and has on multiple occasions warned about growing obsession over material goods.

One has to wonder why: 1) the focus on gifts is so prevalent and 2) is it ethical for business to “exploit” religious holidays? As for when and why consumerism has overtaken the spiritual messages for many during the holiday season, that is a complex question with no clear or easy answer. The question regarding the “exploitation” of religious holidays has a more transparent answer.

If any such exploitation occurs by businesses, it is because we let them do so.

Retail stores base their decisions on the public’s habits, and businesses will do all they can to give the public what they ask for. To change the practices of business during the holiday season, we will have to change our own practices first.

Contact Joe at joe.hopkins@student.shu.edu deals on Black Friday and throughout the holidays.

During this rough economic climate, it is crucial that companies remain in the “Christmas Spirit” when almost daily we hear that companies are drowning deep into a sea of red.

Hey, if you don’t do it, someone else will. Plus, none of these companies are discriminating and only giving discounts to customers of a certain religion. So, in a weird way these holiday deals are actually bringing us all together. Anyone want to catch a 30 percent off deal at WHO.A.U with me?

Contact David at david.zolezzi@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, DECEMBER 7, 2010

9

Editorials Letter From the Managing Editor: Farewell to The Hall

By Ian Mehok, Managing Editor As a Seton Hall Pirate, I am constantly reminded of the term “Hazard Zet Forward,” roughly translated to “In spite of the hazards, go forward”. Now, just a few weeks from graduation, that phrase has a new meaning to me.

When I first joined The Stillman Exchange, I offered to take on anything that would get me a shot at being in print.

For my first issue, Drew Tomafsky, the editor for Money & Investing, told me that he didn’t really need me, so I should come again next week. As I was leaving though, he offered me a chance to write one of his most exciting articles ever: a summary of the Federal Reserve’s actions over the last three months. Yes, I am confident he yawned as he gave me the article.

After a week of refining, rewriting and reworking my own article, I submitted it and felt pretty confident that I had spent more time with it than my homework for my first five classes. That seemed like a terrible waste of time until about 4pm that Tuesday, when I saw my article on the front cover of my first edition.

So now, a few years and dozens of editions later, I find myself as the one who gets to give that feeling to someone else. When I see someone on the front cover for the first time I smile, and for the better part of two years I made sure to tell them to take extra copies home. Now, when I write an article, I stress over proper punctuation rather than who Ben Bernanke is or why the Fed would cut interest rates.

I never thought that the paper would mean as much to me as it has over the years. For literally every interview I have been on since my first edition, I somehow have found

The Stillman Exchange editors and assistant editors out for a family meal at the Gaslight in South Orange

a way to talk about the newspaper. I have had the opportunity to sit next to CEOs and eat dinner, talk trading with the inventors of market-tracking software and argue stock picks with hedge-fund managers. The paper gave me the opportunity to take every concept I was learning in class and apply them. From my articles, I was able to put my education into practice.

I will never forget the time I spent with the paper, or the friends that I made at the meetings and editing weekends. Now, with the benefit of approximately sixty issues printed, we only have to spend five hours on Saturday editing, but I can remember spending two straight days comb-

ing through articles. The laughs I had with my old friends, whether watching editors dance together or stay up at Relay for Life, made every minute of those weekends worth my while. No matter what happened in my life, The Stillman Exchange family stuck with me.

So now I am part of a different family. Instead of being the young writer looking for a front page article, I am graduating and leaving the paper in the hands of two of the people I helped to get their ground. To my friends Lee Duan and Meg Reilly, I know you will take this paper and run with it. When you look back on your four years here, I know you will be just as shocked as I am now at how far the paper has moved forward.

I could write a whole article just thanking the people who have let me get to this point. I am thankful to the Deans, to my entire editing staff, all of the writers and the photographers. Most of all, I am thankful to the readers. To know that I am a part of the first undergraduate business publication, and to know that my name is recognized across campus because of the things I wrote, that means more to me than any “A” or scholarship I could receive.

I know that the “real world” will be full of struggles, just like the ones I went through on occasion with my college career. But I know that no matter how far I go, or where I go, my family at The Stillman Exchange will be there to catch me when I fall. In spite of the hazards of going forward, I know that The Stillman Exchange will never leave me, and the relationships I have formed here will follow me however far my career goes.

Contact Ian at ian.mehok@student.shu.edu

Cause Marketing Shows Profitability

The Stillman Exchange The Official Business Publication of Seton Hall University

Executive Board Managing Editor Ian Mehok

Assistant Editors Money & Investing Jennifer Crowe

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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.

By Rich Kimsey, Sports Editor Cause marketing is a growing trend that has become more relevant recently for brands, leagues, and properties that are looking to enhance image without taking the ever present risk of aligning with an athlete.

Brands that choose the philanthropic route have to be cautious about finding a charity that lines up with the brand message. Even if this is done successfully, measuring ROI is difficult because of the variety of people that the message reaches.

However, even though tracking ROI is a disadvantage, cause marketing allows brands to easily target multiple customer profiles. When faced with an option, a consumer’s purchasing behavior may be altered by the potential to help out a cause more often than not.

Genworth Financial created a cause marketing opportunity with its “Putts for Charity” event held at European Tour stops.

Every made putt by the general public and professionals added money to the cause. A tented village was created with the help of BMW to house a six hole putting green for the public to sink shots for charity.

Genworth Financial and BMW were able to engage fans to participate in the cause through interest in golf. This marketing effect was especially successful because it didn’t appear fully motivated by profit.

Both brands were able raise money without requiring anything in return, but did receive good publicity.

Major League Baseball’s long standing partnership with Susan G. Komen for the Cure has used a 5k and fun run during the All-Star break to raise money and generate awareness. The Sports Authority and Nike took the opportunity to give back by becoming the presenting sponsor of the event. All four entities gained exposure for each brand while raising over $200,000 for cancer research.

Komen for the Cure has been the official charity of the LPGA since 1992. Both

the charity and the league make sense for each other and the LPGA garners media attention for the cause by wearing pink ribbons on hats and shirts opening the door for the media to tell the story of the cause.

In addition, the NFL’s work with Komen for the Cure extended to different local community events run by the league’s 32 teams. EA Sports joined the cause by selling special pink editions of the popular Madden NFL game with proceeds going to the Deanna Favre HOPE Foundation.

Teams have also turned to cause marketing, to raise awareness for a cause and company owned assets, without absorbing the risk and lack of control associated through marketing around a specific player.

Massachusetts General Hospital has partnered with the Boston Red Sox’s “The Run to Home Base” - a charity that combines a 9k run through the city of Boston and ends with the opportunity to cross home plate at Fenway Park. The outreach will raise money for veterans returning from Iraq and Afghanistan.

The charity reaches out to all Americans in support of the country’s troops and combines a unique opportunity for Red Sox fans, something that they may want to return to the park to remember during the season.

Social responsibility is important for corporations to take part in, but companies must do it for the right reasons and not because it has become a requisite to enhance brand image. Successful partnerships will align with a brand’s focus and has the potential to use social media and traditional marketing techniques to raise awareness of the cause and product.

A feel-good marketing approach has its benefits over constantly promoting a star player and is much safer. Cause marketing catches the eyes of different people and differentiates a brand from the rest of the pack.

Successful cause marketing campaigns are a good decision because sometimes athletes make bad ones.

Contact Rich at rich.kimsey@student.shu.edu

10

Sports Business

TUESDAY, DECEMBER 7, 2010

THE STILLMAN EXCHANGE

Marlins seek sponsors that match colors for new stadium

By Anthony Holesworth, Sports Business Writer The Florida Marlins are working on a brand new, stateof-the-art ballpark in the Little Havana section of Miami.

There are a number of different grand aspects of the new stadium. The $515 million stadium seats 37,000 people. The stadium features a retractable roof and a natural grass field.

Other features include a giant swimming pool and a large bar in left field. However, there is one more aspect of the ballpark that is more impressive and breakthrough than all other factors. This aspect is that the stadium is separated into four sections, each dominated by one color.

Furthermore, the sponsorship deals the Marlins make for the stadium will be based on the primary colors of prospective sponsors’ logos.

The stadium is being developed by the owner of the Marlins, Jeffrey Loria, an art dealer from New York. Loria modeled the theme of the stadium after the works of Joan

Miro, a Spanish artist. Specifically, the stadium is modeled after a phrase, “Miro’s palette,” which refers to the colors of red, yellow, green and blue, which were used excessively by Joan Miro in his works.

The new stadium will be separated into different sections based on each color. Each section will have different sponsors, based on their colors. For example, in the blue section (home plate section), the new stadium will only feature sponsors whose primary color is blue.

There are a number of different perspectives this move can be seen from. First of all, from an artistic and ambiance perspective, this new idea can be looked at as positive and breakthrough. The idea of color coordinating a stadium to this extent is unprecedented in sports. It sets an artistic standard in stadium design, and promises great stadium ambience.

However, from a business perspective, the move can be looked at in a negative light. From a strictly business standpoint, the artistic aspect of stadium management should not

take priority over the business aspect. With this move, business decisions will be based on, and therefore limited by, artistic boundaries of the ballpark. The main problem with this is that if a potentially beneficial sponsorship opportunity arose, but the sponsor’s primary color didn’t match up with the sections available, it could be turned down, resulting in the loss of a potential sponsor.

The team president of the Marlins, David Samson, defends the business aspect of the move.

“These [four] colors are universal in every brand,” Samson said. “It is a great way to get everybody focused and a great way to start the conversation for companies that want to have their brands associated with one of our quads.”

The bottom line is that only time will tell if this was a sound business move or not. In the meantime, the move can be looked at as a unique attempt to positively change the area of stadium design and give it an artistic twist.

Contact Anthony at anthony.holesworth@student.shu.edu

Muhammad Ali endorsement clout continues to be a knock out

By Scott Kim, Sports Business Writer In this past year we have seen athletes such as Tiger Woods, Landon Donovan, and Brett Favre all turn their untarnished images into a marketing nightmare for companies that sponsored them. This makes retired athletes such as Muhammad Ali even more attractive since their images are, for the most part, already set in stone, which is why the company Greenlight will now be making a huge push in marketing his brand in Europe and Asia.

Muhammad Ali has long been a name that has been a force in the marketing world and is one of the most recognizable athletes due to his gold medal victories in

the Olympics in Rome in 1960 as well as being a three-time World Heavyweight Champion.

His brand up to this point has been relatively limited and not used to as much of an extent that Greenlight thinks it can go.

Right now the Ali name has been used for a line of health snacks, Muhammad Ali collection by Everlast, and a limited edition hat by New Era that commemorated the 50th anniversary of his 1960 Olympic gold medal. Recently, Apple implemented two new iPhone apps that feature photographs and his quotes.

Greenlight plans on going beyond this and using Ali to market high-end and luxury goods such as cars and financial service businesses.

Vonn looks to continue winning and earning endorsement deals Brianna Young, Sports Business Writer In the upcoming season can Lindsey Vonn maintain her success that she has had in the past year, and could this help her gain more endorsements? After winning the

favorite, Law and Order. All this fame though has not stopped her from wanting to improve, and winning other medals in the 2014 Olympics in Sochi, Russia.

Even with her previous gold medal Vonn still feels pressure. She thought the pressure would not be as intense. But, it’s

“Muhammad Ali is obviously one of the most transcendent personalities,” Greenlight’s vice president David Reeder said. “Licensing his name and image has been mostly passive here in the U.S. through Muhammad Ali Enterprises. We want to proactively go out and position him throughout the world, where I think he’s front and center more than he is here given his gold medal in Rome, his very historical battles around the world and his role as a human rights ambassador.”

Companies now want to limit their risk as much as they can and one way to do that is to use an established name such as Muhammad Ali. Contact Scott at william.kim@student.shu.edu

Photo courtesy of Getty Images

it got warm out she would do workouts outside that helped her work on her quickness and agility. She has also taken the time to go to a nutritionist to get a better diet that will help her maintain energy. Even though she was already eating healthy that was not enough. She needed the change in her diet because now she has enough energy for races.

With her success Vonn has also had some trouble. After she won her gold medal, teammate Julia Mancuso made comments about how Vonn’s achievements were a dis-

traction for the U.S. team. Vonn did not let this distract her even though people still ask her about it when she is doing an interview.

She is just really focused on improving and nothing more.

So just keep an eye out for her this coming season, and see if all this hard work she is putting on during the off season helps her maintain the name she has made for herself.

And who knows, maybe she will become even more popular.

Ali’s brand will look to grow in Europe and Asia

Contact Brianna at brianna.young@student.shu.edu

Photo courtesy of Redbull.com

Is MLB licensed cologne a swing and miss?

By Travis Tosoni, Assistant Editor

Lindsey Vonn has been one of the most successful skiiers and brands have looked to attach to her.

Gold medal in Women’s downhill at the 2010 Vancouver Olympics, Vonn has gained many endorsement benefits.

Since the Olympics Vonn has made the front of Wheaties, a major accomplishment for an athlete. She has also made covers of several magazines. Vonn has had the pleasure of walking down the red carpet for movie premieres and awards. She has also made appearances on several shows including her

more intense now because she has to live up to the new name she has made for herself, and no one wants to see a former gold medalist do horrible. She has raised the bar for herself especially because she wants to win more races, medals, and keep her World Cup title.

Now she has intensified her training to live up to her name. Her workout consists of being in the gym eight hours a day and when

With news that a large fragrance house is in discussions with the New York Yankees and Major League Baseball about a licensing deal that will create a teambranded cologne and line of men’s toiletries, will this idea leave an impression on consumers or leave the MLB smelling something bad.

Almost overused is the pairing of athletes with fragrances. Even Yankees’ star Derek Jeter has his own line, as does David Beckham, and Maria Sharapova. Michael Jordan dabbled in the area among others, with varied results.

These endorsements, however, reach the consumer with the ability to ascertain the idea behind the scent. Jeter is cool and refined, Beckham is classy and sophisticated, Sharapova is beautiful and talented. Each of these qualities most likely won’t change and give the fragrance a direction and personality.

Just because the Yankees are a premier global brand, doesn’t mean that it will have consumers tearing down the shelves to spray some Yankee on them. The Yankees’ don’t have a steady year-to-year personali-

ty.

The Yankees are always changing.

Of course, overall, and a likely marketing ploy, is the Yankees are the smell of success. But, two years ago their scent was disappointment when they failed to make the playoffs after a run of 13 consecutive appearances and for years the team has exuded a corporate appearance. Will these characteristics appeal to a consumer?

Colognes and perfumes can work for large brands such as Adidas or Ralph Lauren because both also have what is essentially an unchanging personality or reason a consumer can connect to the brand’s scent. Adidas is about performance and Ralph Lauren is about luxury.

The challenge of a team-branded line of cologne is the core personality of the team changes year to year. What would the scent of the Miami Heat be? Betrayal? The Jets?

Arrogance? The Mets? Shame?

Clearly the Yankees would be one of the few teams that would be able to pull a fragrance off and see some success because of the team’s long standing tradition, but is it even worth pursuing?

Contact Travis at travis.tosoni@student.shu.edu

Sports Business

THE STILLMAN EXCHANGE

TUESDAY, DECEMBER 7, 2010 11

Cavs owner set to launch tampering investigation against Heat Tony Bonkalski, Sports Business Writer Pat Riley is considered a mastermind in basketball because he did the improbable: signing Dwyane Wade, Chris Bosh, and LeBron James to play for the Heat, but his tactics were put under suspicion by the Cleveland Cavaliers recently.

Coming a few days prior to LeBron’s return to Cleveland, the Cavaliers spent hundreds of thousands of dollars to investigate the suspicions of tampering by the Miami Heat. Allegedly, the Miami Heat broke anti-tampering rules while pursuing the all star while he was still under contract with the Cavaliers.

The timing of the report may not be surprising to many.

LeBron’s return to his home state is a monumental ordeal in sports at the moment and many people in Cleveland are trying to find any way to slander the name LeBron James. One way to do this is to reveal the wrongdoings of his present team.

Teams were not allowed to contact LeBron before the start of free agency, which began on July 1st. The allegations involving the Heat are that Pat Riley supposedly met with James in Miami in November of 2009 and that representatives for James met with Dwyane Wade in Chicago in June 2010.

The implications of the tampering, if found guilty, can be detrimental. If they are found guilty, the Heat could be burdened with fines, have their front office executives suspended, and have numerous draft picks taken away. All of these can prove to be extremely important for an NBA team. What better way to stir up Cleveland fans then to introduce a scandal involving the player who they now call “Queen James.” Dan Gilbert, the Cavs owner and the person

By Robert Szeluga, Sports Business Writer

Photo courtesy of Getty Images Dan Gilbert is currently building a tampering case against the Heat

who was responsible for a highly critical reaction towards James’ televised announcement to join the Heat, was asked to share his thoughts with the media involving James’ return to Cleveland.

“I’m over it, I really am. That’s the truth. I let it all out in about 24 hours. I just think we have such a great core and a great coaching staff. We have a lot of opportunities with the trade exception and the draft.”

It seems as if he has moved on from the LeBron James drama, now it is time for the rest of the world to just deal with the decision that he has made and move on, no matter how they feel about it. As for the allegations, Gilbert made a formal request to the NBA to look into the matter.

Contact Tony at Antonio.bonkalski@student.shu.edu

Sabres for sale; Owner mulling it over

By Travis Tosoni, Assistant Sports Editor

ey team.

Tom Golisano, the billionaire owner of the National Hockey League’s Buffalo Sabres, is said to be seriously considering the idea of selling the franchise.

While there is currently no official deal in place, Golisano has been reportedly negotiating with Pennsylvania billionaire Terry Pegula.

The Sabres are not in need of a buyer, but they have been listening to offers from interested parties.

Golisano originally purchased the Sabres back in 2003, when the franchise had declared bankruptcy, for $92 million dollars.

Golisano’s current asking price is in the $150-$175 million range.

Pegula has also filed an official letter of intent to purchase the hock-

Photo courtesy of Associated Press

NHL leading the way with sponsorship revenue

Pegula is the founder and former president of the natural gas energy company East Resources Inc., a leader in Pennsylvania’s growing natural gas industry. He also has affiliation with hockey, thanks in large part to his recent donation to his alma mater, Penn State University. Along with his wife, Pegula gave $88 million to fund the construction of a multi-purpose arena, and also promote the school’s men’s and women’s club hockey teams to Division I for the 2012-13 season. The gift is the largest private donation in the history of Penn State University.

Golisano’s possible sale of his majority stake in the club has put heat on current minority owner Larrry Quinn. In a recent press conference, Quinn declined comment on the issue of Golisano’s decision, and also disputed claims that Pegula signed a letter of intent.

If Pegula were to purchase the Sabres, it would bring a new energy to the championship-starved sports market. With stars such as 2010 American Olympic goalie Ryan Miller, and offensive weapons Derek Roy and Thomas Vanek, the Sabres are not a weak team. However, the team is not big on change, often staying away from the free agent market for players, instead opting for cheaper, “home-grown” talent. Buffalo also boasts the longest tenured coachgeneral manager tandem in the league, something that has drawn criticism in the past. Generally, a new ownership group will implement its own philosophy towards the team to make it their own. A changing of staff could be in store should a new owner take charge of the Sabres.

A new owner, possibly Pegula, could bring a change in atmosphere to Buffalo that could elevate the franchise from mediocrity to a perennial power in the NHL, and provide one of the nation’s most passionate fan bases the championship it deserves.

Ryan Miller is the face of the Sabres, and a key asset to the franchise

Contact Travis at travis.tosoni@student.shu.edu

Sports marketing may be the comeback story of the year. A recent IEG report confirmed that sponsorships in all four major sports leagues (NFL, MLB, NBA, and NHL) are up from last year’s results. Overall, the four leagues combined to jump from $2.12 billion in revenue for 2009 to 2.28 billion in revenue for 2010, an increase of 7.6 percent.

This is significant being that revenue from sponsorships dropped 3.9 percent from 2008 to 2009, with marketers pulling out of premier events like the Super Bowl.

Leading the way is the NHL, which posted an increase of 9.4 percent. Over recent years, the NHL has done a terrific job rebounding from a lockout season in 20042005, in which the league lost a large portion of its fan base as well as sponsorships. The NHL has slowly been rising since then, airing games on the Versus network as well as weekly NBC games. For the 2010 playoffs, the league posted record television ratings.

Along with this, a 66 percent increase in sponsorship revenue.

The NHL’s sponsorships come from all different areas. For the 2010 playoffs, sponsors such as Visa, Energizer, Hershey, Enterprise, Honda, and Anheuser Busch appeared either in commercial spots or ran competitions promoting both the respective companies as well as the NHL. The league also has current deals with Discover, Bridgestone, Gatorade, Dick’s Sporting Goods, and Verizon.

The winter classic is also another way in which the NHL has successfully marketed itself and brought in a significant increase in revenue. The 2011 Bridgestone Winter Classic, held on New Year’s Day, will feature the Washington Capitals visiting the Pittsburgh Penguins, with the game being held at Heinz Field. With superstars such as Sidney Crosby and Alex Ovechkin, as well as an outdoor atmosphere unlike any other, the event practically markets itself. Leading up to the spectacle, the HBO will also air a four-part “24/7” documentary, adding even more hype to the event.

The NHL was not the only league doing work over the past year. Other than the NHL, the other three major sports leagues also made noteworthy sponsorships deals that helped increase revenue. The NBA, which was second among the four sports, signed with Spanish bank BBVA, the league’s first official bank. The NFL, which came in third, signed deals with both Papa Johns and Anheuser Busch. The MLB signed deals with the Scotts Co. and Bridgestone Americas as well.

Contact Robert at robert.szeluga@student.shu.edu

Caroline Wozniacki a winner on the court and in advertising

By Anthony Crisci, Sports Business Writer Caroline Wozniacki, 20-year-old winner of this year’s Women’s Grand Slam, has earned an astounding $9 million in winnings, including a nice chunk from her biggest endorsement provider, Adidas.

Wozniacki, who some have saw as just another pretty face in the world of woman’s tennis, has made a big splash on the WTA Tour. After Maria Sharapova entered the professional field, making an average of $25 million a year, many pretty faces in tennis have been expected to follow in her footsteps. Before Wozniacki, all others have failed miserably. Wozniacki earned around $3 million in prize money after finishing the

season in the number one spot. The other $6 million came from endorsements including a $ 2 million bonus from her biggest contributor Adidas.

Wozniacki is quickly becoming the new face of woman’s tennis and is continuing to add money to her bank account. Starting on Thanksgiving Day, her face shined throughout Time Square on the JumboTron as she is now promoting Proactiv. Not only has she put herself at the top of the tennis world but with this new endorsement she has put her name alongside superstars such as Justin Bieber and Katy Perry. Wozniacki is also contributing back in her home country of Denmark by becoming the face of Turkish Airlines and Aquiss rehydration drink.

These deals will include family distribution

that will mark the start of European advancement.

“She is a pretty girl, she speaks four languages, she has the ability to be like Sharapova if she wins a Grand Slam,” said John Tobias, her agent with Lagardère Unlimited.

As she has gained some popularity in the world of tennis, her face is not very recognizable throughout the rest of the nation.

While Wozniacki might already be a legend in Scandinavia, she is hardly a household name in the United States. In fact, the DavieBrown Index, a well-regarded service that measures athletes’ and entertainers’ popularity, had not even included her in their polls, although they said her name shall appear soon.

Many European athletes have difficulty in breaking out in the United States. Maria Sharapova and a handful of other European athletes are the small exception, but Wozniacki is showing some huge strides in breaking into that exclusive club. She is set to have contained three additional endorsements in this next year. She is also scheduled to play an exhibition match that is serving as the birthday celebration for the King of Thailand. With the three deals, worth at least a couple extra million, and the birthday exhibition, providing several hundred thousand, Wozniacki will have a much bulkier purse come next season.

Contact Anthony at anthony.crisci@student.shu.edu

12

TUESDAY, DECEMBER 7, 2010

Stillman Sports

THE STILLMAN EXCHANGE

Fans unsure about FIFA’s 2022 choice of World Cup host country Qatar

By Matt Bartel, Sports Business Writer After years of deliberations, campaigning, and controversy the sites of the 2018 and 2022 FIFA World Cup have been chosen Thursday in Zurich, with Russia being selected to host in 2018, and the small Middle Eastern nation of Qatar for the 2022 games.

Despite strong bids from the United States and England, FIFA decided to take a different direction. Instead of choosing a host that would already have the facilities to host the games and the ability to accommodate the countless fans who flock to the event every four years, the twenty-two members of FIFA who voted have taken this as an opportunity to make a statement about their organization and the future of football in the international community.

They made the choice to take the World Cup to unchartered territory of the sport’s premier event, as the President of FIFA, Sepp Blatter, would say after the announcement, “We go to new lands.” These “new lands” are both looking forward to the opportunity and the economic increases that come with hosting a World Cup. As Russia is already gearing up to host the 2014 Winter Olympic Games in Sochi, the choice may have been easier than many would have thought. A late push from former President, now Prime Minister, Vladimir Putin, did not hurt either, as he arrived in the final hours of campaigning.

Putin has been a steadfast supporter of FIFA in the face of allegations that the organization was involved in corrupt practices such as vote trading. The board consisted of twenty-two members instead of the usual twenty four because two members had to be sus-

pended for allegedly taking part in the trading of votes. This shortened vote also chose the 2022 games in order to give the country selected more time to prepare for FIFA’s large investment.

The small but economically growing nation of Qatar won out, aided by an emotional presentation given on their final appearance before the FIFA board. This plea came from Sheikha Mozah bint Nasser, the wife of the Emir (main political leader) of Qatar, when she said, “I want to ask you a question: When is the right time for the World Cup to come to the Middle East?”

Now the nation must fulfill their promise of spending fifty billion dollars on infrastructure and an additional four billion to build new and renovate current stadiums for use in the tournament as reported by the Associated Press.

FIFA’s choices of the former Soviet

Will addition of TCU football boost Big East conference?

By Tony Cramond, Sports Business Writer Just when it looked like the Big East was going to become irrelevant in college football, TCU came to the rescue.

Last Monday, it was announced that TCU will become an all sports member of the Big East conference, which is a move mainly to acquire the TCU football program. TCU will join the Big East during the 2012-2013 academic year and when that time comes the Big East will finally become relevant in the BCS picture.

At this time, the Big East only has one team in the top 25 for college football: West Virginia, ranked 24. However, Connecticut is the team with the chance to win the conference if they are able

Photo courtesy of Sports Newscaster

to beat USF on Saturday. This means that the Big East champion is not even nationally ranked. TCU is currently ranked 3 in the BCS standings and will instantly give the conference credibility. The Big East is now able to get the powerhouse team that they have needed ever since the loss of Virginia Tech, Miami (FL), and Boston College to the Atlantic Coast Conference. TCU is also a winner because now it is in an automatic BCS bid conference.

So it’s a win -win for everyone, right? Not so fast. TCU is now going to subject its basketball team to the best college basketball conference in the country, and TCU’s basketball team is not very good. Sports Illustrated’s Luke Winn ran some numbers and discovered that the Horned Frogs—in the hypothetical 17-team Big East—would have finished 17, 14, 17, 16 and 17 in the last five seasons.

Also, there is still a problem with the number of schools with a basketball program. Having Villanova upgrade its facilities so that it can become D1 means that there is no problem in football, which would have 12 teams. But having 17 basketball schools means that the Big East must invite in another school to join the conference.

The possible schools are apparently Houston, Central Florida, East Carolina, and Temple, who was kicked out of the Big East in 2004.

The Big East still has work to do, but they got the major prize that they wanted: the TCU football program. Now they need to find the other pieces that will help make the conference prominent in the two major college sports, basketball and football. Let’s just hope that they are able to make it work.

Contact Tony at anthony.cramond@student.shu.edu

TCU will help to make Big East conference prominent in college football

Is Tulowitzki’s contract smart for Colorado Rockies?

By Nick Costa, Sports Business Writer As the New York Yankees and Derek Jeter have trouble coming to terms on a contract, the Colorado Rockies seemed to have no problem locking up their young shortstop, Troy Tulowitzki, for the next decade.

The contract will pay Tulowitzki over $157 million throughout the next ten years. What makes this so ironic is that many compare Tulowitzki to Jeter. Like Jeter, Tulo signed a large contract just as he was just starting to come into his own in the Major Leagues, with many people feeling that the young shortstop is the type of player a team can build a franchise around. With a monster year of 27 home runs and 95 RBIs, including numerous clutch hits that almost helped the Rockies make another late season run into the playoffs, it is hard to fault the team for making sure he remains the face of the franchise for the rest of his career.

However, many wonder whether the Rockies were too fast to pull the trigger on a new contract. Tulowitzki was already signed for the next three years at a reasonable $23.75 million.

Many argue that instead of extending the contract for another seven years, the Rockies would have been smart to wait out the

next three years and then make a decision. Many feel that Tulo, like any athlete, may get injured. Under that scenario, the Rockies would be left to pay a lot of money to a player that is never on the field.

Although baseball experts have questioned the signing, you can once again use Derek Jeter as the perfect example as to why the Tulowitzki deal makes a lot of sense. Like the Yankees and Jeter, the Rockies have the face of their franchise for the rest of his career. They have the perfect player to market and sell to fans throughout Colorado, and more importantly throughout baseball.

In 2001, Derek Jeter signed a lucrative ten-year contract like Tulo, which was worth $189 million for ten years. Now, it’s not assumed that Tulowitzki will have the Hall of Fame career that Jeter has, but if he can come close to it and continue to have productive seasons anywhere near the one he put up in 2010, then the Rockies will certainly come out a winner in this deal.

There is something special about having a homegrown player finish his career with the team that brought him up. The Rockies made the right move in locking up such a solid player.

Contact Nick at nicholas.costa@student.shu.edu

Republic and the growing Middle Eastern state are most definitely gambles. However they are gambles the organization is willing to take if it can lead to further expansion and growth of their sport in regions where it is already growing in popularity.

Contact Matt at matthew.bartel@student.shu.edu.

Stillman Sports Super Seven 7. Serena Williams has withdrawn from the upcoming Australian Open due to a foot injury. The five-time winner of the tournament has been plagued by injuries since winning Wimbledon in July, missing major events such as the U.S. Open and the WTA Tournament.

6. Rogers Communications, Canada’s leading communications company, is looking to purchase a majority stake in Maple Leafs Sports and Entertainment, the company that owns the Toronto Maple Leafs, Toronto Raptors, Toronto FC, and Air Canada Centre. Rogers already owns the Toronto Blue Jays, the Rogers Centre, and the sports television station Rogers Sportsnet.

5. Italian Cabinet Minister, Roberto Calderoli is calling for the resignation of Ferrari President Luca Cordero di Montesemolo, following the automaker’s disastrous finish to the Formula One season. Tactical errors by Ferrari during the Abu Dhabi Grand Prix allowed for Team Red Bull to win the race and ultimately clinch the title.

4. The players of the LPGA have voted to permit transgender players to participate on the women’s tour. The move came after a lawsuit was filed by a California woman who had undergone a sex change and claimed the LPGA’s female at birth rule in its constitution violated California civil rights law.

3. Auburn quarterback, Cam Newton was cleared by the NCAA after allegations that he had accepted payments. The governing body of college athletics ruled that scheme to earn payments was generated by Newton’s father and scouting service owner Kenny Rogers, and that Cam Newton was not involved.

2. Pittsburgh Steelers star linebacker James Harrison has stated he will not change his playing style, despite receiving his fourth league-sanctioned fine in the last six weeks.

Harrison has lost a total of $125,000 in fines this season, and he feels he is now being unfairly targeted by the NFL. 1. In an unprecedented move, Florida preparatory school, Montverde Academy has elected to skip the state’s soccer playoffs. The undefeated boys team says the decision was made to spend more time developing its players in hopes of earning college scholarships from major schools.

THE STILLMAN EXCHANGE

TUESDAY, DECEMBER 7 , 2010

Domestic News

13

Senate Passes Biggest Food Safety Standards Overhaul Bill Since 1930’s

By Padmavathy Sonti, Domestic News Writer On Tuesday, November 3, in a 73-25 vote, the Senate passed its version of the Food Safety Modernization Act. The measure would overhaul certain safety standards on food, by permitting the Food and Drug Administration greater oversight and requiring food producers to maintain internal records for tracking purposes.

In the wake of recent national recalls involving eggs, peanuts, and spinach, the legislation is considered one of the largest overhauls on food since the 1930s.

“I urge the House –which has previously passed legislation demonstrating its strong commitment to making our food supply safer –to act quickly on this critical bill and I applaud the work that was done to ensure its broad bipartisan passage in the Senate,” President Obama said.

Supporters of the bill assert that these are adequate measures to ensure public protection from contamination. Under current regulations, the government inspectors are only able to trace contaminations “after the fact.”

Among other things, the Senate bill: -requires food makers to write a plan that identifies contamination risks -allows the FDA access to food maker’s records -allows the FDA to deny imported food entry into the U.S. if the manufacturers refused inspection

Photo courtesy of Christian Science Monitor The Senate’s bill on food safety comes in the wake of national safety recalls of eggs, spinach, and peanut butter.

“[The] vote will finally give the FDA the tools it needs to help ensure that the food on dinner tables and store shelves is safe,” stated Senator Dick Durbin (D-IL).

Senator Tom Coburn (R-OK) disagreed. “The problem with food safety is the agencies don’t do what they’re supposed to be doing now.” He believes that the bill will only promote bureaucracy.

According to the Congressional Budget Office, the bill will cost $1.4 billion during

News Briefs Urns in ‘Unknown’ Grave Spur Inquiry The United States Army has opened an investigation into the eight mystery urns of cremated remains of soldiers found in Arlington National Cemetery. Cemetery recodrs show that there should only be one set of remains buried in the grave. Since the urns were found in late October, the miltary has successfully identified three sets of remains from tags from morgues in the urns.

The other four urns have no identifying tags, and investigators are working to learn the identities of the remains in the urns.

Congress Passes CALM Act A new complaint is ringing in American households. Move over “There’s nothing on TV,” your new competition is “The commercials are too loud!”

Congress heard Americans, and have passed the Commercial Advertisement Loudness Mitigation, or CALM, Act. This act will mandate lower volumes for commercials that seem consistently louder than the programs they break up. The practice of turning up the volume on ads has been going on for years in the television ad industry. Prior attempts of legislation failed, but with the change to digital TV last year, the cries could no longer be ignored.

Obama Grants Nine Pardons In his first time exercising his presidential clemency powers, President Obama pardoned nine people on Friday, December 3. Most of the pardons were for smallscale offense committed a number of years ago. Six of those pardoned served only probation, the rest serve no time at all. Pardon attorney Margaret Colgate Love applauded Obama’s act, “I’m very glad he’s gotten started, and I hope that he will look seriously at the hundreds of cases that are awaiting his consideration.” Obama had previously denied 605 petitions for a commuted sentence and 71 pardon requests.

the span of four years. The Centers for Disease Control and Prevention estimates that food illnesses account for thousands of deaths each year. Over 1,500 consumers became ill during this summer’s egg scare.

In addition, these illnesses cost approximately $9 billion in health care costs per year.

Since its passage, the bill has garnered significant attention for a legal flaw. A certain section would authorize the FDA to set

fees on food importers and food producers that market contaminated food. Legislation involving taxes must originate in the House instead of the Senate. If these fees are defined as taxes by the House Ways and Means Committee, then the vote in the Senate would be dissolved.

“This has happened to us four or five times with the Senate,” stated House Majority Leader Rep. Steny Hoyer (D-MD).

“The Senate knows this rule and should follow this rule. They should be cognizant of the rule. Nobody ought to be surprised by this rule. It’s in the Constitution. And they’ve all been lectured, and we have as well, about reading the Constitution.”

Senate Democrats are working to rectify the situation immediately. However, Senate Republicans have stated that they will not consider any further legislation until the Democrats address their propositions to extend the Bush tax cuts. Thus, a revote on the food safety bill seems difficult and rather unlikely.

In July 2009, the House passed its own version of a food safety bill, which differs from that of the Senate. In order for President Obama to sign the bill into law, Congress must first agree upon a reconciled version of the bill. The Senate already has a full agenda for the remaining term.

Contact Padma at padmavathy.sonti@student.shu.edu

Experts: Vitamin D, Calcium Supplements May Be Unnecessary

By Danielle Califano, Domestic News Writer An expert committee said in a report that was released on November 30, that very high levels of vitamin D and calcium, which can be achieved through the use of supplements, are unnecessary and have the potential to be harmful.

Calcium and vitamin D are essential nutrients that are reputable for their role in bone health.

However, since 2000 there have been conflicting messages about other benefits of these nutrients, and also about how much calcium and vitamin D people need to be healthy.

To help clarify this issue for the public, the U. S. and Canadian governments asked the Institute of Medicine (IOM) to assess the current data on health effects associated with the two essential nutrients.

To review the amounts of vitamin D and calcium people are getting, the panel looked at national data on diets. They concluded most people get enough calcium from the foods they eat, which is about 1,000 milligrams a day for most adults (1,200 for women ages 51 to 70).

However, with calcium, the committee found that adolescent girls may be the only group that is getting an insufficient amount, and can benefit from supplements. In contrast, older women may take too many cal-

cium supplements, putting themselves at risk for kidney stones. There is evidence that excess calcium can increase the risk of heart disease if calcium intakes surpass 2,000 milligrams per day.

Vitamin D is more complicated, the committee said. In general, most people are not getting enough vitamin D from their diets, but they have enough of the vitamin in their blood because sun exposure stores vitamin D in the body naturally. Therefore, the committee assumed minimal sun exposure, and concluded that once intakes of vitamin D surpass 4,000 International Units (IUs) per day, the risk for harm begins to increase.

Very high levels of vitamin D (above 10,000 IUs per day) are known to increase the risk of fractures and can cause kidney and tissue damage. There wasn’t much evidence about possible risks for lower levels of intake, but some studies hinted at adverse health effects.

So then what is the proper amount of calcium and vitamin D people need to take?

After evaluating the results from the study, the IOM made a committee of experts update the nutrient reference values, known as Dietary Reference Intakes (DRIs), to show the adequate intakes of vitamin D and calcium.

When establishing the DRIs for vitamin D, the committee determined

that an average 400 IUs of vitamin D per day is sufficient for most North Americans. Although, people over 71 might have to take 800 IUs a day due to the change in their bodies as they age.

The average IU per day for calcium is around 1000, and should never surpass 2000 IUs. Overall, the report generated mixed feelings from different health societies. The American Society for Bone and Mineral Research applauded the report with a statement from the society’s president, Dr. Sundeep Khosla claiming, “It is a very balanced set of recommendations.”

But Andrew Shao, an executive vice president at the Council for Responsible Nutrition, said the report was overly cautious, especially for vitamin D. He argued the evidence was not convincing, and that higher levels of vitamin D could be beneficial.

However, the committee emphasizes that nearly all North Americans are receiving enough calcium and vitamin D. Higher levels have not shown greater benefits, and would probably cause other health problems, challenging the concept that “more is better.”

Contact Danielle at danielle.califano@student.shu.edu

14

Domestic News

TUESDAY, DECEMBER 7, 2010

Democrats Fall Short of Votes Needed for Tax Cuts

By Malissa Abrams and Morgan Tornetta, Domestic News Writer and Editor On Thursday December 2, House Democrats passed a bill to extend tax cuts for single filers who make no more than $200,000 annually and families who make up to $250,000 or less. In a rare Saturday session, another vote on the cuts was held, defeating Democrats’ proposals.

The Democrat’s two proposals were a tax cut for those earning $250,000 or less annually and a raise of that threshold to $1 million a year.

Both Democrtatic initiatives failed to receive the requisite number of votes. The extension for families making less than $250,000 a year was defeated 53-36. The $1 million extension was defeated 53-37. Ten Republicans did not vote.

The GOP’s approach to America’s financial crisis consists of two different proposals: To permanently extend the tax cuts for all Americans, including the wealthy, and to temporarily extend all the tax cuts for five years.

The GOP was confident that the Democratic proposals would not pass in the Senate. They are adamant about not supporting the bill if tax cuts are not extended for the wealthy.

Senator Mitch McConnell mentioned that the Democrats are not helping the unemployment situation by raising the tax for job creators. He calls the debate between the two parties “a total waste of time” as politicians of both parties blame each other for the nation’s present circumstances.

Senator Claire McCaskill (D-MO) called the vote “the ultimate game of chicken.”

With these votes out of the way, there is a chance for a bipartisan compromise to be reached.

Higher taxes, even for the wealthy, Republicans argue, could lead to a drop in the number of jobs, particularly in small businesses, because the taxes may be pro-

By Amanda Genabith, Domestic News Writer

hibitive financially.

Senate Majority Leader Harry Reid took the initiative to negotiate with Republicans in hope of gaining the unanimous approval of all senators to bring the two Democratic as well as the two Republican votes to the floor.

All of the commotion on Capitol Hill occurs as the nation’s unemployment rate jumped significantly to 9.8 percent, according to a report issued by the Bureau of Labor Statistics. America has seen a total of 7.5 million jobs lost since December 2007.

Out of concern for the well-being of the American people, President Obama last Thursday pushed Congress officials to extend benefits for unemployed individuals, which expired Wednesday.

The president’s Council of Economic Advisors on Thursday explained the economic ripple effect of each state if the longterm benefits expire. The report stated that nearly seven million people out of work could lose coverage by next November. The number of Americans expected to lose coverage is staggering.

Most states permit 26 weeks of unemployment benefits. However, the federal government has agreed to fund an additional 73 weeks of help.

The benefits extension will help the economy’s already growing U.S. budget deficit in the short term because the unemployed have to spend money immediately.

With the worst financial crisis since the Great Depression occurring, the president is hopeful that the GOP and Democrats find a middle ground on the issue, even as the two parties continue to dispute just days after a White House summit where the president and lawmakers expresses hopes for bipartisanship.

Contact Malissa at malissa.abrams@student.shu.edu Contact Morgan at morgan.tornetta@student.shu.edu

THE STILLMAN EXCHANGE

Leaked Cables May Hurt Obama’s New START with Russia

By Liam Brereton, Guest Writing from Russia

Photo courtesy of topcultured.com

With the release of sensitive diplomatic communications, Russo-American relations have taken a turn for the worse. On December 1, Wikileaks released classified cables from American diplomats in Russia.

The released cables contain negative American opinions of the Russian government.

At the same time that the classified information was released, President Obama is attempting to pass a new nuclear arms limitation treaty through the Senate known as New START. Domestic attempts to pass the New START treaty are momentarily hampered. This most recent step towards nuclear disarmament would be a continuation of the Cold War Era SALT and START treaties the latest of which expired earlier this year.

The treaty, which was signed April 8 in Prague, would limit both parties to 1,550 nuclear missiles and would give each the authority to inspect the arsenal of the other.

Although the treaty was signed by Obama and his Russian counterpart, Dmitri A. Medvedev, nearly eight months ago, it is still waiting to be ratified by the Senate.

In an attempt to sway the opinions of Republican Senators who want to address partisan issues before this treaty, Henry Kissinger, Colin Powell and other former Republican Secretaries of State have cowritten an opinion piece in the Washington Post stating their support for this treaty and urging the Senate to ratify the agreement.

Such an endorsement may serve not only to pass this one resolution but also to bolster a more positive opinion of Russia among U.S. officials.

Since taking office, Obama has stated that he wants to “reset” relations between the United States and Russia. The leaked documents suggest that this may not be possible.

In the cables, American diplomats

Cables leaked express U.S. perceptions of Russian governmental corruption, including opinions about Prime Minister Vladamir Putin.

report perceptions of imbalanced power between Russia's president and Prime Minister, Dmitri Medvedev and Vladimir Putin. Further reports elaborate that corruption is rampant through the Russian political system.

The government functions much like a mafia; intelligence agencies like the F.S.B. provide protection in exchange for money.

At the top of the system, the government is controlled by colossal companies, the foremost of which is Russia’s oil and natural gas provider Gasprom.

This pervades down to the lowest level of the establishment, the police, who, locals have said, can be bribed for as little as 200 rubles, or approximately $6.67. A state of decay of this magnitude indicates that Russia’s national leaders will not be able to effect change within their own borders let alone “reset” international relations.

Contact Liam at liam.brereton@student.shu.edu

Debate Over Airport Body Scan Continues, Views On Potential Health Risks Still Divided

As most people are getting ready to go home for the holidays, airplane travelers will have to decide whether or not they will participate in the full-body scans.

The Transportation Security Administration has implemented over 400 Advance Imaging Technology, also known as body scanners, in roughly 70 airports. They hope to have 1,000 machines in airports across the nation by the end of 2011.

So why are so many people upset about the body scanners? While there are many voices regarding this question the two prominent answers are, that the body scanners are an invasion of privacy and that there are potential dangers of being exposed to radiation.

These machines, according to the TSA, “detect a wide range of threats to transportation security in a matter of seconds to protect passengers and crews.” The administration claims that the person who looks at the images is in a remotely located room. That officer, through a wireless headset, alerts the officer assisting the passenger if there is something suspicious located in the image. The machine “cannot store, print, transmit or save the image, and the image is automatically deleted from the system after it is cleared by the remotely located security officer.”

As for the other major concern of passengers, the potential dangers of radiation exposure, there have been mixed reactions. The TSA and a number of health experts, including a health physicist at the Mayo Clinic, said that there is very little radiation administered.

According to Kelly Classic, of the Mayo Clinic, the amount of radiation received from the body scanner compares to that of two minutes of being on an airplane at full altitude or 40 minutes of living. “There are so many com-

Full body scans have raised controversy over health risks and invasion of privacy.

mon things we’re exposed to that produce radiation,” Classic said, “[An airport scan] is a pretty minor piece of that.”

Physicist Peter Rez, professor at Arizona State University, said his mathematical calculations suggest that the doses of radiation emitted by the scanners are much higher than those of the Mayo Clinic, but still are probably not likely to cause a serious health risk.

In a telephone interview, Dr. Michael McGirr, a retired Emergency Medicine physician from Chicago, IL, said that the radiation is only exposed at skin level. This means that the radiation exposure is not evenly distributed throughout the body. It is concentrated on the skin, and therefore does not include the mass of the entire body. The radiation is stronger on the affected area than people realize.

Dr. McGirr states further that there have not been enough tests done to prove that the exposure is not danger-

ous. He admits, however, that were the scanner to jam, then “one could get a very high-level dose of radiation.” Rez recently opted out of the full-body scan.

This topic is extremely controversial and many people have mixed feelings. As Jeff Degelmann, a student at Seton Hall University, said “If privacy was not such a huge issue, this idea would be great. I personally do not like the idea of being scanned. I have nothing to hide, but at the same time, I do not like that my privacy is being pushed aside.”

Lauren Spath, a student at Kean University, said, “They are virtual strip searches and are extreme invasions of one’s privacy.” Spath is not alone in her feelings either; the TSA assures people on their website that the officer viewing the image is not permitted to bring a cell phone, video camera, or camera into the room with them. While all of the protective measures are taken, people are still uncomfortable with the idea of a person seeing them naked.

Two Harvard Law Students have filed a law suit against Janet Napolitano, Secretary of Homeland Security, and John Pistole, an administrator of the TSA, claiming that the “security measures taken at airports are ‘intrusive’ and violate the Fourth Amendment of the Constitution” reports Bloomberg. There have been a number of other suits filed against the TSA regarding the new body scanners and pat downs as well.

If the TSA has their way, these scanners will be in many airports throughout the United States in the near future. It will be up to each individual passenger as to whether they use the full body scanner or be physically patted down by a TSA representative. On the National Opt Out Day, 99 percent of travelers still used the scanners.

Contact Amanda at amanda.genabith@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, DECEMBER 7, 2010

International News

Controversy Swirls Around Egyptian Elections

By Stephanie Dunham, International News Writer On Monday, November 29, violent protests erupted over Egypt’s parliamentary election on Sunday. Over the next week, the situation has grown to include official boycotts by some of Egypt’s main opposition parties, who claim that the election was rigged by Egypt’s governing Democratic National Party.

Egyptian Minister of Information, Anas El Fekky announced, “Initial reports indicate that election day has been a success.” By Monday morning, however, the country’s two main political groups, National Democratic Party and Leaders of the Brotherhood, were fighting.

Egypt claimed to have around 6,000 people monitoring the elections, but would allow any press coverage in to the polls on Election Day. The 6,000 working members consist of 76 different civil groups, said Safwat Shareef, the National Democratic Party’s general secretary.

“Civil community groups will guarantee free and transparent elections.”

Many spoke out regarding concerns of numerous counts of voter fraud by tampering with ballot boxes and using fear to keep those who disagree with the National Democratic Party from voting.

The Muslim Brotherhood party hoped the Egyptian people would recognize the fraud and support their opposition group, but instead it appears likely they will lose all 88 of their seats in parliament. They feared that protesting may lead to a violent reputation, especially during uneasy political times for the country; however, people ended up protesting on their own. Some set fire to cars, others to tires and two voting stations.

Amid the violence, Amr Sayed Mohammed, the son of an independent candidate died Sunday night after being stabbed in what was first identified as a fight with supporters of an opposing candidate. The Ministry of Information later stated the fight had been a “private dispute.”

Many opposition group members tried fighting the alleged vote-rigging, resulting in a few disputes. In Damanhoor, an independent attacked a group of people and broke the ballot box, while in Mansoura, two candidates entered into a physical fight. Egypt’s information minister responded to these incidents by stating that two candidates fought and the police responded.

Egypt is attempting to hide the violence associated with this election in order to make the National Democratic Party look better, the exact opposite of what the Leaders of the Brotherhood had hoped would occur.

On Thursday, December 2, the Wafd party – Egypt’s oldest – announced their intention to boycott the second round of elections being held over the weekend of December 4-5.

Tareq Yuonis, a Wafd candidate in a suburb of Cairo said, “I wanted the Wafd to boycott the election because the rigging we saw this time has been unprecedented in the history of Egypt. If we stay in the election then we give legitimacy to the theater the government has put us through.”

Some party members are upset because they worked hard to try and maintain seats. However, the ones running have decided that it is worth giving up almost all 518 seats to the National Democratic Party than lose credibility by running in an unfair election again. Saber el-Ashmouni, a youth leader said, “We want the right to have the man we vote for represent us in parliament.”

Contact Stephanie at stephanie.dunham@student.shu.edu

15

Wikileaks Threatens to Jeopardize International Relationships Photo courtesy of USANews

Wikileaks has lead to several problems, including anticipatory feuds among several countries and world leaders.

By Kelsey Mahan, International News Writer Recently, thousands of highly classified U.S. documents have been leaked onto the website wikileaks.org. A private in the U.S. military, Bradley Manning, downloaded thousands of diplomatic cables from a military computer and submitted them to the WikiLeaks website. The leaks contain highly sensitive information about the United State’s foreign policy and talks with foreign leaders. The effects of these documents release will likely have an impact on the future of U.S. foreign policy and foreign policy of the nations mentioned in the documents.

The leaked diplomatic cables revealed U.S. conversations with foreign leaders, spying tactics of U.S. diplomats and statements by diplomats that may offend foreign leaders. CNN reveals that the documents quote U.S. diplomats stating negative comments about foreign leaders, such as calling the President of France “the naked emperor,” and saying the President of Afghanistan is “driven by paranoia.” The information leaked

could strain U.S. relations with the countries and leaders mentioned in the documents. CNN reports the documents show that diplomats were ordered to collect biographical information, frequent flyer and credit card numbers, and fingerprints of foreign diplomats. The leaks involving the spying tactics of diplomats could also cause countries to be more cautious and give less information when dealing with U.S. diplomats. There is also fear that the safety of the individuals named in the diplomatic cables may be at risk.

An example of how the leaks may affect other countries foreign relations with one another are revealed in the quotes concerning Iran’s President ,Ahmadinejad, and Iran’s nuclear program.

The Washington Post reveals that King Abdullah of Saudi Arabia advised the U.S. to “cut off the head of the snake” by using military intervention to deal with Iran’s nuclear program.

The Washington Post also quotes the foreign minister of the United Arab Emirates as stating, “Ahmadinejad is Hitler” in a leaked conversation. The impact of these statements could cause more tension in an already unstable region.

Since these documents have been recently leaked, it is still unclear how great of an impact they will have. ABC News reported that U.S. diplomat James Jeffery, believes that the leaked diplomatic cables are “absolutely awful” for the U.S. and its diplomatic efforts. Russia’s Prime Minister Vladimir Putin said on CNN’s Larry King Live, “Such leaks occurred before in previous times so this is no catastrophe.”

While everyone involved in the information leaked is doing damage control, only time can tell if the damage can be reversed or if the future relationships between the countries involved have been permanently strained. The worst may be still to come as WikiLeaks has more documents that they plan to reveal within the next several days.

Contact Kelsey at kelsey.mahan@student.shu.edu

Recent Violence Between Koreas Consequence of Leader’s Failing Health

By Ian Duncan, International News Writer At 2:34pm local time, the island of Yeonpyeong, in South Korea, was hit by at least 100 North Korean artillery shells, resulting in four South Korean causalities: two marines and two civilians. In addition, three civilians and fifteen soldiers were severely wounded. North Korea claims the attack was provoked

by South Korean artillery fire within its territorial waters.

However, South Korea is not accepting blame for the initiation of this feud, as they believe none of their test shots landed in the Northern territory. Several residents living on the island evacuated by means of ferry to the nearest inland town of Incheon. Great Britain, the United States, and Japan have recently condemned the North’s actions.

North Korean’s only ally, China, immediately sought a meeting with the North, to discuss the attacks. Termed as a “request for emergency talks,” the Obama administration is skeptical as to the real purpose of their conferencing. They believe the emergency talks only resulted in the praising of confrontational, reckless behavior on the North’s part.

Although China had previously called for a meeting with the United States, Japan, North Korea, South Korea, and Russia regarding discussion of nuclear activity, talks have been momentarily delayed as concerns regarding the two countries continue to rise. United States Press Secretary, Robert Gibbs, announced, “The United States and a host of others, I don’t think, are not interested in stabilizing the region through a series of P.R. activities.” Until North Korea can approach the table with a proposed seriousness concerning not only their relations with South Korea, but also their current stance on the appropriateness of nuclear weapons.

Although political analysts believe there are several reasons for this latest exchange of violence, many are pointing to the North Korean’s fear of losing Kim Jong il, the nation’s dictator.

As the nation’s leader steadily declines in health from pancreatic cancer, the North is using violence as a means of securing power and authority for the accession of Kim Jong il’s successor. North Korea is the last Stalinist, authoritarian socialist state in existence. They currently have a population of 23 million,

Photo courtesy of The Economist

A painting depicting Kim Jon-il as a child on horsebcak with his father, Kim il-Sung, and mother, Kim-Jong-suk

however, continues to face problems with poverty and starvation. CNN reports that 31.3 percent of North Korea’s GDP is allocated for military spending, resulting in an army of over one million armed soldiers. Nonetheless, it relies on international aid to feed both its military and people.

North Korean aggression has been a turbulent and inconsistent chain of events. October 2006 saw the “explosion of a small nuclear device,” as reported by the New York Times. After this event, the country became less aggressive up until recently. In 2009, a second nuclear device was detonated. It is worth noting that every military innovation the country has developed, they have sold on the world market to the highest bidder. March 2010 saw the sinking of a South Korean naval vessel by a North Korean submarine in disputed waters. The New York Times speculates that this event was ordered directly by Kim Jong il to solidify power for his son.

South Korea is still concerned as to whether or not they should anticipate another attack. Kim Tae-young, South Korean’s Defense Minister, and Won Sei-hoon, director of National Intelligence Service both believe another attack may occur in the near future. Reuters recently reported Won Sei-hoon as stating at the parliamentary committee meeting, “There is a high possibility that the North will make an additional attack.”

Contact Ian at ian.duncan@student.shu.edu

16

TUESDAY, DECEMBER 7, 2010

THE STILLMAN EXCHANGE

International Business

H ugo C havez Look s to Rai s e M o ne y by Se llin g State-Owned O i l Fi r m

By Rachel Rosenstrock, International Business Writer Venezuelan President Hugo Chavez announced November 28 of the possibility of selling Venezuela’s U.S.-based oil company, Citgo Petroleum Corporation in order to raise money to support domestic programs.

Chavez hopes to generate $10 billion from the company’s sale, but experts estimate that Citgo would be lucky if it could go for even half that proposed price.

Particularly in the current economic climate, not many firms are likely to express interest unless the deal comes with a highly favorable price tag.

Over the last year, Citgo has lost $201 million in profits, largely due to lower world market prices and a declining flow of crude oil.

India and Syria Come Together on Joint Business Council ...continued from page 1 The Council has already begun to move forward in its objectives. India has lent a $100 million line of credit to Syria. One hundred fifteen billion dollars of such investments are a part of the 5-year plan for the Joint Business Council. Additionally, Indian businesses have already identified avenues in which they can contribute to Syrian growth.

Many Indian companies such as ONGC Videsh Limited are exploring oil production. Companies, including BHEL and Apollo International are assisting in boosting the Syrian infrastructure, by installing power plants and factories. A number of other plans for companies in the information systems, pharmaceutical, and energy sectors in India to begin working with the Syrian government are on the horizon.

Other projects, including joint ventures, foreign direct investment, and public-private partnerships can contribute to the success of the Joint Business Council. The Indian economy is projected to accumulate an 8.5 percent growth this year. This added growth, if sustainable over the coming years, will offer many more opportunities for Indian economic contribution to Syria.

It is clear that India, as a strong developing economy, has much in the way of services and projects that it can offer to the Syrian growth project. As India and Syria work together, the Joint Business Council will likely be mutually prosperous to the development of both nations’ economies.

Contact Rebecca at rebecca.townsend@student.shu.edu

Photo courtesy of Associated Press

Hugo Chavez has called Citgo “a bad business” and is trying to make the firm fly away.

In a televised speech, Chavez acknowledged that “Citgo is a bad business, and we haven’t been able to get out of

it”. As the 2012 Venezuelan presidential election grows closer, Chavez hopes to generate funds in order to fulfill his proposed national polices. Public housing and improved subway systems are at the top of his agenda.

The sale of Citgo could help Venezuela diversify its markets by shifting oil sales to countries such as Cuba and other Caribbean islands. Chavez sees the sale of Citgo as a quick way to bolster his domestic support.

Citgo in the U.S. has already experienced a decline over the past few years.

Since 2005, Citgo has sold off almost 13,000 service stations throughout the U.S. Oil shipments have also declined to 31.9 million barrels compared to the 49 million barrels that were transported in 1999 when Chavez took office. Citgo does still maintain the operations of three oil refineries.

According to Lisa Viscidi of Energy Intelligence Group, another motivation to sell the company involves recent lawsuits.

Selling off assets in the U.S. would provide Venezuela protection “against the international settlement dispute that they have with Conoco and Exxon after the 2007 nationalization.” Releasing ownership of the oil company would further distance Venezuela from U.S. relations.

One area at risk if Citgo were to be sold is the low income heating program the company runs in the United States, saving more than 180,000 households about $260 per year. No other oil company currently provides a similar service.

Contact Rachel at rachel.rosenstrock@student.shu.edu

Spain Adopts Measures to Avoid EU Bailout

By Alexandra Hauenstein, International Business Writer Spain’s Prime Minister Jose Luis Rodriguez Zapatero announced in parliament on December 1 the government’s plan to stabilize the economy. The plan includes selling 30 percent of the national lottery business and privatizing 49 percent of the country’s airports. Zapatero said he expects to gain 9 billion euro through allowing private investment in the airports.

“The government will approve a package of measures on Friday to favor economic investment and employment and which will especially benefit small- and mediumsized companies,” Socialist Prime Minister Jose Luis Rodriguez Zapatero told parliament.

Another element of the plan is to do away with the monthly payment of 420 euro to people whose unemployment benefits have run out. With the unemployment rate at 20 percent, this is a particularly sensitive

measure for the five million unemployed. In 2007 Spain was Europe’s top job creator and now it has the highest unemployment rate in the Eurozone.

On December 3 other measures were introduced, such as raising taxes on cigarettes and reducing solar, thermal, and wind power subsidies. Finance Minister Elena Salgado said the increased cigarette tax is expected to raise 780 million euro a year.

The 35 percent wind power subsidy cut is expected to save 1.1 billion euro by 2013.

Additional measures are expected to be implemented in the near future. Deputy Prime Minister Alfredo Pèrez Rubalcaba said the government will propose a gradual increase in the retirement age from 65 to 67 on January 28.

Spain is the Eurozone’s fourth largest economy, and experts believe that the latest measures are Spain’s last-ditch effort to convince investors that it can handle its large deficit and will not need a bailout from the European Union and International

Monetary Fund. After Greece and Ireland, bailing out Spain would deplete Europe’s rescue funds and have devastating consequences.

Spain is insistent that they will not need outside help and that the new governmental measures will be more successful than the ones implemented in May, which cut public wages and froze pension plans.

Madrid’s stock index rose 4.5 percent upon news of the plan, a sign that investor fears may have been eased. The stock index fell 15 percent in November.

When asked about the reforms, European Union Competition Commissioner Joaquin Almunia said “Very positive, they are extremely welcome. They are necessary, show the government's determination and they are in the right direction.”

Contact Alexandra at alexandra.hauenstein@student.shu.edu

BSkyB Teams Up With Middle Eastern Firm for Arabic News Channel

By Ben Canning, International Business Writer British Sky Broadcasting Group and Abu Dhabi Media Investment Corp.

(ADMIC) have formed a 50-50 joint venture to broadcast a new, free-to-air, 24-hour Arabic language news channel starting in 2012.

The channel will function under the Sky News brand and will air across the Middle East and North Africa region.

The channel, titled “Sky News Arabic,” will broadcast international and regional news content provided by more than 180 multimedia journalists in Abu Dhabi’s “twofour54” media zone. BSkyB will also provide website and mobile applications for increased access to the news content.

ADMIC is a private owned media investing company that specializes in embarking on smart investments in the Middle East region under the ownership of Sheikh Mansour Bin Zayed al Nahyan, also the owner of the Manchester City Football Club.

BSkyB sees the new endeavor as one

Photo courtesy Digital Production Middle East

The twofour54 media center will be the station for Sky’s new Arabic reporters.

reaping much benefit because of the large and quickly developing media region.

James Murdoch, BSkyB’s Chairman said in a statement that, “The Middle East and North Africa is a highly attractive region for media investment and Abu Dhabi is an excellent location from which to enter this exciting marketplace.”

Abu Dhabi will be the location for the head offices while some branch operations will be run in London and Washington,

D.C. “This venture is a significant step in the development of Sky News,” said the head of Sky News, John Ryley. “We intend to bring viewers a distinctive approach to Arabic news, building on Sky News’ strong reputation for independent, impartial and innovative coverage.”

The chairman of ADMIC, Dr. Sultan al Jabar, also commented on the new enterprise saying the news channel will “set a new standard for broadcasting in the Middle East and North Africa.”

Adrian Wells, the former head of international news for Sky News will assist the ADMIC group in the launching of the new channel while a director of news is soon to be appointed to take over for the long run.

This venture looks promising and will not only add to Sky News’ 90 million viewers, but also give more people across the world updated and accessible news information.

Contact Ben at benjamikn.canning@student.shu.edu