By Rebecca Townsend,

International Business Writer

On November 28, India and Syria set

up a Memorandum of Understanding to

launch a Joint Business Council between

the two nations. Overseen by V.R.S.

Natrajan of India, and Syria’s Ali Khwanda,

the Council is expected to double bilateral

trade and facilitate closer contacts between

the two nations’ business sectors. This

agreement holds a great deal of promise in

launching broader growth in Syria, while

continuing strong economic growth in

India.

The necessity of a cooperative business

venture between the two countries has been

evident for quite awhile. While trade

between India and Syria has increased from

$30 million in the mid 1990’s, to $528 mil-

lion in 2009, these levels are still below

efficiency. Syria and India are two of the

world’s most recently developing

economies. Due to effective regulatory

devices and economic policies, these

nations have weathered the economic crisis,

and are now each in a stage of crucial

expansion. It is only logical that they should

work alongside each other to successfully

continue economic development.

President Pratibha Devisingh Patil of

India, according to the Sify News, stated,

“Today, we are launching the Syria-India

Business Council. The formation of this

council [will] add to effects to further

strengthen trade and economic ties. The

council will function effectively, will dis-

seminate information of opportunities in the

two countries, [and] work closely with the

governments in addressing the specific

problems.”

Continued on page 16...

Money & Investing..............

Stillman News......................

Ethics ...................................

Editorials .............................

Sports...................................

Domestic News.....................

International News..............

International Business........

INDEX

26

8

9

10

13

15

16

Front cover image courtesy of Lee Duan

The Stillman ExchangeMade possible by the generous support of the O’Brien Family TUESDAY, DECEMBER 7, 2010 - VOL. 7 NO. 7

The Official Business Publication of Seton Hall University

www.StillmanExchange.com

International BusinessHugo Chavez looks to raise funds by selling state-owned oil

firm.See p. 8See p. 6

WikiLeaks Opens Pandora’s BoxBy Stefano D’Urso,

Money & Investing Writer

Pandora’s Box has been opened. The

secrets are out; the news has been spread.

One of the most crushing intelligence leaks

in United States history has created a deba-

cle for the masses.

On November 26, the nonprofit website

wikileaks.com published and commented

on confidential documents that allege gov-

ernment and corporate misconduct.

WikiLeaks has stated that it has 251,288

cables sent by American diplomats between

1966 and 2010.

Such leaked papers include orders from

U.S. Secretary Hilary Clinton to American

diplomats to engage in intelligence-gather-

ing, pressure from U.S. allies in the Middle

East for decisive action to neutralize Iran’s

nuclear program, conversations about mili-

tary action against Al Qaeda militants in

Yemen, and Washington’s efforts to have

highly enriched uranium removed from a

Pakistan reactor.

There are also over 70,000 Afghan War

diaries enclosing intelligence on Afghan

security and Taliban secrets. A 238-page

Guantanamo Bay detention camp manual

detailing how the U.S. military treats

detainees at the camp has also raised contro-

versy.

WikiLeaks, which runs on funding

from donors, has been highly secretive

about how it operates. But at its core, the

idea behind the site is this: People who have

access to controversial or classified docu-

ments can send them to the site where a

group of volunteer editors decides what

information is authoritative and what infor-

mation is important, publishing it accord-

ingly. The website offers these whistle-

blowers complete anonymity and to a cer-

tain degree, legal protection.

Hilary Clinton spoke out about the

website on November 29 stating, “There is

nothing laudable about endangering inno-

cent people, and there is nothing brave

about sabotaging the peaceful relations

between nations.”

She was upset that assessment of for-

eign leaders by U.S. diplomats, sent in con-

fidential cables, had been leaked, potential-

ly causing a strain on foreign relations.

However, the editor-in-chief of

WikiLeaks had a counterargument for

naysayers. “Information that organizations

are spending economic effort into conceal-

ing—that’s a really good signal that when

the information gets out, there’s a hope of it

doing some good.” Assange makes the final

decisions on which documents are released.

How does WikiLeaks influence the

money and investing side of the sphere?

Continued on page 3...

EthicsIs it ethical for retailers to use “Christmas” for marketing

to consumers? See p. 16

By Kayla Mjaatvedt,

Sports Assistant Editor

UGG Australia has secured a deal with

New England Patriots’ quarterback Tom

Brady that will have him endorsing their

new 2011 line of footwear and accessories.

Brady has basked in the light with his

supermodel wife, Gisele Bündchen, a suc-

cessful career with three Super Bowl wins,

and has now received a stylish endorsement

deal with UGG Australia.

Brady will be the face of UGG’s fall

2011 line, which is to include casual

footwear, accessories and outerwear.

Deckers Outdoor Corporation hopes that

with the addition of Brady, they will be able

to convince society that their brand is fash-

ionable and masculine enough for men,

despite being best known as a women’s

brand.

“This partnership marks a new season

for UGG Australia, and Tom Brady is the

ideal first endorser for the brand,”

Chairman and CEO of Deckers, Angel

Martinez said. “He embodies the stylish

casual attitude that is at the foundation of

every product we make, and is as much a

style icon off the field as he is a playmaker

on it.”

Brady’s responsibility is to not only be

the face of UGG, but to also provide “prod-

uct inspiration” for any of UGG’s future

collections.

I have worn and loved the UGG brand

for a long time,” Brady said in a statement.

“This collaboration gives me an opportuni-

ty to work with a leading global brand with

a great history and a true vision for the

future of its men’s collection.”

Many people find that UGG should

stick to marketing towards women, because

there is nothing macho about men wearing

the UGG products. Some even think that

Brady is trying to accrue too many endorse-

ment deals, which makes consumers lose

more interest in the UGG brand because of

the cluttered endorsement portfolio of the

star quarterback.

There is a lot of controversy over

whether or not this new endorsement deal

will kill Brady’s masculine reputation.

However, this collaboration with a leading

global brand like UGG will mostly have a

positive effect on Brady.

UGG sales hit a record $711.8 million

last year. With a popular role model like

Brady marketing the brand to a whole new

target audience, UGG can look forward to

another boost in sales. Brady is already

looking forward to a quite a large check, as

well as a few more pairs of his beloved Ugg

boots.

Contact Kayla atkayla.mjaatvedt@student.shu.edu

FTC’s Do-Not-TrackProposal

Unlikely Celebrity Will Endorse UGG

By Meg Reilly,

Assistant Managing Editor

Banners, Pre-roll, Ads by Google… No

matter what the FTC tries, they are still

going to be all over the web. But is your pri-

vate information worth sacrificing in order

to see more relevant advertising?

The FTC had certainly hoped that their

proposal last Thursday of the “do-not-track”

legislation would see as much acceptance as

its do-not-call counterpart. However,

Republicans, who will control the House of

Representatives in January, were not as

receptive.

With the suffering economy in mind,

Representative Ed Whitfield, the ranking

Republican on the House consumer protec-

tion subcommittee, expressed concern that

the free services now financed by advertis-

ing would be hurt, and that consumers

would lose access to ads they want to see.

However, we must not forget that inter-

net users can already do their own tracking

prevention and internet advertising contin-

ues to grow. Ideally, the FTC hopes that

their proposal will yield more user-friendly,

web-browser related protection from track-

ing. Mozilla is already considering creating

a do-not-track option for FireFox.

Since there have been an increasing

amount of privacy issues and identity theft

due to information released on the web,

many believe that it is about time for the

government to step in and regulate how con-

sumer information is stored and used.

But of course, there are also many crit-

ics of the new initiative. Editor of trade

publication Advertising Age, Abbey

Klaassen speaks for the marketing industry

in saying, “If consumers were to (use Do

Not Track), en masse, the industry could

take an enormous hit.”

What is for certain is that the do-not-

track initiative will not be an easy task. As

the line between internet and mobile com-

munication mediums continues to blur, do-

not-track might have to acknowledge the

growing beast—mobile commerce.

Although many programs are opt-in, mobile

commerce has begun to utilize GPS pro-

grams and other targeting mechanisms to

deliver the most relevant advertising to the

palm of your hand.

So, in this new digital age, has privacy

really become a luxury of the past?

Contact Meg atmargaret.reilly@student.shu.edu

India and Syria Create Joint Business Council

Stillman NewsUN Secretary-General Ban Ki-Moon Visits Seton Hall.

Money & Investing2 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumesno liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.

NEWS

BRIEFS

• American International Group raised

$2 billion in the bond market for the

first time since the firm was bailed out

during the financial crisis.

• Airbus announced the release of new

engines for their A320 planes by 2016 to

compete with Boeing. The two new

engine choices can result in fuel savings

of up to 15 percent in addition to reduc-

ing carbon emissions.

• The online payment service provider

PayPal has cut off the account used by

WikiLeaks to collect donations, serving

another blow to the organization just as

it was struggling to keep its website

accessible after an American company

stopped directing traffic to it.

• The S&P 500 index increased 35.31

points this week, or 2.97 percent to

1224.71 on positive news that reduced

fear of euro-zone defaults.

This Week’s Poll Question:

How much did you spend on Black

Friday and Cyber Monday?

A: $0 - $50

B: $51 - $100

C: $101 - $150

D: $151+

Respond at www. stillmanexchange.com

Earnings Stock to Watch:

Microvision Inc.

By Lee Duan,

Assistant Managing Editor

The Bureau of Labor Statistics report-

ed last Friday that the unemployment rate

increased to 9.8 percent, an increase of 0.2

percent over the previous three months.

Nonfarm payroll remained “little

changed” with an increase of only 39,000

jobs. This came as a surprise after weeks of

positive news suggesting the possibility of

a quicker economic recovery.

The number of unemployed now

stands at 15.1 million people. Minority

groups reported the highest unemploy-

ment: the rate for Hispanics rose to 13.2

percent while the rate for blacks stayed

unchanged at 16.0 percent.

Many whose temporary jobs ended or

those who lost their jobs increased in

November by 390,000. Retailers saw a

decrease in employment as well, a negative

sign given the holiday shopping season.

9,000 jobs were lost in department stores,

while an additional 5,000 jobs were lost in

furniture retail.

Employment in health services did

continue to increase, a sector that has con-

tinued to grow even in touch economic

conditions. 8,000 jobs were added at hospi-

tals, while the industry gained 19,000 jobs

overall.

Nine million Americans are also

underemployed in part time employment as

a result of not being able to find full-time

positions.

2.5 million people were not considered

in this unemployment rate calculation as

part of the labor force due to not having

looked for work four weeks prior to the

survey. In addition, 1.3 million of these

marginally attached workers are not look-

ing for work “because they believe no jobs

are available for them.”

The latest report is disappointing given

that non-farm payroll employment has seen

an average increase of 86,000 jobs per

month since December 2009. In October,

the U.S. economy had gained 172,000 jobs.

In an interview with Bloomberg

Television, chairman of the president’s

Council of Economic Advisers, Austan

Goolsbee, stated the need that “we not pull

the rug out from under the unemployed that

are searching for work, and we extend the

unemployment benefits.”

The U.S.’s unemployment rate will

continue to play a large role in the speed at

which the economy recovers.

Contact Lee atli.duan@student.shu.edu

Graph courtesy of Yahoo! Finance

Do you plan to go shopping during

Black Friday?

Yes, during the day:15%

Yes, as soon as stores open:33%

I prefer shopping online:39%

No:13%

Unemployment Rate

Rises to 9.8 Percent

Last Week’s Poll Question:

Sector SummaryCourtesy of Google Finance

World CurrenciesCourtesy of Google Finance

Chart courtesy of The New York Times

Market SummaryGraph courtesy of Google Finance

Graph courtesy of Google Finance

THE STILLMAN EXCHANGE Money & Investing TUESDAY, DECEMBER 7, 2010 3

Real Estate Market Shows Two Percent Drop in Q3Scott Giveans,

Money & Investing Writer

The holiday season is upon us. But is it

a time of cheer, festivity and good tidings

for real estate? Well, it could be if people’s

holiday mood carries over into their home

buying perception.

On Tuesday, November 30, S&P Case-

Shiller Home Price Index indicated that

home prices had fallen two percent in the

third quarter. After having experienced an

upward movement in four of the previous

five quarters, many people are beginning to

fear of a potential double dip in the housing

market. Overall, home sales are down 1.5

percent relative to last year.

The apprehensiveness over the mar-

ket’s step back is more telling of the pub-

lic’s uncertainty of the housing market than

market itself. Simply put, Americans have

little faith that the housing sector is out of

the woods just yet. And they have little rea-

son to think any other way because the

housing industry is so far off from its record

high numbers seen just 3 years ago.

Unfortunately homeowners still suffer

from some “irrational exuberance.” The

phrase, originally coined by Alan

Greenspan, the then-Federal Reserve Board

Chairman, and then adopted by economist

Robert Shiller, warned people that homes

were fundamentally overvalued and would

soon retreat to their intrinsic price.

Amidst the housing boom, homes sold

for exorbitant amounts of money relative to

historical values and people soon began to

believe that these “inflated” prices would be

the new benchmark for subsequent years.

However, reality set in and individuals

are now being conditioned to believe their

homes are worth as much as 25 percent

more than their value. This simply is not the

case and it will take time for people’s per-

ception to change and become more funda-

mentally sound. Although the housing mar-

ket is by no means doing great, it has shown

signs of stability.

As mentioned before, home prices have

fallen once in the previous five quarters. In

the first quarter of this year, home prices fell

1.2 percent but the following quarter, homes

prices rose again. A drop in one quarter does

not necessary mean that the housing market

will begin to pace downward. If anything,

the market’s ability to rebound following a

decline is indicative of its stability.

Unfortunately, many homeowners can-

not get that bad taste that the market down-

fall left them with. Nevertheless, the upturn

of the housing sector lies largely in people’s

ability to look past the market’s unfortunate

decline in recent years.

Luckily, homeowners have made sig-

nificant strides to do just this since the

depths of the downturn.

“Buyers are now afraid that their

homes will be worth less a year from

now,"”said Mike Larson, a housing market

analyst for Weiss Research. “But during the

bust, they were afraid their homes would

become worthless.”

Although housing facts and figures

may demonstrate a different perception of

the housing industry at times, homebuyers

are certainly shifting their view of the mar-

ket as a whole. Just as the housing sector did

not boom suddenly, it will not recover

immediately. It is a progression with bumps

along the way and the recent decline in

home prices is nothing more than that.

Ultimately the homeowners and home-

buyers drive the market while government

policies and interventions simply support

that. It is up to the people to alter how they

perceive the market and believe that their

homes will increase in value.

The holiday season is a time of having

faith and believing in something that cannot

always been seen. If the housing market is

to climb upwards, people need to believe

the market recovery is real.

Contact Scott atscott.giveans@student.shu.edu

By Dhara Patel,

Money & Investing Writer

On Monday, November 29, President

Obama announced a proposal to freeze the

pay of federal workers for the next two

years, one of many “very tough decisions”

made by the administration in its attempts to

control government spending and address

the federal deficit.

The freeze will apply to all civilian fed-

eral employees, including those in various

alternative pay plans and those working at

the Department of Defense—but not mili-

tary personnel.

“In these challenging times we want

the best and brightest to join and make a dif-

ference, but these are also times where all of

us are called on to make sacrifices,” Obama

said in a statement at the White House.

“And I'm asking civil servants to do what

they have always done. Play their part.”

Obama notes the difficulty of the deci-

sion saying, “This is not just a line-item on

a federal ledger. These are people’s lives.”

“But solving the problem of the mount-

ing deficit will require many Americans to

tighten their belts,” he added. “The hard

truth is that getting this deficit under control

is going to require some broad sacrifice, and

that sacrifice must be shared by the employ-

ees of the federal government.”

According to the Washington Post,

there are approximately 2.7 million civilian

employees in the executive branch. The pay

freeze would help save an overall estimated

$5 billion during the next two years, and

$28 billion during the next five years. The

White House also projects that the freeze

will save more than $60 billion during the

next 10 years.

The size of federal salaries had stirred a

debate earlier this fall when USA Today

reported that the percentage of federal

employees making $100,000 or more

increased from 14 percent to 19 percent,

during the first 18 months of the recession.

According to the Office of Personnel

Management, there was a 6.6 percent

increase in federal salaries during the reces-

sion, compared to only 3.9 percent in the

private sector.

However, the Budget Deputy Director

for Management, Jeffrey Zients, denied that

the pay freeze was linked to these reports,

insisting that the decision was only made

“in the context of the difficult deficit situa-

tion.”

Zients explains that the proposed freeze

does not mean that federal workers will

remain locked in their government pay-

scale levels for the next two years. They

will still be eligible to receive a pay

increase if they are promoted to a high-

er GS (General Schedule) level.

The Government Reform

Chairman, Darrell Issa (R-Calif.), said

the pay freeze is “necessary and quite

frankly, long overdue.” He also com-

ments that the GOP has been pushing

for such cuts in its “Pledge to America,”

released this September.

“Today’s action is a clear indica-

tion that the Pledge to America, which

lays out concrete steps to cut spending

and reduce the size of government, is the

right plan to address the people’s priorities.

Republicans and Democrats don’t have to

wait until January to cut spending and stop

all the tax hikes. We can – and should –

start right now.”

Contact Dhara atdhara.patel@student.shu.edu

Obama Announces Pay Freeze for Non-Military Federal Workers

...Continued from Page 1

Computer specialists have warned var-

ious businesses that they might be next in

the leak.

The danger is that management is seen

to have covered up internal fraud or com-

mitted a breach of ethics. The sharp drop in

the shares of Bank of America this past

Tuesday underscores this risk.

The same day, Assange said he intend-

ed to make public information available in

2011 that would sink a major U.S. bank.

The clear lesson being sought by Assange is

for firms to follow a code of ethics and have

a hotline that whistle-blowing employees

can use with confidence so that manage-

ment is pressured to deal with problems.

Corporate integrity is an intrinsic, con-

troversial issue that has been debated all

throughout the financial world.

Hotlines were required for publicly

traded companies after the Enron and

WorldCom financial reporting scandals

rocked the country.

It has been said that it is effortless to

locate the records of companies that include

emails, documents, databases, and internal

websites containing confidential informa-

tion about decisions and takeovers.

Since the WikiLeaks story broke, com-

panies like PayPal Inc, the payment proces-

sor owned by EBay Inc, and Amazon, have

cut access to the website for violating its

acceptable use policy. Many other compa-

nies are being urged to follow suit.

The damage that the leaked documents

has and will cause on U.S. foreign policy is

insurmountable. U.S. Companies will be

looked upon negatively and countries will

avoid doing business with them because

they are now viewed as unethical.

Consumers and clients in America will turn

the other way and lose confidence in our

financial markets because of this new

uncertainty.

There are many more problems that can

come out of this, and it is only the beginning

of the controversy. WikiLeaks is out for

more than teaching the U.S. a lesson. Stay

tuned for what leaks next!

Contact Stefano atstefano.durso@student.shu.edu

WikiLeaks Opens Padora’s Box

By Scott Watson,

Money & Investing Writer

The Senate was unable to agree on a

bill that would extend the deadline to apply

for federal unemployment insurance. With

the bill in place, the two million Americans

whose benefits run out in December will be

able to apply for extended unemployment

benefits.

Before this vote, Congress had extend-

ed the application four times in the past year

alone. In July’s vote, some 2.9 million

Americans were scheduled to run out of

their benefits, leaving them without sup-

port.

If the problem is further delayed to the

spring, over six million additional unem-

ployed workers will be in trouble raising the

number to almost nine million without ben-

efits. The problem with this bill is that it

has not been backed financially.

Many deficit conscious individuals on

Capitol Hill strongly opposed the last bene-

fits extension saying that it should have

been paid for by the unused stimulus money

that could easily cover the $34 billion tab.

The motion was shut down by Democratic

leaders.

This time, the Republicans were able to

maintain their anti-deficit spending stance

in the Senate. The Democrats again tried to

appeal to the unemployed voters who need-

ed this money but were not able to achieve

the majority vote.

Representative Scott Brown of

Massachusetts was able to block the vote

with the opinion that since the bill is not

being compensated for by the federal gov-

ernment, it should not be passed. It seems

that this is a reoccurring theme within the

Senate since the problem keeps arising time

and time again.

During the conversations, the

Republicans urged an extension to the Bush

tax cuts, which would increase spending by

the rich. This ties in with the extension of

unemployment benefits because the

Republicans will not budge until they are

satisfied. The Republican leaders sent a let-

ter to Harry Reid, Senate Majority Leader,

stating that they would block any incoming

votes concerning unemployment benefits

until the Bush tax cuts are extended for all

Americans.

Speaker of the House Nancy Pelosi

spoke on the issue saying that a tax cut

would not create more jobs in this economy.

Instead, by continuing the unemployment

benefits, they will be able to create more

jobs which will bolster the economy.

The problem is that while this back and

forth political game is going on, the people

who are in need of a decision are helpless

until politicians can come to an agreement.

The federal benefits themselves are divided

into tiers which people need to apply for

every time they are moved into a different

tier.

After a coverage period of about 26

weeks, the federal jobless payments kick in

which last for 73 weeks. The unemployed

need these benefits in order to provide for

their families and with neither side wanting

to fold on their position, it could be awhile

before we see a conclusion.

Contact Scott atscott.watson@student.shu.edu

Senate Fails to Advance Federal Unemployment Extension

President Obama is seen walking off the stage afterannoucing a pay freeze for all federal workers.

Photo courtesy of csmonitor.com

Money & Investing4 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

Fed Names Recipients of $3.3 Trillion in Crisis AidBy Alex Buonfiglio,

Money & Investing Writer

Whenever the Federal Reserve is mak-

ing news, the financial community is care-

fully listening.

Reports were recently published show-

ing that the Federal Reserve provided

greater assistance during the financial crisis

than previously thought.

According to Bloomberg News, the

Federal Reserve, under orders from

Congress, named the counterparties of

about 21,000 transactions from $3.3 trillion

in aid provided to stem the worst financial

panic since the Great Depression.

According to Bloomberg, Bank of

America Corp. (NYSE:BAC) and Wells

Fargo & Co. (NYSE: WFC) were among

the largest recipients of aid from one pro-

gram. The companies received as much as

$45 billion each.

In addition, some aid went to U.S. units

of foreign institutions, including

Switzerland’s UBS AG, France’s Societe

Generale and Germany’s Dresdner Bank

AG.

“We owe an accounting to the

American people of who we have lent

money to,” said Richmond Fed President

Jeffrey Lacker. Other analysts are calling it

a “good step forward” in correcting eco-

nomic troubles.

The recent activities by the Federal

Reserve, however, will continue to cause

and place political scrutiny on the topic.

There was already heightened political

scrutiny on the central bank prior to the

release of these reports

The role of the Federal Reserve has

already received considerable controversy

regarding its role in turning around the U.S.

economy. The Fed’s November 3 decision

to add $600 billion of monetary stimulus

had sparked a backlash from top

Republicans in Congress, who said in a

November 17 letter to Chairman Ben

Bernanke that the action risks inflation and

asset-price bubbles.

The recent reports of trillions in aid

will result in more backlashes from power-

ful conservatives. “These disclosures come

at a politically inopportune moment for the

Fed,” said Sarah Binder, a senior fellow at

the Brookings Institution in Washington.

Despite the inevitable political scruti-

ny, the Fed argues that the loan programs

are much needed and will go a long way in

preventing devastating and systematic eco-

nomic problems in the future.

The Fed said in a statement to

Washington: “The Federal Reserve fol-

lowed sound risk-management practices in

administering all of these programs” and

incurred no credit losses. Michael Duvally,

a Goldman Sachs spokesman in New York,

said that the Federal Reserves’ actions

“were very successful”.

Regardless of one’s political stance, it

is a unified acknowledgment that something

does need to be done in order to prevent fur-

ther economic deterioration.

The U.S. can only wait and see if these

recent actions turn out to be the answer they

have all been looking for.

Contact Alex atalex.buontiglio@student.shu.edu

Consumer Confidence Increases to Five Month High

TARP Cost Down to $25 Billion From $700 BillionBy Doug Demarco,

Money & Investing Writer

The Troubled Asset Relief Program,

better known as TARP, was recently discov-

ered to cost taxpayers a total of $25 billion.

This is much lower than the projected

$700 billion the program was going to use

to prevent automakers and insurance giants

from entering bankruptcy.

In a report from the Congressional

Budget Office, or CBO, the reason why the

cost of bailing out giant companies was

reduced was based on our economic stand-

ing.

In their report, the CBO stated,

“Because the financial system stabilized

and then improved, the amount of funds

used by the TARP was well below the $700

billion initially authorized.”

This all ensures the fact that America’s

economy has begun to see some growth and

is finally making a turnaround. The $25 bil-

lion dollar cost also dropped from the last

report published by TARP, which had pro-

jected a cost of $109 billion for taxpayers.

Another reason for the significant drop

has to do with how the bailed out companies

handled their situation. General Motors and

American International Group, the main tar-

gets of TARP restruc-

tured their obligations

in major ways since the

bailout, and are seeing

some positive gains.

TARP was origi-

nally designed to pur-

chase toxic mortgage-

backed securities from

U.S. financial institu-

tions.

However, the pro-

gram was quickly

changed by former

Treasury Secretary

Henry M. Paulson to

focus on cash injec-

tions into banks and

other companies on the

brink of failure.

In total, $389 bil-

lion has been spent by

TARP. How then did a plan that cost $389

billion only have an impact on taxpayers of

$25 billion?

The improving economic climate has

resulted in a significant amount of the bor-

rowed funds getting repaid to the govern-

ment. The result is only a $25 billion loss as

a result.

In addition to repaying their loans,

banks have also repurchased stock warrants,

which means they are investing in the econ-

omy.

General Motors recently had its initial

public offering, which helped the company

raise $20 billion. This ultimately cut tax-

payers’ stake in the company in half and

also helped repay $12 billion of the govern-

ment loans.

AIG hand has also begun to look fur-

ther into the future. Despite not having

repaid significant portions of its TARP

funding, the insurance giant has recently

created a plan that will allow the company

to escape its dependence on government

support.

Not only will AIG become independent

from governmental support, it will eventu-

ally repay all of the money received and

give it back to taxpayers. This also aids in

reducing the impact TARP may have on tax-

payers.

Another reason why the TARP plan

will cost much less than anticipated is a

result of the housing industry. A great

amount of the TARP plan was to help home-

owners avoid foreclosure.

However, not many people took advan-

tage of the program. This lack of participa-

tion helped decrease the projected total

impact on TARP spending. With the fewer

foreclosures that are involved with the pro-

gram, less money was spent by the govern-

ment.

Contact Doug atdouglas.demarco@student.shu.edu

By Brian Daniels,

Money & Investing Writer

On Tuesday, November 30, The

Conference Board posted the highest

Consumer Confidence Index in five

months. It rose 4.2 points from 49.9 in

October to 54.1 in November.

This was the best number since June.

This 54.1 beat expectations from many

forecasters, who estimated the forecast

would be anywhere from 50 to 53.

The increases can already be seen as

Black Friday and Cyber Monday numbers

were up from previous years. The conclu-

sion of the findings is that Americans are

not as worried about business conditions,

although not by much.

The Conference Board is a private

research group based in New York. It con-

ducts a random survey that is mailed to

5,000 households per month. It measures

how respondents feel about business condi-

tions, the job market, and future expecta-

tions for the next six months.

Economists watch consumer confi-

dence levels closely because consumer

spending accounts for around 70 percent of

U.S. economic activity, and is thus a critical

component of economic growth.

Other numbers gathered this month

include the Expectations Index which rose

from 67.4 in October to 74.2 in November.

Other indexes rose as well: The Present

Situation Index is at its highest level since

May, which Advanced to 24.0 from 23.5,

The “Jobs plentiful” Index increased to 4.0

from 3.5. Those expecting fewer jobs in the

month ahead fell to 18.8 percent of

Americans from 22.3 percent. Those

expecting more jobs rose to 15.5 percent of

Americans from 14.5 percent. Over 10 per-

cent of Americans are anticipating a boost

in their incomes.

Clearly, Americans are more upbeat

and optimistic about future business condi-

tions and job or income prospects.

However, the current level is volatile, to say

the least. It is far from 90, which indicates a

stable economy.

A reading of 100 or more indicates

strong growth. The index has not reached

that level since 2007. This is why it is said

confidence still remains weak by historical

standards. Even in May 2010 the Consumer

Confidence Index topped 60. At least now,

it is headed in the right direction.

Some encouraging signs include decent

Black Friday and Cyber Monday sales. In

addition, income rose 0.6 percent in

October, according to government report

released last month.

This came after the publication of stag-

nant incomes levels in September. At the

same time, the pace of layoffs is slowing:

initial jobless claims dropped by 34,000 in

the week ending November 20, the Labor

Department said.

The economy expanded at a 2.5 percent

pace in Q3, the commerce department said

last week. Consumer spending rose at the

highest rate in almost four years. This also

comes after ‘QE2’ and the release of

encouraging third quarter reports.

On the other hand, there are those who

say the slow expansion and improvement

cannot be sustained because of low

incomes, high unemployment, and a double

dip in housing prices. Currently, we can

only hope for sustained accelerated growth.

Contact Brian atbrian.daniels@student.shu.edu

Photo courtesy of topnews.net.nz

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

Much of the original $700 billion was not needed because the financialsystem was able to stabilize quicker than expected.

Photo courtesy of Huffington Post

Money & InvestingTHE STILLMAN EXCHANGE TUESDAY, DECEMBER 7, 2010 5

By Steven Paramo,

Money & Investing Writer

In the wake of the nationwide econom-

ic recovery effort, states are reportedly fac-

ing a collective $41 billion in budget gaps

next fiscal year, according to a survey by

CNN Money.

The problem is that these deficits are

only being reported by 23 states; while

another 11 states need to close a combined

$10 billion before their current fiscal year

ends.

To combat this, many states will once

again have to tighten up their expenses,

resulting in even more slashes in education

and social service spending, along with

hikes in state taxes.

A reduction in state spending is a direct

result of the end to the Recovery Act, mean-

ing states will no longer be receiving aid

from the federal government. The conse-

quences of this are that many local govern-

ments will see a decrease in the amount of

aid from the state, and there may be more

layoffs for government employees.

This news is a heartbreaker to many

Americans, especially during the holiday

season, as many unemployment benefits

will be expiring for millions by the end of

this month.

“Many budget and governor’s offices

are telling us that fiscal [year] 2012 could

be even worse because so many painful

choices have already been taken and more

need to be taken as we go further,” said

Scott Pattison, head of the state budget offi-

cers’ group.

However, amid all this turmoil, there

are a few bright spots to hold onto for these

next couple of years. While sales and state

revenue have been slow over the past cou-

ple years, it has started to pick up, and is

expected to continue to rise, albeit slower

than most people would like. Along with

this, personal income and corporate income

taxes are also expected to rise over the next

couple of years.

Still, the states have a tough road ahead

of them; they are likely to suffer $175 bil-

lion in gaps over the next three years, said

Raymond Scheppach, executive director of

the governors association.

This is compounded by the fact that the

states will also lose the much depended on

help from the Recovery Act, which results

in a loss of about $43 billion, which was pri-

marily used to help fund education and

Medicare.

Over the course of next year, we will

see many things happen. For one, families

will be hit hardest by the budget gap prob-

lem, as they will lose vital services heavily

relied upon, negatively affecting the econo-

my.

Additionally, the budget problems are

not expected to go away any time soon, as

state budget gaps are projected to grow to at

least $112 billion for fiscal year 2012.

So while the states face many obstacles

in the near and far future, there is hope that

the state and local governments will gener-

ate higher revenue from greater consumer

spending and income.

Contact Steven atsteven.paramo@student.shu.edu

State Budget Gaps at $41 Billion; Expected to Worsen

By Jennifer Crowe,

Money & Investing Assistant Editor

At the close of the federal govern-

ment’s 2010 fiscal year, which ended on

September 30, the data from the

Administrative Office of the U.S. Courts

showed that over 1.5 million personal bank-

ruptcies were filed. This number, up more

than 14 percent since the end of the 2009

fiscal year, is the highest number of bank-

ruptcies since 2005.

Small businesses, corporations, and

personal investments are still in a slump

today. The economic recovery has contin-

ued to be slow, making it difficult for those

with financial woes to recover.

Bankruptcies do not only include indi-

viduals and small businesses. In May, the

Texas Rangers baseball team filed for bank-

ruptcy protection. After declaring bankrupt-

cy, they went on to win the world series.

Although the trend of business bank-

ruptcy is high, personal bankruptcy is even

higher. This comes as a shock to business

major, Kevin Matthews, who feels that

businesses appear to have a higher bank-

ruptcy rate than individuals.

Matthews states, “I find it hard to

believe that personal bankruptcy is increas-

ing more than business bankruptcy because

it seems as though businesses are suffering

more than the everyday person.”

2010 has proved to be the highest num-

ber of personal bankruptcies recorded since

2005. In 2005, more than 1.7 million people

rushed to file for bankruptcy before

Congress created the Bankruptcy Abuse

Prevention and Consumer Protection Act.

The BAPCPA enforced new rules and

regulations, one of which making it harder

for people to file for Chapter 7 bankruptcy.

Chapter 7 gives people the chance to start

over with a fresh financial slate. Even with

the tougher rules, fiscal year 2010 saw the

number of Chapter 7’s increased from the

2009 year by 15 percent, or 1.1 million peo-

ple from 2009’s 989,227 people, according

to CNN Money.

Business student, Sean Pezza, dis-

agrees with the new regulations made by the

BAPCPA that make filing for Chapter 7

bankruptcy harder than before. “It should be

an easy process,” Pezza believes, “and these

new rules that have been implemented are

only making it harder for the common class

of people to file for bankruptcy. These are

the people who need it the most.”

People are defaulting on loans and

mortgages and falling deeper into debt as

time goes on. Freshman business major,

Frank DeVito, reflects on the overall eco-

nomic recession by saying, “It’s tough to

build on a hurting economy when people

are unemployed and bankrupt. The founda-

tion of a country’s economy is its citizens.”

DeVito also states, “If the citizens are

bankrupt and don’t have a stable income to

support their needs and families, how will

our economy get stronger and be able to

compete with other nations?”

The projected bankruptcy filings for

the 2011 fiscal year have not yet been deter-

mined.

Contact Jen atjennifer.crowe@student.shu.edu

Bankruptcy Filings Jump 14 Percent in 2010

By Ashley Perrone,

Money and Investing Writer

Nearly a year ago, the Food and Drug

Administration asked Johnson & Johnson’s

(NYSE:JNJ) drug making factory to

improve the quality of their product. Today,

they still have not managed to take this

order seriously.

In 2009 Tylenol was found to have a

moldy, musty odor. Forty nine customers

complained about the issue and asked for

actions to be taken.

The FDA noted in their recent

inspection that Johnson & Johnson has

inadequate quality controls; they lack safe-

guards to isolate “rejected” raw materials

and drugs, and human error resulting in

product mix ups. Such errors could result in

costly mistake that affect the health of cus-

tomers.

In the last month, Johnson & Johnson’s

McNeil Consumer Healthcare reported

eight violations. The company has failed to

correct these errors even after it was bought

to their attention.

FDA spokesman Christopher Kelly

said in an e-mail to CNN Money: “It

appears that the company has failed to cor-

rect certain quality control and procedural

problems documented in prior inspections

and cited in a January 2010 warning letter to

the company.”

In early May, McNeil temporarily shut

down a facility in Fort Washington, PA after

the FDA issued a scathing inspection of that

plant, citing multiple manufacturing viola-

tions.

After the closure of Johnson & John’s

subsidiary plant, consumers were faced

with a shortage of non-prescription liquid

pediatric pain and colds medicine over the

summer. The company is currently under

criminal investigation by the FDA. The

CEO of Johnson & Johnson, William

Weldon, has been faced with two congres-

sional hearings about the recalls.

They have responded by admitting that

the firm has let the public down and that

they have not served their customers effi-

ciently. The question still remains: will

Johnson & Johnson continue to disregard

these warnings or will they begin to work

on addressing these issues?

McNeil spokesman Marc Boston has

said that in his last inspection in January

2010, he has noticed improvements. He

stated that McNeil has been working dili-

gently to ensure that the manufacturing

operations meet the level of quality that

consumers and the FDA expect.

It is safe to say that the company has

made an improvement and that they are

committed to improving quality controls by

investing all necessary resources to achieve

this goal.

As the flagstones continue for McNeil,

some industry watchers are wondering why

the FDA’s patience has not yet run out.

Given Johnson & Johnson’s slow move

towards change, FDA officials have stated

their intent to take a tougher enforcement

position in the future.

It is their intention to pressure Johnson

& Johnson into meeting quality control reg-

ulations and protect customers from possi-

ble harm resulting from defective consumer

products.

David Rosen, who worked at the FDA

for 14 years, expressed his concern about

this matter by stating that, due to the quali-

ty control issues at many Johnson &

Johnson’s facilities, it is disconcerting that

the problems persist and that the FDA has

not taken further regulatory actions.

Contact Ashley atashley.perrone@student.shu.edu

Johnson & Johnson’s Tylenol Factory Fails FDA Inspection

Tylenol is used by millions of American. There is an apparent health risk if the factory thatmakes the drug is not in accordance with FDA regulations. Johnson & Johnson had shut

down the facility last May after failing an inspection for multiple manufacturing violations.

The bankruptcy rate has been steadily climbing since the economic recession began in 2007.

Photo courtesy of thebankruptcylawguide.com

Photo courtesy of pennlive.com

Stillman News6 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

By Andrew Weinstein,

Stillman News Writer

On Friday, December 3, Bob Ley, a

Seton Hall graduate, ESPN commentator,

and host of ESPN’s “Outside the Lines,”

came to speak to Seton Hall students about

his recent experience at the 2010 World Cup

games.

Ley began the presentation with a brief

exclusive video from ESPN. The video

highlighted many aspects of the World Cup;

like the various soccer games and the great

culture of South Africa.

The video also showed many of the

U.S. soccer team’s matches, including their

first game against England which ended in a

1–1 tie. The game versus Slovenia was also

shown – a match which resulted in the first

comeback at the World Cup from two goals

down to tie – in United States’ soccer histo-

ry.

One of the most talked about aspects of

the 2010 World Cup was also mentioned in

the movie: the refereeing. In many of the

matches, there were controversial calls

made by the referees, specifically in the

match between England and Germany, a

game which included a goal for England

that was not called.

Ley mentioned how this controversial

call will most likely lead to goal line tech-

nology to help referees make calls on goals

they may not have the best angle to view.

In addition to showing the different

games that took place at the World Cup, the

video depicted the vast culture of South

Africa. From the abundant wildlife, to the

numerous indigenous tribes across the

nation; it highlighted the uniqueness of

South Africa.

There are bustling towns teeming with

tourist, and then, directly across a highway,

one can enter into a village of desperate

poverty.

This video showed how one game can

help to bring together an entire nation. As

mentioned in the movie, “kinship, not con-

quest, is the truth the Cup contains.”

After the movie, Ley walked the stu-

dents through pictures he took from his jour-

ney leading up to and during the World Cup.

These pictures included scenes of the con-

struction of Soccer City, the main stadium

located in Johannesburg. Ley described how

the construction workers were promised

tickets to the games. However, many of

them did not receive tickets for their efforts.

During one of his two visits to South

Africa prior to the World Cup, Ley and his

team followed two sixteen-year-old South

Africans for several days. Pictures of their

school and homes were shown as well, both

of which were in terrible condition as a

result of the extreme poverty in many areas

of South Africa.

Once the matches officially began, Ley

spent six weeks in South Africa covering the

World Cup for ESPN. According to Ley,

ESPN spent hundreds of millions of dollars

for the rights to cover the World Cup and

tens of millions on production costs.

When asked about his time in South

Africa, Ley said that “it was the most

rewarding professional experience of my

life.”

Contact Andrew atandrew.weinstein@student.shu.edu

ESPN’s Bob Ley Gives Students a Journey

Through the World Cup

UN Secretary-General Ban Ki-MoonVisits Whitehead School

By Raphael Baseman,

International News Assistant Editor

On Monday, November 29, UN

Secretary General Ban Ki-Moon visited

Seton Hall’s Whitehead School of

Diplomacy and International Relations to

receive an honorary degree, and address

about 900 assembled students and faculty of

Seton Hall as part of the Whitehead School’s

World Leaders Forum.

After an introduction by the Whitehead

School’s namesake – Ambassador John C.

Whitehead – Ban spoke for about three-

quarters of an hour, on a range of topics,

including the role of the UN in international

affairs, his attempts to bring more women

into positions of leadership at the UN, and

the growing importance of human assis-

tance. In his address, the Secretary-General

emphasized the “special relationship” of

Seton Hall and the UN, calling them “natur-

al partners”.

Ban focused in detail on three issues he

considered most important for the UN, cur-

rently: climate change, poverty, and helping

assuage the effects of natural disasters.

He spoke of the “double life” of the

UN, as half the world seems to want the UN

to do more and half less, and said that the

“UN must constantly recreate itself” in

order to remain useful and relevant. He

called climate change a “science fact” and

hailed the 2009 Copenhagen Summit as a

sign that climate change had finally been

recognized by the world’s governments.

On the role of women in international

affairs, Ban said, “We need women leaders –

we need the women of civil society to push

for change, to be healthy and educated as is

their right.” He also referenced the new UN

Women agency led by former Chilean

President Michelle Bachelet.

Ban also addressed the students direct-

ly, saying, “You here today are not specta-

tors. You are a crucial part of this story. You

come from all over, and you live in a coun-

try of immense opportunity. You attend a

distinguished institution of higher learning,

and you are good neighbors of the United

Nations. That means you have what it takes

to help us deliver…I appeal to you: Keep

working with us. Keep pushing us. Keep

inspiring us. Help shape the world. Help us

to deliver what the world needs at this cru-

cial moment.”

After his speech, Interim President

Esteban presented the Secretary-General

with an honorary degree in Humane Letters

from the University, and a crystal globe (a

product of New Jersey).

Contact Raphael atraphael.baseman@student.shu.edu

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

By Tara Stafford,

Stillman News Writer

On Monday, November 15, the

Accounting Club gave students the oppor-

tunity to meet Stillman alumnus, Sherif

Fahmy, who provided students the inside

scoop on making the transition from col-

lege to full-time employment.

Sherif Fahmy graduated from Seton

Hall as part of the Class of 2006. He cur-

rently holds the position of senior at Ernst

& Young auditing insurance firms; he is

also on track to becoming a manager. He

allowed students to ask questions that usu-

ally are not asked in interviews but were in

this informal and more comfortable setting.

Fahmy explained his experience in

working with both public and privately

held companies at Ernst & Young. He also

spoke of his personal experience on pass-

ing the CPA exam in August 2007. A task

he considers to be one of his best accom-

plishments in life.

As far as studying the material, Fahmy

described his experience of juggling a new

job and studying for the CPA examinations.

First, “You must start off with a plan,” said

Fahmy. “Find what works best for you in

terms of studying and stick with it.”

He set aside months for studying a few

hours after work and a minimum of five

hours for each day of the weekend.

Roughly, he estimated his studying time to

be about 500 to 570 hours in total. Fahmy

urged students to think realistically and set

reasonable goals because no one will want

to finish a long work day to go home and

study for hours.

“If you don’t put the time into it, you

aren’t going to do well,” Fahmy repeated.

He suggested students to take the CPA

exam as early as possible, preferably as

soon as they graduate from college.

Fahmy completed an internship at

KPMG in 2005 and also attended a sum-

mer leadership program at Ernst & Young,

where he established relationships and

stayed in contact with his employers and

co-workers.

From this experience, he reminded

students to have a good attitude about the

internship experience. “No one is expect-

ing you to know everything, so ask as

many questions as possible.” As cliché as it

may sound, he reminded students that there

are no such things as stupid questions

because as an intern, you are there to learn.

Fahmy stated that having an internship

only leads to more opportunities, so take

advantage of them. “It’s not what you

know, but who knows you,” was the main

point Fahmy wanted students to take away

from this event. You can know as much

information as you want, but without

knowing other people, you won’t get any-

where. Make sure to establish relationships

with people that know how well you work.

Seton Hall holds many events like this

one, with professionals such as Sherif

Fahmy, in multiple fields. Attending these

events will without a doubt give you more

information regarding possible future

career paths, and provide you with a won-

derful networking opportunity.

Take advantage of these informal, yet

informational events to set you in the right

direction for success.

Contact Tara attara.stafford@student.shu.edu

Speaker Fahmy

Steers Accounting

Students to Success

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

Photo courtesy of WikiCommons

Photo courtesy of patch.com

Stillman NewsTHE STILLMAN EXCHANGE TUESDAY, DECEMBER 7, 2010 7

By Penina Orenstein,

Assistant Professor, Guest Writer

The fifth Supply Chain

Colloquium took place at the AT&T Global

Network Operations Center (GNOC) locat-

ed in Bedminster, New Jersey.

AT&T welcomed Seton Hall

University’s graduate and undergraduate

students. The visit was arranged by Dr.

Penina Orenstein as part of the graduate

“Introduction to Supply Chain

Management” class, but also attracted

Stillman undergraduate and graduate stu-

dents in different programs.

The facilitator, Stephen Moser of

AT&T, welcomed the visitors and then pro-

ceeded to a fascinating hands-on display of

technology and its application. The tour

began with a visual representation of the

AT&T backbone and the future of mobility

in this network.

It was obvious from the demon-

stration that Supply Chain Management

takes on a whole new perspective in the

light of ubiquitous mobility. Take for exam-

ple, inventory control: when this operation

is entirely mobile there is seamless control

and room for increased collaboration.

Mr. Moser pointed out how traffic

in the network has increased to previously

unforeseen levels: the popularization of the

iPhone device alone can be attributed to a

5000 percent increase in data traffic, and the

network continues to grow! The challenges

this poses for traffic managers is immense

and the role of the GNOC is critical in

ensuring the smooth operation of the AT&T

backbone.

The supply chain network at

AT&T’s GNOC was then discussed via a

hands-on demonstration of the facility. The

audience watched in fascination as a total of

141 screens showing the network, its per-

formance and possible threats to its security

were explained with detailed examples.

Being Cyber Monday, the students

were able to see first- hand the impact of e-

commerce on network traffic. In addition,

the presenter displayed numerous screens to

highlight AT&T’s proactive, rather than re-

active, approach to traffic management and

emphasized the complexity of the supply

chain problem at hand – that is in delivering

service (bandwidth) at the right place, at the

right time and in the right quantity.

Mr. Moser also pointed out how

network traffic is typically extremely pre-

dictable, which means that the key to effi-

cient traffic management is to examine

anomalies in the network and apply solu-

tions before disaster has set in. Mr. Moser

concluded his demonstration with some

enthralling examples of such anomalies, for

example, traffic on 9/11, traffic when

American Idol takes place, traffic when the

OJ Simpson verdict was announced and

countless other historically interesting situ-

ations.

The students asked many impor-

tant questions, such as how data is used to

make intelligent decisions about the net-

work and how do operators make use of the

forecast feeds which contributed to a dis-

cussion. In the words of one student “this

visit really makes supply chain manage-

ment come alive!”

Contact Dr. Orenstein atpenina.orenstein@shu.edu

AT&T Global Network Operations Center Hosts

Fifth Supply Chain Colloquium

Senior Tomlin Excels in Service and LeadershipBy Beverly Makarios,

Stillman News Assistant Editor

Stefanie Tomlin, this week’s StillmanStandout Senior is a Sports Managementand Marketing major. Her love for sportsand business has given her the opportunityto work with some of the most notable peo-ple in sports. She has also been given sever-al honorable leadership positions. Stefaniecurrently interns within the HumanResources Department of the New JerseyNets. She is also the manager of the SetonHall Men’s Basketball Team. Her provendedication in helping urban youth has ledher to participate in organizations such asthe Children’s Defense Fund FreedomSchools program where she leads, mentors,and is an overall role model to young chil-dren. A student of leadership, great workethic, and an even greater dedication tocommunity service, Stefanie excels both inher academics and extracurricular life. Thefollowing interview gives a personal lookinto Stefanie’s internship experiences andachievements.

Beverly Makarios: Who or what influ-

enced you most in pursuing a career in

Sports Management?

Stefanie Tomlin: I’ve always had a passion

for sports. I was an athlete for most of my

life and still have an immense appreciation

for all sports. My interest in the business

and management side just came from my

desire to be involved behind the scenes of

this exciting and ever-changing industry.

BM: How were you able to attain your cur-

rent internship position with the Nets? What

does your position entail?

ST: In my sophomore year, I was honored

with the David Gerstein Scholarship for

Entrepreneurship. Mr. Gerstein is a distin-

guished alumnus of Seton Hall as well as a

previous owner of the New Jersey Nets. He

is also a very wonderful and dynamic per-

son who I respect immensely. This past

summer, I applied for an internship with the

Nets. I emailed Mr. Gerstein to let him

know that I had done so and he sent an

email to Brett Yormark, CEO of the Nets

organization. I went in for an interview, was

offered a position, and the rest is history. I

work in Human Resources as an intern.

Some of my job duties include interviewing

prospective interns, screening resumes,

assisting with payroll, employee moral

boosting activities, and working games with

various other departments within the Nets

organization. I love my job!

BM: As a sports management major, what

are some of the experiences you’ve gained

from working within the field with the Nets

that you normally would not have experi-

enced in the classroom?

ST: This is a very aggressive industry. It’s a

lot of fun to be in, but it’s also a lot of work

and a lot of stress. I’ve learned that not only

from working at the Nets, but also as a man-

ager for the Seton Hall Men’s Basketball

Team. There are no real set hours in sports

and what you get out of these kinds of jobs

is what you put in. You can come in, work 9

to 5, then leave, but you won’t learn as

much and the experience will be far less

rich. The industry rewards people who bend

over backwards and go the extra mile.

BM: What was your experience like as a

Servant Leader Intern with the Children’s

Defense Fund Freedom Schools?

ST: This is one of the most rewarding expe-

riences I’ve had in my entire life. Every

summer, I work with the Children’s Defense

Fund Freedom Schools as a level four

Servant Leader Intern. I teach an Integrated

Reading Curriculum as well as Social

Action and enrichment activities to high

school age students, but most importantly, I

act as a mentor to these youth. I have

observed throughout my life that many kids

in the urban core do not have positive role

models in their lives. Their heroes are usu-

ally athletes or rappers. I just wanted to be

someone they could look up to, and touch

their lives in some way. I feel I did that and

I still stay in touch with my scholars to

make sure they are doing well.

BM: You show consistent dedication to

community service. Why is this aspect so

important to you and in what ways do you

hope to continue your service to the com-

munity in the future?

ST: Service is a value that my family has

instilled in me from a very young age. I was

taught that I had a responsibility to give

back to the community because I have been

abundantly blessed. When I was younger,

my mother made it a point to expose us to

those who were less fortunate so that we

were able to gain the understanding that

people are not less, by any means, simply

because of their circumstances. We are all

children of God. So, in my adulthood, it has

become important to me to be a woman for

others. My passion is working with children

and young people. In the future, I intend to

continue to volunteer my services to various

organizations that work with inner city

youth. Eventually, I would like to marry my

love for sports and service by founding a

non-profit organization that acts as a bridge

between at-risk youths and athletes. I think

that athletes have a responsibility to be of

service to their respective communities in

more ways than one and they have the abil-

ity to make a positive impact on the lives of

many.

Contact Beverly atbeverly.makarios@student.shu.edu

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

Photo courtesy of Dr. Orenstein

Ethics8 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

Joan Orejuela,

Political Science Major

Capitalism’s Favorite Season

In our capitalistic society, it would be

naïve to believe that the holidays and the

traditions we enjoy are not financially bene-

fiting corporations and small chains alike.

The Christmas season, in particular,

creates frenzy over brand new electronics or

that one children’s toy of the season that is

sold out everywhere. Stores are filled with

more and more people from Black Friday,

the day after Thanksgiving, until December

25.

Wherever you turn there is a new sale,

30 percent, 40 percent, or 50 percent off

merchandise, which lures customers in to

take advantage of the holiday specials.

In a grim economy, these signs are what

most Americans want to see.

However, these sales do raise an impor-

tant question: do sales in the name of

Christmas or any other holiday take away

the sanctity we as individuals hold to those

days? Or are they just cleverly timed busi-

ness opportunities that hold no significance

to our religious activities?

It is my belief that buying a sweater on

sale during Christmas season does not mean

that you are belittling the holiday or its sig-

nificance and neither does it mean that the

corporations who produce those sales are

exploiting our religious traditions. If this

were the case, the heart shaped candy sold

for Saint Valentine’s Day would be distaste-

ful as would be the leprechaun hats sold for

Saint Patrick’s Day, both of which are cele-

brated by Americans who probably have no

concern over their religious origins.

The fact of the matter is that capitalism

in the United States trumps whatever our

religious practices or traditions may be. In

our society, wherever there is a dollar to be

made, someone is already looking for ways

to gain it, even if that means playing on the

fact that Christians want gifts under their

tree.

In a distorted way, the abundance of

sales during these holiday seasons can act in

a way that unifies us all, regardless of reli-

gion, creed, or what have you. Walking into

stores, it does not matter whether or not you

celebrate Christmas, as you are still able to

enjoy the sales that come from it. The sales

of these stores, whether looked at as ethical

or not, do not discriminate against the cus-

tomer.

No one will ask you if you are

Christian, no one will care if you are

Jewish; all that matters is that you are a pay-

ing customer in that store and it doesn’t

matter what you are celebrating when you

leave.

Contact Joan atjoan.orejuela@student.shu.edu

The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics. These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.

Is it ethical for retailers to use “Christmas” as a marketing tool? With stores coming out with huge Black Friday blow out sales that have a strong emphasis on the Christmas season, are

companies such as WHO.A.U of the Garden State Plaza unfairly utilizing the Christian holiday of Christmas and attempting to

make a profit from it? Does this discriminate against other individuals who do not celebrate Christmas? Is this ethical?

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

Photo Courtesy of David Guzik

David Zolezzi,

Biology Major

Christmas Earlier and Earlier

“It’s the most wonderful time of the

year.” That may be true but it is also a time

that means a lot of different things to differ-

ent people.

It is Christmas, Hanukah, Kwanza,

New Year’s and a different holiday for

many religions and belief systems. For

businesses however, this time of year means

big sales and even bigger profits. Every

year retailers across the country start the

“holiday season” earlier and earlier so that

kids are making their Christmas lists before

they say “Trick or Treat.”

This seems like a win-win for everyone

involved. Shoppers get the deals they crave,

corporations make the money they need to

survive, and the economy prospers. But

what effect does this materialistic focus

have on the religious meanings of these hol-

idays, which are the reason for them in the

first place? Does getting in the Christmas

spirit make you a bad Jew? Does catching a

holiday bargain make you a hypocritical

atheist?

The short answer is no. It may cause

consumers to lose focus of what the holi-

days are really supposed to be about but this

is not the company’s goal. They care about

turning a profit and making up for slower

times during the year. Black Friday is

named after the day that companies are sup-

posed to come out of the red and into the

black. Retailers like Abercrombie who

don’t do holiday deals are not doing so out

of religious observation but out of a stub-

born, out-of-date mindset that being over-

priced is cool. Newer, forward thinking

retailers like Who.A.U took full advantage

of the holidays and offered phenomenal

deals on Black Friday and throughout the

holidays.

During this rough economic climate, it

is crucial that companies remain in the

“Christmas Spirit” when almost daily we

hear that companies are drowning deep into

a sea of red.

Hey, if you don’t do it, someone else

will. Plus, none of these companies are dis-

criminating and only giving discounts to

customers of a certain religion. So, in a

weird way these holiday deals are actually

bringing us all together. Anyone want to

catch a 30 percent off deal at WHO.A.U

with me?

Contact David atdavid.zolezzi@student.shu.edu

Joe Hopkins,

Political Science Major

The Customer is Always Right

The Holiday Season represents a vari-

ety of things for a variety of people.

However, the most transparent aspect of the

season is the focus on buying and receiving

gifts. Black Friday is perhaps more antici-

pated than Thanksgiving itself, and outlet

stores everywhere are ready to meet the

demands of their enthusiastic customers.

While everyone loves receiving gifts

for the holidays, the real winners of the hol-

iday shopping season are retail stores

across the country. While some economists

believe that the “Great Recession” is over,

the economic crisis is still lingering in the

minds of many people affected by it.

Despite money troubles, malls were packed

and online retailers showed growth from

last year, proving that not even tough times

can keep people out of stores.

Although shopping is likely the fore-

most thought on people’s minds in

December, one must not forget that the

month has a spiritual message for the vast

majority of Americans. Christmas and

Hanukkah are two of the most important

religious holidays for Christianity and

Judaism, respectively, and are met with

great jubilation by the faithful.

For religious followers, it is not far-

fetched for them to feel as if the holiday

season’s spiritual message has been over-

shadowed by the material aspects of sea-

son. Among the most vocal critics of the

media’s focus on materialism has unsur-

prisingly been Pope Benedict XVI. His

Holiness has expressed disappointment on

the loss of spiritual focus during Christmas,

and has on multiple occasions warned

about growing obsession over material

goods.

One has to wonder why: 1) the focus

on gifts is so prevalent and 2) is it ethical

for business to “exploit” religious holi-

days? As for when and why consumerism

has overtaken the spiritual messages for

many during the holiday season, that is a

complex question with no clear or easy

answer. The question regarding the

“exploitation” of religious holidays has a

more transparent answer.

If any such exploitation occurs by

businesses, it is because we let them do so.

Retail stores base their decisions on the

public’s habits, and businesses will do all

they can to give the public what they ask

for. To change the practices of business

during the holiday season, we will have to

change our own practices first.

Contact Joe atjoe.hopkins@student.shu.edu

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

“The fact of the matteris that capitalism inthe United States

trumps whatever ourreligious practices ortraditions may be.”

““Every year retailersacross the country start

the holiday seaonearlier and earlier so that

kids are making theirChristmas lists before

they say Trick or Treat.”

THE STILLMAN EXCHANGE TUESDAY, DECEMBER 7, 2010 9

EditorialsBy Ian Mehok,

Managing Editor

As a Seton Hall Pirate, I am constantly reminded of the

term “Hazard Zet Forward,” roughly translated to “In spite

of the hazards, go forward”. Now, just a few weeks from

graduation, that phrase has a new meaning to me.

When I first joined The Stillman Exchange, I offered to

take on anything that would get me a shot at being in print.

For my first issue, Drew Tomafsky, the editor for Money &

Investing, told me that he didn’t really need me, so I should

come again next week. As I was leaving though, he offered

me a chance to write one of his most exciting articles ever:

a summary of the Federal Reserve’s actions over the last

three months. Yes, I am confident he yawned as he gave me

the article.

After a week of refining, rewriting and reworking my

own article, I submitted it and felt pretty confident that I

had spent more time with it than my homework for my first

five classes. That seemed like a terrible waste of time until

about 4pm that Tuesday, when I saw my article on the front

cover of my first edition.

So now, a few years and dozens of editions later, I find

myself as the one who gets to give that feeling to someone

else. When I see someone on the front cover for the first

time I smile, and for the better part of two years I made sure

to tell them to take extra copies home. Now, when I write

an article, I stress over proper punctuation rather than who

Ben Bernanke is or why the Fed would cut interest rates.

I never thought that the paper would mean as much to

me as it has over the years. For literally every interview I

have been on since my first edition, I somehow have found

a way to talk about the newspaper. I have had the opportu-

nity to sit next to CEOs and eat dinner, talk trading with the

inventors of market-tracking software and argue stock picks

with hedge-fund managers. The paper gave me the opportu-

nity to take every concept I was learning in class and apply

them. From my articles, I was able to put my education into

practice.

I will never forget the time I spent with the paper, or

the friends that I made at the meetings and editing week-

ends. Now, with the benefit of approximately sixty issues

printed, we only have to spend five hours on Saturday edit-

ing, but I can remember spending two straight days comb-

ing through articles. The laughs I had with my old friends,

whether watching editors dance together or stay up at Relay

for Life, made every minute of those weekends worth my

while. No matter what happened in my life, The StillmanExchange family stuck with me.

So now I am part of a different family. Instead of being

the young writer looking for a front page article, I am grad-

uating and leaving the paper in the hands of two of the peo-

ple I helped to get their ground. To my friends Lee Duan

and Meg Reilly, I know you will take this paper and run

with it. When you look back on your four years here, I

know you will be just as shocked as I am now at how far the

paper has moved forward.

I could write a whole article just thanking the people

who have let me get to this point. I am thankful to the

Deans, to my entire editing staff, all of the writers and the

photographers. Most of all, I am thankful to the readers. To

know that I am a part of the first undergraduate business

publication, and to know that my name is recognized

across campus because of the things I wrote, that means

more to me than any “A” or scholarship I could receive.

I know that the “real world” will be full of struggles,

just like the ones I went through on occasion with my col-

lege career. But I know that no matter how far I go, or

where I go, my family at The Stillman Exchange will be

there to catch me when I fall. In spite of the hazards of

going forward, I know that The Stillman Exchange will

never leave me, and the relationships I have formed here

will follow me however far my career goes.

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

Letter From the Managing Editor: Farewell to The Hall

By Rich Kimsey,

Sports Editor

Cause marketing is a growing trend

that has become more relevant recently for

brands, leagues, and properties that are

looking to enhance image without taking

the ever present risk of aligning with an ath-

lete.

Brands that choose the philanthropic

route have to be cautious about finding a

charity that lines up with the brand mes-

sage. Even if this is done successfully,

measuring ROI is difficult because of the

variety of people that the message reaches.

However, even though tracking ROI is a

disadvantage, cause marketing allows

brands to easily target multiple customer

profiles. When faced with an option, a con-

sumer’s purchasing behavior may be

altered by the potential to help out a cause

more often than not.

Genworth Financial created a cause

marketing opportunity with its “Putts for

Charity” event held at European Tour stops.

Every made putt by the general public and

professionals added money to the cause. A

tented village was created with the help of

BMW to house a six hole putting green for

the public to sink shots for charity.

Genworth Financial and BMW were

able to engage fans to participate in the

cause through interest in golf. This market-

ing effect was especially successful because

it didn’t appear fully motivated by profit.

Both brands were able raise money without

requiring anything in return, but did receive

good publicity.

Major League Baseball’s long standing

partnership with Susan G. Komen for the

Cure has used a 5k and fun run during the

All-Star break to raise money and generate

awareness. The Sports Authority and Nike

took the opportunity to give back by

becoming the presenting sponsor of the

event. All four entities gained exposure for

each brand while raising over $200,000 for

cancer research.

Komen for the Cure has been the offi-

cial charity of the LPGA since 1992. Both

the charity and the league make sense for

each other and the LPGA garners media

attention for the cause by wearing pink rib-

bons on hats and shirts opening the door for

the media to tell the story of the cause.

In addition, the NFL’s work with

Komen for the Cure extended to different

local community events run by the league’s

32 teams. EA Sports joined the cause by

selling special pink editions of the popular

Madden NFL game with proceeds going to

the Deanna Favre HOPE Foundation.

Teams have also turned to cause mar-

keting, to raise awareness for a cause and

company owned assets, without absorbing

the risk and lack of control associated

through marketing around a specific player.

Massachusetts General Hospital has part-

nered with the Boston Red Sox’s “The Run

to Home Base” - a charity that combines a

9k run through the city of Boston and ends

with the opportunity to cross home plate at

Fenway Park. The outreach will raise

money for veterans returning from Iraq and

Afghanistan.

The charity reaches out to all

Americans in support of the country’s

troops and combines a unique opportunity

for Red Sox fans, something that they may

want to return to the park to remember dur-

ing the season.

Social responsibility is important for

corporations to take part in, but companies

must do it for the right reasons and not

because it has become a requisite to

enhance brand image. Successful partner-

ships will align with a brand’s focus and has

the potential to use social media and tradi-

tional marketing techniques to raise aware-

ness of the cause and product.

A feel-good marketing approach has its

benefits over constantly promoting a star

player and is much safer. Cause marketing

catches the eyes of different people and dif-

ferentiates a brand from the rest of the pack.

Successful cause marketing campaigns are

a good decision because sometimes athletes

make bad ones.

Contact Rich atrich.kimsey@student.shu.edu

The Stillman ExchangeThe Official Business Publication of Seton Hall University

AboutAboutThe Stillman Exchange is the first undergraduate published busi-ness newspaper in the United States. The Stillman Exchange ispublished on a bi-weekly basis from the Center for SecuritiesTrading and Analysis in the W. Paul Stillman School ofBusiness at Seton Hall University.

Assistant EditorsAssistant EditorsMoney & Investing

Jennifer Crowe

Stillman NewsBeverly Makarios

EthicsElizabeth Nizzi

SportsKayla Mjaatvedt

Travis Tosoni

International NewsRaphael Baseman

Faculty AdvisersFaculty AdvisersMichael Reuter, M.B.A.

E-mailE-mailstillmanexchange@shu.edu

Website Website www.stillmanexchange.com

TwitterTwitterstillmanXchange

FacebookFacebookThe Stillman Exchange

Executive BoardExecutive BoardManaging Editor

Ian Mehok

Assistant Managing EditorsMargaret Reilly

Lee Duan

Editorial BoardEditorial BoardMoney and Investing

Bryan Murawski

Stillman NewsRyan Garrity

EthicsDavid Guzik

EditorialsAnthony Crisci

SportsRich Kimsey

Domestic NewsMorgan Tornetta

International NewsKaitlin Tonti

International BusinessAlex Cohen

Cause Marketing Shows Profitability

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

Sports Business10 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

By Travis Tosoni,

Assistant Editor

With news that a large fragrance

house is in discussions with the New York

Yankees and Major League Baseball about

a licensing deal that will create a team-

branded cologne and line of men’s toi-

letries, will this idea leave an impression on

consumers or leave the MLB smelling

something bad.

Almost overused is the pairing of

athletes with fragrances. Even Yankees’ star

Derek Jeter has his own line, as does David

Beckham, and Maria Sharapova. Michael

Jordan dabbled in the area among others,

with varied results.

These endorsements, however,

reach the consumer with the ability to

ascertain the idea behind the scent. Jeter is

cool and refined, Beckham is classy and

sophisticated, Sharapova is beautiful and

talented. Each of these qualities most likely

won’t change and give the fragrance a

direction and personality.

Just because the Yankees are a pre-

mier global brand, doesn’t mean that it will

have consumers tearing down the shelves to

spray some Yankee on them. The Yankees’

don’t have a steady year-to-year personali-

ty.

The Yankees are always changing.

Of course, overall, and a likely marketing

ploy, is the Yankees are the smell of suc-

cess. But, two years ago their scent was

disappointment when they failed to make

the playoffs after a run of 13 consecutive

appearances and for years the team has

exuded a corporate appearance. Will these

characteristics appeal to a consumer?

Colognes and perfumes can work

for large brands such as Adidas or Ralph

Lauren because both also have what is

essentially an unchanging personality or

reason a consumer can connect to the

brand’s scent. Adidas is about performance

and Ralph Lauren is about luxury.

The challenge of a team-branded line of

cologne is the core personality of the team

changes year to year. What would the scent

of the Miami Heat be? Betrayal? The Jets?

Arrogance? The Mets? Shame?

Clearly the Yankees would be one

of the few teams that would be able to pull

a fragrance off and see some success

because of the team’s long standing tradi-

tion, but is it even worth pursuing?

Contact Travis attravis.tosoni@student.shu.edu

By Scott Kim,

Sports Business Writer

In this past year we have seen athletes

such as Tiger Woods, Landon Donovan,

and Brett Favre all turn their untarnished

images into a marketing nightmare for

companies that sponsored them. This

makes retired athletes such as Muhammad

Ali even more attractive since their images

are, for the most part, already set in stone,

which is why the company Greenlight will

now be making a huge push in marketing

his brand in Europe and Asia.

Muhammad Ali has long been a name

that has been a force in the marketing

world and is one of the most recognizable

athletes due to his gold medal victories in

the Olympics in Rome in 1960 as well as

being a three-time World Heavyweight

Champion.

His brand up to this point has been rel-

atively limited and not used to as much of

an extent that Greenlight thinks it can go.

Right now the Ali name has been used for a

line of health snacks, Muhammad Ali col-

lection by Everlast, and a limited edition

hat by New Era that commemorated the

50th anniversary of his 1960 Olympic gold

medal. Recently, Apple implemented two

new iPhone apps that feature photographs

and his quotes.

Greenlight plans on going beyond this

and using Ali to market high-end and luxu-

ry goods such as cars and financial service

businesses.

“Muhammad Ali is obviously one of

the most transcendent personalities,”

Greenlight’s vice president David Reeder

said. “Licensing his name and image has

been mostly passive here in the U.S.

through Muhammad Ali Enterprises. We

want to proactively go out and position him

throughout the world, where I think he’s

front and center more than he is here given

his gold medal in Rome, his very historical

battles around the world and his role as a

human rights ambassador.”

Companies now want to limit their risk

as much as they can and one way to do that

is to use an established name such as

Muhammad Ali.

Contact Scott atwilliam.kim@student.shu.edu

By Anthony Holesworth,

Sports Business Writer

The Florida Marlins are working on a brand new, state-

of-the-art ballpark in the Little Havana section of Miami.

There are a number of different grand aspects of the new sta-

dium. The $515 million stadium seats 37,000 people. The

stadium features a retractable roof and a natural grass field.

Other features include a giant swimming pool and a

large bar in left field. However, there is one more aspect of

the ballpark that is more impressive and breakthrough than

all other factors. This aspect is that the stadium is separated

into four sections, each dominated by one color.

Furthermore, the sponsorship deals the Marlins make for the

stadium will be based on the primary colors of prospective

sponsors’ logos.

The stadium is being developed by the owner of the

Marlins, Jeffrey Loria, an art dealer from New York. Loria

modeled the theme of the stadium after the works of Joan

Miro, a Spanish artist. Specifically, the stadium is modeled

after a phrase, “Miro’s palette,” which refers to the colors of

red, yellow, green and blue, which were used excessively by

Joan Miro in his works.

The new stadium will be separated into different sections

based on each color. Each section will have different spon-

sors, based on their colors. For example, in the blue section

(home plate section), the new stadium will only feature

sponsors whose primary color is blue.

There are a number of different perspectives this move

can be seen from. First of all, from an artistic and ambiance

perspective, this new idea can be looked at as positive and

breakthrough. The idea of color coordinating a stadium to

this extent is unprecedented in sports. It sets an artistic stan-

dard in stadium design, and promises great stadium ambi-

ence.

However, from a business perspective, the move can be

looked at in a negative light. From a strictly business stand-

point, the artistic aspect of stadium management should not

take priority over the business aspect. With this move, busi-

ness decisions will be based on, and therefore limited by,

artistic boundaries of the ballpark. The main problem with

this is that if a potentially beneficial sponsorship opportuni-

ty arose, but the sponsor’s primary color didn’t match up

with the sections available, it could be turned down, result-

ing in the loss of a potential sponsor.

The team president of the Marlins, David Samson,

defends the business aspect of the move.

“These [four] colors are universal in every brand,” Samson

said. “It is a great way to get everybody focused and a great

way to start the conversation for companies that want to

have their brands associated with one of our quads.”

The bottom line is that only time will tell if this was a

sound business move or not. In the meantime, the move can

be looked at as a unique attempt to positively change the

area of stadium design and give it an artistic twist.

Contact Anthony atanthony.holesworth@student.shu.edu

Brianna Young,

Sports Business Writer

In the upcoming season can Lindsey

Vonn maintain her success that she has had

in the past year, and could this help her gain

more endorsements? After winning the

Gold medal in Women’s downhill at the

2010 Vancouver Olympics, Vonn has gained

many endorsement benefits.

Since the Olympics Vonn has made the front

of Wheaties, a major accomplishment for an

athlete. She has also made covers of several

magazines. Vonn has had the pleasure of

walking down the red carpet for movie pre-

mieres and awards. She has also made

appearances on several shows including her

favorite, Law and Order. All this fame

though has not stopped her from wanting to

improve, and winning other medals in the

2014 Olympics in Sochi, Russia.

Even with her previous gold medal

Vonn still feels pressure. She thought the

pressure would not be as intense. But, it’s

more intense now because she has to live up

to the new name she has made for herself,

and no one wants to see a former gold

medalist do horrible. She has raised the bar

for herself especially because she wants to

win more races, medals, and keep her World

Cup title.

Now she has intensified her training to

live up to her name. Her workout consists of

being in the gym eight hours a day and when

it got warm out she would do workouts out-

side that helped her work on her quickness

and agility. She has also taken the time to go

to a nutritionist to get a better diet that will

help her maintain energy. Even though she

was already eating healthy that was not

enough. She needed the change in her diet

because now she has enough energy for

races.

With her success Vonn has also had

some trouble. After she won her gold medal,

teammate Julia Mancuso made comments

about how Vonn’s achievements were a dis-

traction for the U.S. team. Vonn did not let

this distract her even though people still ask

her about it when she is doing an interview.

She is just really focused on improving and

nothing more.

So just keep an eye out for her this com-

ing season, and see if all this hard work she

is putting on during the off season helps her

maintain the name she has made for herself.

And who knows, maybe she will become

even more popular.

Contact Brianna atbrianna.young@student.shu.edu

Is MLB licensed cologne a swing and miss?

Vonn looks to continue winning

and earning endorsement deals

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

Muhammad Ali endorsement clout continues to be a knock out

Marlins seek sponsors that match colors for new stadium

Photo courtesy of Getty Images

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

Photo courtesy of Redbull.com

Sports BusinessTHE STILLMAN EXCHANGE TUESDAY, DECEMBER 7, 2010 11

Cavs owner set to launch tampering investigation against Heat

Tony Bonkalski,

Sports Business Writer

Pat Riley is considered a mastermind in basketball because he

did the improbable: signing Dwyane Wade, Chris Bosh, and LeBron

James to play for the Heat, but his tactics were put under suspicion

by the Cleveland Cavaliers recently.

Coming a few days prior to LeBron’s return to Cleveland, the

Cavaliers spent hundreds of thousands of dollars to investigate the

suspicions of tampering by the Miami Heat. Allegedly, the Miami

Heat broke anti-tampering rules while pursuing the all star while he

was still under contract with the Cavaliers.

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

LeBron’s return to his home state is a monumental ordeal in sports

at the moment and many people in Cleveland are trying to find any

way to slander the name LeBron James. One way to do this is to

reveal the wrongdoings of his present team.

Teams were not allowed to contact LeBron before the start of

free agency, which began on July 1st. The allegations involving the

Heat are that Pat Riley supposedly met with James in Miami in

November of 2009 and that representatives for James met with

Dwyane Wade in Chicago in June 2010.

The implications of the tampering, if found guilty, can be detri-

mental. If they are found guilty, the Heat could be burdened with

fines, have their front office executives suspended, and have numer-

ous draft picks taken away. All of these can prove to be extremely

important for an NBA team. What better way to stir up Cleveland

fans then to introduce a scandal involving the player who they now

call “Queen James.” Dan Gilbert, the Cavs owner and the person

who was responsible for a highly critical reaction towards James’

televised announcement to join the Heat, was asked to share his

thoughts with the media involving James’ return to Cleveland.

“I’m over it, I really am. That’s the truth. I let it all out in about 24

hours. I just think we have such a great core and a great coaching

staff. We have a lot of opportunities with the trade exception and the

draft.”

It seems as if he has moved on from the LeBron James drama,

now it is time for the rest of the world to just deal with the decision

that he has made and move on, no matter how they feel about it. As

for the allegations, Gilbert made a formal request to the NBA to look

into the matter.

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

Dan Gilbert is currently building a tampering case against the Heat

Photo courtesy of Getty Images

NHL leading the way

with sponsorship

revenueBy Robert Szeluga,

Sports Business Writer

Sports marketing may be the comeback

story of the year. A recent IEG report con-

firmed that sponsorships in all four major

sports leagues (NFL, MLB, NBA, and NHL)

are up from last year’s results. Overall, the

four leagues combined to jump from $2.12

billion in revenue for 2009 to 2.28 billion in

revenue for 2010, an increase of 7.6 percent.

This is significant being that revenue from

sponsorships dropped 3.9 percent from 2008

to 2009, with marketers pulling out of pre-

mier events like the Super Bowl.

Leading the way is the NHL, which

posted an increase of 9.4 percent. Over

recent years, the NHL has done a terrific job

rebounding from a lockout season in 2004-

2005, in which the league lost a large portion

of its fan base as well as sponsorships. The

NHL has slowly been rising since then, air-

ing games on the Versus network as well as

weekly NBC games. For the 2010 playoffs,

the league posted record television ratings.

Along with this, a 66 percent increase in

sponsorship revenue.

The NHL’s sponsorships come from all

different areas. For the 2010 playoffs, spon-

sors such as Visa, Energizer, Hershey,

Enterprise, Honda, and Anheuser Busch

appeared either in commercial spots or ran

competitions promoting both the respective

companies as well as the NHL. The league

also has current deals with Discover,

Bridgestone, Gatorade, Dick’s Sporting

Goods, and Verizon.

The winter classic is also another way

in which the NHL has successfully marketed

itself and brought in a significant increase in

revenue. The 2011 Bridgestone Winter

Classic, held on New Year’s Day, will fea-

ture the Washington Capitals visiting the

Pittsburgh Penguins, with the game being

held at Heinz Field. With superstars such as

Sidney Crosby and Alex Ovechkin, as well

as an outdoor atmosphere unlike any other,

the event practically markets itself. Leading

up to the spectacle, the HBO will also air a

four-part “24/7” documentary, adding even

more hype to the event.

The NHL was not the only league doing

work over the past year. Other than the

NHL, the other three major sports leagues

also made noteworthy sponsorships deals

that helped increase revenue. The NBA,

which was second among the four sports,

signed with Spanish bank BBVA, the

league’s first official bank. The NFL, which

came in third, signed deals with both Papa

Johns and Anheuser Busch. The MLB

signed deals with the Scotts Co. and

Bridgestone Americas as well.

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

Sabres for sale; Owner mulling it overBy Travis Tosoni,

Assistant Sports Editor

Tom Golisano, the billionaire owner of the National Hockey

League’s Buffalo Sabres, is said to be seriously considering the idea

of selling the franchise.

While there is currently no official deal in place, Golisano has been

reportedly negotiating with Pennsylvania billionaire Terry Pegula.

The Sabres are not in need of a buyer, but they have been listening

to offers from interested parties.

Golisano originally purchased the Sabres back in 2003,

when the franchise had declared bankruptcy, for $92 million dollars.

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

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

ey team.

Pegula is the founder and former president of the natural

gas energy company East Resources Inc., a leader in Pennsylvania’s

growing natural gas industry. He also has affiliation with hockey,

thanks in large part to his recent donation to his alma mater, Penn

State University. Along with his wife, Pegula gave $88 million to

fund the construction of a multi-purpose arena, and also promote the

school’s men’s and women’s club hockey teams to Division I for the

2012-13 season. The gift is the largest private donation in the histo-

ry of Penn State University.

Golisano’s possible sale of his majority stake in the club

has put heat on current minority owner Larrry Quinn. In a recent

press conference, Quinn declined comment on the issue of

Golisano’s decision, and also disputed claims that Pegula signed a

letter of intent.

If Pegula were to purchase the Sabres, it would bring a new

energy to the championship-starved sports market. With stars such

as 2010 American Olympic goalie Ryan Miller, and offensive

weapons Derek Roy and Thomas Vanek, the Sabres are not a weak

team. However, the team is not big on change, often staying away

from the free agent market for players, instead opting for cheaper,

“home-grown” talent. Buffalo also boasts the longest tenured coach-

general manager tandem in the league, something that has drawn

criticism in the past. Generally, a new ownership group will imple-

ment its own philosophy towards the team to make it their own. A

changing of staff could be in store should a new owner take charge

of the Sabres.

A new owner, possibly Pegula, could bring a change in

atmosphere to Buffalo that could elevate the franchise from medioc-

rity to a perennial power in the NHL, and provide one of the nation’s

most passionate fan bases the championship it deserves.

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

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

Caroline Wozniacki a winner on the court and in advertising

Photo courtesy of Associated Press

By Anthony Crisci,

Sports Business Writer

Caroline Wozniacki, 20-year-old win-

ner of this year’s Women’s Grand Slam, has

earned an astounding $9 million in win-

nings, including a nice chunk from her

biggest endorsement provider, Adidas.

Wozniacki, who some have saw as just

another pretty face in the world of woman’s

tennis, has made a big splash on the WTA

Tour. After Maria Sharapova entered the

professional field, making an average of $25

million a year, many pretty faces in tennis

have been expected to follow in her foot-

steps. Before Wozniacki, all others have

failed miserably. Wozniacki earned around

$3 million in prize money after finishing the

season in the number one spot. The other $6

million came from endorsements including a

$ 2 million bonus from her biggest contribu-

tor Adidas.

Wozniacki is quickly becoming the new

face of woman’s tennis and is continuing to

add money to her bank account. Starting on

Thanksgiving Day, her face shined through-

out Time Square on the JumboTron as she is

now promoting Proactiv. Not only has she

put herself at the top of the tennis world but

with this new endorsement she has put her

name alongside superstars such as Justin

Bieber and Katy Perry. Wozniacki is also

contributing back in her home country of

Denmark by becoming the face of Turkish

Airlines and Aquiss rehydration drink.

These deals will include family distribution

that will mark the start of European

advancement.

“She is a pretty girl, she speaks four lan-

guages, she has the ability to be like

Sharapova if she wins a Grand Slam,” said

John Tobias, her agent with Lagardère

Unlimited.

As she has gained some popularity in

the world of tennis, her face is not very rec-

ognizable throughout the rest of the nation.

While Wozniacki might already be a legend

in Scandinavia, she is hardly a household

name in the United States. In fact, the Davie-

Brown Index, a well-regarded service that

measures athletes’ and entertainers’ popular-

ity, had not even included her in their polls,

although they said her name shall appear

soon.

Many European athletes have difficulty

in breaking out in the United States. Maria

Sharapova and a handful of other European

athletes are the small exception, but

Wozniacki is showing some huge strides in

breaking into that exclusive club. She is set

to have contained three additional endorse-

ments in this next year. She is also scheduled

to play an exhibition match that is serving as

the birthday celebration for the King of

Thailand. With the three deals, worth at least

a couple extra million, and the birthday

exhibition, providing several hundred thou-

sand, Wozniacki will have a much bulkier

purse come next season.

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

Stillman Sports12 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

Stillman Sports

Super Seven7. Serena Williams has withdrawn from the

upcoming Australian Open due to a foot

injury. The five-time winner of the tourna-

ment has been plagued by injuries since

winning Wimbledon in July, missing major

events such as the U.S. Open and the WTA

Tournament.

6. Rogers Communications, Canada’s lead-

ing communications company, is looking to

purchase a majority stake in Maple Leafs

Sports and Entertainment, the company that

owns the Toronto Maple Leafs, Toronto

Raptors, Toronto FC, and Air Canada

Centre. Rogers already owns the Toronto

Blue Jays, the Rogers Centre, and the sports

television station Rogers Sportsnet.

5. Italian Cabinet Minister, Roberto

Calderoli is calling for the resignation of

Ferrari President Luca Cordero di

Montesemolo, following the automaker’s

disastrous finish to the Formula One sea-

son. Tactical errors by Ferrari during the

Abu Dhabi Grand Prix allowed for Team

Red Bull to win the race and ultimately

clinch the title.

4. The players of the LPGA have voted to

permit transgender players to participate on

the women’s tour. The move came after a

lawsuit was filed by a California woman

who had undergone a sex change and

claimed the LPGA’s female at birth rule in

its constitution violated California civil

rights law.

3. Auburn quarterback, Cam Newton was

cleared by the NCAA after allegations that

he had accepted payments. The governing

body of college athletics ruled that scheme

to earn payments was generated by

Newton’s father and scouting service owner

Kenny Rogers, and that Cam Newton was

not involved.

2. Pittsburgh Steelers star linebacker James

Harrison has stated he will not change his

playing style, despite receiving his fourth

league-sanctioned fine in the last six weeks.

Harrison has lost a total of $125,000 in

fines this season, and he feels he is now

being unfairly targeted by the NFL.

1. In an unprecedented move, Florida

preparatory school, Montverde Academy

has elected to skip the state’s soccer play-

offs. The undefeated boys team says the

decision was made to spend more time

developing its players in hopes of earning

college scholarships from major schools.

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

By Matt Bartel,

Sports Business Writer

After years of deliberations, campaign-

ing, and controversy the sites of the 2018

and 2022 FIFA World Cup have been chosen

Thursday in Zurich, with Russia being

selected to host in 2018, and the small

Middle Eastern nation of Qatar for the 2022

games.

Despite strong bids from the United

States and England, FIFA decided to take a

different direction. Instead of choosing a

host that would already have the facilities to

host the games and the ability to accommo-

date the countless fans who flock to the

event every four years, the twenty-two

members of FIFA who voted have taken this

as an opportunity to make a statement about

their organization and the future of football

in the international community.

They made the choice to take the World

Cup to unchartered territory of the sport’s

premier event, as the President of FIFA,

Sepp Blatter, would say after the announce-

ment, “We go to new lands.” These “new

lands” are both looking forward to the

opportunity and the economic increases that

come with hosting a World Cup.

As Russia is already gearing up to host

the 2014 Winter Olympic Games in Sochi,

the choice may have been easier than many

would have thought. A late push from for-

mer President, now Prime Minister,

Vladimir Putin, did not hurt either, as he

arrived in the final hours of campaigning.

Putin has been a steadfast supporter of FIFA

in the face of allegations that the organiza-

tion was involved in corrupt practices such

as vote trading. The board consisted of twen-

ty-two members instead of the usual twenty

four because two members had to be sus-

pended for allegedly taking part in the trad-

ing of votes. This shortened vote also chose

the 2022 games in order to give the country

selected more time to prepare for FIFA’s

large investment.

The small but economically growing

nation of Qatar won out, aided by an emo-

tional presentation given on their final

appearance before the FIFA board. This plea

came from Sheikha Mozah bint Nasser, the

wife of the Emir (main political leader) of

Qatar, when she said, “I want to ask you a

question: When is the right time for the

World Cup to come to the Middle East?”

Now the nation must fulfill their promise of

spending fifty billion dollars on infrastruc-

ture and an additional four billion to build

new and renovate current stadiums for use in

the tournament as reported by the Associated

Press.

FIFA’s choices of the former Soviet

Republic and the growing Middle Eastern

state are most definitely gambles. However

they are gambles the organization is willing

to take if it can lead to further expansion and

growth of their sport in regions where it is

already growing in popularity.

Contact Matt atmatthew.bartel@student.shu.edu.

Is Tulowitzki’s contract smart for Colorado Rockies?

By Nick Costa,

Sports Business Writer

As the New York Yankees and Derek Jeter have trouble

coming to terms on a contract, the Colorado Rockies seemed to

have no problem locking up their young shortstop, Troy

Tulowitzki, for the next decade.

The contract will pay Tulowitzki over $157 million

throughout the next ten years. What makes this so ironic is that

many compare Tulowitzki to Jeter. Like Jeter, Tulo signed a large

contract just as he was just starting to come into his own in the

Major Leagues, with many people feeling that the young shortstop

is the type of player a team can build a franchise around. With a

monster year of 27 home runs and 95 RBIs, including numerous

clutch hits that almost helped the Rockies make another late season

run into the playoffs, it is hard to fault the team for making sure he

remains the face of the franchise for the rest of his career.

However, many wonder whether the Rockies were too fast

to pull the trigger on a new contract. Tulowitzki was already

signed for the next three years at a reasonable $23.75 million.

Many argue that instead of extending the contract for another

seven years, the Rockies would have been smart to wait out the

next three years and then make a decision. Many feel that Tulo,

like any athlete, may get injured. Under that scenario, the Rockies

would be left to pay a lot of money to a player that is never on the

field.

Although baseball experts have questioned the signing,

you can once again use Derek Jeter as the perfect example as to

why the Tulowitzki deal makes a lot of sense. Like the Yankees

and Jeter, the Rockies have the face of their franchise for the rest

of his career. They have the perfect player to market and sell to

fans throughout Colorado, and more importantly throughout base-

ball.

In 2001, Derek Jeter signed a lucrative ten-year contract

like Tulo, which was worth $189 million for ten years. Now, it’s

not assumed that Tulowitzki will have the Hall of Fame career that

Jeter has, but if he can come close to it and continue to have pro-

ductive seasons anywhere near the one he put up in 2010, then the

Rockies will certainly come out a winner in this deal.

There is something special about having a homegrown

player finish his career with the team that brought him up. The

Rockies made the right move in locking up such a solid player.

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

Will addition of TCU football boost Big East conference?

By Tony Cramond,

Sports Business Writer

Just when it looked like the Big East was going to become

irrelevant in college football, TCU came to the rescue.

Last Monday, it was announced that TCU will become an all

sports member of the Big East conference, which is a move mainly

to acquire the TCU football program. TCU will join the Big East

during the 2012-2013 academic year and when that time comes the

Big East will finally become relevant in the BCS picture.

At this time, the Big East only has one team in the top 25 for

college football: West Virginia, ranked 24. However, Connecticut

is the team with the chance to win the conference if they are able

to beat USF on Saturday. This means that the Big East champion is

not even nationally ranked. TCU is currently ranked 3 in the BCS

standings and will instantly give the conference credibility. The

Big East is now able to get the powerhouse team that they have

needed ever since the loss of Virginia Tech, Miami (FL), and

Boston College to the Atlantic Coast Conference. TCU is also a

winner because now it is in an automatic BCS bid conference.

So it’s a win -win for everyone, right? Not so fast. TCU is now

going to subject its basketball team to the best college basketball

conference in the country, and TCU’s basketball team is not very

good. Sports Illustrated’s Luke Winn ran some numbers and dis-

covered that the Horned Frogs—in the hypothetical 17-team Big

East—would have finished 17, 14, 17, 16 and 17 in the last five

seasons.

Also, there is still a problem with the number of schools with a

basketball program. Having Villanova upgrade its facilities so that

it can become D1 means that there is no problem in football, which

would have 12 teams. But having 17 basketball schools means that

the Big East must invite in another school to join the conference.

The possible schools are apparently Houston, Central Florida, East

Carolina, and Temple, who was kicked out of the Big East in 2004.

The Big East still has work to do, but they got the major prize

that they wanted: the TCU football program. Now they need to

find the other pieces that will help make the conference prominent

in the two major college sports, basketball and football. Let’s just

hope that they are able to make it work.

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

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

Photo courtesy of Sports Newscaster

THE STILLMAN EXCHANGE TUESDAY, DECEMBER 7 , 2010 13

Domestic News

By Danielle Califano,

Domestic News Writer

An expert committee said in a

report that was released on November

30, that very high levels of vitamin D

and calcium, which can be achieved

through the use of supplements, are

unnecessary and have the potential to

be harmful.

Calcium and vitamin D are

essential nutrients that are reputable

for their role in bone health.

However, since 2000 there have been

conflicting messages about other ben-

efits of these nutrients, and also about

how much calcium and vitamin D

people need to be healthy.

To help clarify this issue for the

public, the U. S. and Canadian gov-

ernments asked the Institute of

Medicine (IOM) to assess the current

data on health effects associated with

the two essential nutrients.

To review the amounts of vita-

min D and calcium people are get-

ting, the panel looked at national data

on diets. They concluded most people

get enough calcium from the foods

they eat, which is about 1,000 mil-

ligrams a day for most adults (1,200

for women ages 51 to 70).

However, with calcium, the com-

mittee found that adolescent girls

may be the only group that is getting

an insufficient amount, and can bene-

fit from supplements. In contrast,

older women may take too many cal-

cium supplements, putting them-

selves at risk for kidney stones. There

is evidence that excess calcium can

increase the risk of heart disease if

calcium intakes surpass 2,000 mil-

ligrams per day.

Vitamin D is more complicated,

the committee said. In general, most

people are not getting enough vitamin

D from their diets, but they have

enough of the vitamin in their blood

because sun exposure stores vitamin

D in the body naturally. Therefore,

the committee assumed minimal sun

exposure, and concluded that once

intakes of vitamin D surpass 4,000

International Units (IUs) per day, the

risk for harm begins to increase.

Very high levels of vitamin D

(above 10,000 IUs per day) are

known to increase the risk of frac-

tures and can cause kidney and tissue

damage. There wasn’t much evidence

about possible risks for lower levels

of intake, but some studies hinted at

adverse health effects.

So then what is the proper

amount of calcium and vitamin D

people need to take?

After evaluating the results from

the study, the IOM made a committee

of experts update the nutrient refer-

ence values, known as Dietary

Reference Intakes (DRIs), to show

the adequate intakes of vitamin D and

calcium.

When establishing the DRIs for

vitamin D, the committee determined

that an average 400 IUs of vitamin D

per day is sufficient for most North

Americans. Although, people over 71

might have to take 800 IUs a day due

to the change in their bodies as they

age.

The average IU per day for calci-

um is around 1000, and should never

surpass 2000 IUs.

Overall, the report generated

mixed feelings from different health

societies. The American Society for

Bone and Mineral Research applaud-

ed the report with a statement from

the society’s president, Dr. Sundeep

Khosla claiming, “It is a very bal-

anced set of recommendations.”

But Andrew Shao, an executive

vice president at the Council for

Responsible Nutrition, said the report

was overly cautious, especially for

vitamin D. He argued the evidence

was not convincing, and that higher

levels of vitamin D could be benefi-

cial.

However, the committee empha-

sizes that nearly all North Americans

are receiving enough calcium and

vitamin D. Higher levels have not

shown greater benefits, and would

probably cause other health prob-

lems, challenging the concept that

“more is better.”

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

Senate Passes Biggest Food Safety Standards

Overhaul Bill Since 1930’s

Experts: Vitamin D, Calcium

Supplements May Be UnnecessaryNews Briefs

By Padmavathy Sonti,

Domestic News Writer

On Tuesday, November 3, in a 73-25

vote, the Senate passed its version of the

Food Safety Modernization Act. The meas-

ure would overhaul certain safety standards

on food, by permitting the Food and Drug

Administration greater oversight and

requiring food producers to maintain inter-

nal records for tracking purposes.

In the wake of recent national recalls

involving eggs, peanuts, and spinach, the

legislation is considered one of the largest

overhauls on food since the 1930s.

“I urge the House –which has previous-

ly passed legislation demonstrating its

strong commitment to making our food sup-

ply safer –to act quickly on this critical bill

and I applaud the work that was done to

ensure its broad bipartisan passage in the

Senate,” President Obama said.

Supporters of the bill assert that these

are adequate measures to ensure public pro-

tection from contamination. Under current

regulations, the government inspectors are

only able to trace contaminations “after the

fact.”

Among other things, the Senate bill:

-requires food makers to write a plan

that identifies contamination risks

-allows the FDA access to food

maker’s records

-allows the FDA to deny imported food

entry into the U.S. if the manufacturers

refused inspection

“[The] vote will finally give the FDA

the tools it needs to help ensure that the

food on dinner tables and store shelves is

safe,” stated Senator Dick Durbin (D-IL).

Senator Tom Coburn (R-OK) dis-

agreed. “The problem with food safety is

the agencies don’t do what they’re supposed

to be doing now.” He believes that the bill

will only promote bureaucracy.

According to the Congressional Budget

Office, the bill will cost $1.4 billion during

the span of four years. The Centers for

Disease Control and Prevention estimates

that food illnesses account for thousands of

deaths each year. Over 1,500 consumers

became ill during this summer’s egg scare.

In addition, these illnesses cost approxi-

mately $9 billion in health care costs per

year.

Since its passage, the bill has garnered

significant attention for a legal flaw. A cer-

tain section would authorize the FDA to set

fees on food importers and food producers

that market contaminated food. Legislation

involving taxes must originate in the House

instead of the Senate. If these fees are

defined as taxes by the House Ways and

Means Committee, then the vote in the

Senate would be dissolved.

“This has happened to us four or five

times with the Senate,” stated House

Majority Leader Rep. Steny Hoyer (D-MD).

“The Senate knows this rule and should fol-

low this rule. They should be cognizant of

the rule. Nobody ought to be surprised by

this rule. It’s in the Constitution. And

they’ve all been lectured, and we have as

well, about reading the Constitution.”

Senate Democrats are working to recti-

fy the situation immediately. However,

Senate Republicans have stated that they

will not consider any further legislation

until the Democrats address their proposi-

tions to extend the Bush tax cuts. Thus, a re-

vote on the food safety bill seems difficult

and rather unlikely.

In July 2009, the House passed its own

version of a food safety bill, which differs

from that of the Senate. In order for

President Obama to sign the bill into law,

Congress must first agree upon a reconciled

version of the bill. The Senate already has a

full agenda for the remaining term.

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

The Senate’s bill on food safety comes in the wake of nationalsafety recalls of eggs, spinach, and peanut butter.

Urns in ‘Unknown’ Grave Spur Inquiry

The United States Army has opened an investigation

into the eight mystery urns of cremated remains of sol-

diers found in Arlington National Cemetery. Cemetery

recodrs show that there should only be one set of

remains buried in the grave. Since the urns were found

in late October, the miltary has successfully identified

three sets of remains from tags from morgues in the urns.

The other four urns have no identifying tags, and inves-

tigators are working to learn the identities of the remains

in the urns.

Congress Passes CALM Act

A new complaint is ringing in American house-

holds. Move over “There’s nothing on TV,” your new

competition is “The commercials are too loud!”

Congress heard Americans, and have passed the

Commercial Advertisement Loudness Mitigation, or

CALM, Act. This act will mandate lower volumes for

commercials that seem consistently louder than the pro-

grams they break up. The practice of turning up the vol-

ume on ads has been going on for years in the television

ad industry. Prior attempts of legislation failed, but with

the change to digital TV last year, the cries could no

longer be ignored.

Obama Grants Nine Pardons

In his first time exercising his presidential clemen-

cy powers, President Obama pardoned nine people on

Friday, December 3. Most of the pardons were for small-

scale offense committed a number of years ago. Six of

those pardoned served only probation, the rest serve no

time at all. Pardon attorney Margaret Colgate Love

applauded Obama’s act, “I’m very glad he’s gotten start-

ed, and I hope that he will look seriously at the hundreds

of cases that are awaiting his consideration.” Obama had

previously denied 605 petitions for a commuted sen-

tence and 71 pardon requests.

Photo courtesy of Christian Science Monitor

Domestic News14 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

Leaked Cables May Hurt

Obama’s New START with RussiaBy Liam Brereton,

Guest Writing from Russia

With the release of sensitive diplomat-

ic communications, Russo-American rela-

tions have taken a turn for the worse. On

December 1, Wikileaks released classified

cables from American diplomats in Russia.

The released cables contain negative

American opinions of the Russian govern-

ment.

At the same time that the classified

information was released, President Obama

is attempting to pass a new nuclear arms

limitation treaty through the Senate known

as New START. Domestic attempts to pass

the New START treaty are momentarily

hampered. This most recent step towards

nuclear disarmament would be a continua-

tion of the Cold War Era SALT and START

treaties the latest of which expired earlier

this year.

The treaty, which was signed April 8 in

Prague, would limit both parties to 1,550

nuclear missiles and would give each the

authority to inspect the arsenal of the other.

Although the treaty was signed by Obama

and his Russian counterpart, Dmitri A.

Medvedev, nearly eight months ago, it is

still waiting to be ratified by the Senate.

In an attempt to sway the opinions of

Republican Senators who want to address

partisan issues before this treaty, Henry

Kissinger, Colin Powell and other former

Republican Secretaries of State have co-

written an opinion piece in the Washington

Post stating their support for this treaty and

urging the Senate to ratify the agreement.

Such an endorsement may serve not only to

pass this one resolution but also to bolster a

more positive opinion of Russia among

U.S. officials.

Since taking office, Obama has stated

that he wants to “reset” relations between

the United States and Russia. The leaked

documents suggest that this may not be pos-

sible.

In the cables, American diplomats

report perceptions of imbalanced power

between Russia's president and Prime

Minister, Dmitri Medvedev and Vladimir

Putin. Further reports elaborate that corrup-

tion is rampant through the Russian politi-

cal system.

The government functions much like a

mafia; intelligence agencies like the F.S.B.

provide protection in exchange for money.

At the top of the system, the government is

controlled by colossal companies, the fore-

most of which is Russia’s oil and natural

gas provider Gasprom.

This pervades down to the lowest level

of the establishment, the police, who, locals

have said, can be bribed for as little as 200

rubles, or approximately $6.67. A state of

decay of this magnitude indicates that

Russia’s national leaders will not be able to

effect change within their own borders let

alone “reset” international relations.

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

Democrats Fall Short of Votes

Needed for Tax CutsBy Malissa Abrams and Morgan Tornetta,

Domestic News Writer and Editor

On Thursday December 2, House

Democrats passed a bill to extend tax cuts

for single filers who make no more than

$200,000 annually and families who make

up to $250,000 or less. In a rare Saturday

session, another vote on the cuts was held,

defeating Democrats’ proposals.

The Democrat’s two proposals were a

tax cut for those earning $250,000 or less

annually and a raise of that threshold to $1

million a year.

Both Democrtatic initiatives failed to

receive the requisite number of votes. The

extension for families making less than

$250,000 a year was defeated 53-36. The $1

million extension was defeated 53-37. Ten

Republicans did not vote.

The GOP’s approach to America’s

financial crisis consists of two different pro-

posals: To permanently extend the tax cuts

for all Americans, including the wealthy,

and to temporarily extend all the tax cuts for

five years.

The GOP was confident that the

Democratic proposals would not pass in the

Senate. They are adamant about not sup-

porting the bill if tax cuts are not extended

for the wealthy.

Senator Mitch McConnell mentioned

that the Democrats are not helping the

unemployment situation by raising the tax

for job creators. He calls the debate between

the two parties “a total waste of time” as

politicians of both parties blame each other

for the nation’s present circumstances.

Senator Claire McCaskill (D-MO)

called the vote “the ultimate game of chick-

en.”

With these votes out of the way, there is

a chance for a bipartisan compromise to be

reached.

Higher taxes, even for the wealthy,

Republicans argue, could lead to a drop in

the number of jobs, particularly in small

businesses, because the taxes may be pro-

hibitive financially.

Senate Majority Leader Harry Reid

took the initiative to negotiate with

Republicans in hope of gaining the unani-

mous approval of all senators to bring the

two Democratic as well as the two

Republican votes to the floor.

All of the commotion on Capitol Hill

occurs as the nation’s unemployment rate

jumped significantly to 9.8 percent, accord-

ing to a report issued by the Bureau of

Labor Statistics. America has seen a total of

7.5 million jobs lost since December 2007.

Out of concern for the well-being of the

American people, President Obama last

Thursday pushed Congress officials to

extend benefits for unemployed individuals,

which expired Wednesday.

The president’s Council of Economic

Advisors on Thursday explained the eco-

nomic ripple effect of each state if the long-

term benefits expire. The report stated that

nearly seven million people out of work

could lose coverage by next November. The

number of Americans expected to lose cov-

erage is staggering.

Most states permit 26 weeks of unem-

ployment benefits. However, the federal

government has agreed to fund an addition-

al 73 weeks of help.

The benefits extension will help the

economy’s already growing U.S. budget

deficit in the short term because the unem-

ployed have to spend money immediately.

With the worst financial crisis since the

Great Depression occurring, the president is

hopeful that the GOP and Democrats find a

middle ground on the issue, even as the two

parties continue to dispute just days after a

White House summit where the president

and lawmakers expresses hopes for biparti-

sanship.

Contact Malissa at malissa.abrams@student.shu.edu

Contact Morgan at morgan.tornetta@student.shu.edu

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

By Amanda Genabith,

Domestic News Writer

As most people are getting ready to go home for the

holidays, airplane travelers will have to decide whether or

not they will participate in the full-body scans.

The Transportation Security Administration has imple-

mented over 400 Advance Imaging Technology, also known

as body scanners, in roughly 70 airports. They hope to have

1,000 machines in airports across the nation by the end of

2011.

So why are so many people upset about the body scan-

ners? While there are many voices regarding this question

the two prominent answers are, that the body scanners are

an invasion of privacy and that there are potential dangers

of being exposed to radiation.

These machines, according to the TSA, “detect a wide

range of threats to transportation security in a matter of sec-

onds to protect passengers and crews.” The administration

claims that the person who looks at the images is in a

remotely located room. That officer, through a wireless

headset, alerts the officer assisting the passenger if there is

something suspicious located in the image. The machine

“cannot store, print, transmit or save the image, and the

image is automatically deleted from the system after it is

cleared by the remotely located security officer.”

As for the other major concern of passengers, the

potential dangers of radiation exposure, there have been

mixed reactions. The TSA and a number of health experts,

including a health physicist at the Mayo Clinic, said that

there is very little radiation administered.

According to Kelly Classic, of the Mayo Clinic, the

amount of radiation received from the body scanner com-

pares to that of two minutes of being on an airplane at full

altitude or 40 minutes of living. “There are so many com-

mon things we’re exposed to that produce radiation,”

Classic said, “[An airport scan] is a pretty minor piece of

that.”

Physicist Peter Rez, professor at Arizona State

University, said his mathematical calculations suggest that

the doses of radiation emitted by the scanners are much

higher than those of the Mayo Clinic, but still are probably

not likely to cause a serious health risk.

In a telephone interview, Dr. Michael McGirr, a retired

Emergency Medicine physician from Chicago, IL, said that

the radiation is only exposed at skin level. This means that

the radiation exposure is not evenly distributed throughout

the body. It is concentrated on the skin, and therefore does

not include the mass of the entire body. The radiation is

stronger on the affected area than people realize.

Dr. McGirr states further that there have not been

enough tests done to prove that the exposure is not danger-

ous. He admits, however, that were the scanner to jam, then

“one could get a very high-level dose of radiation.” Rez

recently opted out of the full-body scan.

This topic is extremely controversial and many people

have mixed feelings. As Jeff Degelmann, a student at Seton

Hall University, said “If privacy was not such a huge issue,

this idea would be great. I personally do not like the idea of

being scanned. I have nothing to hide, but at the same time,

I do not like that my privacy is being pushed aside.”

Lauren Spath, a student at Kean University, said,

“They are virtual strip searches and are extreme invasions

of one’s privacy.” Spath is not alone in her feelings either;

the TSA assures people on their website that the officer

viewing the image is not permitted to bring a cell phone,

video camera, or camera into the room with them. While all

of the protective measures are taken, people are still uncom-

fortable with the idea of a person seeing them naked.

Two Harvard Law Students have filed a law suit

against Janet Napolitano, Secretary of Homeland Security,

and John Pistole, an administrator of the TSA, claiming that

the “security measures taken at airports are ‘intrusive’ and

violate the Fourth Amendment of the Constitution” reports

Bloomberg. There have been a number of other suits filed

against the TSA regarding the new body scanners and pat

downs as well.

If the TSA has their way, these scanners will be in

many airports throughout the United States in the near

future. It will be up to each individual passenger as to

whether they use the full body scanner or be physically pat-

ted down by a TSA representative. On the National Opt Out

Day, 99 percent of travelers still used the scanners.

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

Cables leaked express U.S. perceptions ofRussian governmental corruption, including

opinions about Prime Minister Vladamir Putin.

Photo courtesy of topcultured.com

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

THE STILLMAN EXCHANGE TUESDAY, DECEMBER 7, 2010 15

International News

By Stephanie Dunham,

International News Writer

On Monday, November 29, violent protests

erupted over Egypt’s parliamentary election on

Sunday. Over the next week, the situation has

grown to include official boycotts by some of

Egypt’s main opposition parties, who claim that

the election was rigged by Egypt’s governing

Democratic National Party.

Egyptian Minister of Information, Anas El

Fekky announced, “Initial reports indicate that

election day has been a success.” By Monday

morning, however, the country’s two main politi-

cal groups, National Democratic Party and

Leaders of the Brotherhood, were fighting.

Egypt claimed to have around 6,000 people

monitoring the elections, but would allow any

press coverage in to the polls on Election Day.

The 6,000 working members consist of 76 differ-

ent civil groups, said Safwat Shareef, the

National Democratic Party’s general secretary.

“Civil community groups will guarantee free and

transparent elections.”

Many spoke out regarding concerns of

numerous counts of voter fraud by tampering

with ballot boxes and using fear to keep those

who disagree with the National Democratic Party

from voting.

The Muslim Brotherhood party hoped the

Egyptian people would recognize the fraud and

support their opposition group, but instead it

appears likely they will lose all 88 of their seats

in parliament. They feared that protesting may

lead to a violent reputation, especially during

uneasy political times for the country; however,

people ended up protesting on their own. Some

set fire to cars, others to tires and two voting sta-

tions.

Amid the violence, Amr Sayed Mohammed,

the son of an independent candidate died Sunday

night after being stabbed in what was first identi-

fied as a fight with supporters of an opposing

candidate. The Ministry of Information later stat-

ed the fight had been a “private dispute.”

Many opposition group members tried fight-

ing the alleged vote-rigging, resulting in a few

disputes. In Damanhoor, an independent attacked

a group of people and broke the ballot box, while

in Mansoura, two candidates entered into a phys-

ical fight. Egypt’s information minister respond-

ed to these incidents by stating that two candi-

dates fought and the police responded.

Egypt is attempting to hide the violence

associated with this election in order to make the

National Democratic Party look better, the exact

opposite of what the Leaders of the Brotherhood

had hoped would occur.

On Thursday, December 2, the Wafd party –

Egypt’s oldest – announced their intention to

boycott the second round of elections being held

over the weekend of December 4-5.

Tareq Yuonis, a Wafd candidate in a suburb

of Cairo said, “I wanted the Wafd to boycott the

election because the rigging we saw this time has

been unprecedented in the history of Egypt. If we

stay in the election then we give legitimacy to the

theater the government has put us through.”

Some party members are upset because they

worked hard to try and maintain seats. However,

the ones running have decided that it is worth

giving up almost all 518 seats to the National

Democratic Party than lose credibility by running

in an unfair election again. Saber el-Ashmouni, a

youth leader said, “We want the right to have the

man we vote for represent us in parliament.”

Contact Stephanie atstephanie.dunham@student.shu.edu

By Ian Duncan,

International News Writer

At 2:34pm local time, the island of Yeonpyeong, in South

Korea, was hit by at least 100 North Korean artillery shells,

resulting in four South Korean causalities: two marines and two

civilians. In addition, three civilians and fifteen soldiers were

severely wounded. North Korea claims the attack was provoked

by South Korean artillery fire within its territorial waters.

However, South Korea is not accepting blame for the initi-

ation of this feud, as they believe none of their test shots landed

in the Northern territory. Several residents living on the island

evacuated by means of ferry to the nearest inland town of

Incheon. Great Britain, the United States, and Japan have recent-

ly condemned the North’s actions.

North Korean’s only ally, China, immediately sought a

meeting with the North, to discuss the attacks. Termed as a

“request for emergency talks,” the Obama administration is

skeptical as to the real purpose of their conferencing. They

believe the emergency talks only resulted in the praising of con-

frontational, reckless behavior on the North’s part.

Although China had previously called for a meeting with

the United States, Japan, North Korea, South Korea, and Russia

regarding discussion of nuclear activity, talks have been momen-

tarily delayed as concerns regarding the two countries continue

to rise. United States Press Secretary, Robert Gibbs, announced,

“The United States and a host of others, I don’t think, are not

interested in stabilizing the region through a series of P.R. activ-

ities.” Until North Korea can approach the table with a proposed

seriousness concerning not only their relations with South

Korea, but also their current stance on the appropriateness of

nuclear weapons.

Although political analysts believe there are several reasons

for this latest exchange of violence, many are pointing to the

North Korean’s fear of losing Kim Jong il, the nation’s dictator.

As the nation’s leader steadily declines in health from pancreat-

ic cancer, the North is using violence as a means of securing

power and authority for the accession of Kim Jong il’s succes-

sor. North Korea is the last Stalinist, authoritarian socialist state

in existence. They currently have a population of 23 million,

however, continues to face problems with poverty and starva-

tion. CNN reports that 31.3 percent of North Korea’s GDP is

allocated for military spending, resulting in an army of over one

million armed soldiers. Nonetheless, it relies on international aid

to feed both its military and people.

North Korean aggression has been a turbulent and inconsis-

tent chain of events. October 2006 saw the “explosion of a small

nuclear device,” as reported by the New York Times. After this

event, the country became less aggressive up until recently. In

2009, a second nuclear device was detonated. It is worth noting

that every military innovation the country has developed, they

have sold on the world market to the highest bidder. March 2010

saw the sinking of a South Korean naval vessel by a North

Korean submarine in disputed waters. The New York Times

speculates that this event was ordered directly by Kim Jong il to

solidify power for his son.

South Korea is still concerned as to whether or not they

should anticipate another attack. Kim Tae-young, South

Korean’s Defense Minister, and Won Sei-hoon, director of

National Intelligence Service both believe another attack may

occur in the near future. Reuters recently reported Won Sei-hoon

as stating at the parliamentary committee meeting, “There is a

high possibility that the North will make an additional attack.”

Contact Ian atian.duncan@student.shu.edu

Controversy

Swirls Around

Egyptian Elections

Wikileaks Threatens to Jeopardize

International Relationships

By Kelsey Mahan,

International News Writer

Recently, thousands of highly classified U.S. documents

have been leaked onto the website wikileaks.org. A private in

the U.S. military, Bradley Manning, downloaded thousands of

diplomatic cables from a military computer and submitted them

to the WikiLeaks website. The leaks contain highly sensitive

information about the United State’s foreign policy and talks

with foreign leaders. The effects of these documents release will

likely have an impact on the future of U.S. foreign policy and

foreign policy of the nations mentioned in the documents.

The leaked diplomatic cables revealed U.S. conversations

with foreign leaders, spying tactics of U.S. diplomats and state-

ments by diplomats that may offend foreign leaders. CNN

reveals that the documents quote U.S. diplomats stating negative

comments about foreign leaders, such as calling the President of

France “the naked emperor,” and saying the President of

Afghanistan is “driven by paranoia.” The information leaked

could strain U.S. relations with the countries and leaders men-

tioned in the documents. CNN reports the documents show that

diplomats were ordered to collect biographical information, fre-

quent flyer and credit card numbers, and fingerprints of foreign

diplomats. The leaks involving the spying tactics of diplomats

could also cause countries to be more cautious and give less

information when dealing with U.S. diplomats. There is also

fear that the safety of the individuals named in the diplomatic

cables may be at risk.

An example of how the leaks may affect other countries for-

eign relations with one another are revealed in the quotes con-

cerning Iran’s President ,Ahmadinejad, and Iran’s nuclear pro-

gram.

The Washington Post reveals that King Abdullah of Saudi

Arabia advised the U.S. to “cut off the head of the snake” by

using military intervention to deal with Iran’s nuclear program.

The Washington Post also quotes the foreign minister of the

United Arab Emirates as stating, “Ahmadinejad is Hitler” in a

leaked conversation. The impact of these statements could

cause more tension in an already unstable region.

Since these documents have been recently leaked, it is still

unclear how great of an impact they will have. ABC News

reported that U.S. diplomat James Jeffery, believes that the

leaked diplomatic cables are “absolutely awful” for the U.S. and

its diplomatic efforts. Russia’s Prime Minister Vladimir Putin

said on CNN’s Larry King Live, “Such leaks occurred before in

previous times so this is no catastrophe.”

While everyone involved in the information leaked is doing

damage control, only time can tell if the damage can be reversed

or if the future relationships between the countries involved

have been permanently strained. The worst may be still to come

as WikiLeaks has more documents that they plan to reveal with-

in the next several days.

Contact Kelsey atkelsey.mahan@student.shu.edu

Recent Violence Between Koreas

Consequence of Leader’s Failing Health

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

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

Photo courtesy of The Economist

Photo courtesy of USANews

International Business16 TUESDAY, DECEMBER 7, 2010 THE STILLMAN EXCHANGE

By Rachel Rosenstrock,

International Business Writer

Venezuelan President Hugo Chavez

announced November 28 of the possibility

of selling Venezuela’s U.S.-based oil com-

pany, Citgo Petroleum Corporation in order

to raise money to support domestic pro-

grams.

Chavez hopes to generate $10 billion

from the company’s sale, but experts esti-

mate that Citgo would be lucky if it could

go for even half that proposed price.

Particularly in the current economic cli-

mate, not many firms are likely to express

interest unless the deal comes with a high-

ly favorable price tag.

Over the last year, Citgo has lost $201

million in profits, largely due to lower

world market prices and a declining flow of

crude oil.

In a televised speech, Chavez

acknowledged that “Citgo is a bad busi-

ness, and we haven’t been able to get out of

it”. As the 2012 Venezuelan presidential

election grows closer, Chavez hopes to

generate funds in order to fulfill his pro-

posed national polices. Public housing and

improved subway systems are at the top of

his agenda.

The sale of Citgo could help Venezuela

diversify its markets by shifting oil sales to

countries such as Cuba and other

Caribbean islands. Chavez sees the sale of

Citgo as a quick way to bolster his domes-

tic support.

Citgo in the U.S. has already experi-

enced a decline over the past few years.

Since 2005, Citgo has sold off almost

13,000 service stations throughout the U.S.

Oil shipments have also declined to 31.9

million barrels compared to the 49 million

barrels that were transported in 1999 when

Chavez took office. Citgo does still main-

tain the operations of three oil refineries.

According to Lisa Viscidi of Energy

Intelligence Group, another motivation to

sell the company involves recent lawsuits.

Selling off assets in the U.S. would provide

Venezuela protection “against the interna-

tional settlement dispute that they have

with Conoco and Exxon after the 2007

nationalization.” Releasing ownership of

the oil company would further distance

Venezuela from U.S. relations.

One area at risk if Citgo were to be

sold is the low income heating program the

company runs in the United States, saving

more than 180,000 households about $260

per year. No other oil company currently

provides a similar service.

Contact Rachel atrachel.rosenstrock@student.shu.edu

Hugo Chavez Looks to Raise Money bySel l ing State-Owned Oil Firm

By Ben Canning,

International Business Writer

British Sky Broadcasting Group and

Abu Dhabi Media Investment Corp.

(ADMIC) have formed a 50-50 joint ven-

ture to broadcast a new, free-to-air, 24-hour

Arabic language news channel starting in

2012.

The channel will function under the

Sky News brand and will air across the

Middle East and North Africa region.

The channel, titled “Sky News

Arabic,” will broadcast international and

regional news content provided by more

than 180 multimedia journalists in Abu

Dhabi’s “twofour54” media zone. BSkyB

will also provide website and mobile appli-

cations for increased access to the news

content.

ADMIC is a private owned media

investing company that specializes in

embarking on smart investments in the

Middle East region under the ownership of

Sheikh Mansour Bin Zayed al Nahyan, also

the owner of the Manchester City Football

Club.

BSkyB sees the new endeavor as one

reaping much benefit because of the large

and quickly developing media region.

James Murdoch, BSkyB’s Chairman said in

a statement that, “The Middle East and

North Africa is a highly attractive region

for media investment and Abu Dhabi is an

excellent location from which to enter this

exciting marketplace.”

Abu Dhabi will be the location for the

head offices while some branch operations

will be run in London and Washington,

D.C.

“This venture is a significant step in

the development of Sky News,” said the

head of Sky News, John Ryley. “We intend

to bring viewers a distinctive approach to

Arabic news, building on Sky News’ strong

reputation for independent, impartial and

innovative coverage.”

The chairman of ADMIC, Dr. Sultan al

Jabar, also commented on the new enter-

prise saying the news channel will “set a

new standard for broadcasting in the

Middle East and North Africa.”

Adrian Wells, the former head of inter-

national news for Sky News will assist the

ADMIC group in the launching of the new

channel while a director of news is soon to

be appointed to take over for the long run.

This venture looks promising and will

not only add to Sky News’ 90 million view-

ers, but also give more people across the

world updated and accessible news infor-

mation.

Contact Ben atbenjamikn.canning@student.shu.edu

...continued from page 1

The Council has already begun to

move forward in its objectives. India

has lent a $100 million line of credit to

Syria. One hundred fifteen billion dol-

lars of such investments are a part of the

5-year plan for the Joint Business

Council. Additionally, Indian businesses

have already identified avenues in

which they can contribute to Syrian

growth.

Many Indian companies such as

ONGC Videsh Limited are exploring oil

production. Companies, including

BHEL and Apollo International are

assisting in boosting the Syrian infra-

structure, by installing power plants and

factories. A number of other plans for

companies in the information systems,

pharmaceutical, and energy sectors in

India to begin working with the Syrian

government are on the horizon.

Other projects, including joint ven-

tures, foreign direct investment, and

public-private partnerships can con-

tribute to the success of the Joint

Business Council. The Indian economy

is projected to accumulate an 8.5 per-

cent growth this year. This added

growth, if sustainable over the coming

years, will offer many more opportuni-

ties for Indian economic contribution to

Syria.

It is clear that India, as a strong

developing economy, has much in the

way of services and projects that it can

offer to the Syrian growth project. As

India and Syria work together, the Joint

Business Council will likely be mutual-

ly prosperous to the development of

both nations’ economies.

Contact Rebecca atrebecca.townsend@student.shu.edu

India and

Syria Come

Together on

Joint Business

Council

BSkyB Teams Up With Middle Eastern Firm

for Arabic News Channel

By Alexandra Hauenstein,

International Business Writer

Spain’s Prime Minister Jose Luis

Rodriguez Zapatero announced in parlia-

ment on December 1 the government’s plan

to stabilize the economy. The plan includes

selling 30 percent of the national lottery

business and privatizing 49 percent of the

country’s airports. Zapatero said he expects

to gain 9 billion euro through allowing pri-

vate investment in the airports.

“The government will approve a pack-

age of measures on Friday to favor econom-

ic investment and employment and which

will especially benefit small- and medium-

sized companies,” Socialist Prime Minister

Jose Luis Rodriguez Zapatero told parlia-

ment.

Another element of the plan is to do

away with the monthly payment of 420 euro

to people whose unemployment benefits

have run out. With the unemployment rate

at 20 percent, this is a particularly sensitive

measure for the five million unemployed. In

2007 Spain was Europe’s top job creator

and now it has the highest unemployment

rate in the Eurozone.

On December 3 other measures were

introduced, such as raising taxes on ciga-

rettes and reducing solar, thermal, and wind

power subsidies. Finance Minister Elena

Salgado said the increased cigarette tax is

expected to raise 780 million euro a year.

The 35 percent wind power subsidy cut is

expected to save 1.1 billion euro by 2013.

Additional measures are expected to be

implemented in the near future. Deputy

Prime Minister Alfredo Pèrez Rubalcaba

said the government will propose a gradual

increase in the retirement age from 65 to 67

on January 28.

Spain is the Eurozone’s fourth largest

economy, and experts believe that the latest

measures are Spain’s last-ditch effort to

convince investors that it can handle its

large deficit and will not need a bailout from

the European Union and International

Monetary Fund. After Greece and Ireland,

bailing out Spain would deplete Europe’s

rescue funds and have devastating conse-

quences.

Spain is insistent that they will not need

outside help and that the new governmental

measures will be more successful than the

ones implemented in May, which cut public

wages and froze pension plans.

Madrid’s stock index rose 4.5 percent upon

news of the plan, a sign that investor fears

may have been eased. The stock index fell

15 percent in November.

When asked about the reforms,

European Union Competition

Commissioner Joaquin Almunia said “Very

positive, they are extremely welcome. They

are necessary, show the government's deter-

mination and they are in the right direction.”

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

Spain Adopts Measures to Avoid EU Bailout

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

Photo courtesy Digital Production Middle East

Photo courtesy of Associated Press

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