volume 7 issue 11 - march 22, 2011
DESCRIPTION
The Stillman Exchange - The Official Business Publication of Seton Hall University.TRANSCRIPT
Money & Investing..............
Stillman News......................
Ethics ...................................
Editorials .............................
Sports...................................
Domestic News.....................
International News..............
International Business........
INDEX
26
8
9
10
13
15
16
Image courtesy of Reuters,
Kim Kyung-Hoon
Stillman NewsStudy Abroad experience explores history and business
in Ireland.
The Stillman ExchangeMade possible by the generous support of the O’Brien Family TUESDAY, MARCH 22, 2011 - VOL. 7 NO. 11
The Official Business Publication of Seton Hall University
www.StillmanExchange.com
Domestic News
South Dakota governor “inclined to sign” strict abortion bill
amendments.See p. 8See p. 6
EthicsAre Prescription Drug Monitoring programs ethical?
See p. 14
By Tony Cramond,
Sports Business Writer
The question on everyone’s mind is will
there be a NFL season this year? NFL own-
ers and the NFL players are now in legal
battles to try and gain an edge against the
other side in negotiations. The prize that
they are all fighting for is the biggest piece
of the $9.3 billion dollar pie that the league
generates in annual revenue. These legal
battles have led many fans to believe that
both sides are very far apart in their negoti-
ations.
The NFL and the NFL Players
Association, after multiple extensions of the
old collective bargaining agreement, finally
ended their negotiations March 11 and the
NFL locked out the players from all foot-
ball-related activities. After that meeting, a
series of legal maneuvers began to come
from both sides. The Players Association
decertified and the players were able to file
an antitrust law suit against the NFL. This
action asked for the court to stop the lock-
out.
The NFL then made its legal move by
filing a complaint against the NFL Players
Association with the National Labor
Relations Board. The NFL claimed that the
Players Association was not negotiating in
good faith and wanted to file its lawsuit
against the NFL. The Players Association
denied the claim.
Still, all of these legal rulings will take
time and that is something that the NFL and
the Players Association do not have. The
official offseason workouts for the teams
start in July and that will be the first official
football event that would be canceled if
there is no new collective bargaining agree-
ment in place.
Continued on page 11...
Lockout has Catastrophic Effect for NFL and Fans
By Ben Canning,
International Business Writer
BMW looks forward to beginning its
first ever manufacturing operations in Latin
America as it sets eyes on Brazil and its rap-
idly expanding car market, which has sur-
passed Germany in total sales volume.
Along with BMW’s own 51 percent market
growth in the region, the probability of
placing an assembly plant in Brazil is quite
high.
BMW already sells roughly 10,000
units per year in the nation, but it is the
speed of its growth that stands out. In 2010,
the firm recorded an all-time high sales
figure of 22,235 BMW and MINI cars in
Latin America and the Caribbean Region.
The company believes that profitability
will be hitting a peak over the next couple
of years as the newest versions of the man-
ufacturer’s most important and popular cars
hit the market. BMW predicts that Brazil’s
standard of living is rising due to its hosting
of the 2014 World Cup and the 2016
Olympic games, which can be a reason for
the increased sales.
Reuters received input from Chief
Executive Norbert Reithofer who said, “As
a next strategic step, we are considering the
set-up of further [manufacturing] sites, for
instance in South America. Final decisions
have not been made yet but our credo has
always been that production follows the
market. So it is a matter of course that we
observe all emerging markets closely.”
Continued on page 16...
Japan Reel ing from Earthquake AftermathBy Morgan Tornetta,
Domestic News Editor
Lydia Porter is an American teaching
English conversation classes in Saitama, a
part of Tokyo. On March 11, Porter was
teaching a class when her students asked,
“Did you feel the earthquake?”
Porter asked them what they were talk-
ing about. “And then I felt it. It lasted such
a long time it was bizarre. All the Japanese
people said they had never felt an earth-
quake last so long.”
“It slowly just got stronger, and then
stronger, and then even stronger and we left
the classroom to run into the lobby where
other classes were going.”
According to Japanese reports, the
strong shaking of the 9.0 magnitude earth-
quake lasted three to five minutes, just long
enough to cook a meal in the microwave.
The time residents of Sendai, the epi-
center of the earthquake, had to prepare for
the ensuing tsunami was only slightly
longer than the quake that caused it. The
warning sirens began to blare seven to ten
minutes before the wave hit.
Later, power outages caused by these
disasters threatened nuclear reactors in
Fukushima Daiichi and Daini. For the next
week the story developed—explosions,
radioactive vapor clouds, and cooling sys-
tems failure.
In a March 15 statement, Prime
Minister Naoto Kan told the Japanese, “As
I explained previously, the reactor at the
Fukushima Daiichi Nuclear Power Station
was shut off following the earthquake and
tsunami, but none of the diesel engines that
would normally power the emergency cool-
ing system are in a functioning state….The
concentration of radioactivity being leaked
into the vicinity of the station has risen con-
siderably following hydrogen explosions.”
The Prime Minister also confirmed a fire in
one reactor and a “heightened risk of even
further leakage of radioactive material.”
Kan said residents have evacuated
beyond the 12 mile radius from Daiichi, and
should remain indoors if they live within 18
miles of the site.
Countermeasures released by the Prime
Minister and his cabinet also warn residents
about chain-emails, which they claim have
been providing false information about the
earthquake.
Elsewhere in Fukushima, companies
are threatened by nuclear concerns as well
as damage from the earthquake itself.
Companies such as Fujitsu, Texas
Instruments and Cabot Corporation, that
have plants located in Fukushima prefec-
ture, have sustained damage from the earth-
quake.
Boston-based Cabot, which produces
carbon black, fumed silica and inkjet col-
orants among other products, said in a cor-
porate press release that they have had no
personnel injuries and only minimal dam-
age to its Fukushima facilities from the
earthquake. However, “transportation and
infrastructure disruptions have impacted
operations.”
Continued on page 14...
By Douglas Demarco,
Money & Investing Writer
Americans received some positive
news last week. According to the Spectrem
Group, a premier U.S. consulting firm, the
total population of millionaires in the
United States increased by eight percent in
2010.
There are now a total of 8.4 million
U.S. households that are worth at least $1
million, up from the 7.8 million households
observed in 2009. This increase is linked to
several different factors. One major reason
is noted specifically in the report: the stock
market’s recent success has resulted in
many households seeing increases in their
investment portfolios which results in an
increase in overall wealth.
Despite an increase in the number of
millionaire households, the figure reported
is still below the peak year experienced in
2007, when 9.2 households were worth at
least $1 million. This drop can be con-
tributed to the housing market, which still
has not recovered back to the levels experi-
enced in 2007.
In 2008, the number of households
with net worth of at least $1 million
dropped by 27 percent. An upward trend of
16 percent was realized in 2009.
A similar increase was seen in house-
holds with a net worth of at least $5 million;
households in this category increased by 12
percent to 1.1 million. Households with a
net worth of at least $500,000 also
increased by six percent to 13.5 million.
Despite the reduction in growth
between 2009 and 2010, the continuing
increase in the number of millionaires is a
positive sign. However, George H. Walper
Jr., President of Spectrem Group, said
“While investors are feeling positive about
their own portfolios, they are not convinced
that the economy has recovered.”
Continued on page 5...
U.S. Households Growing in
Number of Mil l ionaries
BMW Looks to Move
Production into Brazi l
Money & Investing2 TUESDAY, MARCH 22, 2011 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 assumes
no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
NEWS
BRIEFS
• A new assessment of President Barack
Obama's budget, released Friday, states
that the White House underestimated
future budget deficits by more than $2 tril-
lion over the upcoming decade.
• DuPont Co.’s Chairwoman and CEO,
Ellen Kullman, received compensation
valued at $11.3 million last year, a 36 per-
cent jump from what she received in 2009,
according to an Associated Press review of
data filed with regulators.
• Yum Brands Inc., the company that owns
KFC, Taco Bell and Pizza Hut chains, gave
Chairman, President and CEO, David
Novak, a pay package worth nearly $12.6
million in 2010, according to an Associated
Press analysis of data filed with regulators.
• IBM Corp. has agreed to pay $10 million
to settle allegations that it bribed South
Korean and Chinese government officials
for more than a decade to win contracts.
By Danny Jones,
Money & Investing Writer
Just two days ago, the man who has been
“winning” all his life, Charlie Sheen, will run
for the presidency of the United States.
When asked if he will be running as a
Democrat or Republican, Sheen replied
“Neither, I’m both. Yeah, I could say I’m a
Democrat, but I’m really Republican. And
what really is a Republican than just a
Democrat?”
Our expert analysts could not decipher
this convoluted sentence, so we will assume
he’s running as an independent.
The news came as quite a shock to the
world, because of how abruptly he has made
this decision. “I have one speed; it’s ‘Go!’
you know?” Sheen stated, “If I didn’t make
split second decisions, I’d be a loser, and
Charlie Sheen ain’t no loser.”
With the sudden decision to run for
President, other celebrities that are in the
process of losing their sanity, along with
Sheen, have also decided to consider running
for president. Gary Busey, Michael Cera, the
weird frog guy from “Gulla Gulla Island”
and Shia LaBeouf are also considering the
electoral process.
When we asked LaBeouf how he plans
on digging our economy out of the ground,
he looked at us with a puzzled, confused
face, tried to act his way out of the answer
and then ran away. Michael Cera responded
by standing in the most awkward stance ever
seen and started sweating profusely when a
woman walked by. He also declined to finish
the interview.
Charlie Sheen’s insanity, lack of under-
standing of social norms, and demanding
confidence may just be what this country
needs.
Yes, he has lost his mind, and yes, he has
taken so many drugs that his mind is con-
stantly misfiring, but this may be the change
our country needs.
When Sheen was asked the same ques-
tion that we asked LaBeouf, he replied “I
would get this economy out of the giant hole
we’re in simple. Kick all the losers out.”
He also said, “Let me ask you a ques-
tion: how could a country fail if it were full
of absolute winners? I’ll tell you how, they
wouldn’t be. If we force all the losers to
Canada, where losing is a national past time,
we will make our country the ‘most win-
ningest’ country in our galaxy.”
The current president, Barack Obama,
will have a lot of competition if he plans on
running for a second term in the White
House.
Although the commander-in-chief cer-
tainly has an impressive political back-
ground, going up against the “Wild Thing”
on the mound might stir some interesting
debates.
Contact Danny at
Charlie Sheen“Winning” AsPresidentialCandidate
This Week’s Poll Question:
Do you believe nuclear power
plants in the U.S. should be shut
down because of what is happen-
ing in Japan?
A: Yes, they are too dangerous
B: Yes, they should be moved to
remote locations
C: No, it was an unlikely accident
D: No, they should update older
power plants
Last Weeks Poll Question:
Do you think that revolutions
around the world will continue to
spread?
Yes, peacefully
(19%)
Yes, but they will get violent
(41%)
No, governments will regain
control
(15%)
No, it will begin to settle down
(26%)
Graph courtesy of Google Finance
Company Comparison
Graph courtesy of Google Finance
Sector Summary Courtesy of Google Finance
Earnings Stock to Watch:
EV Energy Partners, L.P.Graph courtesy of Yahoo! Finance
World CurrenciesCourtesy of Google Finance
Money Funny Corner
THE STILLMAN EXCHANGE Money & Investing TUESDAY, MARCH 22, 2011 3
By Amanda Bronson,
Money & Investing Writer
More than half of Americans over the
age of 45 are unsure that they will be able to
retire without worrying about their financial
status. The state of the economy has bur-
dened many low income families and has
halted retirement of workers over the age of
60.
The Washington-based organization,
AARP, which is responsible for lobbying
the interests of older Americans, have found
that most people have less than $25 thou-
sand saved, and 48 percent have less than
$50 thousand saved. It is no surprise that
recent surveys have shown increased worry
over the issue of retirement when 16 percent
of Americans have no retirement savings at
all.
Due to the financial hardships as a
result of a sluggish economy, many people
are forced to scale back their retirement sav-
ings in order to make ends meet. This prob-
lem has affected low-income families most
dramatically.
“While the recession has been devastat-
ing for many older Americans, this recent
data indicates lower-income folks are being
hit particularly hard,” said Jo Ann Jenkins,
AARP Foundation president.
About 40 percent of older adults with
low incomes confirmed to have delayed
medical care for up to six months. Many of
these people are now reliant on Social
Security to retire.
Based on these statistics, retirement
confidence has dwindled to an all time low.
The number of people who are less confi-
dent in their retirement plans has gone up
from 22 percent to 27 percent in just one
year, according to the Employee Benefit
Research Institute and Matthew Greenwald
& Associates Inc.
The EBRI says these statistics are a
good wakeup call, and this should be a
warning for Americans to start saving more.
The cost of living is growing and, “People
are increasingly recognizing the level of
savings realistically needed for a comfort-
able retirement,” says EBRI research direc-
tor, Jack VanDerhei. Many people in the
past years have underestimated the amount
of savings and investments needed for
retirement.
Lack of confidence in savings has more
than doubled to 43 percent for workers with
savings of less than $25,000. Not only are
less people confident in their savings, but an
estimated 33 percent of workers and retirees
are forced to dip into their savings accounts
before retirement. People with low income
are having even harder times staying on top
of expenses and payments.
Now many adults are forced to keep
working and retire later. Many people can-
not afford to retire early because they have
already depleted their savings due to rising
prices.
Half of the retiring population does so
early because of disability or other health
problems. Faith in Social Security provided
by the government is virtually nonexistent.
Over 70 percent of workers now wish to
continue working past retirement to make
ends meet.
Companies, such as AARP, are now
increasingly encouraging workers to be
more frugal with their spending and to start
saving now. Investing today, with the
expectations that prices will continue to go
up, will better prepare individuals for future
retirement.
Contact Amanda at
By John Ceniza,
Money & Investing Writer
In lieu of the natural disasters that have
struck Japan, analysts are now predicting
that it may take the tech industry as long as
six months to return to their normal flow of
operations.
Daniel Heyler, the Head of Global
Semiconductor Research at Bank of
America Merrill Lynch, said that world
technology hardware supplies might take
six months to return to regular levels.
Oppenheimer analyst, Ittai Kidron,
wrote that “global activity could be compro-
mised … at a minimum, a few weeks of dis-
ruption are possible, but it could be months
or more before normalcy returns.”
The main concern, according to Heyler,
is how this disaster will affect the prices of
memory chips, which already have
increased dramatically since Japan was
struck. He believes that the crisis will affect
NAND flash chips used in cameras and
smartphones. This could cause PC and elec-
tronic makers to use fewer chips to keep
shipments on schedule but sacrifice per-
formance.
Wells Fargo analyst David Wong
wrote, “It would appear that it is the
Toshiba/SanDisk facilities that are the main
fabs (semiconductor fabrication plant)
which may have suffered production disrup-
tions.”
Toshiba reported on Friday, March 11,
that “there are indications that the Iwate fac-
tory has been affected by a power outage.
All factories are being inspected for dam-
age.”
On Monday, March 14, SanDisk issued
a statement saying that the two fabs were
“down for a short period of time” as a result
of the earthquake but were immediately
back up and operational. The company
claims that there has been “minimal impact
on wafer output due to the earthquake.”
In addition to this disaster heavily
impacting memory chips, it also profoundly
affected the supply chain for liquid crystal
displays.
On Friday, March 18, Toshiba Corp.
said that its factory near Tokyo will be
closed for a month, halting production of
small LCDs.
The plant supplies smartphone makers
and the automobile industry with small
LCDs to use with their products. Toshiba
shares dropped over 30 percent this week.
PC maker, Lenovo Group, is also wor-
ried about a shortage in notebook batteries.
As Lenovo Chief Executive Yang Yuanqing
puts it, “In the short term there won’t be
much impact. We are more worried about
the impact in the next quarter.”
Supply for notebook PC batteries are
under pressure since key suppliers such as
Sony Corp. (NYSE:SNE) have shut down
six factories in Japan.
Sony Corp. said that their plants that
make Blu-ray discs and lithium-ion batter-
ies will remain closed as of Friday, March
18.
Contact John at
Devastation in Japan Sends
Shockwaves Through the Tech Industry
48 Percent of Americans Have
Less Than $50,000 Saved for Retirement
By Stephanie Gonzalez,
Money & Investing Writer
Debit cards are now in the spotlight on
radios, news papers, and even buses!
According The Boston Globe, the Federal
Reserve “under the mandate of the Dodd-
Frank regulatory overhaul,” proposed a 12
cent limit for debit card fees.
Debit card fees are small fees paid to
your bank by businesses each time you
swipe your card. This means that in order
for a store to offer the service of accepting
your card, they must accept this cost as a
reduction in revenues.
However, this payoff is beneficial to
the business because more and more people
are using their cards as opposed to cash. For
large businesses, this is not problematic
because these fees are miniscule relative to
their large sales. However, this is not the
case for small businesses.
Since there are fewer costumers and
lower revenue, 44 cents per transaction, the
average according to CNN Money, adds up
quickly.
Recently, the 12 cent limit on fees has
been the subject of debate. According to
Bloomberg News, this debate is no small
matter for either businesses or credit com-
panies, such as Visa (NYSE: V),
MasterCard (NYSE: MA) and the large
banks that back them. This includes Bank of
America Corp. (NYSE: BAC) and
JPMorgan Chase and Co (NYSE: JPM). In
fact, the fees add up to 12 billion dollars in
revenue for the firms.
Therefore, it comes as no surprise that
companies are spending millions running
ads in various media to sway both the pub-
lic and the legislators. CNN Money pulled
out a particular ad on a Washington D.C.
Metro subway car that states “Where does
Washington’s $12,000,000 gift to retailers
come from?”
Right now, the burden of transaction
fees is largely carried by the merchant—the
store accepting your card. CNN Money
reports that lawmakers are arguing that for
small businesses, the weight of these fees is
strangling profit margins.
The limit would increase profitability
and help boost an economy that is heavily
dependent on small-business activity. Small
companies are arguing that the large credit
organizations will not feel a significant hit
as a result.
These same credit and banking institu-
tions are spreading the message that the loss
of fees revenue will translate into more fees
for the cash strapped consumer. In the com-
ing weeks, lawmakers must decide who will
take up the tab for the income that fees sup-
ply.
Contact Stephanie at
Debit Cards Might See Regulatory Fee Decreases
The number of people who have had to sacrifice their retirement
funds in order to keep food on the table is staggering.
The destruction in Japan has crippled trade and left many of the factories
that produce equipment for the tech industry inoperable.
Photo courtesy of youngmillionairegroup.com
Photo courtesy of Hermannmonews
Money & Investing4 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
Ohio Governor Slashes $8 Billion from State BudgetBy Dhara Patel,
Money & Investing Writer
On Tuesday, March 15, the Governor
of Ohio, John Kasich, revealed a budget
plan that will slash $8 billion in state spend-
ing.
This plan, titled: “The Jobs Budget,” is
Kasich’s two-year spending plan that will
cut funding for local governments by 25
percent in fiscal year 2012. In this plan,
Kasich proposes to cut spending for many
agencies and privatize certain governmental
functions.
On a whole, state reform is expected to
save $1.4 billion over a two-year period and
cut $8 billion from Ohio’s current deficit.
The budget plans to restructure several
agencies and their functions. For example,
the Department on Aging would lose 90
percent of its support but would also trans-
fer the responsibility of long-term care and
other items on its agenda to other depart-
ments under the governor’s health transfor-
mation initiative.
The budget proposes leasing the state’s
wholesale liquor distribution system to fund
the state’s economic development plans. In
addition, Governor Kasich proposes the pri-
vatization of several prisons, in order to put
over $50 million of the proceeds into the
fiscal year 2012 revenue fund.
Despite multiple cuts in spending, not
all departments are going to be hurt by this
plan. The state’s Board of Career Colleges
and Schools will receive a 12 percent
increase in state funding so it can improve
its support for training and education at its
institutions.
Also, as promised by Governor Kasich,
the budget plan will not increase taxes. The
governor plans to preserve an $800 million
income tax cut that went into effect earlier
this year and offers $34 million in tax incen-
tives for 2012.
As noted by CNN Money, Governor
Kasich says that “economic growth is the
only way to return Ohio to financial health.
Since Ohio is already one of the highest-
taxed states,” companies will not want to
relocate there if taxes are raised further.
“Too many of our successful entrepre-
neurs flee the state to escape high taxation,”
he said in his State of the State address last
week.
However, Ohio residents are not happy
with the governor’s tactic. CNN Money
states that, “53 percent of residents sur-
veyed by the University of Cincinnati in
early March said they would like to see the
budget balanced through a combination of
tax increases and state spending reductions.
In addition, 35 percent said “they want the
deficit eliminated only through reductions
in state spending on programs and servic-
es.”
Despite mixed feelings within the state
about the proposed budget, the plan will
now go to the state legislature, where law-
makers will decide on Kasich's proposals.
Contact Dhara at
Dispute over Direction of
Video Game IndustryBy Vincent LoVasco,
Money & Investing Writer
Electronic Arts (NASDAQ: ERTS) and
Activision claim that NDP Group’s recent
reports are both misleading and insignifi-
cant.
These video game giants are displeased
with the newly released sales data provided
by NDP Group.
NDP is retail sales tracker and has fol-
lowed the video game industry for years.
Ken Sweet has reported, “That video game
software sales fell 8 percent in February.”
However this data does not cover the indus-
try’s digital sales through outlets of
Microsoft’s Xbox Live, Sony’s Playstation
Network, and Apple’s iTunes.
This lack of information greatly alters
the image painted by NDP regarding where
the video game industry is truly headed.
Electronic Arts reported that digital rev-
enues were up 49 percent and projected to
reach $750 million by March 31.
Almost half of Activision’s revenues
come from its monthly subscriptions for
their World of Warcraft series. EA corporate
communications executive Tiffany Steckler
told reporters, “Using NPD data for video
game sales is like measuring music sales
and ignoring something called iTunes.”
This seems like a huge discrepancy in
terms of financial reporting. Yet, video
game publishers never had a problem with
the reporting when information released
strong numbers for the industry.
It appears that publishers have a prob-
lem with sales tracker companies when the
numbers are negative, but praise companies
like NDP Group when reports are more
complimentary. Sweet has reported, “NPD
and the video game industry have a love-
hate relationship, using the data in commer-
cials when sales go well, and dismissing the
data when it doesn’t.” Sweet also reports,
“NDP Group’s analyst Anitz Frazier noted
that NPD releases a quarterly report that
addresses the digital side of industry.”
The reports that are being focused on
do not tell the whole story, and the addition-
al reports should be consulted when assess-
ing the video game industry’s growth. Still
not all analysts agree with the video game
publishers’ argument. Some believe that the
complete opposite is true.
Michael Pachter of Wedbush Morgan
told reports, “It’s a ‘gross overstatement’ to
call NPD’s data irrelevant, saying the indus-
try is still heavily dependent on selling
physical games.” The digital portion is con-
tingent upon the sales of physical units.
A direct proportion existing would
mean a decrease in physical games sold
would also decrease digital sales as well.
Pachter also told Sweet, “EA saying physi-
cal game sales don’t matter is like Best Buy
saying television sales don’t matter.”
Analysts like Pachter believe there is
some validity to NDP Group’s reports
because of this relationship, and the infor-
mation should not be dismissed as publish-
ers claim.
Contact Vincent at
Federal Reserve Says Future
Economic Aid is UnlikelyBy Christian DiCarlo,
Money & Investing Writer
After the Federal Reserve gave $600
billion to the Economic Recovery program,
they say that it is unlikely that they will give
any more, even though the economic recov-
ery is in its infancy. According to the notes
from the closed meetings, the Federal
Reserve is confident that the global recov-
ery will continue to gain momentum.
The economy is on a “firmer footing,
and overall conditions in the labor market
appear to be improving gradually,” said the
Federal Open Market Committee in a recent
statement.
According to Bloomberg, a recent Fed
statement explained a plan to buy Treasury
securities that would help the economy
expand at a self-sustaining pace, said Josh
Feinman, Global Chief Economist for
Deutsche Bank Advisors.
Federal Reserve Chairman, Ben S.
Bernanke, seems more optimistic about the
economy by dropping phrases such as, “dis-
appointingly slow” and “tight credit” from
an earlier statement released in January.
He also took out references to “modest
income growth” and “lower housing
wealth”.
Although some aspects of Bernanke’s
statements seem positive, he also addressed
some negative issues. The unemployment
rate is very high and may still increase, and
we should “pay close attention” to the infla-
tion rates.
The Gross Domestic Product rose at a
rate of 2.6 percent in the third quarter, a
good pace, but not good enough to help the
U.S.’s 9.8 percent unemployment rate.
With concerns over the global supply
of commodities, the prices for crude oil
have also gone up. For instance, gas prices
in the U.S are back to $3.56 per gallon, their
highest since 2008.
The Atlanta Federal Reserve President,
Dennis Lockhart, does not predict price
inflation to increase because of the rise in
food and energy prices. He also does not
rule out the possibility that mayhem in
Africa and the Middle East are slowing
down the U.S economy.
“They certainly understand what the
risks are out there and the risks are greater
than they were 60 days ago: from the
Middle East and oil prices to Japan and how
that could affect financial markets and
regional growth. It’s not a surprise they’re
going to keep their powder dry and see how
things play out,” said Paul Ballew, former
Federal Reserve economist and Senior Vice
President at Nationwide Mutual Insurance.
Federal Reserve officials specified a
rather high threshold for reevaluating the
$600 billion in purchases, and some noted
that more time was needed before any kind
of reassessment could be held.
Contact Christian at
Ohio’s governor, John Kasich, slashed a total of $8 billion from the state’s budget for fiscal year
2012. Included in the budget are the merging of governmental agencies in a bid to save money.
Photo courtesy of bossip.com
U.S. Households Growing in Number of Millionaries… continued from page 1
The report also indicates that 55 per-
cent of households earning less than $1 mil-
lion are more concerned with protecting
themselves from potential economic prob-
lems rather than growing their net worth.
“Overall attitudes are not the same as in
2007. Many households no longer believe
their home is a stable asset.”
There are other signs that suggest
improvements in the U.S. economy. In addi-
tion to an increase in the number of million
dollar households, the number of house-
holds with a net worth of over $100,000
also increased.
For 2010, 36.2 million households
were in this category compared to 34.6 mil-
lion at the end of 2009. This suggests that
households of multiple socioeconomic cate-
gories are experiencing economic growth.
This general increase in household
wealth is a positive sign for a recovering
economy that is heavily dependent on con-
sumer spending.
Contact Doug at
Photo courtesy of News Quest
Fed Chairman Bernanke comments
on the state of the economy.
Photo courtesy of Washington Examiner
Money & InvestingTHE STILLMAN EXCHANGE TUESDAY, MARCH 22, 2011 5
By Jennifer Crowe,
Money & Investing Assistant Editor
Demand for rental housing is on the
rise, increasing rental prices by as much as
10 percent annually in select locations.
Although the housing market has been
in decline, more and more people are look-
ing for rental housing as an alternative to
home purchases. Higher qualification
requirements on mortgages are leading
more people to continue renting as an alter-
native to buying.
Rental prices rarely fluctuate and have
not increased by more than one percent per
year over the last ten-year period.
Current predictions by CNN Money
suggest that rental prices will increase by as
much as seven percent in the next two years
alone, and the national average for rent is
expected to increase to over $800 per
month.
Leslie Deutch, a Real Estate consultant
with John Burns Real Estate Agency, states
that San Diego could see rental prices jump
by as much as 31 percent by 2015, Seattle as
much as 29 percent and Boston as much as
30 percent, respectively.
Renting is the next big thing for the
housing market. In New York City, 80 per-
cent of the real estate market is rentals. In
Los Angeles, about 60 percent of the hous-
ing market is rentals.
CNN Money reports, “There’s one fac-
tor that could rein in rent increases: the huge
number of foreclosed homes that could hit
the market over the next few years.” This
may reverse the current market trend of
increasing rental prices, and create another
buyer’s market.
With such a large increase in rental
prices, and the large number of deals for
foreclosed homes, buying may be well
worth looking into.
Contact Jennifer at
Rental Prices Projected to
Rise by 10 Percent Annually
By Dylan Mortensen,
Money & Investing Writer
The price of oil tumbled Friday morn-
ing following a statement by Foreign
Minister Moussa Koussa to cease-fire on
Libyan rebels. The message came in
respond to the U.N decision to approve a
“no-fly zone” of Libya.
The U.S and Europe experienced the
most dramatic changes early Friday when
markets opened. The New York Mercantile
Exchange saw Benchmark crude dive $2.51
in less than 20 minutes, while West Texas
Intermediate oil dropped 79 cents for April
futures. Brent crude in London dropped
$1.16 to $113.49 per barrel.
Prices began to rally by midday, as the
market remained unstable. The rebel com-
mander stated that Libyan leader Gadhafi
was “bluffing” and the cease-fire was not
important to his people. The comment con-
cerned many Western allies, which signaled
doubts regarding the future of the fighting
in the African country.
The U.S continues to mull over the best
way to end the civil war. Bill O’Grady, chief
market strategist at Confluence Investment
Management in the U.S, said “Any thought
that this cease-fire is going to lead to some
peaceful resolution is ludicrous… Gadhafi
is not going to meet the rebels’ demands.”
Middle-Eastern oil exports have
sharply declined as tensions continue to
worsen. Libyan exports are down, which
were recently reported to be 1.3 million bar-
rels per day. Neighboring oil producers,
Bahrain and Yemen, have also experienced
dramatic downfalls as protesting and vio-
lence continues.
This past month, the demand for oil and
gas has taken a steep dive. According to the
Energy Information Administration, the
total demand for Petroleum in the U.S. fell
nearly 200,000 barrels per day within the
first two weeks of March.
Yet, economic problems could worsen
if oil remains at $100 per barrel, according
to Moody’s Investors Services. Airliners
and food prices have gone up, since the
price of fuel has increased in correlation to
recent oil prices.
Car sales could also see a decline due to
the higher fuel prices. While Japan contin-
ues to deal with their recent disaster, the
price of oil and coal can continue to rise as
oil becomes a substitute for their damaged
nuclear reactors.
“The market is very volatile at the
moment, it’s really being driven by the
headline at the moment,” said analyst
Amrita Sen from Barclays Capital in
London.
Americans nationwide are experienc-
ing the rise in oil prices firsthand at their
nearest gas stations. According to AAA, the
national average per gallon price for gaso-
line is $3.54, which are 41 cents higher than
February and 74 cents higher than just a
year ago.
Contact Dylan at
Price of Oil Volatile as Crisis in Libya Continues
By Jeffrey Aiello,
Money & Investing Writer
With the economy on the rise, a new
fear of inflation has struck the U.S. econo-
my. This past month, wholesale prices have
increased, putting heavy pressure on com-
panies to raise prices on consumer goods.
Major products have been affected by
this, especially clothes, tires, plastics and
shoes. Raw materials have seen a consider-
able increase in prices, which increase com-
pany costs. Even companies, such as
Abercrombie & Fitch (NYSE: ANF), will
need to raise their retail prices this coming
summer because of the increased cost of
purchasing cotton.
The Producer Price Index, a bench-
mark that measures wholesale inflation, has
even alarmed officials at the Federal
Reserve, who fear a continuing trend in
inflation. The index rose 0.5 percent this
past month and 1.6 percent in February,
which was the largest increase since
October 2008.
Although the federal government and
the Fed have been actively using fiscal and
monetary policy to stimulate economic
growth, it is likely that they will tighten
their expansionary policies as concern over
inflation increase.
Although a low level of inflation is
acceptable, excessive inflation can be prob-
lematic for a growing economy.
Therefore, many economists are wor-
ried that these trends will negatively affect
the U.S. economy in the coming months.
The most substantial jump in the
Producer Price Index came from wholesale
food prices, which rose 3.9 percent, and a
rise in energy prices, which jumped 3.3 per-
cent. Oil prices have also risen significant-
ly, which some economists believe is a
large obstacles that the U.S. economy has to
face in its journey back to economic pros-
perity.
As a result, these price increases are
weighing heavily on many corporations and
businesses.
Although the extra costs companies are
experiencing can be passed onto the con-
sumer, the implementation of these price
increases can be problematic. In a period of
lower wages and widespread unemploy-
ment, companies realize people are already
strapped for cash.
However, not all hope is lost, accord-
ing to Nigel Gault, chief U.S. economist at
IHS Global Insight. Gault says “it’s too
early to panic about inflation. There won’t
be an inflationary spiral unless wage infla-
tion picks up.”
Contact Jeff at
Rising Price Index
Warns of Rising Inflation
By Steven Paramo,
Money & Investing Writer
The February residential construction
report showed that new housing construc-
tion rates dropped 22.5 percent since
January 2011 to an annual rate of 479,000,
according to Bloomberg.
This is approximately 20.8 percent
below levels seen a year ago, and is at lev-
els not seen since April 2009. This drop is
the largest experienced since 1984.
According to the Columbia Tribune,
the drop in home construction activity
affected all regions, including a 48.6 per-
cent drop in the Midwest, a 37.5 percent
drop in the Northeast, a 28 percent drop in
the West and a 6.3 percent drop in the
South.
This report is another stifling blow for
the struggling US economy, as unemploy-
ment remains high and rising costs of goods
sold continue to exacerbate low levels of
consumer spending.
When discussing possible reasons why
these numbers have drastically dropped,
chief economist of the National Association
of Home Builders, David Crowe, plainly
stated that “It’s consumer nervousness. It’s
a fragile recovery to begin with, and then
you throw in high energy costs, new uncer-
tainties about Congress, and it is just
enough to spill over the glass again.”
Building permits dropped 8.2 percent
to an all-time low annual rate, going back to
the 1960s, of 517,000 permits. The
Northeast saw a 28 percent decrease, which
is the lowest on record, and the West
dropped 14 percent.
According to the Associated Press, Dan
Greenhaus, chief economic strategist with
Miller Tabak & Co., states, “This is a multi-
year buildup in the housing market that is
going to take more than several months or
several quarters to get through.”
Patrick Newport, U.S. economist for
IHS Global Insight, commented that for any
housing construction market recovery to
take place, the job market needs to recover,
and a wider range of credit must be avail-
able for builders.
The National Association of Home
Builders states that each new home that is
constructed creates an average of three jobs,
according to the Columbia Tribune, show-
ing the drastic effect that the construction
market has on economic productivity.
Contact Steven at
Report Shows Low Levels of New Construction and Permits
80 percent of the real estate market in
New York City is rentals.
Photo courtesy of World of Stock
The New York Mercantile Exchange, the world’s largest commodity futures exchange, has
seen significant volatility in oil prices as a result of the Libyan conflict.
Photo courtesy of Hofstra Unviersity
Home construction in many regions, such as
those in Modesto, CA, have come to a halt.
Photo courtesy of Flickr
Stillman News6 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
By Ryan Garrity,
Stillman News Editor
In today’s economy, one of the hardest
parts of making a business successful lies in
doing the right public relations. Many com-
panies rely on the right public relations
campaign to get their name out there, and to
make sure consumers have all the informa-
tion they need. One of the ways that stu-
dents interested in this field can gain expe-
rience is by joining the Public Relations
Student Society of America (PRSSA).
Seton Hall has a very successful chapter,
and this year, they will be competing in
PRSSA’s Bateman Case Study Competition.
PRSSA is the youth branch of PRSA,
the adult professional organization. It is an
academic, pre-professional club. SHU
PRSSA aims to prepare students for life in
public relations and to compliment their
schoolwork and internship experiences.
They offer panel discussions, networking
opportunities, professional tips and resume
help. So far, they have helped clients on
campus such as Pirate TV and the Theatre-
in-the-Round.
The Bateman Case Study Competition
is PRSSA’s premier national case for public
relations students. It grants participants the
opportunity to apply classroom education
and internship experience to create and
implement a full public relations campaign
for a national client.
This year’s sponsor is SmartEdge by
GMAC, a subsidiary of Ally Financial. This
company offers students the opportunity to
learn about corporate social responsibility,
an increasingly important trend in public
relations, while encouraging financial liter-
acy among low to moderate income com-
munities.
Grouped into teams of four or five, stu-
dents are tasked with researching, planning,
implementing and evaluating a comprehen-
sive public relations campaign. Research
and planning are completed in November
through January. Teams implement their
strategies in February, and final entries are
due to PRSSA Headquarters in March.
Melissa Piccinich, PRSSA’s Liaison to
the Career Center, is one of SHU PRSSA’s
representatives in the Bateman Competition
this year. Her position within PRSSA is a
brand new one, instituted in lieu of a histo-
rian. She works to expose members to the
benefits offered by the Career Center and
the professionals who work there.
In addition to Piccinich, the team con-
sists of PRSSA President Lauren Cerra,
PRSSA Treasurer Ned Hopf and PRSSA
Secretary Besi Henriquez. These standout
students were chosen by associate professor
and PR Advisor Dr. Rennie.
The team, Progress IMC, is using the
financial literacy notebook provided by
SmartEdge and are going to Newark High
Schools to give interactive presentations.
The presentations are being themed after
game shows, and using the tagline “Don’t
play games with your credit, be Smart.
SmartEdge.”
Using templates from popular game
shows, the team has created Wheel of
Finance, Financial Jeopardy and Financial
Feuds. They hold assemblies or special
class sessions at these high schools, and
after a preliminary overview of facts, stu-
dents are put into teams and must use the
aforementioned workbooks to answer ques-
tions.
Piccinich said that the target for
Progress IMC’s campaign is 17 to 21 year
old students, but there is a heavy focus on
high school seniors in Newark. “Because of
the current economy and economic issues
facing all us all, it is important that these
students learn about the importance of good
credit and budget habits before entering into
college or professional life,” stated
Piccinich.
Piccinich went on to state that through-
out the course of their research, they have
learned that the seven large credit giving
banks are targeting this demographic specif-
ically in order to build brand loyalty. In
addition, starting next year, the state of New
Jersey mandates that all freshman high
school curriculums must include a financial
literacy program.
“We hope through our campaign that
SmartEdge not only spreads its message,
but also learns about the benefits of spon-
soring this future initiative in New Jersey
high schools,” says Piccinich.
Contact Ryan at
SHU PRSSA Seeks Success in Bateman Competition
By Andrew Weinstein,
Stillman News Writer
Two weeks ago, sixteen Stillman stu-
dents departed for Dublin, Ireland as a part
of a study abroad program over Spring
Break. The trip was taken by the students as
a replacement for the Global Business
requirement.
Upon departing for Dublin Friday
night, the students arrived in Ireland
Saturday morning and consequently took a
tour around the city. The tour included a
stop at Trinity College, the oldest and one of
the largest universities in Ireland, dating
back to 1592.
The following day, the students experi-
enced a significant part of the Irish culture
and business, with a tour of the Guinness
Storehouse in Dublin. It was mentioned that
each year, the Guinness Storehouse attracts
over two million visitors.
According to Sophomore Christine
Wotton, “the Guinness factory was an
amazing experience starting off with the
self guided walking tour, and ending with
the incredible view from the gravity
lounge.”
Throughout the week, the students par-
ticipated in discussions with representatives
from different businesses in Ireland. These
visits included Forfás, the national policy
advisory board for enterprise, trade, sci-
ence, technology and innovation in Ireland,
the U.S. embassy, where the students met
Dan Rooney, the U.S. ambassador to
Ireland, Microsoft, Yahoo, Smurfit Kappa
Group, a world player in paper based pack-
aging, Topaz, Ireland’s newest and largest
fuel and convenience brand, Ogilvy Group,
a marketing communication company and
Bolton Trust, a company that encourages
and promotes new business enterprises in
Ireland.
Sophomore Andrew Kriner explained
that “the meetings we had with the compa-
nies gave us interesting insight into how
international companies operate.”
While not attending meetings, the stu-
dents were often walking around Dublin,
exploring the city and seeing its many
attractions. They also took a day trip to the
city of Kilkenny, an hour and a half drive
from Dublin. Once they arrived in
Kilkenny, the group went on a tour of
Kilkenny Castle, a castle dating back to the
thirteenth century. The castle became the
principal Irish residence of the powerful
Butler family for almost 600 years, starting
in 1391 all the way until 1967 when the cas-
tle was donated to the town.
When asked about his experiences,
Kriner said that “the cultural experiences
with the Irish showed how even during a
rough economic time they are still able to
have fun and keep a positive attitude.”
The trip to Ireland provided the group
of students with an experience that none of
them will ever forget. From meeting with
business representatives to experiencing the
Irish culture firsthand, the study abroad trip
was a journey well worth taking.
Contact Andrew at
Epsilon Nu Tau Expands Stillman EntrepreneurshipBy Rory Manning,
Stillman News Writer
Epsilon Nu Tau is not a name that many
students in the business school will recog-
nize, but it is certainly one that is growing
in name.
With the Stillman School’s interest in
expanding entrepreneurship and the newly
opened center dedicated to the study of
innovation, it was only a matter of time
before a student organization dedicated to
entrepreneurial studies was formed.
Juliet Payseur, a Senior Finance and
Management Major first heard about
Epsilon Nu Tau when she decided to do
some digging online. “I was browsing the
internet to see if an entrepreneurship frater-
nity existed, and I happened to come across
the ENT website,” Payseur said.
Epsilon Nu Tau is the nation’s first co-
ed entrepreneurship fraternity, founded in
2008 in Ohio at the University of Dayton.
Last September, Julie, along with co-
founders Nicole Wallace, Martha Rooney,
Francesca LaRaque and Megan Peason saw
that there was an entrepreneurial void in the
Stillman School, and decided that this
would be the perfect organization to fill it.
In order to get ENT off the ground,
founding members were able to attend a
conference in November of last year. This
conference gathered ENT members from all
across the nation and engaged them in team
building sessions, networking events, an
elevator pitch competition and culminated
with each attending school developing a
strategic marketing plan for a unique, high-
growth BBQ franchise.
Seton Hall representatives were also
able to observe how an established chapter
functions, and get all the information and
advice necessary to run a successful chap-
ter.
Growth and interest in the organization
has been fantastic—the group began last
semester with only the co-founders
involved, and recently inducted a pledge
class of approximately 15 students. Paysuer
also has lofty goals for the organization this
semester.
“ENT’s goals for this semester are to
make sure that all majors get a chance to
know what we are about and to prepare the
underclassmen in the Fraternity for the lead-
ership positions that they will be taking over
soon.”
Epsilon Nu Tau will put on a variety of
events this semester. They will host two din-
ners with a CEO, a goal setting workshop
and a resume/interview workshop. They are
also co-sponsoring the Pirates Pitch
Competition and the “Masters of Disaster”
turnaround event with the Entrepreneurial
Studies Department.
Additionally, the group will be forming
a team to enter a global competition called
Students in Free Enterprise, where they will
make a 25 minute presentation in New York
City about the benefits of entrepreneurship
at Seton Hall.
It is clear that Epsilon Nu Tau is slow-
ly but surely building a reputation on cam-
pus, and Payseur believes that this will
bring great things to the Stillman communi-
ty.
“I believe the most important thing that
ENT will accomplish is building a network
not only within the Stillman School, but
also with the other entrepreneurial spirited
student throughout the rest of the Seton Hall
community.”
Contact Rory at
Study Abroad Trip Explores History and Business in Ireland
The Guinness Storehouse in Dublin, Ireland was a favorite destination among
students who participated in the Business in Ireland trip.
Photo courtesy of Andrew Weinstein
Stillman NewsTHE STILLMAN EXCHANGE TUESDAY, MARCH 22, 2011 7
By Beverly Makarios,
Stillman News Assistant Editor
This week’s featured Stillman Standout is
senior Kerry Magro. Magro is studying
Sport Management and Accounting at the
Stillman School. In addition to his member-
ship in The National Society of Collegiate
Scholars, he is also a member of the
Stillman School’s Leadership Development
Honors Program, president of Student
Disability Awareness, vice president of fel-
lowship for Alpha Phi Omega, member of
Alpha Chi Lambda Sports Management
Honor Society and blog writer for Autism
Speaks. In the following interview, Magro
shares with the Stillman Exchange his
accomplishments as an undergraduate, his
internship experiences, and his projects to
spread autism awareness.
Beverly Makarios: What do you hope to
accomplish with a career in Sport
Management?
Kerry Magro: When I found out that Seton
Hall had an undergraduate Sport
Management program, I was hooked. I have
always been passionate about all aspects of
sports! My main goal for my career with
Sports Management is to do something in
regards to Sport Marketing or Event
Planning. In college, I’ve always been
someone who stays very organized and
takes initiatives to get things done. I believe
I would be able to implement these skills in
the sporting world very well. Stillman and
the Leadership Development Honors
Program have prepared me to be an asset to
any sports organization.
BM: How did you go about receiving your
internship with CBS Sports? What did your
position entail?
KM: First, what an amazing experience! I
first applied for CBS Sports through an
online application from the Career Center. I
received a strong recommendation from
Professor Rick Gentile, my Sports TV pro-
fessor, who used to be a Vice President at
CBS. About six weeks later, after they
reviewed my application, I was asked to do
a phone interview and they accepted me as
a research intern for the company. When I
got there, I found out they only took two
interns per semester. Incredibly, I had the
opportunity to work on both the Super Bowl
and March Madness events during spring
2010. It’s great to actually be in the thick of
it and they actually used some of my
research during the broadcasts!
BM: This spring break, you had the oppor-
tunity to meet the U.S. Senator for New
Jersey, Robert Menendez. What was this
experience like for you?
KM: I’ve had several surreal moments that
have happened in my life. One of them hap-
pened last week when I got to spend a day
at the Capitol in Washington D.C. speaking
to New Jersey Senator Robert Menendez
about several Autism-related topics includ-
ing the Light It Up Blue for World Autism
Day, which is a movement to get major
buildings worldwide to turn blue all
throughout April in order to raise autism
awareness.
As someone on the spectrum, I have been
advocating for Autism Rights for the past
several years by sharing my experiences,
along with doing consulting work, for fam-
ilies with individuals on the spectrum. This,
however, was a new test for me as it was the
first time that I was speaking to a U.S.
Senator. To say that I was nervous would be
been an understatement but I was really
privileged to be able to speak with an amaz-
ing individual on these issues.
BM: What is your role in Autism Speaks?
KM: I started the Student Disability
Awareness organization here on campus as
a freshman. So the internship with Autism
Speaks was a natural progression from that
activity here at Seton Hall. As someone on
the spectrum, I got this position as an advo-
cate for autistic students and disability
rights. My role in Autism Speaks is a Social
Marketing Intern. Ironically, this internship
has presented amazing opportunities for me
as a Stillman Sport Management Major. As
part of the fundraising aspects of the job,
I’ve been to events such as the Young
Professionals at the New York Stock
Exchange, the Temple of Dendur with the
NBA, the Dover Downs Nascar Race with
Jamie McMurray, and the Basketball Hall
of Fame Induction in Springfield,
Massachusetts, all representing Autism
Speaks! I’ve interviewed college students in
Washington Square Park about what the
word autism meant to them and I was even
in a short video that Bruce Springsteen
introduced at Carnegie Hall last spring.
BM: You’re currently in the works of writ-
ing a book focused on students with learn-
ing disabilities. How did this idea come
about? How are you making progress?
KM: The book I’m writing, called “Autism:
College on the Spectrum”, is a story of my
college life here at Seton Hall along with
helpful tips for individuals with autism, or
learning disabilities, to help them succeed
in college. You might be surprised to find
out that three percent of on-campus students
at Seton Hall are registered with disability
services. I’m doing this project to raise
awareness and pave the way in order to
make it easier for these individuals and
other students all over the country to attend
live on campus and succeed. I also hope to
let the faculty understand more of what our
challenges are so they can help.
The idea of writing the book came about
during an Autism Society of America
Conference in 2007 that I attended. One of
the sponsors said to me that it would be
great if I could write a book about my expe-
rience with autism by keeping a journal of
what it was like as I went through it. I’m
happy to say that I just got word that I will
be going to Orlando right after graduation to
present my college experiences here at
Seton Hall to over 2000 attendees. I also
intend to highlight the book which should
come out in 2012.
Contact Beverly at
Stillman Senior Kerry Magro Raises Awareness for Autism
By Rory Manning,
Stillman News Writer
Integrity and professionalism are two
words that every Stillman student hears dur-
ing their time at Seton Hall. Some students
exemplify and truly take on the meaning of
those words by putting them into action.
On Wednesday March 16, 2011,
Stillman School students were honored for
all of their hard work at the Integrity &
Professionalism Luncheon.
Students from every major and class
were honored through various scholarships
and awards for their achievements. The
event was hosted by Acting Dean Joyce
Strawser and was organized by members of
the Stillman administration.
Green honor cords and certificates
were handed to those who received awards
as appreciation for all of their hard work.
Prizes and awards ranged from the
Outstanding Senior Assessment Prize, pre-
sented to the team consisting of Tarik
Ancrum, Briana Dominguez, Arifa Kayoon,
Caitlin Moran, and Dana Servido, to the
Mills Prize for Academic Excellence, given
out to students who have achieved a 4.0
GPA through their academic studies at
Seton Hall.
The UBS Critical Thinking Award and
Investors Savings Bank Award were pre-
sented to students for their teamwork abili-
ties, while the Sophomore Achievement
Certificate, Mutual Benefit Life Scholarship
and First Fidelity Work-Study Prize were
awarded to star students in all majors of the
Stillman School for their success in their
concentration.
Alumni and organization-funded schol-
arships were made available to students in
multiple majors as well. Winners of the
Recruiting Effectiveness and Course Design
essay competitions were showcased as well.
The John M. Pocher Memorial
Scholarship was awarded to Bradley Childs.
The scholarship is in memory of Pocher
who died on September 11, 2001. Mr.
Pocher’s family and friends established this
scholarship to honor his memory, and his
family was present at the luncheon to pres-
ent the award.
Congratulations to all the award win-
ners who are shining examples of the dedi-
cated students at the Stillman School.
Contact Rory at
Students Awarded at the Integrity & Professionalism Luncheon
Kerry Magro meets with New Jersey Senator
Robert Menedez in Washington D.C.
The Integrity and Professionalism Luncheon celebrated standout students and faculty
members for their achievements inside and outside the classroom.
Photo courtesy of Kerry Magro
Photo courtesy of Mike Reuter
Ethics8 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
Is the Prescription Drug Monitoring Program Ethical? The planned Prescription Drug Monitoring program in Florida will track the purchase and usage of prescription drugs. Many individuals are suspicious
that the information gathered could be leaked for the benefit of prescription drug companies. Others feel that this program will be a failure.
Garrett Stainbrook,
Freshman Economics Major
Up the Ante on Drug Suppliers
Prescription addiction is a growing
problem throughout the U.S., not just in
Florida. The governmental tracking of who
uses prescription drug is not going to pre-
vent the problem. Although well inten-
tioned, the government should scratch the
Prescription Drug Monitoring program alto-
gether.
What we need is a grass-roots approach
targeting the doctors, drug-dealers and
addicts directly, and not simply “tracking”
them. In essence, through this three pronged
attack, the government can “up the ante”
and create positive change by attacking pre-
scription drug addiction at its source, the
users and the suppliers.
Tracking becomes just a pointless inva-
sion of privacy that accomplishes nothing.
The only beneficiary from tracking that I see
would be prescription drug companies that
would use this gathered information to bet-
ter target their advertising strategies.
Cities and towns could be classified
using statistical data. As a hypothetical
example, data shows that 67 percent of indi-
viduals in Bobsville receive a prescription
for Claritin-D. The drug’s manufacturer
could react accordingly by increasing or
decreasing advertising to fit the market, or
Claritin-D’s competition would increase
advertising in Bobsville.
Regardless of the effects of prescription
drug monitoring, the program is not
addressing the real problems of addicts and
suppliers. Only if we address this issue will
we be able to inflict real positive change on
this growing epidemic.
Contact Garrett at
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.
Photo courtesy of The Untrained Housewife
Gary Iannorone,
Junior Finance Major
The Government Guard
The Prescription Drug Monitoring
Program that currently exists in Florida
may not be the best option for battling pre-
scription drug addiction, but that does not
mean that we should drop the program
altogether.
As Americans, we need to band
together and battle this rising epidemic of
addiction. This fight needs to be a full-on
community effort. Many have stated that
the PDMP is an invasion of privacy, but it
is one I am willing to accept. In essence,
the benefits far outweigh the costs.
This program is the prime example of
good government in action; it was created
to save lives. The government does not
care if you take Lipitor, but when you have
repeatedly refilled a prescription for oxy-
codone in two continuous years with four
different doctors, then a problem is clear.
As Americans, we trust that our elect-
ed officials and government agencies will
not “leak” this information to the public, or
to prescription drug companies that are
seeking profits. Of course, the government
isn’t perfect, but nothing in life is.
What is ethical here is the intentions
of the program: to save lives from the dan-
gers of prescription drug addiction. It is not
just the hardcore addicts that are of con-
cern here; it is also those who have been
unknowingly and casually addicted
because of other medical procedures.
For example, if you recently had sur-
gery, whether it is knee replacement or ton-
sil removal, you are sent home with a pre-
scription for some form of pain-killers.
You take them on a regular basis, but
once your prescription runs out, you have a
craving for more. You tell yourself that you
are still in pain, and you create an imagi-
nary scenario rationalizing a need for
more.
Unknowing of this growing addiction,
you get more from the doctor’s office, and
before you know it, you are continuously
searching for prescription drugs.
It is this sort of behavior that the gov-
ernment is trying to protect us from! They
are here to help, and we need to accept that
help. The PDMP is not a perfect program;
the implementation of the program will do
this for our own good.
Contact Gary at
Joan Orejuela,
Junior Political Science Major
Start from Square One
The widespread problem of prescrip-
tion drug abuse in Florida is an epidemic
that has not been able to be subdued, even
with the countless legislative tactics created
to do so.
The Prescription Drug Monitoring
Program that Florida Representative Rob
Schenck would eliminate, through two new
bills that passed the House Committee, was
originally created as a database that would
track the usage of controlled substances
throughout Florida.
However, the primary problem with the
program is that it has yet to be implemented
so Floridians still see prescription drug
abuse increasing at an alarming rate.
Furthermore, to add insult to injury, the
Prescription Drug Monitoring Program
abuses the privacy of certain areas and indi-
viduals being monitored, resulting in an
invasion of privacy for Floridians that offers
no concrete results and absolutely no real
change.
As a result, there is currently no worth-
while tactic to resolve prescription drug
abuse in Florida. Rep. Schenck has, through
these new bills, confronted the situation on
a micro level; one of the two bills “aims to
eliminate or reduce a doctor’s ability to dis-
tribute medicines.”
Those against this proposal argue that
such legislation will be harmful to “the
neediest” of the state of Florida, as health
care options will be even more limited.
However, this effort to reduce a doctor’s
ability to distribute medicine is the best
option to eliminating the act of “doctor-
shopping,” an addict’s visits to various doc-
tors in order to acquire their drug of choice.
If these new bills are passed, Florida’s
prescription drug habit will be placed on
hold. In my opinion, this proposal is the
most ethical option available–to offensively
combat the abuse of prescription drugs
instead of just tracking its sale and usage.
Therefore, the effectiveness of the plan
greatly outpaces that of the PDMP.
After all, it is Florida’s prescription
drug abuse epidemic. The reasoning behind
this legislation is simple; the tactics current-
ly in place to resolve the prescription drug
abuse problem of Florida are not producing
results, and the best way to start some kind
of resolution is to start over.
Contact Joan at
Prescription drug monitoring is a hot topic in Florida, where politicians are
battling over whether or not to implement the legislation passed in 2009.
The database access diagram for the Prescription Drug Monitoring Program shows
how it meets all the security requirements required of the Florida Department of Health.
Chart courtesy of the Florida PDMP
Map courtesy of the Florida PDMP
THE STILLMAN EXCHANGE TUESDAY, MARCH 22, 2011 9
Editorials
By Lee Duan,
Managing Editor
Students today think about only one
thing: what do I need to do to get what I
want. For some, this need for attainment is
what drives us to do well in college or join
university organizations. For others, this
need compels us to want closure and associ-
ation with people, resulting in the building
of relationships and the creation of social
groups.
This culturally accepted motivator of
human behavior is neither good nor bad.
Yet, when needs drive behavior in a society
where standards of achievement create anx-
iety and neuroticism, what students want
results in behavior that can be damaging,
resulting in a generation of competitiveness
that takes priority over personal wellbeing.
If Plato was correct in his assumption
that human beings strive for the Good and
the Good is synonymous with what makes
us happy, then it is clear that our behavior is
driven by this desire to be happy. A problem
arises for students when we are striving for
something that we believe will make us
happy, not because it will actually result in
happiness, but because society has implant-
ed this idea into our very identity.
Our underlying perception of what is
expected of us by others, whether it is our
parents, popular culture, or society in gener-
al, has made the attainment of specific
goals, gradually embedded in us since we
were children, the only motivation that
drives our behavior.
Even today’s prominent intellectuals
and writers affirm this need for achieve-
ment. For example, Pulitzer Prize winning
author Thomas Friedman argued that the
globalization of world economies creates a
necessity for the U.S. to become a more
highly educated nation relative to other
countries, further enforcing a culture of
competitiveness.
Nancy Kalish of The New York Times
recently commented that “stress levels of
our students have reached a crisis point.”
The roots of this stress are this increase in
competition and societal expectations.
The drive to achieve greater results
than those around us, to be in positions of
power and to move through the structured
hierarchy of education, marriage and career
growth, is how we are judged by others, but
most importantly by ourselves.
I am the first to acknowledge that I am
guilty of this need to realize these expecta-
tions. My desire to achieve academic excel-
lence, to be in leadership positions and to
attain the most prestigious career prospects
creates in me a feeling of self-worth even
though this drive results in pressure that is
unhealthy and unproductive.
Yet, I realize that this satisfaction is not
authentic. It is satisfaction of a weak inner
character, and cannot be the foundation for
human life. I hope that those of you who
have great ambitions and goals make this
personal examination when contemplating
how one should live.
We are so caught up in the pursuit of
something while we forget that the pursuit
itself is actually more important. Our
behavior results in stress that we ignore,
because we believe that the expected result
is the only thing that matters.
It is time for us to examine why we are
on the path that we are on. Why is it that we
keep competing and striving to attain even
at our own detriment?
I am not advocating that students stop
working hard and that they ignore a healthy
dose of competition. In fact, I am not pro-
posing any reduction in individual produc-
tivity. I would only like students every-
where to be aware of what it is that we are
doing and why it is that we are doing it.
Contact Lee at
By Ryan Garrity,
Stillman News Editor
As an avid fan of the National Football
League, the thought of a fall season without
watching my beloved New York Giants
take the field is a thought that I had hoped
to never have. Early in the season, I never
really gave any thought to the lockout talk.
Sure, it was always looming overhead, but
I had faith that the powers would be able to
smooth everything out.
Then the off season hit. Owners and
players met to renegotiate the Collective
Bargaining Agreement, and fans sat, fingers
crossed, hoping that some agreement would
be reached, and we would all be able to
enjoy football on Sundays for another year.
For those of you who are confused
about the whole labor situation, as was I at
first, the main issue centers around the
amount of money that the owners want to
take from the $9 billion revenue pool. In the
previous CBA, the owners took $1 billion,
but they are now trying to increase that
number to $2.4 billion, citing “the econom-
ic realities of the era” as their reason.
Effectively, this would cut the players
share of revenues by a whopping 18 per-
cent. The players are not in agreement and
are fighting tooth and nail to prevent this.
There is also a second topic of con-
cern—the split of the overall revenue. The
players have been fighting for a 50-50 split
with the owners, and the owners have
turned that right back around and offered a
51-49 split for the owners, and this was
denied by the NFLPA.
Talks went on and on for quite some
time, constantly being extended. Many
fans, including myself, took this as a good
sign that we would still see football next
year. About a week ago, the biggest blow
hit.
After talks continuously failed, the
NFLPA officially filed for decertification.
This in effect opened the door for the union
to pursue litigation against the NFL on
grounds of anti-trust violation.
The owners promptly fired back by
imposing a lockout on the players, effec-
tively canceling the 2011 NFL season. The
players have filed for an injunction to block
the lockout. If this is granted, the NFL will
most certainly appeal it, which means
things will drag out even longer.
The time frame for a solution does not
look promising either. It could take up to a
month for the courts to rule on the injunc-
tion request—just because this is a high-
profile case does not mean that it will get
any special treatment. As in all litigation
requests, there is a backlog of cases, and the
NFL will have to wait in line. While it
seems that there is still time remaining
before the next season, time waiting for and
spent in court will further deteriorate any
possibility of an already unlikely season.
I know that I may seem like an aggra-
vated fan by saying this, but I am actually
fed up with all of the lockout talk at this
point in time. It is truly baffling to me that
these two sides are not able to come togeth-
er and do what is right for both of them—
not only will a total lockout prevent players
from getting paid and doing what they love,
it will also prevent the owners from seeing
all the revenue that a typical season would
bring.
It will also bring about something
brand new—the first lockout in the history
of the National Football League. This
would be heartbreaking to all of the fans of
this great sport. Yet, all they can do right
now is sit glued to the television, hoping for
the light at the end of the tunnel.
Contact Ryan at
NFL Lockout Bad for Everyone
with Interests in Pro FootballThe 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.
Executive BoardExecutive Board
Managing EditorsLee Duan
Margaret Reilly
Assistant Managing EditorRich Kimsey
Editorial BoardEditorial Board
Money and InvestingBryan Murawski
Stillman NewsRyan Garrity
EthicsDavid Guzik
EditorialsAnthony Crisci
Sports BusinessTravis Tosoni
Domestic NewsMorgan Tornetta
International NewsKaitlin Tonti
International BusinessAlex Cohen
Competition and stress has become a dominant component of student life.
Photo courtesy of Skoola
Assistant EditorsAssistant Editors
Money & InvestingJennifer Crowe
Stillman NewsBeverly Makarios
Sports BusinessTony Bonkalski
Domestic NewsAlina Fernandez
International NewsRaphael Baseman
International BusinessAlexandra Hauenstein
Faculty AdvisersFaculty AdvisersMichael Reuter, M.B.A.
Website Website www.stillmanexchange.com
TwitterTwitterstillmanXchange
FacebookFacebookThe Stillman Exchange
Students’ Stress Caused by Pursuit of What?
Sports Business10 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
Ticket Prices at the Garden Set to Grow Next SeasonBy Robert Szeluga,
Sports Business Writer
Starting next year, it will cost fans a few extra dollars to
find a seat in “The World’s Greatest Arena”. Madison
Square Garden, the famed New York venue, has announced
that it will increase season ticket prices for both the Knicks
and the Rangers for the 2011-2012 seasons. This follows the
recent success of both clubs as well as scheduled renovation
for the next three years.
The Knicks, who currently find themselves in prime
position for a playoff berth, will increase the average ticket
price by 49 percent. Seats will now range from 20 different
prices starting at $35 and going up to $3600, the second
highest average ticket price in the league. Officials say that
the recent Carmelo Anthony deal was not a factor in the
decision, rather the anticipated performance of the team in
years to follow. The Rangers will also increase their average
ticket prices by 23 percent, offering a total of 17 different
prices.
The upcoming renovation is also a major factor in the
decision to raise prices. Madison Square Garden is sched-
uled to undergo a three-year renovation process beginning
this year. Renovation will take place over a twenty week
period during the next three summers, once the Knicks and
Rangers seasons come to an end. A postseason run by either
team can create a potential problem, forcing either a halt in
construction or the Rangers would have to play on the road
during the first month of the season. The Liberty, New
York’s WNBA team will be forced to find another venue to
play.
The project is estimated to cost around $850 million by
its completion and will feature an entire new look to the
already famed arena. This summer, construction will focus
on improving the lower bowl of the arena, the main con-
course, event level suites, the Delta Sky360 Club, and the
locker rooms.
By the three year completion the arena will be com-
pletely transformed, including state-of the art bridges that
hover over the seating bowls. Despite all the renovations, the
number of available seats will remain the same.
Though ticket prices will significantly increase,
Madison Square Garden will not require fans to purchase
personal seat licenses. Personal seat licenses, also known as
PSLs, give the holder the right to buy a ticket for a specific
seat. The New Meadowlands Stadium currently charges
such licensing fees to ticketholders of both Jets and Giants
games. PSLs, however, are not as common for NBA or NHL
venues as they are for NFL stadiums.
Contact Robert at
The proposed renovation will cost approximately $850 million.
Photo courtesy of MSG.com
NFL Locks
Out Players,
Prepared
for Fight… continued from page 1
However, the NFL is already pre-
pared if the season does not start in
September. The league has set aside $4 bil-
lion in the event that there is no 2011 season.
The Players Association says that since the
NFL was setting money aside, it was obvi-
ously planning on locking out the players.
The NFL argues that this move was done as
a precautionary measure just in case the sea-
son does not occur.
Nonetheless, it is not only the play-
ers and the NFL that are affected by the
lockout. If there is no season, the NFLPA
estimates that 3,739 NFL workers will not
have jobs, and that does not include the busi-
ness around the stadiums that rely heavily on
the games to generate income. The NFLPA
also says that an average of $160 million
will be lost in every NFL market if there is
no regular season.
This number is troubling to every-
one that relies on these games to help their
business. One can only hope that the two
sides are able to come together and settle
their differences for the sake of the people
that love the NFL.
Contact Tony at
Under Armour Becomes Apparel Provider for EPL’s Tottenham HotspurBy Tony Bonkalski,
Assistant Editor
Under Armour, a U.S. leader in sports
apparel, signed a deal with Tottenham
Hotspur that allows the company to make
the team’s playing kit during their five year
agreement.
Under Armour took over the current
supplier for the team, Puma, and begins its
kit supply deal at the start of the 2012-13
season. The agreement also represents the
biggest deal for a U.S. company in Europe to
date. This is Under Armour’s first deal with
an English Premier League team.
Mark Dowley, Under Armour’s execu-
tive vice president commented on the deal.
“This allows us to create a media vehi-
cle in a market where we are under-penetrat-
ed,” Dowley said.
Chairman of Tottenham Hotspur, Daniel
Levy added his opinion.
“We are delighted that Under Armour
will become our new technical partner from
2012 onwards, said Levy. “They are an
extremely ambitious brand with global aspi-
rations, making them ideal partners for
Tottenham Hotspur."
Even though this is Under Armour’s
first Barclays Premier League agreement,
players in the league already wear the com-
pany’s cleats during the matches. Under
Armour also has an athletic partnership with
the Welsh Rugby Union and Hannover 96 of
the Bundesliga.
This is another move in Under
Armour’s busy year. The company exceeded
$1 billion in annual sales for the first time
last year. Recent years have shown that
Under Armour is expanding its agreements
with various sports teams and athletes, and
now are helping their market share in other
countries.
Some of the athletes that Under Armour
is sponsoring recently include Tom Brady,
New England Patriots quarterback, and
Olympic athletes Lindsey Vonn and Michael
Phelps.
Under Armour is a Baltimore based
company founded in 1996 by Kevin Plank,
who remains the current President, Chief
Executive Officer, and Chairman of the
company. This company is the first company
to bring performance apparel to the sports
world, and is recognized as the fastest grow-
ing U.S. performance brand.
Tottenham Hotspur is one of the world’s
most successful soccer teams in the English
Premier League and the world. The club fin-
ished in fourth place of the rigid league in
the 2009-2010 season, leading them to
Champions League qualification.
The terms of the deal were not dis-
closed.
Contact Tony at
Greenberg Steps Down as Rangers’ CEOBy Anna Negron,
Sports Business Writer
On March 11, the Texas Rangers
announced that Nolan Ryan would become
the team’s CEO as he replaces Chuck
Greenberg, who resigned from the position.
The resignation may come as a surprise,
but there were many accumulated problems
within the organization that may have trig-
gered Greenburg’s resignation. A location
change of the Rangers minor league team,
Greenberg’s excessive involvement in dis-
cussion during winter meetings, and the very
public debate of general manager Jon
Daniels’s extension were some of the few
discrepancies that the Rangers faced with
Greenberg as CEO.
Despite the front office controversy, the
Texas Rangers had their most successful
season in franchise history as the 2010
American League champions. However, the
Rangers could not manage to keep their
competitiveness going as they lost their star
pitcher Cliff Lee in free agency to the
Philadelphia Phillies. One cannot help but
wonder if Greenberg’s involvement had any-
thing to do with Lee’s departure.
Nonetheless, the team and players stated that
they plan to move forward despite the loss,
and the shift in the front office will have no
effect on the performance of the team.
Davis and Simpson, the largest
investors of the Rangers ownership group,
said
“Chuck’s departure will have no effect
on the team's operation and we look forward
to working with Nolan Ryan as this organi-
zation continues to grow and prosper,”
according to ESPN.
Greenberg sold his interest back to
group and decided it would be better to just
“move on,” as he expressed his disappoint-
ment that they were not able to settle their
differences.
ESPN reported that most of the players,
including David Murphy, were unaware of
the situation until the statement was released
early Friday morning.
"Things like this aren’t going to affect
us on the field," Murphy said. "I don't know
details, but the time that Chuck was here, he
was an awesome guy. He seemed like he was
going to steer the franchise in the right direc-
tion. We’ll miss him, but in this profession,
whether it's the front office or ownership or
players, it's a constant revolving door. We’re
used to people coming and going."
With this resignation, Nolan Ryan will
be reporting to the board of directors, as well
as overseeing all baseball and business oper-
ations. The Texas Rangers open their 2011
season on April 1 against the Boston Red
Sox.
Contact Anna at
Nolan Ryan will now add CEO to his already lengthy managerial resume.
Photo courtesy of Associated Press
Sports BusinessTHE STILLMAN EXCHANGE TUESDAY, MARCH 22, 2011 11
Garnett Signs Endorsement Deal with Newcomer ZicoBy Nick Costa,
Sports Business Writer
When you walk into a supermarket
looking to stock up on your favorite sports
drink, you may usually seek out Gatorade,
Powerade, or Vitamin Water on the shelves,
but very soon you may actually grabbing
something you have never tried before:
coconut water.
Coconut water brand Zico, a company
in which Coca Cola invests, has recently
signed a long time believer and basketball
super star Kevin Garnett to a deal that
includes both paying him in cash and giving
him an equity stake in the up and coming
company. For Garnett, it has always been
about doing what is best for his body and he
swears by it,
“It allows me to play 34 minutes in a
game with some of the young stars in the
league without cramping,” Garnett said.
But what makes coconut water so good
for you is that it is high in electrolytes but
low in calories. The coconut water business
is also heading in the right direction, grow-
ing by 150 percent in each of the past five
years. Many experts in the industry feel that
it will not be long before you see coconut
water making a major splash on sidelines
throughout professional sports.
Like Coca-Cola, Pepsi will partner up
with GNC to release their own coconut
water versions called Phenom, set to come
out later in the year. However, what makes
Zico so prominent is that along with the fact
they were able to sign a premiere athlete as
their endorser, they also have the right peo-
ple at the head of the company. CEO Mark
Rampolla says people with stake in the com-
pany are guys like the founders of Nantucket
Nectars, Honest Tea, and one of the former
presidents of Snapple.
Though it may have the right people on
board, the bottom line in deciding whether
or not coconut water will be a hit is taste,
and experts say that it will be something that
Americans will need to get used to. Zico has
added a number of “natural” flavors, with a
chocolate flavor coming soon.
So the next time you are playing ball
with your friends and it is time to take a
break, it might not be your normal “water
break.” It may very well be that you are
reaching for some coconut water to rehy-
drate and get you ready to finish the game
strong.
Contact Nick at
Zico coconut water offers athletes high amounts of electrolytes and a low number of calories.
Photo courtesy of Zico
NHL Concerned
About Player SafetyBy Travis Tosoni,
Sports Business Editor
Over the past two months the National
Hockey League has been plagued with mul-
tiple incidents that involved illegal and dan-
gerous body checks that have resulted in
injuries to players.
The major concern with the league is
the deliberate contact that players are mak-
ing to the heads of other players while deliv-
ering checks. Since January, there have been
numerous players that have suffered serious
concussions; the most notable being
Pittsburgh Penguins superstar Sidney
Crosby and Montreal Canadiens forward
Max Pacioretty.
Last week, all 30 NHL general man-
agers met in Boca Raton, Florida at the
annual GM Meetings. This meeting is held
towards the end of every season for general
manages and league executives to discuss
current issues and evaluate the game on the
whole. The topic at the center of attention at
this year’s meeting was of course the issue
of player safety and the growing amount of
dangerous hits being administered.
Gary Bettman, commissioner of the
league, along with other top officials pre-
sented their evaluation on concussions. The
league determined that 44 percent of concus-
sions incurred this season have been the
result of “legal” hits, 26 percent from acci-
dental collisions, 17 percent from what are
deemed “illegal” hits, and the remaining
eight percent from fighting. The final five
percent was unable to be determined
because the league was unable to locate
footage from every confirmed incident.
“There’s no one single thing causing
concussions,” said Bettman. “There is no
magic bullet to deal with this. I know that
it’s an emotional, intense subject, particular-
ly for our fans.”
Bettman is referring to the reactions of fans
across the league after the controversial Max
Pacioretty hit. Pacioretty was skating along
the boards before being driven into a glass
stanchion by Zdeno Chara of the Boston
Bruins. Pacioretty suffered a severe concus-
sion along with fractured vertebrae in his
neck.
The league is tired of seeing some of its
best players sustain injuries due to illegal or
reckless hits, and is currently creating a plan
to curb the amount of concussions and ques-
tionable checks.
Contact Travis at
ECHL’s Condors “Winning” with MarketingBy Matt Bartel,
Sports Business Writer
He has the blood of a tiger running through his veins. He has win-
ning on his mind. He is on a drug, a drug called Charlie Sheen. And
the ECHL’s Bakersfield Condors looked to profit from the recently
embattled actor’s massive wave of popularity.
Sheen, once a top billed movie star, has spent his recent years
on the Emmy award winning television series “Two and a Half
Men”, which has made him the richest man in television. After a
contract dispute, Sheen went on numerous interview tirades filled
with vulgar content about his wild home life and illicit drug use.
This led to his firing by Warner Brothers, and resulted in an internet
fueled cult following.
With over one million followers on Twitter and his various
videos racking up views on YouTube and other sites Sheen has pos-
sibly become more famous than ever. For its promotion, attendees of
the March 12 game in Bakersfield had many opportunities to show
their “winning” ways and save money as well.
Condors fans received free admission with a clean drug test, or
only had to pay two and a half dollars for admission if they arrived
dressed as Sheen’s character from “Two and a Half Men.” The first
1,000 men that arrived received Sheen’s face on a stick masks to
wear and treasure as a keepsake of the memorable promotion.
Though this may seem unorthodox, it was not the Condors first
attempt at holding a themed night to help attendance.
In recent years the team has held several of these events such as
Sarah Palin and Michael Jackson nights. The Condors also extended
an offer to Sheen to attend that evening’s game, to which he did not
respond. The willingness to market it not something the Bakersfield
based team is afraid of, despite catching heat for choosing a contro-
versial figure to host a themed night for.
Team president Matt Reilly sees no shame or harm in such
events, defending the Sheen promotion when he told sportsbusiness-
daily.com’s Erik Swanson,
“We don’t take ourselves too seriously and hope that other peo-
ple don’t either, said Reilly. We think this can help us sell some tick-
ets and get us some publicity.”
The Condors look at nights like this to increase attendance and
help keep their team in operation during the tough economic times.
In the true spirit of Sheen’s recent popularity, the team can consider
itself to be “winning” at the box office and in the stands.
Contact Matt at
NASCAR Sees Fast Start to 2011 SeasonBy Brianna Young,
Sports Business Writer
The 2011 NASCAR season is off to a
strong start. The chairman of NASCAR,
Brian France, is very pleased with the
results. While it is acknowledging the imme-
diate success of this season, NASCAR has
no plans to slow down and hopes to keep the
string of success going for the entire season.
After the first three races of the season,
the ratings are already up and the tickets for
the upcoming two races are sold out.
NASCAR has been adjusting to the different
format of its racing schedule this season,
which started a week earlier and also saw an
off-weekend on March 13.
This early start has brought concerts for
some people who feel it could hurt
NASCAR even more because ratings under
the old schedule were poor already. In a 30-
minute national conference call, France
spoke about the current state of his sport. He
noted that the success of the first three races
have been great.
The Daytona 500 gained tremendous
attention after 20-year-old Trevor Bayne
came out with a surprising win and became
the youngest racer ever to score a victory in
the historic race. Bayne became an immedi-
ate star and he generated national attention
for himself and the sport.
The other two races this season are also
something to talk about for NASCAR. At
Phoenix, Jeff Gordon made a breakthrough
by finally breaking his 66 losing streak, and
Carl Edwards earned a thrilling win in Las
Vegas. NASCAR also saw a historic feat
made by its only female racer. Danica
Patrick who finished in fourth place in the
Nationwide Series, achieved the highest-
ever finish by a woman, as well as earning
the highest finish in her career.
With this streak of success for some of
NASCAR’s youngest and most popular
drives, hopes are this will attract more view-
ers in the 18-34 year-old demographic.
NASCAR has seen a steady decline in this
age group over the past several years.
The parity in race results and increased
race sponsorships has also been good news
for NASCAR this season. Everything that
could go right for NASCAR has so far this
season, and it is determined to keep this
momentum going.
Contact Brianna at
Trevor Bayne’s win at Daytona is one of the more memorable moments in the early part of 2011.
Photo courtesy of the Associated Press
Sports Business12 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
Vikings Stadium Proposition Faces Opposition from the Public By Brittany Hammer,
Sports Business Writer
The Minnesota Vikings have experienced their share of
tough luck in the past – including no victories in their four
chances at a Super Bowl victory and what seems like an end-
less flow of scandal surrounding the purple and gold. Now,
as the organization begins its hunt for a new home, support
seems hard to find.
The Vikings have been pushing for the construction of a
new stadium for the past several years, mainly because their
lease with the Metrodome was coming to a close. Now, with
the Metrodome severely damaged from a violent December
snowstorm, the team’s plea for a new home has become even
more desperate.
The problem – taxes. State legislators may have a hard
time promoting such a proposition to their respective com-
munities when taxpayers would be expected to fund over
half of the new stadium’s construction. Minnesota commu-
nities and their citizens refuse to watch their taxes increase,
especially if their money is only going to pay for the build-
ing of a $1 billion stadium to replace the 29-year-old
Metrodome.
The primary organizers behind this proposal have yet to
release any concrete plans for stadium construction.
Stadium plans will be released along with any funding
sources, including various sales taxes on team-related mer-
chandise and other purchases.
Legislative supporters are also on the hunt for a local
partner to endorse the project as primary tax contributor.
But finding that one county willing to build the stadium,
even if it means raising taxes, has proved a ‘taxing’ chore in
itself.
Ramsey County, home to the state capital of St. Paul, is
the only county that has publicly embraced the potential sta-
dium construction. Board members have suggested a possi-
ble site for the new stadium, located about 10 miles from the
Metrodome, in place of a former ammunition plant. The
small county would also plan on implementing a county-
wide half-cent sales tax to help fund the Vikings’ new home.
Even so, Ramsey County is not in total accord when it
comes to the matter. Several county representatives object-
ed to the proposition, suggesting that Ramsey County could
fund various other improvements with the tax revenue,
rather than the building of a $1 billion stadium.
Other sites in contention for the Vikings’ new stadium
include the current Metrodome site, as well as another site in
Hennepin County near Target Field – home of the Minnesota
Twins. So far, officials representing both Minneapolis and
Hennepin County are reluctant to support the project.
There is no doubt that the state bleeds purple and gold,
as the team expects to receive sufficient support from the
Twin Cities and greater Minnesota as the situation progress-
es. The Vikings and Minnesota legislature now need to find
which county is willing to bleed a little more in tax dollars
in order to house its beloved Vikings.
Contact Brittany at
XIX Entertainment
Group Lands
Formula 1 Driver
Lewis Hamilton
By Robert Szeluga,
Sports Business Writer
A last surge attempt at the playoffs may
not be the only thing on the minds of the
Toronto Maple Leafs in the next few weeks.
The Ontario Teachers’ Pension Plan, a
group that owns two-thirds majority of
Maple Leafs Sports and Entertainment, has
announced interest in selling its ownership
rights.
The Ontario Teachers’ Pension Plan is
an independent organization that is the
largest single-profession pension fund in
Canada.
It currently serves over 289,000 active
and retired teachers. In 1994, the pension
fund purchased majority ownership of
Maple Leaf Sports and Entertainment for
$102 million. Now, the fund is expected to
receive an estimated $1.5 billion for the sale.
Talks of the sale surfaced back in
December, but a deal seems evident within
the near future. One potential buyer is
Rogers Communications, a company that
already owns the Toronto Blue Jays. Maple
Leaf Sports and Entertainment, also known
as MLSE, has also reported to have contact-
ed investment bank Morgan Stanley to assist
in the potential transaction.
Larry Tanenbaum and TD Capital are
the other two primary shareholders of
MLSE.
Both have already said that they have
no intention of selling their shares of the
company. Both, however, can buy a portion
equal to the percentage it currently owns.
Therefore, Tanenbaum would have a con-
trolling share of 60.3 percent and TD Capital
would own the other 39.7 percent if they
were to choose such a path.
For now, both will be a part of the deci-
sion process regarding potential buyers.
The deal will not only affect the Maple
Leafs, but other local sports clubs as well.
MLSE is a Toronto company that owns the
Maple Leafs, the NBA’s Toronto Raptors,
the MLS’s Toronto FC, and the Leaf’s AHL
team.
The Maple Leafs is one of the NHL’s
most followed clubs, and a member of the
original six. Forbes estimates the Maple
Leafs alone is worth an estimated $505 mil-
lion, the highest value in the entire NHL.
It is interesting to note that the sale
comes at a low point in performance for all
clubs involved.
The Maple Leafs has missed the play-
offs five of the past six years, and has not
won a Stanley Cup since 1967.
In addition, the Raptors has only
appeared in 11 total playoff games since the
team’s inception 15 years ago, and Toronto
FC has yet to clinch a playoff berth in its
short life span.
Contact Robert at
Sporting Kansas City Kicks the Norm by
Signing with Nonprofit Foundation LivestrongBy Anthony Holesworth,
Sports Business Writer
The sports industry is one of the most
lucrative industries in the world. Some of
the biggest contracts in sports, aside from
player contracts, are naming rights deals.
These deals consist of an organization
or business paying a sports franchise in
exchange for getting its name on the team’s
stadium or arena. These deals are usually
large, multi-million dollar deals.
Kansas City’s MLS team, who was
recently re-named Sporting KC, made
American sports history just days ago by
signing a non-profit naming rights deal with
the Livestrong foundation. With this deal,
Sporting KC becomes the first American
sports team to sign a naming rights deal with
a non-profit organization.
Naming rights deals provide sports
teams with a significant source of income,
while providing organizations an effective
avenue for advertising their company.
According to Askmen.com, professional
sports teams in America make an average of
around $3 million a year from their respec-
tive naming rights deals.
Sporting KC’s deal with Livestrong is a
six-year deal. This means that for the next
six years, Sporting KC is forgoing the
opportunity to make any sponsorship money
for their brand new stadium and its name.
The stadium will be called Sporting
Livestrong Park. This deal is notable in
many ways. First of all, it is rare for any
company in today’s economy to pass up the
opportunity to make millions of dollars.
Secondly, the deal is commendable in that
Sporting KC is passing up on a for-profit
naming rights deal in favor of promoting a
non-profit aimed at fighting cancer. Thirdly,
Sporting KC is going a step above and
beyond by setting a target to try and raise
$7.5 million for Livestrong over the six-year
contract.
Livestrong president Doug Ulman had
this to say about the deal: “Sports are a uni-
fying force in bringing people together.
Livestrong Sporting Park is more than just a
stadium it’s the first athletic venue in the
world with a social change mission and
offers an ideal arena to champion the cancer
cause.”
Sporting KC has recognized that this
social change mission is, in many ways, a
higher cause than a pursuit of monetary
profit. Maybe this move will lead the way
for many teams to consider non-profit nam-
ing rights deals. Either way, we tip our hats
to Sporting KC for their philanthropic effort
toward bringing positive change to one of
the world’s biggest problems.
Contact Anthony at
The collapsing roof is the last straw for the Vikings old stadium.
Photo courtesy of Getty Images
By Anthony Crisci,
Editorials Editor
Sport agencies around the world com-
pete with each other every day to sign the
most famous and successful athletes.
Simon Fuller recently put his manage-
ment agency on the top of the competitive
heap.
Fuller owns the XIX Entertainment
group that already represents superstars
David Beckham and Andy Murray. Fuller
started his fame by managing the successful
careers of the Spice Girls in the early 1990’s.
Fuller is known as one of the most pow-
erful and flourishing men in the entertain-
ment business.
Last week the agency made another
move to raise the price of their stock by
signing Formula 1 driver Lewis Hamilton.
Not only does this group represent all
star athletes but they are also working with
entertainment superstars such as Jennifer
Lopez and Robert Pattinson. This lineup is
one of the greatest an entertainment industry
has ever seen with very respectable stars.
Hamilton signed with the agency a year
after splitting with his last manager, his
father Anthony.
“It was important that I took my time to
make this decision as it had to be right for
my career and my long-term future,”
Hamilton speaking of his decision last week.
“I spoke to many interested companies in
recent months but I felt Simon Fuller along
with his team not only wanted to help me
become an even better racing driver, but
they also shared my ambitions for the longer
term,” the F1 driver went on to say.
Hamilton is probably one of the least
known players in this agency, as he is a
Britain star, but does have some hardware to
prove is validity.
He was the 2008 F1 World Champion
under his belt as well as two very successful
seasons following that championship.
Hamilton was F1’s youngest champion ever
and is set to become the first Britain sports
billionaire.
Contact Anthony at
In the Midst of a Playoff Push, Maple Leafs Majority
Owner Announces Interest in Selling Ownership
Sporting KC’s proposal for Livestrong Sporting Park.
Photo courtesy of SportingKC
THE STILLMAN EXCHANGE TUESDAY, MARCH 22 , 2011 13
Domestic News
By Tiffani Maddox,
Domestic News Writer
Travelers have noticed a significant increase in the
amount of airport security since the terrorist attacks on
9/11. Travelers were thankful for the security increase for
years after 9/11 but now, 10 years after the attack, travel-
ers have become extremely annoyed by the ironclad secu-
rity of the TSA.
To this end, the U.S. Travel Association (USTA)
recently conducted an investigation on how the airport
experience could be improved for passengers.
The investigation lasted a year and the USTA recent-
ly presented their findings. The members of this council
include Tom Ridge who served as Secretary of Homeland
Security and Jim Turner, former member of the House
Homeland Security Committee.
Travelers often complain of unnecessary body-
searches, a long check-in process, and fees on carry-on
bags. After 9/11, the TSA was created to help protect pas-
sengers against further terrorist threats. They took on a
non-discriminatory role which assumed that everyone was
a suspect. Due to lengthy body-searches, passengers
spend excessive amounts of time waiting to get through
airport security.
The USTA believes that the best way to improve con-
venience would be to implement a voluntary “trusted trav-
eler” system for frequent fliers. This system would store
the passenger’s personal information in order to conduct a
background check.
CEO of the USTA, Roger Dow, shares in an interview
with USA Today that, “While our government and passen-
gers deserve credit for preventing another terrorist attack
like what happened nearly ten years ago on 9/11, each day
in the United States roughly two million air travelers are
advised to arrive upwards of two hours before a flight in
order to be processed through a one-size-fits-all security
screening system.”
The USTA believes that their suggestions would sig-
nificantly reduce the amount of time travelers spend pass-
ing through airport security.
The trusted traveler program would eliminate the
need for passengers to go through security a second time
during layovers. Travelers would still have their bags
passed through detectors but the excessive pat down
would be eliminated.
The USTA also suggests that the cost of the flight
should also include one carry-on bag instead of charging
a separate fee.
Passengers may be relieved by the USTA’s proposed
system but airline carriers have not been receptive. The
Air Transport Association promptly issued a statement
speaking out against the USTA’s proposal. They are con-
cerned that the government’s attempt to place regulations
on private airline companies violates their rights and
could lead to a lack of choices for customers.
The USTA’s proposal must pass through different
regulatory systems, including Congress. Unfortunately for
travelers, the proposal has a long way to go before we can
travel with less hassle.
Contact Tiffani at
South Dakota Governor “Incl ined to Sign” Strict Abortion Bil l Amendments
USTA Investigates ImprovingAir Travel Experience
News Briefs
By Fred DeRitis and Alina Fernandez,
Domestic News Writer, Assistant Editor
A new set of proposed abortion guide-
lines has renewed debate about the rights of
patients and the rights of fetuses.
South Dakota’s HB 121 contains strict
guidelines for women who seek to obtain an
abortion in the state.
South Dakota Gov. Dennis Daugaard
has said that he is “inclined to sign” into law
a new set of guidelines that would require a
woman to attend counseling sessions
intended to dissuade her from seeking an
abortion.
The bill would also extend the period
of time a woman would need to wait to have
an abortion performed from 24 to 72 hours.
The Guttmacher Institute reports that if the
extension goes into action it would be the
longest waiting period in the country. The
American Civil Liberties Union of South
Dakota reports that no other state requires
women to attend counseling.
Dauguaard said his motivation for sign-
ing the bill is his belief that women should
have more time and counseling to help them
make their decisions. He told the Associated
Press, “I think these decisions are certainly
very important decisions. A decision of this
significance warrants that [time and coun-
seling].”
Several groups including the ACLU’s
South Dakota chapter have expressed dis-
pleasure over the bill. Robert Doody, the
state’s director of the ACLU said, “The
South Dakota legislature should be
ashamed of this demeaning and destructive
law.”
Opponents of the bill have deemed it
intrusive and a violation of the rights of
abortions seekers because it would obstruct
their access to medical care.
When asked about possible lawsuits,
which South Dakota’s legislative research
council estimates would cost from 1.75-4
million dollars, Dauguaard said it would be
a “one-time expense”.
This controversial bill comes just after
the South Dakota legislature voted to table
indefinitely a bill that would expand the
state’s definition of justifiable homicide.
The bill itself states that the new definition
would allow for murder, “in the lawful
defense of ... his or her husband, wife, par-
ent, child, master, mistress, or servant, or
the unborn child of any such enumerated
person.”
While a spokesman for Gov. Daugaard
told the New York Times that the bill “as it’s
currently written is a very bad idea,” South
Dakota’s Speaker of the House, Val Rausch,
has not indicated whether the bill will be
voted on, amended, or dropped.
The bill is so controversial, that even
members of the anti-abortion movement are
criticizing the legislation. The leader of the
anti-abortion group Operation Rescue, Troy
Newman, said, “The pro-life movement, by
definition, is in favor of protecting human
life from the moment of conception to natu-
ral death, and we reject all forms of vio-
lence.”
Supporters of the amendment say that it
is being misinterpreted as an anti-abortion
measure, when it was actually meant to
extend legal protection to unborn children.
Anti-abortion activists are joined by
pro-choice activists in questioning the
intention of this piece of legislation. The
president of the local chapter of Planned
Parenthood, Sarah Stoez, said, “It’s a very
clear shift in the conversation.”
When Seton Hall students were asked
about their reactions to these controversial
bills their opinions were divided like those
in South Dakota.
Marie Odejar, a speech language
pathology major, said “Although I am pro-
life, the issue is too controversial to have a
such a biased law enacted.”
Raey Carandang, a psychology major
believes “the law is biased but necessary.”
Contact Fred at
Contact Alina at
Protestors demonstrate in front of the Supreme Court during the March for Life. South Dakota’s
proposed bill contains some of the strictest regulations in the country.
Pakistan Pulls Out of Talks on Afghanistan
Relations between the U.S. and Pakistan, a nation
whose alliance with the U.S. has been questioned in previ-
ous months, have been stretched even further. On Friday
March 18, Pakistan left talks on the Afghanistan war. This
was a reaction to a U.S. drone strike which killed a group
of civilians who had gathered on the Afghan-Pakistan bor-
der. The attack, which took place in a stronghold of insur-
gents, has U.S. and Pakistani officials disagreeing over who
was actually killed in the attack. Pakistani Foreign
Secretary Salaman Bashir told U.S. Ambassador Cameron
Munter that U.S. drone strikes are “a flagrant violation of
humanitarian norms and law.”
New York Times Changes Online Access Policy
The New York Times has decided to test the will of its
frequent readers by creating a new policy for its website.
Starting March 28, the newspaper will allow readers to read
up to 20 online articles a month. After the twentieth article,
users will be prompted to buy one of three packages,
including a $15 four-week subscription. Like most web-
sites, the New York Times hoped to have online advertising
bring in enough revenue to keep content free. However,
Chairman of the New York Times Company, Arthur
Sulzberger, Jr. explains in his State of the Times remarks
that this new policy will allow the New York Times “to
develop new sources of revenue to support the continuation
of our journalistic mission and digital innovation.”
Utah Chooses Official State Firearm
Utah selected an official state firearm, the M1911,
making it the first state to do so. State representative Carl
Wimmer (R) got the idea for the proposal after similar leg-
islation failed to pass last year in PA. Despite some ques-
tions raised by the measure after the events in Tuscon, it
passed in what Wimmer described as a “bipartisan effort.”
The governor’s spokeswoman said “This bill isn’t so much
about a weapon as it is about honoring John Moses
Browning, who was a Utah inventor and entrepreneur, and
he repeatedly gave back to the state.” Browning built the
M1911.
Photo courtesy of Getty Images
The USTA suggests implementing a “trusted traveler” system to
shorten the long check-in process at airports.
Photo courtesy of Real News Reporter
Domestic News14 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
Department of Commerce
Proposes Privacy Bill of RightsBy Padmavathy Sonti,
Domestic News Writer
On Wednesday, March 16, Lawrence
Strickling, a high-ranking federal official
from the U.S. Department of Commerce,
testified before the Senate Commerce
Committee and proposed the need for a fed-
eral privacy law, specifically comprised of a
“privacy bill of rights” to protect con-
sumers.
“The department has concluded that
the U.S. consumer data privacy framework
will benefit from legislation to establish a
clearer set of rules for the road for business-
es and consumers, while preserving the
innovation and free flow of information that
are hallmarks of the internet,” Strickling
said.
Many privacy advocate firms, civil lib-
erties organizations, and information tech-
nology companies have extended their sup-
port for the proposal.
“This is a historic announcement,
marking the first time the White House has
called for a baseline consumer privacy bill,”
Leslie Harris, the president of The Center
for Democracy and Technology, said.
Over the past few months, there has
been a growing concern regarding the pri-
vacy and security of consumer information.
Multiple reports indicate that a majority of
websites install tracking software onto
internet users’ computers without their per-
mission.
In December, the U.S. Department of
Commerce and the Federal Trade
Commission released a series of recom-
mendations deemed appropriate for protect-
ing consumer data.
According to the report put forth by the
U.S. Department of Commerce, firms ought
to seek the permission of consumers before
their data is used for alternative purposes.
Additionally, consumers should be entitled
to access their personal information and
have the ability to store that information
safely.
In its proposal, the Federal Trade
Commission called for a “Do Not Track”
option that would allow internet users to
“opt-out” of having their data monitored.
“Do Not Track is no longer just a con-
cept. It is becoming a reality,” Jon
Leibowitz, the Chairman of the FTC , said.
“An effective Do Not Track system would
go beyond simply opting consumers out of
receiving targeted advertisements.”
Currently, Microsoft and Mozilla, the
makers of Internet Explorer and Firefox, are
working on incorporating the “Do Not
Track” feature into their upcoming version
upgrades.
The Obama administration intends for
the privacy law to remain consistent with
the guidelines outlined by the U.S.
Department of Commerce and the FTC.
Essentially, the FTC would have the power
to enforce the law.
“There is an online privacy war going
on, and without help, consumers will lose,”
Senator Jay Rockefeller (D-W.Va.), said.
“We must act to give Americans the basic
online privacy protections they deserve.”
In Congress, Senators John Kerry (D-
Mass.) and John McCain (R-Ariz.) have
been working together on their own version
of a bill. “We approached this with a real
open mind, and I think people will
acknowledge a fair amount of reasonable-
ness and flexibility,” Kerry said. “But we
can’t let the status quo stand.”
“There’s a window of opportunity here
to pass strong consumer privacy legislation
— with bipartisan support — in the 112th
Congress,” Justin Brookman, a representa-
tive at the Center for Democracy &
Technology, a non-profit organization, said.
“The administration’s support is a welcome
addition to that debate.”
Contact Padma at
U.S. Continues Efforts to Aid
Japan After EarthquakeBy Charlotte Lewis and Alina Fernandez,
Domestic News Writer, Assitant Editor
The U.S. has been sending all types of
relief to Japan over the course of the past
week, since the disastrous earthquake and
tsunami struck on March 11.
A few hours after the 9.0 magnitude
earthquake and tsunami hit that Friday, the
Japanese government accepted the aid of the
U.S. Agency for International Development,
which sent two search and rescue teams
from Los Angeles County, CA. and Fairfax
County, VA Saturday Morning.
U.S.Agency International Development
(USAID) spokeswoman Gina Jackson wrote
in an email that “The teams remain hopeful
that they will make live rescues in the days
to come…”
USAID reports these two units, com-
prised of approximately 150 people and 12
specially trained dogs, joined the search and
rescue operations of a team from the United
Kingdom to search for victims in Ofunato
City, Iwate Prefecture.
USAID’s initial $100,000 in aid was
processed through the U.S. Embassy in
Tokyo has since been increased in coopera-
tion with the Office of U.S. Foreign Disaster
Assistance to $740,600. These funds have
been allocated to help with the various
facets of the relief effort.
The U.S. military also increased relief
efforts. Col. David Lapan, Pentagon
spokesman, stated “[U.S. Forces Japan] pro-
vided two fire trucks to Fukushima to be
operated by Japanese crews.” He also
emphasized that the U.S. military was not
directly involved in the response. The aid
will be used to augment firefighting efforts
at the Fukushima Daiichi nuclear-power
plant.
Additionally, U.S. Marines have shifted
their efforts to the Japanese mainland. The
Japanese reference this effort as Operation
Tomadachi, which means “friends”. The
Third Marine Expeditionary Force reports
that 440 Marines and sailors are participat-
ing in the operation.
The U.S. Navy plans to place ships in
the Sea of Japan, on the west coast of
Honshu, to avoid “radiological and naviga-
tion hazards on the eastern coast of
Honshu,” according to a Navy Update.
These ships have also been allocated to aid
Japan in their humanitarian operations.
Among the efforts of the U.S. Navy is the
dispatch of surveillance aircraft to survey
the debris field at sea.
Non-profit organizations are also work-
ing to help Japan. Text message donations to
the Salvation Army totaled almost $93,000
of the $1.7 million raised by the organiza-
tion, according to Major George Hood, a
Salvation Army spokesperson.
Similarly, Josh Kittner, a senior market-
ing consultant for the Red Cross, stated that
the organization has raised $1.6 million dol-
lars for the relief efforts from their texting
campaign. Red Cross considers the texting
campaign a success despite the fact that last
year’s efforts for Haiti raised 5 million dol-
lars.
Contact Charlotte at
Contact Alina at
Highest Monthly Increase in Food Prices in 37
Years Impacts Stores , RestaurantsBy Amanda Genabith,
Domestic News Writer
In the United States of America, people
are purchasing food that is at its “highest
monthly increase in roughly 37 years” says
The New York Times.
According to the U.S. Labor
Department wholesale food prices rose 0.8
percent to 3.9 percent last month and this
trend could last for the rest of the year as
well.
If this progression continues food
prices will be five percent higher than the
end of last year, a stark contrast from the
usual annual increase of two percent.
Items like coffee beans, tomatoes, corn,
meat, dairy, eggs, and wheat are among a
list of global commodities whose prices are
rising quickly.
The problems in the Middle East, the
growing global population, the use of crops
for bio-fuel and the cold weather that dam-
aged crops in many states, are just a few of
the factors that contributed to the rise in
costs.
The disaster in Japan resulted in a
decrease in corn prices. Before this, they
were almost double what they were last
summer.
While Americans spend ten percent of
their yearly income on food, there are other
nations where 30 to 70 percent of a house-
hold’s annual income is spent on groceries.
Additionally, there are about 44 million
people who cannot afford food, a contribut-
ing factor for the unrest in the Middle East.
The high prices are not only impacting
grocery stores, but also fast food restau-
rants.
Wendy’s used to put a tomato on every
hamburger that they sold. Now, with toma-
to prices climbing, tomatoes will need to be
requested.
Similarly, McDonald’s expects that the
cost of a Big Mac will rise as a result of an
increase in the price of livestock feed,
which caused the price of meat to also
increase. Dunkin Donuts and Starbucks also
had to raise their prices because coffee
beans have become more expensive.
Many people are blaming farmers for
the increase in pricing, but the U.S.
Department of Agriculture says that for
every dollar spent on food, a farmer
receives only 11.6 cents of it.
Drovers CattleNetwork, which tracks
beef business, reported that “the second
largest contributor to high food prices,” is
“the processing, packaging, and transporta-
tion” of the food, which accounts for 33
cents of every dollar spent.
The CNBC All-American Economic
Survey asked 800 Americans, if they felt
that the “economy will get worse,” to which
37 percent responded yes, a 15 percent
increase since December of 2010.
The survey also reported that 75 per-
cent of Americans have noticed the rising
food prices and 61 percent reported an
expectation that the rise in food prices will
continue throughout the year.
These elevated food and oil prices have
many American afraid of an increase in
inflation. This is not the case; inflation has
not increased substantially over the last few
months. In February, inflation rose one-half
percent, but if food and oil are removed
from this calculation, core inflation rose
only two percent.
Contact Amanda at
Food prices are reaching a peak in the U.S. and around the world.
Prices have been impacted by issues in the Middle East and Japan.
For more on the impact of the Japanese
earthquake and tsunami on the U.S., visit
our website at www.stillmanexchange.com
THE STILLMAN EXCHANGE TUESDAY, MARCH 22, 2010 15
International News
...coninued from page 1
“We are deeply concerned for the people of the region and
are committed to providing support where we can,” Cabot’s
president, Patrick Prevost said.
Fujitsu released a statement announcing the company
would contribute up to $250,000 in relief efforts.
Texas Instruments said in a news release that a manufactur-
ing site in Miho, Japan—located 40 miles northeast of Tokyo—
suffered “substantial damage.”
There is a human element to this earthquake that numbers
alone cannot convey. Photos have circulated of children being
scanned with Geiger counters to check them for radiation expo-
sure. People are without homes, power, water and security. The
Japanese government calls this its “biggest test since World War
Two.”
“It’s such an emotional time,” Troy Teshirogi, a Canadian
expatriate living in Aizu Wakamatsu, Fukushima, wrote in a
note to her Facebook friends. Teshirogi lives there with her hus-
band and children.
“Aizu is relatively unchanged,” she continued, “and yet just
a few hours’ drive to the coast and total towns have disappeared.
There are little aftershocks every little while, but nothing getting
knocked over. Worried about the nuclear reactor. I’m going to
send this now just in case it stops working again.”
Aizu Wakamatsu is using some of its schools as shelters for
those fleeing the nuclear reactors. The city website tells those
coming in that they must have a certificate to prove they are not
a victim of radiation exposure. They also urge residents to con-
serve water. Power in the area has been in and out.
“I’ve heard that embassies have been calling foreign resi-
dents into the Kanto region to leave because of the radiation
fears. It’s so hard to tell what will happen about that,” Porter
said, “While experts insist the amount of radiation around Tokyo
is not yet harmful to humans, the truth is…if something DOES
happen, it’s too late…And that’s what makes it scary.”
She also said that Japanese television has reported over 200
aftershocks, some as high as 6.0 on the Richter scale, and that
they may continue through the end of the month. She has also
heard the rolling blackouts will likely continue through April.
Foreign media has reported that the Japanese are dissatis-
fied with the way the government has been handling the disas-
ters.
“This government is useless,” Tokyo office worker Masako
Kitajima told Reuters.
Porter said, “No one can prevent something like this from
happening, and while it is important to be trained and prepared
for this sort of thing, I think most of them are learning as they
go right now, just like everyone else.”
Rachel Rosenstrock, a Seton Hall student currently study-
ing in China, says that the country is worried how the string of
incidents in Japan will impact them. “I know that Shanghai is
monitoring the radiation levels in Shanghai daily, if not more
frequently…I know that many Chinese are wary of buying
Japanese products right now.”
While workers search for survivors in Sendai and monitor
the reactors in Fukushima, the rest of the country is trying to get
back on its feet.
Contact Morgan at
Japan Reeling from Earthquake Aftermath
Protestors in Bahrain Try to Remain
Peaceful Amid Violent OppositionBy Doug Tatz,
International News Writer
The Middle East is currently like a long line of dominoes,
as more and more countries follow the lead of protesters in
Tunisia. Currently, pro-democracy protestors in Bahrain are
demonstrating their desire for an end of the oppressive rule.
Although the demonstrator’s protests are peaceful, the govern-
ment’s reaction is not. Hundreds of citizens have been killed or
injured in the brutal attempts to suppress the protestation.
Bahrain’s King Hamad ibn Isa al Khalifa, declared martial
order to more easily control dissenters. Demonstrators in the
Pearl Roundabout, the hub of Manama, were forcefully cleared
out by soldiers using shotguns and teargas. Influential figures of
the opposition movement have been arrested by the army. Soon
after the military imposed a curfew, several protestors were also
arrested simply for staying out past the designated time. The
Bahrain army has confirmed others have been arrested based on
charges of sedition, murders, and illegal contacts with foreign
states.
Force has not only been used on active protestors, but also
against innocent citizens in hospitals seeking treatment.
According to a UN news report, power to the main hospital in
Manama was turned off. Reports also indicated that security
forces were committing acts of violence against patients and
medical personnel.
Several of Bahrain’s issues are further complicated by the
fact that for almost 200 years, the country has been ruled by
Sunnis, while almost sixty percent of citizens are Shia. The cur-
rent monarchy has found difficulty in suppressing the demon-
strations and has recently called upon members of the Gulf
Cooperation Council, the GCC, to assist. One-thousand troops
from Saudi Arabia and 500 troops from the United Arab
Emirates invaded Bahrain to help maintain security.
Saudi Arabia is also ruled by a monarchy. Many firmly
believe the main reason for the Saudi invasion is to preserve the
current monarchy in Bahrain. The Saudi government fears that
if the monarchy in Bahrain falls, theirs will too.
The opposition movement has denounced the Saudi and
UAE troops in Bahrain. “We consider the arrival of any soldier,
or military vehicle, into Bahraini territory.... an overt occupation
of the kingdom of Bahrain and a conspiracy against the unarmed
people of Bahrain,” said an opposition statement. The opposi-
tion has also denounced the use of force to suppress the revolu-
tion.
Contact Doug at
By Wesley Satterwhite,
International News Writer
Amid calls for cease fire, UN peacekeeping
action and an eight-year election controversy, the
Ivory Coast is slipping closer towards an all out
civil war.
Last November a presidential election
between incumbent Laurent Gbagbo and opposi-
tion leader Alassane Ouattara left the nation
divided, in the first election in 10 years. Gbagbo’s
term expired in 2003, and he has postponed elec-
tions ever since. Outtara is the recognized the
winner by the E.U., U.N., and the U.S., all of
whom are demanding that Gbagbo step down.
Both men have set up rival governments in the
nation’s capital, Abidjan.
Last week the African Union joined the rest
of the international community and endorsed
Outtara as the legitimate leader of the Ivory
Coast. He is now asking for a peace agreement in
the form of a unity government. This pact would
include a united national army and a truth and
reconciliation commission. Gbagbo has yet to
respond to this final attempt at peace.
The election has left Gbagbo supported by
the national army. Outtara is backed by rebels
from the nation’s 2003 civil war, who currently
have control of the north of the country. A six
year cease fire was broken in the post election
violence, when rebels and government troops
clashed close to the Liberian border. According to
the U.N., an estimated 400 people have died in
the violence following the election. An addition-
al 300,000 people have been displaced, surpass-
ing the number of those affected by the Libyan
civil war.
Two months ago the Security Council
allowed the use of force in the country through
the UN Charter’s Chapter VII mandate. Gbagbo
and his supporters have called for the U.N. peace-
keepers to leave the country. The Gbagbo camp
has gone as far as to arm civilians to fight the
peacekeeping forces. Charles Ble Goude, a
Gbagbo youth leader, says U.N. peacekeepers are
waging war on behalf of rebels.
Goude says this is the same thing that hap-
pened with U.N. troops in Liberia, Congo and
Rwanda. He says the population was killed in the
presence of U.N. forces and that he and other
Gbagbo supporters will not allow that to happen
in the Ivory Coast. Gbagbo has also refused the
safe passage of U.N. relief supplies to the
nation’s citizens, and broken an international
trade embargo to the country by ordering attack
helicopters from Belarus. U.N. peacekeepers cur-
rently guard the Golf Hotel in Abidjan where
Ouattara and his staff work. Supplies are flown in
by U.N. helicopter daily.
“Before, it was clashes between police and
protesters. Now if it’s the beginning of fighting
between two armed forces, it could have serious
consequences for the country or even the region”
says Hamadoun Touré, a spokesman for the U.N.
The IMF reported that the violence could threat-
en the projected 4.3 percent growth of the
Economic Community of West African states; an
eight country body in which the nation is a mem-
ber.
“With 17 elections in Africa this year, a fail-
ure to enforce the will of the Ivorian people
would set a terrible precedent” said Kenyan
Prime Minister Ralia Odinga.
The violence is already having impacts
around the globe. Cocoa prices are at their high-
est since 1979. The Ivory Coast produces over
one third of the world’s supply of the crop.
Contact Wesley at
Situation Worsens
in Ivory Coast
Protestors from Bahrain gather outside the U.S. Embassy for peace.
Courtesy of news.com.au
Photo courtesy of Reuters
An emergency worker walks through
the rubble of Otsuchi in Iwate Prefecture.
International Business16 TUESDAY, MARCH 22, 2011 THE STILLMAN EXCHANGE
By Earlene Cruz,
International Business Writer
A recent report published by The Latin
Business Chronicle revealed that European
Union trade with Latin America has reached
an all-time record this year. Perhaps this is a
testament to economist Carlo Secchi’s
assertion that “ever since the 1999 Rio sum-
mit, the European Union has proclaimed
that Latin America is a vital strategic politi-
cal and economic partner.”.
In 2010 alone, trade between Latin
America and the EU increased by a full 31
percent reaching US$236.9 billion.
The countries that are primarily
involved in this movement towards
increased trade with the European Union
include Brazil, Columbia, Perú, and Chile.
Brazil, already the top trading partner in
Latin America for the European Union, has
seen an even greater expansion of trade
between the two regions: “Last year, trade
between the two regions jumped 34.3 per-
cent to U.S. $85 billion.”
An example of the increased trade
between Brazil and the European Union
includes Audi’s recent outreach to wealthy
Brazilian CEOs: according to The Latin
Business Chronicle, “it invited 12 Brazilian
CEOs to fly first class to Istanbul, Turkey.
Audi treated them like sultans, put them at
the legendary Çiragan Palace and, inciden-
tally, let them experience its new A8 model.
It ended up selling four of this new luxury
model to its guests.” This push for acquiring
market shares in Brazil not only encourages
the solidarity between Brazilian and
German CEOs, it serves to strengthen the
overall economic ties of the nations.
However, it is not only the nations of
the European Union who seek to economi-
cally reach outside their borders. According
to the U.N. Conference on Trade and
Development, in 2009, Brazil invested
U.S.$20 billion outside its borders, more
than the U.S.$18.8 billion in foreign invest-
ment than it received and an increase of 189
percent since 2008.
Brazil, however, is not the only nation
experiencing an expansion in trade with the
European Union. Smaller Latin American
countries like Paraguay have also set a trade
record in 2010. Other trade unions include
Spain’s involvement with the expansion of
the Panama Canal.
The Costa Rican construction compa-
ny, MECO, the Mexican construction com-
pany, ICA, and the Spanish construction
company, FCC, have aimed to consolidate
their labors in the enlargement of the
Panama Canal, ringing in U.S.$268.8 mil-
lion for the three companies.
The increase in trade between the
European Union and Latin America sug-
gests that despite the existence of a deepen-
ing recession, the push for global economic
expansion and solidarity are some of the
keys to economic survival.
Contact Earlene at
Trade Increases Between Latin America and EU
...continued from Page 1
“For us, it is really about the signifi-
cance and prominence of the market, since
we believe it has a big future. The develop-
ment of Brazil over the past ten years is
impressive,” BMW production boss Frank-
Peter Arndt told Reuters.
BMW is playing it a little safe with
humble initial production goals and is pre-
suming to use a “complete knock down”
(CKD) assembly plant. All parts and com-
ponents will be transported from Germany
to be assembled locally.
At an annual news conference on
March 15, BMW predicted another record
year for earnings disclosing that the sales of
new model launches, such as the 1-Series
MkII, will bolster vehicle sales over 1.5
million.
The standard in order to institute com-
plete local production and component
sourcing is having an overall production
volume of 100,000 units. If BMW’s market
share continues to grow in Latin American,
a production plant in Brazil would be
extremely profitable.
Contact Ben at
By Alina Bykovtseva-Mora,
International Business Writer
European leaders have been striv-
ing for several months to end the euro-
debt crisis. Almost 640 billion euros has
already been spent by the European
Union and International Monetary Fund
to bail out troubled countries. However,
the yields on long-term government
bonds in Greece, Ireland, and Portugal
remain extremely high with Greece
beating all the records.
On March 7, 2011 Moody’s down-
graded Greece to B1 from Ba1 rating
which sparked great discontent for the
Greek Finance Ministry. It said that the
decision was “totally unjustified” and
“having completely missed the build-up
of risk that led to the global finance cri-
sis in 2008, the rating agencies are now
competing with each other to be the first
to identify risks that will lead to the next
crisis.” Moody’s explained its actions
by Greece’s failure to collect as much
tax revenue as it planned and “the
inevitable resistance to tax compliance
among parts of Greek society.”
However, European Leaders appre-
ciated the Greeks’ austerity program and
a commitment to a privatization pro-
gram worth 50 billion euro. As a result,
on March 11, 2011 the Eurozone mem-
bers decided to extend the maturity of
110 billion euro bailout from 3.5 to 7.5
years with the reduction of the interest
rate by 100 basis points. On March 14,
2011 the IMF announced the release of
4.1 billion euros, the fourth installment
of the 110 billion euro rescue loan from
the EU/IMF.
The majority of the Executive
Board expressed satisfaction with the
progress made by Greece despite com-
ments about the need to speed up struc-
tural changes in order to successfully
implement the stabilization program.
However, some people argue that
throwing money around does not solve
the problem and Greek horizons do not
seem to be very promising. Much of the
blame goes toward the Greek govern-
ment.
Gordon Brown in his memoirs stat-
ed that the delay and negligence of the
Greek government to act faster (8
months) cost Greece 90 billion euro.
According to Steve Shoursidis, edi-
tor of several Greek and American mag-
azines, the situation in Greece is much
worse that it seems and the country is
actually on the verge of bankruptcy. He
says that the Greek government is aller-
gic to use of the word “bankruptcy” and
instead calls it the extension of debt or
refinancing of debt.
Contact Alina at
After Ratings
Decrease,
Mixed Opinions
Remain on
Greece’s
Economic
Outlook
Following Market Demand, BMW Looks
to Move Production into Brazil
By William Suggs,
International Business Writer
In a closely followed survey conducted
by the Fraser Institute, South Africa’s rank
as a mining investment destination slipped
due to obscuring government involvement in
the sector. This announcement reflects the
effect of political pressures in South Africa
despite official efforts by the government to
bring investment into the country’s resource-
rich mining sector.
As prices for commodities approach
historic highs in recent years, South African
mining has failed to capitalize. An electrici-
ty crisis in 2007 and the subsequent global
financial crisis have kept significant output
growth from returning. South Africa is a
major exporter of coal, gold, and other min-
erals, and a world leader in platinum and fer-
rochrome. This influential report of an
unfriendly investing climate bodes poorly
for the economy.
The Fraser Institute published its annu-
al report at the beginning of this month to
give an index of overall policy attractiveness
for exploration investment.
The report ranked South Africa just 67
out of 79 among countries such as
Zimbabwe, Venezuela, and the Democratic
Republic of the Congo. This dismal ranking
comes despite a report by Citibank placing
South Africa as a global leader in its natural
resource endowment with a value between
$2 and 3 trillion. According to the Fraser
Institute, the survey was launched, “to
examine which jurisdictions provide the
most favorable business climates for the
industry.”
Political pressures in South Africa have
contributed significantly to the deterioration
of the business climate in the already trou-
bled mining sector. The ruling African
National Congress’s Youth League has
demanded that the government take a mini-
mum of 60 percent ownership of all South
African mines. Instead of downplaying any
possibility of nationalization and assuring
investor confidence, according to The Wall
Street Journal, the government appointed an
independent research group to study the
issue of nationalization.
While investors may be disquieted
regarding support for nationalization, a gov-
ernment task force was established in June
to identify bottlenecks within the mining
sector. A new strategy has emerged that
intends to resolve ambiguities and restraints
and allow the economy to prosper from the
next commodities boom.
By creating an online database of min-
ing and prospecting claims, the task force
hopes to eliminate uncertainty. In an inter-
view with Business Day, Senior Executive
& Chief Economist at the Chamber of
Mines, Roger Baxter, said, “We’ll start see-
ing some good progress in the next six
months to a year. Hopefully in the next
Fraser rankings we’ll be a bit higher up in
the pecking order.”
Contact William at
The Çiragan Palace in Istanbul, where Audi
recently hosted a consortium of Brazilian CEOs.
Photo courtesy of Kempinsky
South Africa Finds Itself in a Hole
Fol lowing Poor Mining Report
The Kimberley Mine in South Africa.
Photo courtesy of Reuters