Bull & Bear April 2012

Our McGill Greenhouse 3

Desautels Capital Management 5

The Shag Shop 10

Communist China 13

The Bull & Bear A publication of the

McGill’s Business Voice Since 2003

MANAGEMENT UNDERGRADUATE SOCIETY

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April 2012 • Volume 9 • Issue 8

Good luck with finals!

Student Fees Appropriated to Fight Tuition Increases An investigation into SSMU’s role in the anti-tutition hike movement Cirilo Marinkovic and Dan A. Novick Staff Writers

T

he SSMU Executive has played an active role this year in opposing the Quebec government’s planned tuition hike increases of $1,625 over five years. What follows is an examination of that role, as well as that of its most visible supporter, VP External Joël Pedneault.

SSMU Finances Anti-Hike Movement As a result of a policy on accessible education adopted in 2007 and a more recent extension thereof adopted in September 2011, SSMU has had an official mandate to oppose any and all tuition hikes. Beyond mere vocal condemnation, however, this stance has been translated into a number of financial actions.

A review of SSMU’s expenditures indicates that $3,246.87 was spent between November 8th and November 11th, 2011 for full-page ads in the McGill Daily and the McGill Tribune for “Tuition Protest”. Another $430.56 was spent between February 7th and February 28th, 2012 on “Strike Posters, Flyers, Stickers”. This last sum was paid in three separate installments to three McGill students, at least

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two of which were involved in a week-long February occupation of the 6th floor of the James Administration Building on campus.

In addition, $1000 was donated by SSMU to the Association pour une Solidarité Syndicale Étudiante (ASSÉ), which was to be allocated to ASSÉ’s legal aid fund. The purpose of this fund is to assist those who have faced legal difficulties related to their participation in protests.

Any expense $1000 or over must be approved by all the SSMU Executives by vote. This amount was approved on November 22nd and detailed in a December 1st Report of the Executive Committee to Council.

Contributions to ASSÉ ASSÉ acts as a union for students against the tuition hikes. Members of ASSÉ must be student associations that have agreed to join the movement and demonstrate against the hikes.

On ASSÉ’s website, the organization asserts that “Since it is impossible to depend on governments and administrations for the upkeep of our right to education, we need to establish a balance of power, a counter authority. To this end, L’ASSÉ works relentlessly to systematically provide information for student rallies.” Member associations must pay a membership fee that Continued on Page 4

Jean Moirez

On March 22nd, protestors against tuition hikes embellished the statue of Queen Victoria with symbols of their resistance

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2 The Bull & Bear David Lin Executive Editor Hugo Margoc Alvira Rao News Editors

SSMU Sustainability Case Competition: Coffee and Cooperation Fireside Café wins first place at the SSMU Sustainability Case Competition April Wu Staff Writer

I

t has almost been two years since hundreds of students rallied to save the ArchitecKristine Pinedo ture Café, one of the last Chris Conery student-run food providers on Lifestyle Editors campus. Since then, SSMU, and Ivan Di VP Finance Shyam Patel in parMohammad Awada ticular, has pushed hard to generMarkets Editors ate interest at the prospect of establishing a new student-run café Kunal Shah on campus. The McGill SustainPhoto Editor ability Case Competition, held Manuella Djuric over the course of four months, Advertising Director was thus created.

The objective for the comSean Alex Finnell Tarun Koshy Opinion Editor

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The Bull & Bear is an editorially autonomous newspaper published by the Management Undergraduate Society of McGill University. Editorial opinions expressed in the Bull & Bear are the sole responsibility of the Bull & Bear’s Editorial Board, and are not necessarily those of the University, MUS or their officers.

The Bull & Bear is not responsible for the delivery of any goods or services sold or advertised through its sponsors or Business Directory and is not liable for loss or damage of whatever nature and extent resulting directly or indirectly from any use of the information made available by the newspaper and sponsors.

April 2012

What not to miss in Management this month.

Nicole Himelfarb

One team’s display at the SSMU Case Competition EXPO

petition was not only to create a proposal for an innovative, sus-

tainable, and implementable student run café, but also to provide

students a chance to network with their peers and industry professionals. Despite the dissensions on campus this year over issues such as the MUNACA strike and tuition hikes, the competition offered an opportunity for collaboration among students in various domains, from environmental sustainability to management.

After two rounds of elimination, the final EXPO on March 14th showcased the proposals of the final six groups to both the judging panel and the McGill community.

Continued on Page 4

Post GA Student Politics Clash AUS President Jade Calver calls for better communication between student associations Aimee Pellegrino Staff Writer

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n Tuesday March 13, 2012, the Arts Undergraduate Society held a General Assembly to vote on whether the Faculty of Arts would collectively go on strike to support the fight against tuition hikes in Quebec.

The Arts student body voted 495 for, 609 against, and 16 abstained.

That night the student body revealed their divide. However, the question that remained at 11:28 PM when the GA adjourned was what was going on behind the scenes?

Less than twenty four hours later, SSMU revealed in anopen letter to the AUS Executive Committee the disappointment they felt towards the way the AUS conducted themselves during the well-attended, yet chaotic and tumultuous General Assembly.

SSMU responded to the AUS GA by airing their frustration claiming that “we [SSMU] are not only disappointed with [AUS’] poor planning, but also disgusted by [AUS’] sense of entitlement and disrespect for the space, time, and resources of others.”

This letter was a surprise to the AUS Executive Committee, as they were not forewarned of its release and learned, simultaneously with the student body, about the reprimands against the AUS reasoned by what SSMU claims as “poor communication, organization and attitude” on part of AUS. The reprimands included complete restriction to book any rooms in the Shatner Building, monetary payment to those clubs and services whose time and energy was incurred during the GA including TVM, and a demand for a public apology by AUS. With a letter released by one student organization that seemed to undermine another,

Cover the Night Montreal

the student body was left to see the crumbling of its student government as a virtual catfight was masked by articulate prose and proper etiquette.

Transparency was all too evident. Days later, as students hit to Social Media to outcry support and backlash towards both student associations, SSMU and AUS released a joint statement.

AUS President Jade Calver felt that “the statement was surprising, especially coming from a fellow student association.”

However, “the initial statement was justified in that it highlighted the Clubs that suffered during the event. I, however, feel the accusations directed at the Executive as well as the wording used was uncalled for.”

Maggie Knight, SSMU President, responded stating that “the concerns it raised around treatment of SSMU’s clubs, services, staff, and space are legitimate, but the manner in which those concerns were communicated was inappropriate.”

The joint letter declared the

faults of both parties. SSMU and AUS seemed to recognize that the original statements they provided was “unfair and not conducive to a positive working relationship.”

With an apology from the AUS, SSMU lifted some of the bans like holding room bookings, but in the end, the student body was still left to see the “political diversity [that] exists both within each respective Executive Committee as well as between [the] two Associations” that the joint letter addresses.

The release of these letters shows that a lack of communication can spur a blame game. This conflict lead to students questioning the effectiveness and comradery of the associations that represent them.

The lesson seems to have been learned and like Calver stated, “student associations must work together, and not against one another, fostering positive relations between associations should be the goal of all associations on campus.”

SSMU Awards

Exam Period

Friday, April 20th

Wednesday April 11th

April 17-30th

Supporters of the KONY 2012 campaign will be “covering the night” with posters and banners in cities all around the world to raise awareness of his crimes.

An evening recognizing the

Students retreat to their natural habitat, the library.

Various locations on campus.

efforts of students who have demonstrated a combination of strengths in both extra-curricular activities and academics.

The Bull & Bear

Hugo Margoc and Alvira Rao, News Editors news@bullandbear.ca

News

3

Joint Statement from the AUS and SSMU Executives

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ear students, The AUS and SSMU Executive Committees would like to provide further clarification regarding communication between our respective Associations concerning the AUS General Assembly of March 13th, 2012.

An open letter to the AUS Executive from the SSMU Executive was released on March 14th as a result of conflicts between SSMU Clubs and Services and the AUS Executive during the event. The letter was released as the SSMU Executive felt it was their responsibility to protect their Clubs and Services from such treatment, and to identify concerns about negative impacts on the SSMU Building and SSMU staff. The AUS Executive subsequently found the letter to

be unfair in both tone and in its demands, and have experienced personal attacks spurred by its contents. Consequently, AUS issued a statement at SSMU Legislative Council on March 15th, 2012.

Together, we would like to acknowledge that the manner in which the letter issued by the SSMU and the statement given by the AUS were unfair and not conducive to a positive working relationship. On March 19th, our Executives met to discuss this issue and to determine how to move forward. At this meeting, the SSMU Executives apologized for the tone of the letter issued to the AUS and indicated their regrets that the letter had fueled personal attacks.

Regarding the demands outlined in the open letter to the AUS Executive from the SSMU,

we would like to assure students that the Nuit Blanche will go ahead as planned on March 22nd. The AUS has accepted the additional costs associated with its General Assembly held on the 13th. The SSMU accepts apologies made on behalf of the AUS Executive in various fora, and recognises the efforts made by members of the AUS Executive to reach out to groups affected by the General Assembly. Lastly, the SSMU would like to note that the hold on room bookings for departmental associations of the AUS is no longer in effect.

We acknowledge that many of the issues stemming from the AUS General Assembly are a result of the lack of clarity between our two Associations, as all AUS members are simultaneously members of the SSMU. While political diversity exists both

within each respective Executive Committee as well as between our two Associations, we affirm our respect for each other as colleagues dedicated to representing our constituents to the best of our abilities.

The AUS and the SSMU look forward to a positive and respectful working relationship.

Any student who desires further information regarding this issue is invited to contact AUS President Jade Calver atpresident@ ausmcgill.com and/or SSMU President Maggie Knight at president@ssmu.mcgill.ca.

Yours Sincerely, Arts Undergraduate Society Executive Committee Students’ Society of McGill University Executive Committee

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What’s Your Legacy? Our McGill Greenhouse Class Action 2012 raising money for an on-campus greenhouse April Wu Staff Writer

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he unusual heat stroke we experienced in March may bring back memories of popsicles and summer dresses, but you might also remember the mobile water-filling kiosk that stood on the pavilion of Redpath Library in the warmer months of the year. The water filling station was the legacy of the 2011 graduating class, funded

by Seeds of Change, an initiative from McGill alumni supporting change-making, student-driven projects on campus. This year, Class Action 2012 has bigger, greener plans - to build Our McGill Greenhouse (OMG).

The project is a collaboration between graduating students in various faculties and disciplines, including engineering, architecture, political science, finance, and pharmacology to name a few. “As of late, Class Action has focused on environmental initiatives. We’ve been doing this in order to make sure that we have a universally supported project, which everyone across campus, regardless of department or faculty, will be happy to support,” says Co-Chair of the project, Kokulan Mahendiran.

Class Action 2012 chose to build a greenhouse in order to promote a community centered around local food and create an on-campus space for urban agApril 2012

riculture and sustainable food production. The main group who will use the greenhouse is Campus Crops, a student run urban gardening effort, but the greenhouse is open to the entire McGill community. “The greenhouse will provide our campus with fresh, healthy, local produce, and also become a space where students can just hang out, read a book, have a meal, or engage in any variety of activities,” Mahendiran added.

The greenhouse is in fact a coldhouse, which doesn’t use

sistently supporting environmental and social initiatives, including the 2010 Bring Your Own Bottle kiosks, the reducing of energy consumption for several residences around the downtown campus by installing metal heat-reflector shields in 2008, and the 2007 Faculty of Dentistry’s Outreach Clinic, which provided free basic dental care to the Montreal community. Many members of the Class Action 2011 team had been involved with last year’s project before spearheading their own gradu-

Our McGill Greenhouse

any additional energy and relies on the warmth of the sun as its energy source. A team of engineering students is working on a way to connect the greenhouse to a nearby composting machine from which it can receive both heat and CO2 to optimize production, even during the long Montreal winter. The design also includes the reuse of old windows and other recycled materials. The greenhouse will be located near the James Administration Building and is slated to be ready for use in the coming school year.

Class Action has been con-

ation legacy. “I’ve been putting a disproportionate strain on the environment my whole life. I wanted to backtrack and have a means of giving back to the environment. I’m very proud to be co-chairing this year’s campaign along with Hiromi Tissera,” said Mahendiran.

For Class Action 2012, the greenhouse stands as a physical symbol of the dilemmas we face in the survival of the environment. It also reminds students that the McGill community should continue to care about the planet and take action in whatever small way we can.

The Bull & Bear

News

4

Hugo Margoc and Alvira Rao, News Editors news@bullandbear.ca

STUDENT FEES APPROPRIATED (CONT’D FROM PAGE 1) SSMU SUSTAINABILITY is deposited into a general fund (SdBI) to provide information actions.” The password to the CASE controlled by the Board, which on tuition increases. Research SSMU Facebook account was COMPETITION claims to be using these funds to conducted by the SdBI, a college changed following this breach of fuel the movement. of Concordia University, focuses authorization.

(CONT’D FROM In an interview with The on the disproportionate effects Bull & Bear, Phillipe Ethier, the of tuition hikes on women in a Pedneault Under Fire PAGE 2) Each team featured distinctly different ideas with the overarching theme of supporting local artists and local food. The groups partnered with various local businesses and organizations in creating their vision of a sustainable café. Some chose to work with Local Food Plus (LFP), a non-profit organization committed to helping buyers find Certified Local Sustainable food.

Others acquired their coffee from Café Santropol, a Montreal café that serves their own organic and Fair Trade coffee blend.

“We believe that supporting local is more important than using organic ingredients. We live in Quebec and we should support the local farmers and local industries,” said Miriam Dreiblatt of the Thatched Roof Café.

The team opted to use Quebecois wood in their café design and local ingredients in the menu.

Team 5, The Loop, also focused on creating a seasonal menu with local ingredients, and even planned on bringing in local farmers to talk about their produce. Café Evergreen partnered with the McDonald campus to create unique blends of tea. “Our café also has a borrowing center, where students can borrow board games, guitars, and even laptop chargers,” commented Alvira Rao. Blue Marble Café offered a 3-credit course for students to apply their sustainability research to the café, while Growing Grounds featured a pay-byweight salad and smoothie bar, and a blender powered by bicycle. Ultimately, it was Fireside Café and their LED installation that mimics the warmth and glow of a real fire that took home the grand prize. “If you look at our menu, you can see influences from all over the world. Our café is the prime example of glocalization. We want create a space that feels like home for everybody on campus,” said Andrew Wu. With Growing Grounds in second place and the Thatched Roof Café in third, organizers of the competition said that each team showed an incredible amount of creativity and passion. VP Communications of the event, Inna Tarabukhina, deemed the contest a “success.”

There will be further discussions concerning how feasible implementing the café will be.

April 2012

Secretaire aux finances of ASSÉ, explained that McGill is not in any way affiliated with ASSÉ and that McGill currently does not have any student associations on ASSÉ’s membership. “I would think that [the $1000 from SSMU] was a generous donation,” Ethier says. “The fight against the tuition hikes is very expensive, so it was a philanthropic cause.”

A motion for AUS to join the Coalition Large pour une Association Syndicale Etudiante (CLASSE) was rejected in the AUS GA held on March 13th.

The motion, had it passed, would have required all Arts students to pay $0.75 annually.

Money donated to ASSÉ can be allocated in one of two ways.

The donation can be directed to their general pool of funds or can be allocated only for a certain project, in this case, the legal aid fund. Ethier did not specify exactly how the money within this legal aid fund was used.

Website Under VP External Auspices Tuition Truth, a SSMU website revived by last year’s VP External Myriam Zaidi and furthered by current VP External Joël Pedneault, seeks to be the most prolific source of information from an anti-hike perspective. Pedneault asserts, “I have a mandate to fight for student rights and oppose student fee increases in the context where the [Quebec] government is not open to negotiations or speaking to the issue in an open fashion.”

Pedneault supervised Tuition Truth’s renewal, funding, and continued existence with the help of student staff, the PGSS (Post-Graduate Student Society), and Mob Squad, a mobilization group devoted to opposing the tuition hikes through activist movements. “I asked student staff to work on the website and they did so because that’s their job. It’s an official SSMU website,” Pedneault notes. Members of Mob Squad have been active in on-campus events against tuition hikes, most notably occupations of administrative offices that occurred on November 10th and from February 7th-12th (the latter also known as “#6party”).

The website uses statistics from IRIS (Institut de Recherches Socio-Économiques) and the Simone de Beauvoir Institute

context of “systems of oppression, [...] nationalist and imperialist”. IRIS, an “independent and progressive” non-profit explicitly opposes neoliberal economic paradigms in its mission statement.

Tuition Truth’s goal, according to Pedneault, is to “put out information that has already been produced about tuition fees and package it in a way that makes sense to McGill students.”

He further stated that although he has little direct editorial control, he does make sure that the sources used conform to SSMU’s anti-hike mission.

Civil Disobedience Shortly after a demonstration of over 200,000 students protesting the hike on March

Pedneault has come under criticism as of late for his role in the anti-tuition hike movement.

He was suspended from campus for five days last week by the administration for his involvement with a UQAM class that conducted a discussion about the student strike on the downtown McGill campus.

On March 29th, a motion to censure the VP External narrowly failed at SSMU Legislative Council with a tie-vote of 11 for and 11 against, with one abstention. Tensions allegedly ran high at that meeting, as both supporters and detractors of Mr. Pedneault debated fiercely over the validity of the motion itself.

The petitioners who moved the motion, including members of the anti-strike group Mod-

“Mob Squad does not exist as an organization. At no point was Mob Squad granted access to SSMU offices.”

22nd, a Facebook event titled “Strike-Occupy-Blockade: Week of Economic Disruptions to Stop the Hike!” was created by the Tuition Truth page. The event page detailed several activities, each color-coded to indicate the risk of arrest by police. Notably, invitations to join the event were sent out en masse by SSMU’s own Facebook profile. The event was quickly amended to remove any reference to potentially illegal actions, and was deleted entirely shortly thereafter.

Following backlash, the event was swiftly disavowed

by SSMU, which claimed in a post on Facebook that a student staff member had “created this event without the permission or knowledge of the VP External (or other Executives)” and “was not endorsed by SSMU.” Likewise, in a report to the Legislative Council dated March 29th, Pedneault explained that the event had not simply been deleted, but instead had been “moved to another, unofficial platform for those who may still be interested in participating in or knowing about these

PAC, claimed that ASSÉ has illegitimately used SSMU funds to print materials promoting a student strike. They also claimed that Pedneault has been granting ASSÉ and Mob Squad afterhours access to SSMU offices, a claim that Pedneault rejects as false. SSMU is currently not a member of ASSÉ.

In a subsequent press release, ModPAC decried “the politicization of the VP External’s office, [and the] subsidizing and benefiting [of] Mob Squad activists on the student dime” and applauded the “SSMU Council for the strong message it has sent to future SSMU executives.”

Pedneault Responds The VP External has provided several reasons for his actions. In the SSMU Report of the Executive Committee to Council issued on December 1st, the Council approved the contribution of $1,000 to ASSÉ’s legal aid fund. This fund was set up by ASSÉ to help anyone, McGill student or otherwise, who was arrested or facing any legal

repercussions from their involvement in the student movement.

Pedneault explains that he was approached by ASSÉ for financial assistance, and was then authorized by Council to transfer funds from the Professional Fees Account under General Administration to the Executive Portfolio.

The portfolio of the VP External falls under the Governance arm of SSMU’s budget. This section also comprises the portfolios of the VP University Affairs and the President. In the budget revised in November, 2011, the Governance section is expected to run a deficit of $81,974.62 by year’s end. The portfolio of the VP External which includes Campaigns, Community and External Affairs, was initially budgeted to accumulate combined expenditures totaling $22,364.16.

On March 29th, a revised SSMU budget presented to Council provided for an additional $2,727 not initially budgeted to be spent under the VP External’s portfolio. Pedneault explains, “There has been more of a need to rent buses to get people to protests, buy signs, and pay for banners. I spoke with Shyam [Patel - VP Finance] for the need for a bit more money in the budget and he found a few thousand that was budgeted over and above what was initially budgeted.”

Pedneault, however, rejects the claim that he granted members of Mob Squad and CLASSE (Coalition Large de l’ASSÉ, or “Greater ASSÉ Coalition”) access to SSMU offices after-hours.

“Mob Squad does not exist as an organization. At no point was Mob Squad granted access to SSMU offices. I do not remember letting anyone from CLASSE into the office after-hours,” he maintains.

He further maintains that he has been acting under a SSMU mandate for accessible education adopted at a General Assembly on September 26th, 2011. The mandate reads that “the SSMU specifically oppose the most recently announced $1,625 tuition increase affecting Quebec students” and that the SSMU will “work with all elements of the Quebec and Canadian student movements toward these goals.”

“Some members of the SSMU Executive are not so hot on the idea of the student strike, [but] I think that the SSMU Executive members understand that SSMU has certain mandates that lead to certain goals and logical steps.”

The Bull & Bear

Mohammad Awada and Ivan Di, Markets Editors markets@bullandbear.ca

Monthly Markets

5

The Desautels Capital Management Inc. Unearthed A peek into the lives of Honors Investment Management students Sameer Rizvi Staff Writer

Structure of the Program The BCom Honors in Investment Management (HIM) program prepares students for a career in the financial markets, either on the buy-side, working for asset management funds, or on the sell-side, working for investment banks. The program gives students a rigorous training in accounting, statistics and finance. More importantly, it enables students to analyze financial statements, perform company valuations, appropriately construct efficient portfolios, and manage risk using dynamic trading strategies and derivative instruments through actively managing a $2Million fund of equities and bonds.

Currently, the “Professor of Practice” – Mr. Ken Lester, who has been a discretionary money manager at Lester Asset Management for close to two decades, is leading the program. As Chief Investment Officer of Desautels Capital Management Inc., the investment company formed by the HIM program, Professor Lester handles stock and bond trades recommended by student analysts, who partake in the actual management of invested funds on behalf of external investors.

The Desautels Capital Management (DCM) Inc., the first registered investment management firm founded by a university in Canada, was formed in the fall of 2008. He goes on to say that “other business schools were starting to apply finance more and more. Likewise, there was pressure from employers and recruiters who said that students lacked a sense of application in their learning.”

With reference to the appropriateness of the fund for prospective students, most Honors Investment Management students believe that the program is best suited for those interested in investing and learning more about the markets. The majority of the graduating students have gone on to work in the investment banking and investment management field. It seems that not many of the graduates have gone into corporate finance.

Joining the Program With a fall 2011 acceptance rate of 12%, the Desautels Faculty of Management is known to be one of the most selective business schools in Canada. Thus, the average student already has a April 2012

Mohammad Awada

Analysts at work in the Honors Investment Management Research Room

distinguished and a diverse skillset.

Out of the approximately 600 students who are accepted each year into the BCom program, about 80 students (13%) apply to the BCom Honors in Investment Management program.

Professor Lester said that about 35 of these 80 students get called back for an interview with him and other professors overseeing the process. At the end of the day, about 12 of these 80 students are

accepted into the program. This brings the acceptance rate to about 15% – evidently making it a highly competitive program.

Professor Lester briefly described his acceptance criteria: “I usually use a soccer analogy when deciding whom to bring onto the team. See, I could choose 10 amazing goalkeepers, but that would be setting DCM up for failure. Thus, I tend to distinguish the students by their unique skill sets, geographic

background, the languages they speak, and, all else being equal, I try to bring on just as many females as males onto the team. It is also important to note that this program is open to MBA students. I usually take on about 5 MBA students each year”.

Assets under Management Currently, Desautels Capital Management has approximately $2 Million of assets under management, with about $1.4 million (70%) invested in the equity

Desautels Capital Management has the following holdings in their equity position, above, and in their fixed income position, below.

Mohammad Awada

fund, and $0.6 million (30%) allocated to the fixed income fund.

Type of Securities Traded The fund mandate permits the trading of simple stocks, warrants, and bonds. Professor Lester accentuated that the mandate allows them to trade anywhere in the world. Similarly, financial securities and instruments such as options, forwards, and futures also fall under the fund’s mandate.

Historical Performance Since its inception in the fall of 2008, DCM has seen many turbulent, bull-bearish ups and downs. As Ivan Di describes it in corporate finance terms, “We have slightly negative alpha in our equities fund and slightly positive alpha in the fixed income fund”.

DCM’s Strategies In Ivan Di’s opinion, the fund does not have a strategy per se. He says: “We are a balanced fund where we can have value plays, growth, event-driven and distressed at the same time. We look for undervalued stocks and bonds that the street overlooks.

Our edge is that we are young and diverse, and often we find the “next big thing” before Street does.”

Professor Lester has a simple philosophy with this program and DCM: “I tend to let the students decide what’s best for DCM. I believe in the philosophy of “throwing the child into the water and letting him find his way out”. As for the structure of the organization, the students have elected positions such as equity and macroeconomic strategist. Otherwise, all the students are considered to be studentanalysts. Thus, there is sense of a top-down approach to decisionmaking”.

DCM’s Weaknesses and Future Prospects Professor Lester shared his view on this: “The weaknesses are perfectly predictable, nothing out of the ordinary at all.

Ultimately, for any student-run corporation like this, it is difficult to beat the index. Thus, it is commendable to see that the returns have matched the index. In general, the students need to be less influenced by the economy and more so base their decisions on intuition. Young investors tend to be more “influenced” by economics. Economics does not influence stocks as much as students think it does. The equity market tends to go up before the economy does and the students need to see this.”

The Bull & Bear

6

Monthly Markets

Mohammad Awada and Ivan Di, Markets Editors markets@bullandbear.ca

Perspectives: Interview with Vince Kott, Proprietary Trader Maximilian Feinsot Staff Writer

Can you tell me your position and what it means to be a proprietary trader?

I’m a proprietary trader.

That means I risk the firm’s capital instead of clients’ capital. I’m an independent contractor and that’s how most proprietary traders operate.

Where did you go to school? What did you study?

I went to Concordia. I majored in Finance and minored in economics at the John Molson School of Business.

Could you briefly describe your work history?

I used to be a golf professional player. When I was going to school I was playing golf and wanted to be the next Tiger Woods but I fell in love with stocks and finance. I went to school at night and worked during the day. Once I graduated I

decided I wanted to do this full time. I’m also a Chartered Alternative Investment Analyst (CAIA), which means I have training in financial instruments that aren’t found in traditional portfolios, and I’m a Chartered Market Technician, which means I have a basic training in technical analysis.

What is the difference between independent prop trading and prop trading for a bank?

When Prop trading for a bank, you risk the bank’s capital.

There are a lot of new regulations that are coming out for bank prop trading. In fact, banks now have to change the structure of prop trading because some proprietary traders have lost a lot of money for the banks. Bank prop trading usually involves more complex strategies as it is more extensive.

What do you as a prop trader do on a daily basis?

Could you summarize how you

go about your day?

I read the newspaper in the morning: I read Investor’s Business Daily, which is a great newspaper for traders because you get the facts. I then spend about an hour setting up and preparing for the day, so I start working around 8:30. You have to have game plan before you begin the day and throughout the day you execute that game plan. I find the middle and end of the day is pretty dull for trading. Most of the action is in the morning. I know guys that come in for an hour and a half, they trade at the open and then they leave.

Could you talk about how you go about determining your strategy, and are there any strategies you use?

Usually most prop traders have a strategy that they stick to because the failure rate for traders is around 95%. Even if you don’t lose money, it doesn’t necessarily make you successful. I learned a mean-reverting strategy, where

you catch stocks that are falling and short stocks that are rising.

It’s a risky strategy but when applied properly, you can make a lot of money. But you have to be disciplined because you tend to want to follow the trend.

Do you have people working with you or do you operate individually?

It’s pretty much individual.

Generally prop trading is an individual business. I share ideas a lot, but when you have something that works, it’s in your best interest not to spread it around.

What kind of returns do you generally aim for and how do you generate these returns?

Day traders try to achieve at least 40% per year. I use scanners a lot during the day, where these programs scan for stocks that exhibit large movements. Basically, if a stock is going down fast or going up fast, the program will rapidly make you aware of it. You need live news during the day to Continued on Page 7

Jean Moirez

Vince Kott, Proprietary Trader

Investment Highlight: Hugo Boss Henri-Luc Carlin Staff Writer

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s the unemployment rate falls and the economy starts picking up, consumers who had momentarily put off their spending on luxury retail goods will undoubtedly get back to their old habits. In fact, according to American Express Business Insights, a global information and consulting organization, the recovery is acting as the perfect catalyst for growth in high-end retail companies. In order to capitalize on this event, I suggest opening a long position in Hugo Boss AG (BOS.DE). While some may consider staying away from a German luxury retail brand given the economic uncertainty in Europe, I do not see this as a threat. In fact, Hugo Boss actually sells its products in 124 countries worldwide and 39% of its sales were to non-E.U. countries in 2011. In addition to a geographically diversified customer base, I believe the brand benefits from three additional factors that will lead it to outperform.

Strong Brand Equity The first images that come to mind when thinking of Hugo Boss are elegance, class and style.

Hugo Boss benefits from very strong brand equity and recognition, and maintains this via April 2012

intensive and recurrent marketing activities. The company goes beyond traditional advertising by sponsoring premium sports such as sailing to maintain its high-end reputation. Hugo Boss also preserves its credibility in the world of haute couture by ensuring it consistently has a strong presence in all major fashion events worldwide. Hugo Boss AG capitalizes on its strong image by charging hefty prices for its goods, which translate into substantial margins.

Strong Revenue Generation & Financial Performance Hugo Boss generates revenues through the sale of highend luxury clothing for men and women and the collection of royalties relating to the licensing of the Hugo Boss brand to partner

rectly to the consumer, and increased the number of companyowned retail shops from 85 to 622 in 2011 specifically to take advantage of this. Management believes this will be the main driver of growth for 2012.

Hugo Boss has been delivering excellent financial performance over the past few years, seeing its top-line grow by 19.05% in 2011 – nearly double its revenue growth rate for 2010. The firm also saw its gross margin slowly expand over the past year from 56.6% in 2009 to 63.25% in FY2011. This translated into hefty bottom-line gains with earnings per share achieving growth rates of 78.81% in 2010 and 52.75% in 2011. As the retailer focuses on the development of its company-owned retail boutiques, margins should

Henri-Luc Carlin

BOS.DE Share Price

near its 52-week high and above its 30, 60 and 100 day moving averages, I do not believe this makes the stock expensive. Stock prices in general are depressed through the European crisis and the subsequent recovery is not a sign of overbought. In fact, 201 of the 500 stocks quoted on the

Henri-Luc Carlin

Comparison of Hugo Boss’ Performance and Valuation to Other High-End Retailers

manufacturers. While the company sells at wholesale prices to franchisees, it also sells directly to the customer via their online store and company-owned retail outlets. Hugo Boss benefits from greater margins when selling di-

increasingly widen, and the pickup of the overall economy should deliver generous growth in sales.

Relative Pricing While Hugo Boss is currently riding the bull market, trading

S&P 500 are currently trading 0-5% below their 52-week highs.

After comparing Hugo Boss’ performance and valuation to other high-end retailers, it is clear that the company’s LTM P/E of 20.84 is unfounded. Hugo Boss

AG has gross margin and return on equity figures which are on the higher end of the comparable spectrum, it provides shareholders with a 3.48% dividend yield and its EPS growth for fiscal 2011 was topped only by Michael Kors, which is currently trading at 114.63 times earnings.

Investors have clearly been holding back, making the BOS.DE share price quite cheap.

Thesis Summary I believe that the battered state of the EU economy has left BOS.XE trading at a discount relative to its peers. Given the fact that Hugo Boss has maintained astounding financial performance during the past years, I have no doubt that as the economy recovers and consumers make up for delayed spending, Boss will capitalize on its growth strategy and continwwue to deliver high returns to shareholders.

The Bull & Bear

Mohammad Awada and Ivan Di, Markets Editors markets@bullandbear.ca

Monthly Markets

7

An Open Letter to Paul Volcker from a Concerned Citizen A debrief of the Ripple Effects of the Volcker Rule on the Fragile Global Recovery Fei Qi Staff Writer

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ear Mr. Volcker, I understand that as a result of the proposal of the Volcker Rule, most banks are planning on spinning off their proprietary trading desks into hedge funds. While I recognize the need for limitations on speculation and therefore risky activities that banks undertake, I also would like to point out kindly that the restrictive implementation of such regulation would dampen the efficiency in almost every asset class, both directly and indirectly.

An essential source of funding for American businesses, the core of real GDP growth, is the corporate credit market. Household investors alone hold approximately $3 trillion in corporate debt either directly or through various financial instruments. A restrictive policy that limits the ability of banks to facilitate trading, hold inventory levels sufficient to meet investor demand, and building upon the market’s pricing efficiency, would significantly reduce liquidity across all asset classes. Illiquidity would weigh on prices of investors’ existing holdings in addition to increase transaction costs. Costs to the issuer of securities can also be signifi-

Occupyforaccountability.org

The Volcker Rule aims at limiting the bank’s size and influence over the US economy

cant in terms of higher yield and greater discounts on the underlying asset. Overall, increases in the cost of funding

recovery and growth of the global economy.

One important implication of the Rule is that it would

price of energy. Scholars have estimated that the Rule could potentially wipe out 200,000 energy-related jobs, while

The Rule could increase the overall cost of business, which leads to an increase in expected inflation and unemployment. for both investors and issuers will hinder the velocity of credit that is required for the

affect consumer demand, inflation, and economic growth as well as the impact on the

reducing GDP by $34 billion over the next four years.

Banks are the middlemen in

various hedging activities that energy companies heavily rely on to manage risk. These hedging activities require regular trades on commodity exchanges. Companies also engage in the use of various derivative instruments in the process, in which almost the entirety of the transactions are coordinated by banks. Reduction in the bank`s ability to facilitate these transactions due to the Rule will increase transaction costs, raise the cost of production for these companies and increase energy prices to consumers. If we consider the ripple effect, the Rule could cause companies to reduce their production levels, increase the cost of heating and electricity, and therefore increase the overall cost of business activities in the economy which leads to an increase in expected inflation and unemployment.

As a consumer, I am concerned about the possible repercussions of your rule, dear Mr. Volcker. Having seen, firsthand, the liquidity squeeze during the past few years, I believe that the timing of the proposal and expected implementation of the Rule is far from optimal, and that the US economy may still be too fragile to take on such regulations in its financial sector.

Sincerely, A concerned citizen

PERSPECTIVES: INTERVIEW WITH VINCE KOTT (CONT’D FROM PAGE 6) protect your portfolio.

Is your strategy technically driven, value driven or growth driven?

Our strategy is largely driven by technical analysis of macroeconomic variables.

But you can’t just use technical analysis. You have to understand the relationships between markets and events. A stock isn’t just going to drop 10% on a technical basis. It’s all about risk versus reward when deciding whether or not to go in.

What types of securities do you generally trade?

I generally trade US equities. There’s more liquidity in those stocks, even though there’s less liquidity in the markets relative to several years ago. I also trade some futures. I do a bit of option April 2012

writing as well.

Do you benefit more from volatility or stability?

Volatility, hands down.

What kind of person

It’s not easy: you are going to fall down hard a few times and you’re going to learn your lesson. You just have to keep trying. You cannot have a

What should students who are interested in prop trading familiarize themselves with before going into trading?

“The best way to get into this is through a mentor. I didn’t start out on my own and I didn’t start out with my own strategies.

I had somebody show me how to do it.” does it take to become a prop trader? What kind of skills do you need to have?

You have to be persistent.

gambling personality to be successful. You also have to love trading. It’s not worth the stress if you don’t love it.

In school there isn’t really anything that can teach you the skills to prop trade. Technical analysis class is useful for

trading, but overall I would say it doesn’t really benefit you. I would say it is more about personality. The best way to get into this is through a mentor. I didn’t start out on my own and I didn’t start out with my own strategies. I had somebody show me how to do it. Now I’m inventing my own strategies and my own black boxes – programs that execute trades throughout the day based on preset triggers. The longer you stay in the trading business the more likely it is you will succeed. I would also advise students who are interest in a career in prop trading to find out which firms have a good reputation and which don’t before going to work for one, because some firms can be shady.

The Bull & Bear

Photos taken by: Patrick Boghossian, David Irwin, and Majd Steitieh

MMICC

McGill Management

International Case Competition Kristine Pinedo Lifestyle Editor

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ase culture and competitions are a growing area of interest within Bronfman. Desautels’ internal case events like DMLS, U2CC, GCC, and the recently initiated Case League, are becoming increasingly recognized and growing in size. This year’s DMLS delegation grew to a staggering number of over 200 participants. Invitations to international case competitions are also becoming more and more sought after, as students seek to represent their school in high caliber competitions and reap the added benefits of new friends, networking, and recognition.

But with all this talk of case culture and case competitions, some might still be wondering, what is a case, and why the sudden interest?

A case is a written business problem, which outlines the reasons for considering an issue or undertaking a project and is usually related to a specific business. All teams are given the same case to analyze. They are then judged, usually by corporate representatives, by a rubric that evaluates the team on such metrics as the creativity of the solutions, the comprehensiveness of the analysis, the quality of the presentation, and the team’s ability to answer the judge’s questions. But more importantly, the growing interest seems to stem from various aspects of case including social and networking benefits, and the added educational experience. As former Case Class TA, Sumira Jayabalan, notes, “I honestly

believe that case analysis’ popularity stems from its applied nature. It enables students to apply what they have learnt to real world situations outside the classroom… Furthermore, the exposure you get to different business problems from all around the world is incredible. You get to see the variety of problems that plague international businesses and how other teams tackle these problems which is an incredible learning experience.”

The McGill Management International Case Competition (MMICC) is McGill’s very own international case competition, each year welcoming ten to twelve teams from all over the world. This year’s edition welcomed teams from eight countries across four different continents and lasted from March 20th to the 24th. Participating teams presented their business solutions to a diverse panel of judges on Saturday, March 24th regarding the future viability and growth potential of Christie Digital Systems. In the end, the University of Melbourne was crowned champion, with the University of Belgrade and McGill University taking second and third places, respectively.

MMICC participants are welcomed to the “friendliest case competition” for a week of social events all leading up to the Case Crack on Friday and Presentation Day on Saturday. MMICC emphasizes the social aspect of the competition in order to allow for networking opportunities and the chance to make friends from all over the globe. However, participants are not left to fend for themselves at social events and

in networking. MMICC recruits ambassadors from the Desautels student body and assigns an ambassador to each participating team who then serves as a source of knowledge on Montreal and as a host during their stay. They are also there to lead the Big Adventure, a Montreal-wide scavenger hunt that gives participants a taste of the city. Overall, ambassadors are essentially the social motivating force behind the event which helps to give MMICC its “friendly” flavor.

A full week of events ranging from professional cocktails and ceremonies, to snow tubing and bar nights all happen thanks to the hours of work put in by the Executive Committee. Each year’s edition of MMICC is student run, with the help of Professor Richard Donovan, who founded the competition in 2001. Preparations begin in late March when the newly selected CoChairs sen invitations to the coming year’s lucky participants. Once the new Executive Committee is selected in mid-September, MMICC organizers go full-steam ahead, dealing with all aspects of organization – from sponsorship to event planning to promotions, all details are addressed. Unique to MMICC is the fact that it is funded in full by the financing efforts of the VP Sponsorships and Co-Chairs. Each year, the Executive Committee is confronted with the challenge of raising $45,000, and year after year, they are generally successful thanks to the generous contributions of corporate sponsors and the Desautels Faculty of Management.

While at times grueling and

stressful, the experience is undoubtedly rewarding and unforgettable for organizers and participants alike.

MMICC’s organizers are continually looking to improve upon the competition’s traditions and with that, fresh perspectives are needed. To become involved in MMICC 2013’s planning look out for Executive Committee recruitment this coming September. If the social organizational aspect is more appealing to you, then you could be the perfect fit for the Ambassador Team – ambassador recruitment happens at the beginning of the winter semester in January.

To be considered for competing in MMICC, and all other international case competitions, you must apply for and take BUSA 499, Case Analysis and Presentation, which is run by Professor Donovan. This course teaches you the essentials in case cracking, everything from analytical and presentation skills, to the nuances of word choice. Students are then assigned to teams and go through the process of analyzing cases and presenting their recommendations to Professor Donovan, the Case Class TAs, and their peers.

From these in-class presentations, Professor Donovan, along with the TAs, create the teams who will go on to represent McGill in the international arena of undergraduate business case competitions. The BUSA 499 information session will be held on April 10th in Bronfman 151 at 17:30. The application process includes submitting an official transcript, application form, and cover letter indicating why you would like to be in Case Class.

Lifestyle

10

Chris Conery and Kristine Pinedo, Lifestyle Editors lifestyle@bullandbear.ca

School’s IN for the Summer Summer schooling need not be so bad Sean Leslie Staff Writer

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ummers come and go, and at some point, they transform from nights camping under the stars to making up credits for that firstyear elective you “withdrew” from when things got “too stressful” and you “couldn’t handle it.”

Maybe you were “too drunk” or “just not ready” for the realities of a university education. You are not alone. I have stumbled down that path too…three times. At some point, however, we all grow up, and with that comes reality and responsibility. If an internship is not in the cards this year, and you have yet to plan an exotic vacation on a yacht in the Greek Islands or exploring the Inca trail, it might be time to rethink summer school. And trust me, it is not as bad as it sounds.

As your interest in “Understanding Planet Earth” waned

mid winter semester, and you decided that the hike to Stewart-Bio was just not worth the credits, your transcript may have started to develop a bad case of the W’s. While ‘U4’ could be alluring to some, summer school might just be your best alternative. McGill’s summer schedule is fairly flexible, leaving you the possibility of still making time for that summer job or once-ina-lifetime trip. This might even be the time for you to flex your “Satisfactory/Unsatisfactory” chops and toy with the fine line that divides the two categories.

Alternatively, summer school also offers you the chance to spread your wings and head abroad. Your degree might not be able to accommodate a full semester away, but chances are there is a school out there, in a city you are dying to discover, that offers an elective to knock off your plate. Sara Langmuir, a U1 Economics Major and East Asian Studies Minor, is heading to Bei-

jing for eight weeks this summer to study Mandarin through a little institution called Columbia University (ever heard of it?).

She says, “immersing yourself in a culture is the best way to learn the language, and besides, adding Columbia to my resume can’t really hurt.” No kidding. Almost every university offers summer programs and is eager to accept international applicants. Queen’s University has even partnered with the Blyth School to take students to Spain, Greece, Italy, Australia, and beyond, and are now accepting applications from students across Canada. There are more opportunities than ever to take your education beyond the classroom, and your perfect match is out there somewhere.

But filling your credit requirements is not the only reason to stay in school this summer. The off-season can also be the perfect chance to explore a field outside your major at McGill. Yale’s Writers’ Conference,

Nicole Himelfarb

Skip your class, sip on a beverage

for example, features workshops with published authors, Yale professors, literary agents, and publishers for the writer in you. I will be attending this June, and while it might not fulfill my B.Com or even elective credits, it makes for the perfect excuse to outsource a different kind of program that interests you. The options, here too, are endless. Looking to flex your funny bone? The Second City in Chicago offers weeklong intensive programs in comedy improvisation and writing. If it was good enough for John Be-

lushi, Tina Fey, and Steve Carrell, it’s probably good enough for you, right? Besides, I am willing to go just about anywhere that there is a good chance of a wild Oprah Winfrey sighting.

To put it simply, summer school needs not fulfill the stigma of stuffy classrooms and second attempts. Whether you are getting ahead, catching up, or just looking to broaden your horizons, there are plenty of opportunities to hit the books this summer, and build your resume in the process.

You and Me Baby Ain’t Nothing but Mammals...

A trip to The Shag Shop for a ‘sex talk’ with coordinator Amanda Unruh Claire Llewellyn Staff Writer

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s we move away from Valentines Day and into the sizzling seasons of booty shorts and shirtless studs, sex is a topic that is buzzing through the minds of our nearly 40,000-person campus. After posting the Bull & Bear’s Sex Survey results in last month’s issue, I was drawn to Sean Leslie’s words, “don’t be silly…wrap your willy.” While sex may not be something we all do, it is an omnipresent subject in the media and our daily conversations.

I often wonder to myself: why is it we donate money to help prevent AIDS, but don’t often engage in discussion about protection? Why are guys supposedly obsessed with barebacking it, and why aren’t girls more concerned with their own forms of female protection from STIs? With this in mind, I went to have a discussion with Amanda Unruh, The Shag Shop coordinator on McGill campus.

Ah! The smell of latex and lubricant at 9 in the morning is oddly familiar; as I looked around The Shag Shop I felt like a kid in a candy store. There is something April 2012

strangely freeing about being in a place where they encourage conversation about sex. Across from my chair was a condom tree, bearing tuxedo condoms, ones in every color of the rainbow, ones that glowed, ones that were flavored, ones that were small, and ones that were large. In truth, it wasn’t far off from a candy shop—condoms were only 0.25¢ each—some were even free. Next to the condom tree sat shelves of lubricants, and books

who pay and grab their goods, the regulars, and people who come in purely for information as they prepare to “do the deed.”

The Shag Shop’s location in Brown Building Student Health Services promotes the privacy of sex while still ensuring that sexual information and protection are never too far off from the coves of our studying.

While society holds sex on a variety of different personal levels, The Shag Shop is here to

The Shag Shop is here to advocate for education and safe sex on all levels ranging from the subject of loving relationships to one entitled The Joy of Sex. As university students we “do it” for all different reasons: love, satisfaction, horniness, experimentation, and drunkenness. Yet, The Shag Shop is not here to discriminate—they are here to advocate for education, and safe sex on all levels. Unruh explained that you see a variety of people coming into The Shag Shop: from pairs of giggly girls a bit shy and embarrassed, guys

answer your questions no matter what they may be. What is the most popular condom? “The thin ones,” Unruh answered. Further still, The Shag Shop is able to give you extra information.

“Wouldn’t thin condoms break more easily? “No,” Unruh responded. “They are tested to the same standards of all condoms.”

The Shag Shop is all about “being safe, trying stuff, and finding out what is right for you,” she explained.

Unruh explained that preg-

nancy has always been the number one concern of heterosexual couples, leaving STIs to spread as a somewhat “silent infector.”

Today, The Shag Shop is little by little making the realities of sex known through tabling and mass campus marketing. Trained employees hold workshops on how to mediate “the sex talk” with your partner or how to navigate to the best-known solutions. In regard to student diversity, The Shag Shop is able to meet every student, sexually active or not, at their comfort level and get them ready and informed for when the time is right for them. Neither therapists nor doctors, The Shag Shop workers are able to get down and dirty with the details when you are ready and wondering.

The Shag Shop is a sexual boutique - they are available to help you enhance your sexual experience. Whether you are interested in the biology of sex, orgasms, or how to spark things up with that special someone, The Shag Shop has the, dare I say, equipment. They offer a variety of sexual toys, masturbation tools, books with topics ranging from Kama Sutra to evolutionary impulse info, and massage oils.

Whatever it is that you may need or want to know about, do

Jean Moirez

The Shag Shop provides many safe-sex alternatives

drop by at The Shag Shop. Take a look around, ask a few questions, and for gosh sake, pick up a few 25¢ condoms! Do it right, play it safe.

The Bull & Bear

Lifestyle

Chris Conery and Kristine Pinedo, Lifestyle Editors lifestyle@bullandbear.ca

11

The Memes Phenomenon Captioning the McGill Mentality Emily Rubin Staff Writer

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opping up on just about every computer screen this year is the global phenomenon of memes. To those that are still utterly confused at the notion, a meme is an idea, concept, belief, or theory that replicates itself via cultural means. Memes first came about in the 70s, born to the British evolutionary biologist Richard Dawkins who sought to explain how cultural phenomena spread and evolve. His definition was inclusive of all things that diffuse into society, from fashion to clichés. Decades later, we find ourselves enthralled entirely in the Internet and thus our meme activity revolves around it.

Specific to the Internet, memes generally take the form of an image with a short caption to give meaning to it. They then spread, similar to a virus, from person to person, while occasionally being altered and re-captioned.

They vary in content and act as a condensed comic strip that goes straight to the (often slightly raunchier) punch line. Of course, they take many forms.

A majority of these creations filter through www.quickmeme. com; a website that offers premade memes for you to edit and add in your own caption; you are likely familiar with the majority of these memes. For instance, the condescending Wonka featuring Gene Wilder in his notorious purple velour blazer and top hat gives way to memes that mock people in an incredibly holier than thou manner. The college freshman meme depicts a naive looking young male student and serves to poke fun at the starry eyed newbies to university life.

“Y u no” is a badly drawn cartoon angry face that shows up to ask various people and situations “Y u no….” do whatever seems to be relevant.

There are of course many more to choose from. You can additionally implant your own picture and caption, thus creating a new meme to spread around the Internet like wildfire. Enter university memes. Because what could possibly be funnier than mocking the institutions we all frequent for higher learning? As one of the first campus memes site in Canada, McGill memes got hold of all of our attentions earlier this year thanks to Daniel

Braden, the sites creator. An avid Internet culture lover and a true believer in the educational system, Braden thought it was only fitting to play around with both.

He grabbed hold of a photo of the lower field and Redpath museum, and began the process of trying to “make McGill itself the meme”. His goal was for the one picture to take on many different connotations and really capture McGill culture. Memes became too widespread for the concept to stay restricted to just the one image, and soon McGill memes took on many more formats.

Braden provided a medium for us all to share in our communal frustration, exhaustion, embarrassment, entertainment, and enjoyment of the many facets of McGill student life.

Transcending what used to be restricted to blogs, Internet forums, and Facebook, these Internet memes are no longer contained in digital world. We bring them up in conversation, text them to our friends, turn them into posters for our dorm room walls, and even use them as a means of expressing ourselves out on the streets. Amidst a sea of red and rage in the tuition hikes protests, signage could be picked

Chris Conrey

out of the crowd with the character Boromir from The Lord of the Rings reading, “One does not simply… raise tuition fees.”

Long gone are the days in which our skeptical remarks, political points of view, and self-entitled thoughts were shared solely between friends and colleagues.

We’ve come a long way since Archie and Spider-Man were our captioned images of choice. And while Dilbert may convey office humor, it’s Desautels memes that have this crowd chuckling at the idiosyncrasies of the business world!

fusion, still finds time to spin at $ucka Free Mondays and Tokyo Thursdays as part of the DJ duo, Dirty Gold, while finishing his English major and Management minor.

Rehearsing twice a week for two hours at a time, plus sectional rehearsals, it is amazing how these singers balance their studies and extra curriculars all while planning their end of the year concert. Effusion put on their biggest show to date at Club Soda on March 25th. Their tribute theme honored great artists who have passed away recently, such as Whitney Houston, Michael Jackson, and Amy Winehouse to name a few. It was also the last show for many graduating Effusion members.

Andrew P. Wang has been the musical director of Effusion for two years. He arranges pieces for the group, comes up with the set list, and watches over the rehearsals, and does it while rocking his industrial piercing and harmonica. When I asked him if he was going to pursue a career in

music, he surprised me with “No. There is too much luck involved in the industry. It’s not just about talent. I’ve had a good run, and I’m planning to go to Law School when I graduate.”

Effusion is the closest thing McGill has to the McKinley High New Directions - minus the teen cat fights, cheesy choreography, and slushies. “You might think that there is a lot of drama in the group because we spend so much time together, but there really isn’t. Of course there are times we don’t agree with each other, but we always talk it out,” Zara Jestadt said. For many members, Effusion is synonymous with family. Like the New Directions, members of Effusion have found a place of belonging. “I’ve definitely found my niche,” Joen Lee added.

Effusion may seem like unapproachable superstars on stage, but they are McGill students just like you and me. The only differences are their added superhuman time management skills and amazing voices.

We Found Love in a Closet Space Getting to know Effusion A Cappella April Wu Staff Writer

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“

orry it’s so cramped in here. We normally have more space to warm-up,” Effusion A Cappella VP External, Zara Jestadt, smiled apologetically as we shoved ourselves into a cramped storage space in the back corner of L’Alize, a cozy concert venue in the heart of the Latin Quarter.

Although I’ve heard Effusion perform many times, they never fail to wow me. In fact, I even forgot the stuffy closet because I was too busy paying attention to their beautiful harmonies and soulful solos. I was invited to see Effusion warm up and headline a gig put together

by Charnobyl Voice, an organization which gathers local Montreal talent. “We do many acts in Montreal, not just within the McGill community. We recently did performances at the Montreal Bridal Show. We love wedding April 2012

Effusion

An informal Effusion practice session

gigs, especially in the summer,” said Victoria Saigle, an Effusion veteran.

Effusion had me hooked the first time I saw them at Discover McGill, but behind what appears to be effortless grooving is countless hours of hard work. Despite this, the members still manage to

do so much outside Effusion and the classroom. Kevin Lee founded his own apparel company and street dances on his own time.

Zara Jestadt is active in the musical theater circuit, having starred as Mrs. Lovett in AUTS’ production of Sweeney Todd in January.

Rowan Spencer, president of Ef-

The Bull & Bear

Opinion

12

Tarun Koshy, Opinion Editor opinion@bullandbear.ca

Editorial: Community Canceled, Mad Men Featured Letter to the Editor: Online The Bull & Bear Editors

I

t is without a doubt that this past year has been tumultuous. From the MUNACA strikes, to the November 10th, 2011 riots to the 250,000 strong protests on March 22nd, 2012, The Bull & Bear certainly has not had too many slow news days this past year. Along with the numerous controversial and divisive events, various voices have also been raised from both sides of the spectrum. If anything, this past year has at least shown the power of diversity – a proud McGill distinction.

But somewhere down the path, a line was crossed. It’s not a very blatant or obvious line, but a line nonetheless. And while campus writers and pundits may choose to endlessly debate where it happened, the point remains that diversity has no longer become celebrated, but instead become a point of contention.

Starting with the small details, there grew a mutual disgust between those who supported MU-

NACA strikes and those who did not, spreading likewise to supporting or against the November 10th riots and finally dividing the campus between those against tuition hikes and those who either don’t care or support them.

Over the past year, it is diversity that has splintered the campus.

Ultimately, McGill now feels less like a shared association, but rather segmented by false generalizations of Management “capitalists,” Arts “hipsters,” Engineering “nerds,” and so on.

For many of us, McGill was our choice due to its simultaneous diversity as well as acceptance, an institution where one was free to express views without judgment or criticism. More importantly, however, is the basic fact that we are all here to get an education, something that is clearly not being accomplished through grand occupations or over-egoistic politics. Even Desautels is not immune to such fallacies, proudly displaying a multitude of over-inflated, Hugo Boss-clad Management personalities. Granted, McGill is a place

full of passionate, energetic people and there are very real issues that need to be dealt with, but it is also important to recognize the fervour of one’s actions should not divide the valued sense of community that makes McGill so strong. While strong opinions from every angle are encouraged both here at The Bull & Bear and on campus, they are meant to be respectful and not used to bludgeon one’s neighbour in Leacock 132. At the very least, the egos and politics must subside to give diversity and collaboration a chance.

Ultimately, one editorial won’t change the campus overnight. Instead, it is our hope that people simply remember that we are here for two goals: to get an education and grow as individuals. Once accomplished, the freedom is yours to rule Wall Street, change the world or simply conquer the parents’ basement.

But as long as you’re here, really take advantage of what we have at McGill rather than becoming the next Gordon Gekko around campus.

Voting at the GA? Yes, Please!

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he exceptional referendum period running from April 10th to 16th comes at the end of a year full of student activism. Despite the fact that the voting period ends one day before finals begin, we hope that students will not underestimate its importance as one question attempts to fix a long standing issue with the SSMU General Assembly (GA) by introducing online voting to ratify the results of the GA. The heart of the question would require all future SSMU General Assemblies to ratify all motions passed using an online vote with a 10 % minimum quorum. Currently, only 100 students (0.4% of 25000 students) can pass binding motions in the current system, and only those who participate in person may vote. We feel that this is greatly unjust, since it silences many students who have exams, important activities, or work from the decision-making process.

We grasp the importance of

the GA, and have concluded that in order to prevent the GA from fading into oblivion we need to transition it into an online-participation model. We believe that the introduction of the online system would reinforce the current GA model by encouraging people to maintain a strong inperson quorum so that all resolutions would be properly ratified online.

To fear that online voting would neutralize the GA is unreasonable. Not only are we already voting online for all campus elections and referenda, but democracy around the world has never been more influenced by online participation. We cannot praise the changes brought through online organization during the Arab Spring and refuse to change the archaic voting system here at McGill. We cannot deny the right to vote based on room capacity. We hope that McGill students will stand by these principles and vote in favor of online voting.

From Mubarak to Kony: Can Facebook Do It All? How much further can social media reach after Tahrir Square, #occupy, and KONY2012 Dann Bibas Staff Writer

I

n the last two years, social media websites like Facebook and Twitter have distinguished themselves as far more than mere online networks to help people connect with one another, but rather as powerful instruments for change.

While most of us would define Facebook as a useless yet addictingly indispensable friend who never lets us study, young adults in the Middle East view it as a precious tool for reform, as demonstrated in the recent Arab Spring. Who would have thought that a region so often characterized by war and conflict would not need weapons or violence to bring about historic change, but instead five bars of Wi-Fi, a Facebook account and a whole lot of tweets?

Similar results were also shown in New York this past fall, where frustrated Americans occupied Wall Street: a few status updates, tweets and Youtube videos later, protests erupted like wildfire across Oakland, Toronto, London and just about everywhere in between. Once again, social media gathered likeApril 2012

minded individuals into communities, and the activism grew organically.

On a lighter note, social media has also done great things for the McGill community. Aside from greater levels of connecting and stalking, activists now have an online platform to share banana bread recipes and promote impromptu parties in the James Administration building. If anything, one cannot accuse McGill of not being creative enough when procrastinating against midterms.

Yet while social media has undoubtedly proven itself to as a vital resource for change, there is a real and growing worry that irresponsible use is pushing such a valuable tool well beyond its intended scope. Take the recent Kony2012 movement, a clever marketing campaign orchestrated by Invisible Children, having reached over 75 million Youtube views and storming millions of news feeds across the globe within its first week. The organization is aiming to dramatically increase awareness against Ugandan warlord Joseph Kony, and encourages viewers to pressure their elected officials to bring him to justice.

While I too hope to see him

Facebook

The Stop Kony 2012 has gained widespread online popularity

arrested as soon as possible, I also remain skeptical about the prospects of well-crafted social media campaigns influencing foreign policy. Yes, of course, a government should advance the interests of its constituents. As such, if the people care about stopping Joseph Kony, so too should our governments. However, the general public is too often misinformed and vulnerable to such persuasive marketing blitzes. One need only look to the evolution of cigarette advertisements to see evidence of such persuasion. Nonetheless, while it is absolutely imperative that “we

the people” strive to empower and engage one another to demand change, it should also be recognized that this formula has its imperfections as well.

Quintessentially, unless people feel comfortable with Sophia Grace replacing Hilary Clinton or Antoine Dodson as future President of the United States, the content of a country’s foreign policy agenda should be far more extensive than 30 minute viral videos. Granted, social media can and should raise foreign policy awareness to issues, but the decisions should be realistically appraised rather than based

on wildfire whims and fancies.

Ultimately, just like the Arab Spring, and the #Occupy movements, only time will tell if social media serves as a catalyst for reform or simply a means to congregate the unemployed and turn Zucotti Park into the largest group therapy session ever. Even so, perhaps Facebook and Twitter may actually serve as positive foreign policy influences if considered wisely.

Regardless of my skepticism, the Invisible Children’s marketing team deserves applause for the kickoff of their Stop Kony campaign. Even more impressive is their choice to use April 20th (4/20) as “Stop Kony” day.

Forget about stopping a war lord, here is a very ambitious effort to mobilize the “lesser productive” demographic of our population into doing something meaningful with the most important day of their year. I can’t wait to see all the upside down posters. I’m also looking forward to witnessing the magic of social media catapult the April 21st release of Afroman’s much anticipated single into viral mode.

The song will be titled: I wanted to stop Kony but then I got high.

The Bull & Bear

Opinion

Tarun Koshy, Opinion Editor opinion@bullandbear.ca

13 Letter to the Editor: Yes to QPIRG

The New Face of Communist China Why the Chinese succession could leave a rippling effect on the world

T

Rohan Arora Staff Writer

W

hile 2012 represents a year of democratic elections in India, France and of course the United States, some of us need to also turn our attention to the political succession about to take place in China. Nine members of The Communist Party deemed ‘capable’ would be carefully picked by the current Politburo Standing Committee to succeed them next spring. A name all of us need to start getting familiar with is Xi Jipeng a current member of the party. According to The Xinhua News Agency, he is set to take over Hu Jintao’s chairmanship of ‘The Politburo Standing Committee’ (PSBC) later in 2013. Another man to also become popular in world affairs is Li Kiqiang who will take over the position of Wen Jibao, the current prime minister of the People’s Republic.

Although the other seven names remain a mystery for a while, these men will be in central command of the second largest economy and the fastest growing superpower in the world. Although personalities of Chinese Premiers have travelled a long way since Chairman Mao, Xi Jipeng’s personality shouldn’t be taken as key in defining new Sino-Western relations. Moreover, the recent democratic elections in Wukan might highlight the possibility of democracy working in China, but change in today’s China is almost impossible.

Xi Jipeng like many of his political contemporaries was a product of Mao’s Cultural Revolution. He was forced into labor at the age of fifteen and was a son of a Long March survivor, Xi Zhongxun. Despite his upbringing under a totalitarian regime his personality is poles apart from Premier Hu Jintao. He has been open in the media about both his wives and is said to greatly admire Hollywood. His daughter is currently at Harvard and his sister is currently residing in Canada. His persona is symbolic of the cosmopolitan elite of China that is aware of the bubble outside ‘The Great Wall and Tianamen Square’ Although his personality and his recent hyped visit to the US have made many think of him as the change for the Asian giant, it is very unlikely much will change in today’s China. Moreover, this succession will most likely be much more scrutinized April 2012

The White House

Xi Jingping meets with President Obama and Vice-President Biden on his trip to the US

compared to previous ones due to recent events involving corruption in one of the fastest growing cities of China, Chongqing.

Bo Xilai is a prominent party member within The Communist Party and was the secretary of the party in Chongqing. Like many others, he boasts being red on the outside by enticing the people to sing patriotic songs of Mao’s era, yet enjoys the power of owning Ferrari’s and manipulating provincial law in political cases involving his family. This recent purge will make it difficult for Sinologists and other policy-makers to paint a picture of what China’s policies will be in the future. But recent surprising events in China may have some taken aback by the emergence of the new China. Just recently the world experienced something

never allow such a movement to sweep through China for risks to the party central core.

Let’s take Tibet as an example, a region confined by the People’s Liberation Army. This symbolic deployment of force is a reflection of Beijing’s everclenched iron fist. Moreover, a mass movement in a place like Tianamen Square again will never be possible; Beijing has responded through its political mouthpiece warning those of the likely consequences they could face for such a move. The party is also wary about what gets published on the Internet. Type in ‘Tiananmen Square’ in Google Images from an IP address in China and then do it anywhere else in the world – the difference in search results is astonishing.

Beijing’s foreign policy will

kets. Today, China’s economy is heavily reliant on exports and foreign investments, and the health of the international markets. It holds approximately nine percent of all American debt and is very interested in interacting with the West. It seems highly doubtful given its economic integration with the rest of the world that China would want to risk armed conflict; Europe is China’s largest importer and Chinese firms have gained heavily from the region. Earlier in February it was Wen Jibao that approached Merkel to talk about China’s involvement in the European debt crisis, highlighting the significance the European market holds to Beijing.

The changes within the leadership and the recent ‘Wukan effect’ are gaining a lot of attention

The new face of China symbolizes growth and reciprocity never experienced in the history of China before- democracy.

Little is known about Wukan, a small fishing village on the Southeastern coast of China.

Land-grabs are a common practice in today’s China where rich landowners ‘steal’ land from farmers to sell them to mainly construction businesses. However, the recent Wukan land grab caused protestors to take to the streets of the village demanding justice. Surprisingly, it was granted by provincial leader Wan Yang as he allowed people to vote for their rights on the disputed land.

About six thousand votes were cast against the land grabs, which forced landowners to withdraw their claims back to their rightful owners. So it seems democracy can work? One must understand, that the Chinese government will

always remain neutral in issues that it might not consider threatening to itself. A common criticizer of China’s foreign policy in recent years has been the United States. Obama’s policy with Association of South East Asian nations (ASEAN) and the dispute over the South China Sea has left China irritated. Moreover, with a US base to be built in Darwin soon, Australia might be dragged into the tension. Mitt Romney in one of his primary speeches carefully picked his weapons calling China a “cheater” economically for devaluing its currency. But this is all contradictory to what the US expected of China approximately forty years ago. Nixon and Kissinger were the ones that kept the “open-door” policy to China and encouraged Mao to globalize and open China’s mar-

internationally today. If leaders like Wan Yang are amongst the other seven that make ‘The Politburo Standing Committee’ later this year, we may notice a few liberal bureaucratic decisions being adopted, but it is highly unlikely democracy will expand at a grassroots level in China. Moreover, China is trying to protect its interests in its neighboring periphery similar to what the USSR was doing during the Cold War, only on a much smaller. The new face of China symbolizes growth and reciprocity with the West at a bilateral or multilateral scale.

But hoping for radical change like more Wukan incidents and removal of troops from disputed areas might be a bit far-fetched.

After all, when have communists really enjoyed wining and dining with capitalists?

he Quebec Public Interest Research Group (QPIRG) McGill is a student run, not for profit organization that has existed on McGill’s campus for more than three decades. As part of a network of over 200 PIRGs across North America, QPIRG’s mandate is to further social and environmental justice issues, to link the McGill campus with the broader Montreal community, and to conduct research and provide programming on the social issues that affect Montreal and the world around it.

And they do a pretty good job it! QPIRG McGill started Rad Frosh, the alternative frosh that orients students in real and tangible ways to McGill and Montreal. Along with SSMU, they run Culture Shock and Social Justice Days, two incredible event series on campus. They support over 20 working groups that each address different social and environmental problems, run the Community University Research Exchange (CURE) program, which allows students to get credit by doing research for community organizations, and organize a yearly conference for undergraduate student research.

They host an alternative library, and they provide a space and resources for students who care deeply about these problems.

In this letter, we also wanted to address a couple of questions we often get about QPIRG’s work. Most importantly, we want to emphasize that QPIRG never has, and does not, support Hezbullah. Secondly, QPIRG was not at all involved in the #6party occupation of the 6th floor of James Admin, before, during, or after the occupation. For more information on both of these topics, see the FAQ section of qpirgyes.ca This week, we want students to vote YES in the ongoing referendum, which asks whether students will continue paying a $3.75/semester opt-outable fee to keep QPIRG going. Without this affirmation of student support, QPIRG will lose its funding and its lease, and the incredible work QPIRG does will not be able to continue. Whether or not you are an active member of the organization, we hope students will continue to understand the importance of a lively, diverse, and vibrant campus, and vote YES for QPIRG. Voting will occur between April 10-16, at ovs. ssmu.mcgill.ca.

The Bull & Bear

Opinion

14

Tarun Koshy, Opinion Editor opinion@bullandbear.ca

Why They’re Not Leaving Goldman Sachs An angry letter by one Goldman employee changes little for the industry Alexander Petralia Staff Writer

O

n March 15th, Greg Smith, an executive director at Goldman Sachs, controversially publicized his resignation from the firm in a letter to the New York Times titled “Why I Am Leaving Goldman Sachs.” In it, he detailed how Goldman has changed from a company which once prioritized the interests of its clients to one which sidelines them in favor of short-term profits. The new Goldman, he writes, exploits these “counterparties” by selling them complex products they do not understand, in order to maximize margins or clear them from Goldman’s books. Smith solemnly portends, “if clients don’t trust you they will eventually stop doing business with you.”

Immediately, the story caught fire within the media. Article after article emerged, questioning whether investors should drop Goldman, why Smith pub-

licly announced his departure and how this will affect the future of Goldman. The truth is, however, that his letter doesn’t mean anything.

The fact that Goldman has prioritized its interests over those of its clients is not news.

In fact, it was only two years ago

Kong – a guy we’ve never spoken to – on the phone to walk us through exactly what we want to know…Try the same thing with Citi.” Within the industry, Goldman simply has the reputation for getting things done.

Goldman is so effective because it has a monopoly on talent.

crash of 2008, investors recognized that Goldman was a firm dedicated to being the best in financial services, and consequently, maximizing profits.

While suspect advice on the part of Goldman is certainly to blame for the pervasive “investor gullibility,” equally important were

Goldman is so effective because it has a monopoly on talent. that the heads of Goldman Sachs were accused on public television of betting against securities they recommended to their clients and selling assets on their books they knew had no value.

However, clients continue to use Goldman because, as Bethany McLean wrote in Vanity Fair, “Goldman is better.” As one hedge-fund manager with whom she spoke explained, “I can’t tell you why it’s better. It’s just better. It’s six p.m. in New York City, and Goldman will figure out how to get the right person in Hong

While there are grandiose – and arguably excessive – bonuses, there are also intelligent, hardworking graduates. In a 2011 survey by Universum, “Goldman Sachs ranked fourth…behind Google, McKinsey & Co., and Apple” when American MBA students from 72 schools were asked where they want to most wanted to work. And when clients need answers, they consult the smartest people in the industry – most of the time, they belong to Goldman.

Even before the financial

investors’ beliefs that the market would rebound. No one expected that the government would let Lehman Brothers declare bankruptcy, so investors filled their portfolios with complex products they believed would perform after the bail out. Goldman’s reputation for self-dealing has long been recognized in the industry, but clients continue to use Goldman for its ability to close deals and provide sophisticated advice. After all, the company led all financial firms in mergers and acquisitions activity

for 2011.

So while Smith’s article rekindled public outcry against Goldman Sachs, it did not change the perceptions investors held about the firm. The public wants to believe that after the financial crisis of 2008, Goldman has reformed – that financial firms still value loyalty to clients and accountability – but to its surprise, Goldman is still Goldman. Investors, however, know better. Smith’s letter will not cause clients to drop Goldman because everything he wrote, they already knew.

The bygone days of whiteshoed financial firms has been replaced by fierce competitiveness in an uncertain economic environment. Well-intentioned letters lamenting a declining standard of fiduciary responsibility make for a catchy story, but don’t change reality: clients need Goldman. As Peter Cohan in Forbes recently put it: “until a wave of talented people leave Goldman and go work for some other bank, many clients will stick with Goldman and hope for the best.”

Egypt’s Democratic Dilemma Why a resurgence in the Muslim Brotherhood is dangerous for Egyptian democracy Dan Sorek Staff Writer

M

ore than a year ago, the world stood still to watch the Arab Spring sweep across the most powerful and regionally influential Arab state of Egypt. Many lauded the demonstrations and calls for reforms as a signal for change. But with elections on the horizon as part of the series of reforms the provisional military government has promised, supporters of democracy and human dignity must be worried that any recent progress will soon be lost. Indeed, the fanaticism of the Muslim Brotherhood, which liberal analysts promised was too extremist to gain any support from mainstream Egyptian society, may soon be the staple of May’s presidential elections. The party that promised not to participate is now considering reneging on its one year commitment.

Until recently, the Brotherhood had avoided the spotlight in Egypt’s revolution that began in November 2011. It actually encouraged its members to join April 2012

the long-standing liberal National Union party to which Anwar Sadat belonged. Many saw this as a sign of a changing Brotherhood which sincerely seeks better governance. Their certainty drowned out the Washington Post’s more sobering conclusions that the Brotherhood, wary of the West’s suspicions, was try-

ty promised to field candidates for only a third of parliamentary seats. And though the group claims to only introduce Islamic law that will be acceptable to a wider society, it must still be regarded as the same group who also favour limiting participation in public service based on religious group and nullifying a

peaceful settlements.

Fast forward to March 24th where the Brotherhood has become even stronger, gaining half the seats on a committee tasked with re-writing the Egyptian constitution. It is at this point that they came out swinging, calling the current military government a failure and suggesting

Slowly, the vision that many eager optimists had for the Arab Spring is being replaced by a less idealistic agenda as time drags on. ing to exert its influence by deflecting attention towards other parties. But recent successes have emboldened the Islamic group to change strategies.

By the end of January, the Islamic Brotherhood’s newly launched Freedom and Justice Party had won elections with 47.2 percent of the vote, netting it close to half of parliament’s seats. This occurred after the par-

peace treaty with Israel.

Skeptics point to the youth wing of the Brotherhood as a moderating influence, hopefully channelling Islamic doctrine towards social welfare programs.

However, given the strength of decades of tradition, such blissful hopes are difficult to survive in a group where such tradition includes disseminating Hitler’s Mein Kampf and opposing

it would run presidential candidates, an action that forced members of liberal parties to boycott the assembly altogether. Slowly, the vision that many eager optimists had for the Arab Spring is being replaced by a less idealistic agenda as time drags on.

At this point, the world must once more focus its attention on Egypt post-November 2011.

Rather than provide loud yet

rhetorical voices, more people must help the vulnerable Egyptian government. They should support and enforce individual property rights, curb corruption and eradicate any notion of restricting participation by minority groups or gender. Most importantly, the transfer of power taking place in June must produce a government committed to honouring all international obligations – especially the Sadat-Begin treaty – which Egypt has signed to date. However, this is by no means to say that all legislation produced under the Mubarak government is legitimate. In fact, tomorrow would be a good day to repeal all remaining aspects of the National Emergency Law that has given carte blanche to holding detainees for an indefinite time before trial, amongst other things, since 1981. But will a government led by the Muslim Brotherhood have such a conviction? Doubtful their track record over the past year only suggests the creation of a society akin to the Lebanese Civil War, where reformers would be slaughtered and moderates must enter in to coalitions with radicals.

The Bull & Bear

Opinion

Tarun Koshy, Opinion Editor opinion@bullandbear.ca

15

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From Mad Men to $27 Billion Lawsuits How Quebec smokers found 1960s cigarette ads too convincing Zain Alimohamad Staff Writer

O

n Monday, March 12th, Canada held its largest class action court case in history. A group, consisting of approximately two million Quebec smokers, is seeking $27 billion in financial damages from Canada’s three largest tobacco companies, Imperial Tobacco, JTI MacDonald, and Rothmans Benson & Hedges, accusing the corporate giants of misleading advertising during the 1950s and 1960s that enticed them to begin smoking while keeping the dangers of smoking hidden from the public eye.

The group point to the use of glamour and positive lifestyle associations used in cigarette marketing as some of the misleading factors that caused them to start smoking. At first glance, this doesn’t seem to be a particularly compelling argument as virtually all companies use strategies with subjective references to luxury and a “cool” factor. As one of the plaintiffs, Cecilia Letourneau, admitted, “I chose to smoke to show that I was ‘in.’”. This sort of appeal to cultural pressure at the time – voiced by other plaintiffs as well – somewhat detracts from their claims since smoking has always been a choice, as evidenced April 2012

D-R Burtoni

Enjoyment of cigarettes also warrant personal responsibility

by the number of people who did not choose to take up the habit. However, while cigarette ads used virtually every marketing trick in the book, all their ads were in compliance with the law as it was then, and while these laws have since changed for the better, it remains difficult to justify blaming cigarette companies for having advertisements that were just too good.

Consumer responsibility also plays an important role in this case as well as others like it (for instance, the fast-food industry). In this circumstance, a very strong case can be made that the claimants had more than ade-

quate access to relevant scientific information about the dangers of smoking. In fact, in 1963, Federal Minister of Health and Welfare Judy LaMarsh brought attention to the link between cigarette smoking and lung cancer, coronary heart disease, and chronic bronchitis. Since then, numerous studies from various sources have been made available for review to the public eye. Furthermore, tobacco advertising was significantly reduced in Canada by 1971 with the introduction of Bill C-248, leading to the elimination of TV and radio advertising of tobacco products. With many of these studies entering

the public domain, as well as the political efforts that existed decades ago, there must have surely been public discourse about the issue. Given that the effects of smoking were well known enough to merit attempts at reformative legislation, it seems slightly disingenuous to suggest that there was no way to know that smoking was bad for health.

That being said, the plaintiffs are claiming not just a lack of information in general, but more specifically the purposeful withholding of that information by big tobacco companies as their main grievance. This brings the issue into the realm of business ethics, and particularly information transparency. It is in this case, however, that big tobacco giants cannot be portrayed as wide-eyed and blameless, having denied and contested the link between smoking and lung cancer for altogether too long. One of the real, and potentially quite damning, claims being made by the plaintiffs is that tobacco companies had, and have been, using a test for nicotine content that was unrepresentative of reality. The claim is that the machine used to establish the amount of nicotine consumed by a smoker in a certain cigarette brand does not accurately reflect the way a smoker inhales on average.

While currently uncertain, the validity of this claim will become

apparent as the trial continues.

So, there is definitely a level of blame to be laid on big tobacco for not being forthcoming about the dangers of smoking and for being misleading in that sense. But it is also clear that society doesn’t think they should be afforded the same leniency when it comes to marketing their products as opposed to other products. So why has big tobacco been treated with such an apparent double standard? The answer is simple: because cigarettes are really, really bad for you.

Through our government, we have stepped in, to protect ourselves from making poor choices.

However, if we wish to live in a truly free society, there will inevitably be temptations to partake in activities that are inherently negative. Like all choices, there are good and bad implications; and this is the dark side of absolute freedom. There is an age-old economic truth that transactions are smoother the more information all parties have. While big tobacco may have made many efforts to shield information from its customers, they were not the only source of reliable information. If you choose to participate in these activities, it is no one’s place to judge you, but it is also no one’s responsibility to pay your future medical bills either.

The Bull & Bear