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                         Broadcast Media Highlights




On January 9, 2008, Professor Charles Zech was featured on WHYY Radio to speak about the new
Master of Science in Church Management Program at VSB.




On January 23, Professor Charles Zech is a guest on the National Public Radio Program “Here
and Now” to discuss the new Master of Science in Church Management Program at VSB.




On January 30, 2008, Professor Victor Li was featured on WHYY Radio to speak about predictions for
the upcoming Federal Reserve meeting.




On February 12, 2008, Victor Li was a guest on Wall Street Journal Radio discussing the fiscal
stimulus package.




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On February 12, 2008, Professor Suzanne Clain was featured on WPHT as a guest of the Dom Giordano
show to speak about the potential expense of public tax dollars on a new soccer stadium to be built in
Chester, Pennsylvania.




On February 21, 2008, Professor John Pearce appeared on CN8’s “Your Morning” to discuss the elements
of an economic recession.




On February 26, 2008, Professor Shawn Howton appeared on CN8’s “Your Morning” to discuss the
housing market and the mortgage crisis.




On March 2, 2008, Professor Shawn Howton appeared on Fox 29 Evening News to discuss the
housing market.




On March 25, 2008, Alan Donziger was a guest on AP Radio discussing the XM and Sirius
Satellite merger.




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On March 29, 2008, Victor Li was featured on WTOP-FM in Washington D.C. to discuss
Federal Reserve policy.




On April 18, 2008, Cheryl Carleton appeared on CN8 to discuss recession-proof jobs.




On April 18, 2008, Cheryl Carleton appeared on Fox Business to discuss discrimination against
women in the workplace.




On May 6, 2008, John Pearce appeared on CN8 to discuss “Recession: Where are we Now?”




On May, 7, 2008, Peter Zaleski appeared on Fox 29 to discuss rising gas prices.




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On May 23, 2008, Charles Zech was featured on Marketplace Radio to discuss the new Master of
Science in Church Management Program.




On June 12, 2008, Cheryl Carleton appeared on CN8’s “Money Matters” to discuss economic
news stories of the day.




On June 17, 2008, Dean James Danko appeared on BusinessWeek TV discussing VSB’s new
undergraduate curriculum.




On July 1, John Kozup was featured on WHYY Radio to speak about.




On July 10, Charles Taylor was featured on Fox 29 discussing rise in text message advertising.




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On July 14, William Madway was featured on Fox 29 discussing the rising trend of self customer
service.




On September 17, 2008, Michael Pagano was a guest on National Public Radio discussing the
crisis on Wall Street.




On September 17, 2008, Michael Pagano was on WHYY radio to discuss the Wall Street crisis.




On September 24, 2008, John Matthews appeared on “Your Morning” to discuss the
government’s bailout of the financial crisis.




        CNBC
On August 4, Charles Zech was featured on CNBC’s “Mike on America with Mike Hegedus” to
discuss the Summer Church Management Institute.




On October 7, Victor Li was featured on Marketplace Radio discussing the Federal Reserve.




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On October 13, 2008, John Matthews appeared on 6 ABC to discuss whether the government
bailout plan was working.




On November 27, 2008, William Madway appeared on “Your Morning” to discuss holiday retail.




On December 7, 2008, William Madway was a guest on “All Things Considered” to discuss
advertising firms retooling in economic crisis.




On December 16, 2008 Michael Pagano was featured on KYW News Radio discussing the
econometrics of the recession




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                 Print and Online Media Highlights




January 3, 2008
By Alison Damast

Mastering the Business of Church
Some universities now offer MBAs for church workers and officials who may struggle with
management responsibilities they haven't been prepared for

When he was in seminary school studying to be a priest, the Reverend John Burger never thought
he'd have to deal with the day-to-day bookkeeping and budgeting for a church. But over the past
few years, he has gradually taken on a greater leadership role in the Columban Fathers, a
missionary society of Catholic priests.

In his new role as general councillor at the society's headquarters in Dublin, he will assume more
fiscal responsibility than ever before, reviewing the budgets of missionaries all over the world
and tracking donated funds. It's a job he feels unprepared for, he admits: "I'm kind of nervous
about it, to tell you the truth, because I don't have any training in this kind of stuff.… I studied
philosophy, theology, pastoral counseling, and those kinds of things, rather than statistics or
accounting."

Professional Skills for Pastors

Burger's insecurity about his business skills led him to apply to the Villanova School of
Business, which will begin offering a master's of science degree in church management in
June. The two-year program, which is offered online and requires a one-week campus
residency, should help Burger master basic business and management skills.

The program, which costs $23,460, is open to parish business managers, diocesan and
religious-order managers, and managers of church-related social service ministries.
Admission is based on a number of criteria, including experience, letters of
recommendation, and a personal essay. Classes will cover topics normally taught in
business school, such as accounting, development and planning, and human resources
management.

But unlike most MBA or master's programs in nonprofit management, all of the
coursework will involve case studies that look at business exclusively through the lens of a
religious organization, notes Charles Zech, director of Villanova's Center for the Study of
Church Management. "Students in MBA classes sit there learning about finance on Wall
Street, but that doesn't help church workers much," he says. "We've designed the program
[such] that every course has to target folks in a faith-based context."


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Catholic Schools Lead the Charge

A handful of colleges and universities—many with Catholic affiliations—are starting to offer
master's degrees in church management or, in some instances, a dual MBA and master's in church
management: Duquesne University in Pittsburgh began offering a master's degree in community
leadership with a concentration in parish management this past fall, and St. Mary's University in
Minnesota offers a similar program, with a two-week residency and mostly online classes. The
University of Notre Dame offers a master's degree in nonprofit administration for church workers
and employees of other faith-based organizations. A Boston College program offers a choice
between an MBA in conjunction with a master's in pastoral ministry or a pastoral ministry degree
with a concentration in church management.

The new programs are a response to the religious community's realization that many of the
volunteers who step up to assume management roles lack the skills required to run an
organization, says Kerry Robinson, executive director of the National Leadership Roundtable on
Church Management, a Catholic nonprofit in Washington, D.C. "It is a growing phenomenon
across the country," she says. "Catholic colleges and universities, especially those with business
schools, are taking very seriously this need facing Catholic churches in the U.S."

Villanova's Zech points out that while large companies routinely recruit business-school
graduates, many managers in religious organizations don't have backgrounds in business.
Indeed, many parish business managers were church workers who rose through the ranks
and haven't studied business. In other instances, retirees with business experience are
brought in to administer church finances, but problems can arise if "they are accustomed to
doing things the way they're done in the business world," Zech says.

The worst-case scenario, he says, is when a pastor is forced to manage a church's financial
operations because no one else is available to do it. As Zech puts it: "No one became a
pastor because they wanted to run a small business, which is what a congregation or parish
is."

Clergy Scandals Unbalance Church Books

While any religious group can benefit from better financial management, the issue is resonating
strongly within the Catholic church as it faces the financial repercussions of recent sex abuse
scandals involving clergy. Fraudulent financial reporting, such as the 2006 case in which a pastor
in Darien, Conn., was sentenced to 37 months in prison for stealing $1.3 million from the church
he led, is another reason for the recent urgency. According to a 2006 study by Villanova
researchers, 85% of U.S. dioceses had detected embezzlement over the previous five years.

As a result, parishioners are demanding more financial transparency and institutional
financial controls, which can be challenging in organizations where the same person who
tallies donations from the collection basket and deposits them in the bank, for example, may
also be the person who balances the checkbook, Zech says.

Duquesne's Administrative Focus

Duquesne's online curriculum helps church workers balance the many daily demands they face,
including budget management, human resources, parish marketing and fund-raising, school
administration, construction project management, and social outreach projects, says Dorothy

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Bassett, dean of Duquesne's School of Leadership & Professional Advancement. It also
emphasizes the difference between civil law and canon law, the internal ecclesiastical law that
governs the Roman Catholic Church, and how that difference plays out in scenarios involving
church assets.

"One of the reasons we started the program…is the responsibility placed on these folks is just so
incredible," says Bassett. "What you find now is more and more churches have laypeople
handling everything but the actual church service. It is everything from soup to nuts and then
some…."

Bassett says the program, which signed up a handful of students when it began offering classes in
the fall, is slowly attracting the interest of church workers. The cost is $23,544, and applicants
should have a bachelor's degree and either currently hold an administrative position at a church or
parish or plan to pursue such a position. Non-Catholics are eligible to apply, though none have so
far, reports Bassett. "If I had someone come in…from a synagogue or mosque or Hindu temple,
I'd probably sit down…and work with them [to select] courses appropriate for them in terms of
their day-to-day administration."

Fiscal Responsibility for a Higher Purpose

Concern over the complexity of financial issues led Marcia Wilske, the parish social
ministry coordinator for Catholic Charities of Idaho, to apply to Villanova's program. She
first learned about it from an ad in Commonweal, a Catholic magazine. Her interest was piqued
because, after she becomes chancellor for the diocese in July, she'll work closely with the director
of human resources and chief financial officer, providing supervision and overseeing salaries and
budgets.

Wilske, who has previously worked as a director of religious education and a youth minister, has
no formal business training and wants to feel comfortable in her new role. "There is that sense of
responsibility that the money given goes to support the work of the church," she explains. "How
do you maintain that responsibility and transparency so it's a fiscally sound operation?"

Directors of these programs hope the religious community's interest will spur more
schools to offer such degrees and ultimately raise the standards of church management.
Although only a few schools offer these programs now, Gregory Sobolweski, the director
of Saint Mary's Institute in Pastoral Ministries, believes it's a step in the right direction:
"The fact that the church [is asking] questions about how can we be good administrators
[is] a fresh take on faith."




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January 8, 2008
By Ron Aslop

TALKING B-SCHOOL
Teaching the Gospel of Management
Program Aims to Bring Transparency
To Church Business Practices


                                        The reputations of many Roman Catholic parishes have
                                        been tarnished in recent years, both by the priest sex-
                                        abuse scandals and a growing number of embezzlement
                                        cases. That has prompted a burgeoning movement to
                                        improve the management and leadership skills of church
                                        officials through new programs being offered primarily at
                                        Catholic universities. M.B.A. Track columnist Ron Alsop
                                        talked recently with Charles Zech, director of the Center
                                        for the Study of Church Management and a professor of
                                        economics at Villanova University's School of Business
                                        in Villanova, Pa., about the launch of its master's degree
                                        in church management in May and the need for more
sophisticated and more transparent business practices in parishes and religious organizations.

WSJ: Why did Villanova decide to create a master's degree in church management?

Dr. Zech: We find that business managers at both the parish and diocesan level often have social
work, theology or education backgrounds and lack management skills. While pastors aren't
expected to know all the nitty-gritty of running a small business, they at least need enough
training in administration to supervise their business managers. Before starting the degree, we ran
some seminars in 2006 and 2007 as a trial balloon to see if folks were interested enough to pay
for management education. The seminars proved to be quite popular, drawing people from all
over the country, including high-level officials from both Catholic dioceses and religious orders.

How have the sexual-abuse scandals and embezzlement cases put a spotlight on poor
management and governance practices?

The Catholic Church has some real managerial problems that were brought to light by the clergy
abuse scandals. It became quite obvious that the church isn't very transparent and accountable in
its finances. Settlements had been made off the books with abuse victims and priests had been
sent off quietly for counseling, to the surprise of many parishioners. Then came a string of
embezzlement cases. Our center on church management surveyed chief financial officers of U.S.
Catholic dioceses in 2005 and found that 85% had experienced embezzlements in the previous
five years. One of our recommendations was that parishes be audited once a year by an
independent auditor. There clearly are serious questions about internal financial controls at the

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parish level, and we are now doing research on parish advisory councils and asking questions
about such things as who handles the Sunday collection and who has check-writing authority.
Does the same person count the collection, deposit the money and then reconcile the checkbook?
Obviously, you're just asking for problems if it's the same person; you can imagine the
temptations.

Beyond the need for better financial controls, what other management issues should get more
attention from church leaders?

Performance management is definitely an important but neglected area. That's partly because it's
a very touchy issue. Who is going to appraise the performance of a priest or a church worker who
is also a member of the parish? There's great reluctance on the part of the clergy to be appraiser or
appraisee. You have to view the parish as a family business and understand that it's like
evaluating members of your family.

How will Villanova's church management degree be different from what other universities have
started offering?

Some schools combine standard business classes with courses from theology and other
departments. But if you're taking a regular M.B.A. finance class, you're learning about Wall
Street and other things that aren't really relevant. What we're doing is creating courses specifically
for this degree program, so there are both business and faith-based elements in every class. For
example, the law course will deal with civil law relative to church law so students understand the
possible conflicts. The accounting course will cover internal financial-control issues for churches.
And the human-resource management class will include discussion of volunteers, a big part of the
labor force for parishes.

Have you encountered any resistance from church officials?

Yes, some people say a church is not a business. But I point out that we still have to be good
stewards of our resources -- our financial and human capital -- to carry out God's work on Earth.
When you use management terms with bishops, they often get turned off. But when you use the
word stewardship, it has more impact because it's in the Bible. Jesus talked about the importance
of our being good stewards who take care of our talents and other gifts.

Is the degree restricted to Catholic clergy and lay managers?

The courses will have a Catholic focus because as a Catholic university, our mission is to try to
meet the needs of our community. But the degree is certainly not restricted to Catholics. Every
church has similar managerial problems. In fact, we're eager for other Christian denominations to
become part of the program and provide some valuable contributions to class discussions. A
typical course, however, would not apply to other religions because of the different way Christian
churches are organized compared with synagogues and other religious institutions.

Why is the degree being offered primarily online, with only a one-week residency on campus?

Since we view the market for church-management education as national and even global, a
distance-learning degree will attract clergy and church workers from any part of the world who
can't take off for two years to come to Villanova. In fact, we already have heard from a priest in
Ireland and a Presbyterian minister in Cameroon interested in enrolling in the program.

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The church management degree costs $23,400. How can clergy and church workers afford it?

We expect the vast majority of students to be supported by a diocese or other religious or social
service organizations. We will chop 25% off the price for anyone who can get their organization
to pay a third of the tuition. That cuts a student's out-of-pocket costs by about half. We're trying
to send the message to religious leaders that this is important and that they should invest in
management training.




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January 17, 2008
By Jane M. Von Bergen

Why the sad-sack attitude?
Philadelphians fret and fret about the economy.

Tim Bosse never did figure it out.
In the five years he lived and worked in the Philadelphia area as an executive in a recruitment
firm, he never understood why Philadelphians were always down in the dumps.

Exhibit A: Twin findings from the Federal Reserve and a monthly survey by Bosse's firm,
Hudson Highland Group Inc.

Of the 12 metropolitan regions that Hudson surveys about worker confidence, Philadelphians
have been among the most pessimistic in the nation, ranking only above San Francisco last
month.

They said their personal finances were getting worse. Fewer expected their companies to hire, and
more foresaw layoffs.

They fret and fret, even though yesterday's Beige Book report from the Federal Reserve paints a
different picture. The Fed issues monthly reports (whose covers are beige) on the economies in
various regions, including Philadelphia.

The news?

Not bad. The local economy grew, albeit slightly. There are definite hints of slowdowns, but most
businesses are still forecasting modest, if somewhat constrained, growth for 2008.

"Living there for five years, the attitude there seems to be more pessimism more than optimism,"
said Bosse, who, until June, was an executive vice president assigned to the Philadelphia market,
working in the company's Lansdale office. Now he is in Chicago.

"Chicago has experienced problems in the financial space," he said, "but . . . it's more optimistic
in Chicago."

To be sure, workers around the entire country have become more pessimistic.

"Amid increasing talk of recession, workers' outlook can be significantly shaped by what they see
and hear in the news," said another Hudson executive, Robert Morgan, co-president of
Recruitment and Talent Management. "In actuality, the situation may not be as bad as some
believe."

So why the sad-sack attitude here?



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Gayle Porter, an associate professor of management at Rutgers University in Camden, studies
attitudes about work, but her comments are strictly personal. She thinks that Philadelphians tend
to stay in the region for a long time. They have long memories, and like many people, they tend
to remember the bad. When there's a hint of problem, they immediately assume the worst,
because they remember the last bad time.

But, she said, they also adjust.

"It's like family," she said. If the economy does something Philadelphians don't like, "they just
accept it." Other places, she said, they'd be more inclined to pick up and leave.

That adjustment may come easier because Philadelphia doesn't have as many extremes in its
economy - bad or good. "Maybe there is something in those extreme fluctuations that energize
people a bit," she said. "But I don't see it here."

Or maybe, as Bosse's boss, Brown, said in his statement about Hudson's recent findings, it's the
news media.

Villanova University economics professor Kishor Thanawala says the media have been
relentlessly beating the recession drum, and that can't help but depress people. But, he said,
we won't know whether we're in a recession until we're actually in it, because of how
recessions are officially defined - two consecutive quarters of falling GDP.

"What we're talking about is perception, not reality," he said.

Bosse, who left Los Angeles five years earlier to come to Philadelphia, has one theory. But in
proffering it, he admits that he's skating on the thinnest of ice.

"I think people in Philadelphia work harder than they do in Southern California. They take their
work seriously," he said. So maybe, when the news hints of trouble, "they take it harder."




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January 18, 2007
By Bernie Monegain

International standards group accepts its first member organizations
CHICAGO - The interim board of IHE International has accepted 93 members from the first
group of applications submitted.

The new member organizations include healthcare professional societies, healthcare IT vendors,
provider organizations, universities, standards organizations, government agencies and other
stakeholder groups interested in promoting the adoption of interoperable healthcare IT systems
and electronic patient records.

Integrating the Healthcare Enterprise (IHE), now in its ninth year, is dedicated to improving
patient care by promoting the adoption of standards-based and interoperable solutions for
healthcare information systems.

To qualify for membership, organizations have to comply with IHE International's governance
documents, which ensure transparency, equitable representation and the disclosure and fair use of
intellectual property.

Representatives of the member organizations will be eligible to participate in the first election of
IHE International board members in March. The current interim board comprises representatives
of IHE's sponsoring organizations and each of its clinical/operational domains.

"The number of formal applications demonstrates that the IHE process continues to be
very important to member organizations' corporate, institutional or national strategies,"
said board co-chairman Elliot Sloane, assistant professor of information systems at the
Villanova School of Business at Villanova University. "It is evident that continued active
international IHE participation, and adoption of IHE standards over the past decade,
resulted in this large group of initial applicants. A significant number of additional
applications continue to be received. We are very encouraged by this strong level of
international support and participation as we move forward in bringing the newly formed
IHE International to life."

The IHE International board plans to incorporate as a nonprofit corporation in 2008. IHE
International governs the development of IHE technical frameworks and related activities.
Beginning March 1, IHE International will require that all IHE committee participants be
designated representatives of IHE member organizations.

Organizations interested in applying to become IHE members should complete the
application on the IHE governance Web page. New applications will be reviewed and
considered for approval at the regular monthly meetings of the IHE international board.
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January 22, 2008
By Scott Jaschik


New Programs: Applied Engineering, Nursing, Church Management
Bemidji State University, in Minnesota, is starting a new bachelor of applied science
program in applied engineering.
Georgia Southern University is starting a doctor of nursing practice degree program.
Villanova University has started a master of science in church management.




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January 22, 2008
By Olesya Dmitracova and Laurence Fletcher

Market Gloom a Bright Spot for Risk Managers
LONDON (Reuters) - Deal making has always been the glamour job in banking, but as markets
turn down and bets on high-risk home loans go wrong, the more lowly "deal breakers", or risk
managers, are due for their moment in the sun.

Banks are looking for ways to guard against unexpected losses on the risk taking that is their
bread and butter, and are boosting their control systems, procedures and risk staff.

As banks cut jobs amid the market slowdown, risk managers are not only less vulnerable to the
axe, they are gaining greater power and influence with top management. Last year was a hard-
learned lesson for many a sector player.

Financial risk professionals earn up to 150,000 pounds ($290,000) a year, modest compared with
their deal-making colleagues who can earn several million. But the stock of these multi-skilled
whizzes is rising.

"If you don't do good risk management, the alternative is crisis management," said Michael
Pagano, professor of finance at the U.S.-based Villanova School of Business, who specializes
in risk among other topics. "That's exactly what happened in 2007."

Global banks have written off billions of dollars after the plunge in value of mortgage-backed
securities they held.

Had the worst-hit ones factored in the possibility of such falling values and a drying up of
liquidity, they could have softened the blow dealt them by mass defaults on subprime mortgages,
risk experts say.

Some put down the fortunes of Goldman Sachs, which managed a rise in fourth-quarter earnings
against the sector trend, to its razor-sharp risk controls.

REALITY CHECK

The chief risk officer at badly-hit Citigroup, Dave Bushnell, followed CEO Charles Prince out the
door in November in the aftermath of losses.

Bushnell's replacement, Jorge Bermudez, now works with a new committee created to advise on
ways of beefing up Citi's risk management.

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Morgan Stanley, meanwhile, has said it will reduce its risk taking for a short period until new risk
management systems and leadership are established.

One risk management expert in the hedge fund industry told Reuters he had had several calls
from wealth managers and investors looking to recruit him as head of risk. He requested
anonymity because he stayed with his existing employer.

Banks have to manage different kinds of risk, including operational, market and credit risks. The
crisis that took hold last August puts the focus on the latter.

"There is no doubt that the credit side will be strengthened," said Laurent de Meeus, a consultant
at global executive search firm Egon Zehnder. "Credit was the poor relation in the risk
management family ... because credit has been so easy and lenient for so many years."

A LIFE OF RISK

At top-tier banks, credit risk specialists analyze economic indicators, news, asset prices and other
data and feed them into complex computer models that work out the bank's probable gains and
losses on its assets in a variety of scenarios.

The models then interact with the computer systems that control trading decisions, stopping
traders from executing deals that would lead to unacceptable losses in one or more scenarios.

A risk specialist must also take account of any changes in regulation or in the bank's risk policy,
which is regularly set out by the chief risk officer and the board.

Supply is tight, since jobs in risk require high proficiency levels in finance, accounting,
computing and mathematics.

Some in the industry are educated to the PhD level.

"It's a rare breed, so if you do have those skills it's a hot commodity," Pagano said.

Nigel Hyde, a managing director at derivatives pricing firm Markit, agrees that risk specialists are
hard to recruit.

"There is a finite pool of people that understand financial instruments."

Carolyn Williams, who looks after corporate partnerships and communication at the London-
based Institute of Risk Management, says more and more financial firms are hiring risk managers.

"Their stock is rising," agreed Pagano, adding that a job in risk "gives you a greater
visibility with senior management -- gives you an opportunity to move ahead within the
organization".

Risk management may be the career of the moment, but deals and risk-taking will be back.

"The essence of this industry is to take risk," said de Meeus of Egon Zehnder, "because if you
tame a lion it's no longer a lion".




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January 22, 2008
By Jeannine Aversa

Analysis: Fighting Vicious Economy Cycle
WASHINGTON (AP) — When people are panicking, it's hard to stop the stampede with talk
about cutting a "federal funds rate." Economic fears on Wall Street and around the world are
making people and businesses hunker down, and that could make all the recession worries come
true — a vicious cycle the Federal Reserve, White House and Congress may be hard-pressed to
break.

Giving it a try, official Washington is in full crisis-management mode. Virtually everyone agrees
more action will be needed.

In his boldest action yet, Fed Chairman Ben Bernanke on Tuesday slashed the central bank's most
important interest rate by three-quarters of a percentage point — the biggest cut in records going
back to 1990 — and signaled he's ready to go lower. That should lower many other interest rates
charged to millions of people and companies.

At the same time, President Bush and top lawmakers in Congress were rushing to secure fast
agreement on a rescue plan to inject about $150 billion into the troubled economy. Tax rebates
for individuals and tax breaks for businesses are likely to be part of a package. Maybe more
spending for food stamps and unemployment benefits, too.

"The Fed's action gives some psychological breathing room, but it isn't enough in itself. There is a
lot of fear out there," said Howard Chernick, economic professor at Hunter College.

That was evident on Wall Street. The Dow Jones Industrials closed down nearly 130 points after
tumbling more than 400 at the start of the day.

Panic itself can make people and businesses change their behavior — clamp down on spending
and or cut back on hiring and capital investment — and in turn make things worse for the
economy. A gloomy mind-set can become a self-fulfilling prophecy.

To break it, more rate cuts by the Fed are likely to be needed.




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"This is only the appetizer. The main course is going to be served up next week" when the Fed is
likely to lower its key rate by one-half percentage point, said Ken Mayland, president of
ClearView Economics.

Many economists predict the rate, now at 3.5 percent, could fall to 2.5 percent, or possibly lower,
by spring.

For many people, that could mean lower interest rates on certain credit cards, home equity lines
of credit and other loans. It also could provide some relief to some adjustable-rate mortgages. If
people are paying less interest, they may be more inclined to shop, which would help energize the
economy.

For businesses, lower interest rates could spur capital investment and hiring.

Most people think that won't be enough.

The Bush administration and Congress promise to quickly approve an economic stimulus package
to get cash into the hands of people, hoping they'll spend it just as quickly. Recognizing the
urgency, both sides appear to be putting aside some political differences in championing tax
rebates and other changes.

There are some things, however, the administration has little or no control over — namely, higher
oil prices that will sock people when they open their home heating bills and fill their cars with
gas. And, there's the possibility that banks will continue to rack up multibillion dollar losses due
to bad mortgage investments. Those losses have to run their course — and could fuel even greater
panic.

There was some thought that the Fed's dramatic move Tuesday may have added to the
skittishness.

"You have the Fed sending the message that something is seriously wrong," said Richard
Yamarone, economist at Argus Research. "Most people do believe that we are in a recession."

The Fed's rate cuts, which began in September, take months to work their way through the
economy and show up in business activity. The same goes for a stimulus package.

Senate Majority Leader Harry Reid of Nevada said the goal is to get a deal through Congress and
on Bush's desk within roughly three weeks. Bush said he was confident that Congress and the
administration will be able to approve a stimulus package.

Will that avert a recession or at least cushion the blow?

"The Fed and other policymakers in Washington are trying to avoid what people fear the
most — an oncoming recession. If they can calm those fears, perhaps not today or
tomorrow but down the road, that would go a long way in stabilizing the situation," said
Victor Li, an economics professor at the Villanova School of Business.

Lowering interest rates or passing a stimulus package may not be enough. People and investors
may want to see something more concrete — lower unemployment or higher retail spending, for

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example. But the economy is dealing with a huge unknown: the ultimate magnitude of the
housing crash and credit crunch.

And with uncertainty comes more fear — a return to the vicious cycle.




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January 23, 2008
By Jon Hoeksma

Interoperability body announces 93 new members
Integrating the Healthcare Enterprise (IHE), the international health interoperability body, has
announced that it has been joined by 93 member organisations.

IHE, is an initiative by healthcare professionals and industry to improve the way computer
systems in healthcare share information. The international organisation, which first started nine
years go, is dedicated to creating the framework for passing vital health information seamlessly
between different settings, applications and healthcare enterprises.

IHE is best known for running high profile ‘Connectathon’ events where suppliers’ technical
experts come together to demonstrate they can connect their systems to those of competitors.

The next European ’Connectathon’ is due to be held in Oxford in the week beginning 7 April.
The next US event is being held in Chicago over three days beginning 28 January.

The approval of its first wave of members marks a major step to IHE becoming an international
organisation.

Amongst the new member organisations approved in this first wave are healthcare professional
societies, healthcare IT vendors, provider organisations, universities, standards organisations,
government agencies and other groups interested in promoting the adoption of interoperable
healthcare IT systems and electronic patient records.

To qualify for membership, organisations first had to agree to compliance with the IHE
International’s governance documents, which ensure transparency, equitable representation, and
the disclosure and fair use of intellectual property.

Representatives of the member organisations approved on January 10 will be eligible to
participate in the first election of IHE international board members in March 2008.

The current interim board of IHE comprises representatives of the sponsoring organisations of
IHE and each of its clinical/operational domains.

Interim IHE International Board co-chair, Eliot Sloane, PhD, Assistant Professor of
Information Systems, Villanova School of Business, Villanova University, said: “The
number of formal applications demonstrates that the IHE process continues to be very
important to the member organisations’ corporate, institutional or national strategies.”

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Sloane said that further applications for membership continue to be made. “We are very
encouraged by this strong level; of international support and participation as we move
forward in brining the newly formed IHE international to life.”




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January 23, 2008

SAP Supports Business and IT Education at U.S. Universities
Ten Undergraduate Students Awarded $10,000 Scholarships from SAP

NEWTOWN SQUARE, Pa., Jan. 23 /PRNewswire-FirstCall/ -- SAP America Inc., a subsidiary
of SAP AG , today announced the recipients of its second-annual scholarship program, which
helps discover and empower talented undergraduates who exhibit the capabilities of future
business leaders. In conjunction with the SAP(R) University Alliances program and SAP's
corporate citizenship program, the highly competitive scholarship encourages students to think
innovatively and apply business technology concepts to solve industry challenges through
research. By partnering with member universities, the SAP University Alliances program exposes
students to a variety of higher-learning opportunities and encourages them to apply their
knowledge of business technology to real-life scenarios.

Designed for undergraduate students studying business, computer science, mathematics or
engineering, the scholarship program from SAP evaluates applicants based on their familiarity
with and understanding of business technology. The application process is rigorous, with a
personal research paper being the main component and highest weighted of the selection criteria.
The paper must identify a current problem or issue relevant to enterprise resource planning (ERP)
or other state-of-the-art business technology, and thoroughly examine both the issue and its
consequences, as well as propose practical recommendations to solve it.

Ten outstanding students were awarded scholarships valued at $10,000 each to help cover
education costs. Their paper topics ranged from greenhouse emissions tracking, radio frequency
identification (RFID), inventory management and Internet application security to privacy and
workplace ethics.

The following students received scholarships through the program: Nicole Smith, Ball State
University; Greg Turcotte, California State University, Chico; Lora Atanasova, Drexel
University; Matthews McGarity, Penn State University; Scott Pudlewski, Rochester Institute of
Technology; Arthur Cardillo, Villanova University; Kyle Raschen, Villanova University;
Marie Chapman, Western Michigan University; Richard Pode, Western Michigan University; and
Noah Pascarell, Widener University.

"The SAP University Alliances program has helped our students learn how information
technology is used to manage business processes in real-life scenarios," said Dr. Bret Wagner,
professor and Integrated Supply Management program director, Western Michigan University.
"Their experience with SAP ERP software in the classroom has been valued by many of our
corporate partners who use SAP solutions. Our students also value the strategic impact of the
technology and the program on their future careers."

Commitment to IT Innovation and Education




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As a global leader in business and IT innovation, SAP is already taking public leadership in
numerous corporate social responsibility initiatives. With the SAP University Alliances program,
SAP is demonstrating its commitment to higher education through investments in education that
foster IT innovation and help equip tomorrow's entrepreneurs and managers with essential
business know-how. For universities participating in the program, SAP provides free-of-charge
licenses for current software releases and offers ongoing support and educational opportunities
tailored to the specific needs of faculty members. User group meetings and curriculum congresses
held in the EMEA, Americas and Asia-Pacific Japan regions share best practices and present new
and innovative curricula.

"Through this scholarship program, SAP is helping students synthesize their understanding of
business and IT to make a social and economic impact in their career path of choice," said
Richard Knowles, senior vice president, Operations and Communications, and executive lead for
SAP's corporate citizenship program, SAP America Inc. "The scholarships provide practical
incentives for students to obtain the skills and hands-on experience necessary to launch their
careers and positively contribute to the 21st century, global workforce."

The SAP University Alliances program was established in Germany in 1988. Today, the global
program has nearly 800 universities participating worldwide. Annually, more than 150,000
students worldwide are enrolled in courses supported by SAP software.

About SAP

SAP is the world's leading provider of business software*. Today, more than 43,400 customers in
more than 120 countries run SAP(R) applications-from distinct solutions addressing the needs of
small businesses and midsize companies to suite offerings for global organizations. Powered by
the SAP NetWeaver(R) technology platform to drive innovation and enable business change,
SAP software helps enterprises of all sizes around the world improve customer relationships,
enhance partner collaboration and create efficiencies across their supply chains and business
operations. SAP solution portfolios support the unique business processes of more than 25
industries, including high tech, retail, financial services, healthcare and the public sector. With
subsidiaries in more than 50 countries, the company is listed on several exchanges, including the
Frankfurt stock exchange and NYSE under the symbol "SAP." (Additional information at
http://www.sap.com)




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January 24, 2008
By Megan Woolhouse

Longtime usher charged with stealing from collection basket
Newton church saw drop in cash

When officials at Corpus Christi Church in Newton wondered why collections had dropped
sharply, the Archdiocese of Boston launched an investigation, secretly installing surveillance
cameras in a room where the money was taken after services.

What they saw shocked them.

Police said that a longtime usher, Richard D. Sonia of West Newton, was caught red-handed,
lifting cash from the collection baskets.

"They had him on film stuffing money in his pockets and in his socks," Newton police
spokesman James O'Loughlin said. "It was kind of funny."

Police have charged Sonia, 59, with larceny over $250. He pleaded not guilty at his Jan. 15
arraignment and was released on personal recognizance. He did not return phone calls yesterday.

Church officials first suspected theft when, according to the police report, Sonia allegedly took
the collections into the room and stayed in there longer than was necessary.

His job was to put the money in a bag, which would later be placed in a safe.

Church officials then asked a trusted parishioner to plant $10 and $20 bills in the collection
basket to see what would happen, according to a police report. The bills never made it into the
collection bag; it contained nothing larger than $1 bills, the report said.

Church auditors have estimated that collections were down $17,000 in 2007, compared with
2006.

According to a survey of 177 Catholic dioceses conducted by the Villanova School of
Business in 2006, such thefts are not unusual. Eighty-five percent of the dioceses surveyed
had experienced a theft in the previous five years.

Corpus Christi's pastor, the Rev. Frank J. Silva, did not return phone calls yesterday.

But in an open letter to the parish in last Sunday's church newsletter, Silva wrote that he would
"continue to review the processes and procedures relating to parish collections" and work with the
parish finance council to finalize any new procedures that may be necessary.




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Terrence Donilon, a spokesman for the Archdiocese of Boston, said church officials will not seek
a harsh penalty in the case. "For us, full restitution would suffice," Donilon said. "We're not going
to sit here in judgment of this person. We'll let the legal process play out."




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January 25, 2008
By Harold Brubaker

Spend or save rebates: Philadelphia-area residents divided
Tax rebates are supposed to help the economy by spurring Americans to pry open their wallets
and spend.

But the rebates might not do the trick, based on an unscientific survey today of Philadelphia and
South Jersey residents.

Many of the people interviewed along Centre Street in Merchantville and at the Italian Market in
South Philadelphia said they would either save the rebate or use it to pay bills.

"I would probably put it in my savings account and hang onto it in case things got tight. I don't
think I'd run out and spend it right away," said Don Feiler, a Pennsauken resident who has an e-
commerce design and consulting business in Merchantville.

In 2001, the last time Washington offered tax-rebate checks to boost the economy - with 92
million households getting checks for $300 or $600, at a total cost of $38 billion - the impact was
muted.

"The economy reacted very slowly to the stimulus package," said Victor Li, an associate
professor of economics at Villanova University. "People did not spend. They saved."

That is what Li said he did in 2001 and would do again, if he received a rebate.

A 2002 University of Michigan survey found that nearly 75 percent of those who received rebates
either increased savings or paid off debt.

Jessica Weinstein, who was selling cosmetics in Merchantville, said at first that she would "go
shopping. Who wouldn't?"

On second thought, however, Weinstein, who lives in Cumberland County, said she would
"probably just put it in the bank for now, until I need it."

Her coworker, Ryan Melissa Landberg, has a practical use for the money. "I'd put gas in my car. .
. . I'm in sales, so I drive a lot," she said.

Pennsauken resident Gertrude Collins said she would send some of the money back to the federal
government. "I would put it on my taxes that are due," she said.

At the Darkroom Studios, which rents darkroom and studio space to photograhpers, Matthew
Fegley said he would pay bills, including credit card bills for Christmas.

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If the rebate were $300 - one of the amounts under consideration - Fegley said it would not be
enough to invest.

Fegley, who handles outside sales for the photography business, said the economic downturn that
had Washington officials scrambling to avert a recession did not surprise him, because of what he
saw when he worked at a large South Jersey mortgage operation. "It was screaming for trouble,"
said Fegley, who lives in Maple Shade. "People rely on credit way too much these days."

Brad Walker, owner of the Darkroom Studios, said the business component of the proposed
economic-stimulus package - allowing businesses to immediately expense 50 percent of the cost
of capital equipment - probably would do little good.

"If you need equipment, you're going to buy it. A little tax break isn't going to make a difference,"
said Walker, who opened Darkroom Studios seven years ago.

As for his personal rebate, Walker said he would save it.

Li, the Villanova economist, said tax rebates were aimed at people who had cut back on
spending because they feared losing their jobs or were simply worried about the economy.
The idea is to make them feel comfortable enough to loosen their purse strings.

The problem is that people are just as likely to save in case things get worse.

Feiler, who has two boys and whose wife is studying full time at the Lutheran Theological
Seminary in Philadelphia, said: "Whenever the economy turns down and money pops up, it
usually goes into savings to build a cushion."

In South Philadelphia, there were glimmers of hope that some of the rebate money would quickly
find its way into the economy.

Nicole Mercurio, a freshman at the University of the Arts, said she would either save the money
for tuition or spend it on costly art supplies, such as paints, drawing pads and computer software.

Mercurio, who worked for a medical publisher before starting school, was skeptical of the
rebates. "The last time around it didn't make much of a difference," she said.

Center City residents Tina and Douglas Pappajohn, alone among the 10 people interviewed today,
said they would do something fun with their rebate.

What's that?

"Maybe go on a little unexpected holiday," Tina Pappajohn said while shopping at the Italian
Market.

It might not be enough to go someplace warm, but they could visit "New York for the day," she
said.




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February 1, 2008
By Natalie Kostelini


Target: Distressed property
Investors itching to gobble up locations when the prices bottom out

Local real estate players are poised to deploy hundreds of millions of dollars this year to take
advantage of the slumping real estate market by snapping up distressed properties nationwide.

Lubert Adler Partners LP, Westrum Development Co. and Rubenstein Partners are among local
investors who have raised massive funds to seize on what they expect to be one-of-a-kind deals at
rock bottom prices. They aim to be among a group of risk-takers who seize upon downturns,
seeking out opportunity and hoping to make astute real estate acquisitions that will eventually
lead to handsome returns.

The largest local player is Lubert Adler, whose private equity funds were, beginning in 1997, on
the vanguard of investing in troubled properties. It has continued ever since, ramping up the size
of its funds along the way.

It's currently spending its fifth fund, which is $1.7 billion. It is also amassing its sixth, and largest,
fund that will total roughly $2.5 billion, according to people familiar with it.

As part of positioning itself for its buying spree of distressed assets, Lubert Adler in 2006 brought
in Lenny Klehr, former head of the Philadelphia law firm Klehr Harrison Harvey Branzburg &
Ellers, whose legal background includes real estate, private equity and debt restructuring. It also
"significantly" beefed up its staff in its five offices across the country with former bank CEOs and
individuals with backgrounds in distressed acquisitions, said Dean Adler, a founding partner.

"We're looking at condominium developments that have the potential to fail, loans on land that
may have issues, overly leveraged properties, and properties and mortgages that are in default,"
Adler said.

The firm focused spending its fifth fund on two areas: value add and distressed.

As for value add, Lubert Adler will buy properties in need of repairs or renovations as well as
vacant office buildings. It also acquires companies for their valuable real estate holdings. For
example, as a joint venture partner, the firm bought last year Central Parking and another parking
operator, as well as Albertson's, its operating business and its 750 stores.




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The other part of its fifth fund is dedicated to buying distressed properties and debt originally
funneled to residential real estate. It actively buys the real estate from companies going through
bankruptcy.

Adler declined comment on its sixth fund. However, three market sources familiar with it indicate
the firm is expected to continue its focus on distressed properties but "in a much bigger way."

John Westrum of Westrum Development is also set to seize on the troubled real estate market,
and began planning for it in 2005.

Westrum couldn't predict when it was going to happen but one thing was certain. "We knew this
was coming," said Westrum, a residential developer active in Center City.

With that in mind, Westrum set out three years ago to raise "tens of millions" of dollars for what
he called a "distressed property opportunity fund." In 2006, he finished raising the money, the
exact amount he won't reveal. He has sat on the sidelines ever since but is ready to spend this
year.

"We haven't been able to buy anything yet," he said. "Nothing has gotten too distressed."

But it's getting close. Westrum now gets notified daily about 15 different properties up for sale
for 50 to 75 cents on the dollar.

Timing is an integral part of making such investments work, said Jack Pearce, a business
professor at Villanova University's School of Business. Investors want to get in when prices
are favorable and before prices begin to go back up, something that is difficult to predict.
These types of investors are also betting the real estate they buy will retain value once a
downturn or recession is over, Pearce said. Another risk is that others playing for the same
end game could actually compete and bid up prices on properties, lowering potential future
margins.

Prospective rewards outweigh the risks for those vulture-like investors, who view this as a unique
occasion.

"The development community is looking for opportunities. There is no question that this is an
opportunity," said Roger Friedman, a principal with ARC Wheeler, a Philadelphia-area
developer. "It's quietly going on and I think anyone who is at a high level of real estate is looking
to do this. We very rarely get this chance where extraordinary properties for one reason or
another come up for sale and you're able to buy. Any cycle like this, there are winners and
losers."

Rubenstein Partners, which has a $475 million fund, is ready to pounce on troubled office
properties. As with companies targeting residential properties, David Rubenstein, senior
managing principal at the Philadelphia firm, believes there will also be distressed office players.



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"We have been very quiet during the last two years and we've probably been one of the least
active buyers," Rubenstein said. "I don't at all expect that to continue in '08 and '09. We are now
more actively looking than we have ever been and I expect that to just increase."

Office submarkets with financial service companies, such as banks and mortgage firms, face
increased exposure to going out of business or downsizing, he said.

"Now the question is: Does that distress or trouble spread to other industries in the economy? If it
does, a lot of tenants and other sectors will have trouble," he said. "I think it will spread to other
areas. The question is to what extent."

In the next two years, Rubenstein, whose funds buy along the East Coast, plans to pursue deals
locally. Aside from offices, Rubenstein will also seek out buying debt, office related debt and
notes backed by real estate.




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February 1, 2008                                                      By David M. Katz

What's Wrong with the Kids?
Coping with the newest generation in finance requires tact, patience — and restraint.

WANTED: Candidate with undergraduate degree in finance/accounting. Long hours not required
— come and go as you please. Spend as much time Web-surfing as you want. Work on the
projects you like and refuse the rest. If you don't feel like finishing a project, your manager will
gladly take it. Excellent salary and benefits; on-the-job napping encouraged.

Far-fetched? While 30 years ago no one would have posted such a ludicrous help-wanted ad,
these days finance managers say they have become all too familiar with exactly this kind of
employee. Consultants have even coined a name for this new breed of entitled worker: they call
them millennials.

Many senior finance executives are complaining loudly about the new generation. They say they
must now spend a good deal of time devising strategies to keep younger finance staffers happy
and on the job. William Kurtz, CFO of San Jose, California-based semiconductor maker Novellus
Systems, says he has had to focus much more attention on developing the careers of new recruits.
Even then, the company has found it tough to ward off a wave of defections triggered by a
resurgence of start-ups in Silicon Valley.

Blame Fast Company, the business magazine that championed "The Brand Called You" and
similar other anthems of the dot-com heyday. Although many younger workers revised their
sense of entitlement when that boom went bust, the demand for accounting talent has enabled
people with such skills to maintain an attitude normally associated with velvet-rope-jumping
celebrities.

Or so say their elders. Finance chiefs grumble that millennials (and their slightly older peers, the
Gen Xers) are a mercurial, selfish bunch. Melissa Morales, CFO at real estate developer The MC
Cos., has spent the better part of the last two years trying to staff the start-up's 15-person finance
department. While granting that there are some gems in the bunch, she says few of the recent
hires display the steady determination once associated with accountants. At the same time, she
notes that many staff members require an excessive amount of praise. "You don't need to be
recognized for everything you do," says Morales.

Despite those deficiencies, Morales seems most annoyed by the lack of loyalty exhibited by the
millennials. "There's no investment of time or commitment to the company," she says. The
finance chief notes she was particularly irked by one recent hire who spent all of 60 days on the
job — then bolted to a rival. "This is not the way I was brought up," laments Morales.

If You Want Loyalty, Get a Dog
Job-hopping goes against the grain of many old-school finance executives. Then again, it's hard
to blame workers in the world's greatest free-market economy for attempting to benefit from that
market.




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"We're such an affluent society that they just go where the money is because they want to
be part of that affluence," says Michael Peters, an associate professor of accounting and
information systems at Villanova University. "They chase after the buck."

Defenders of the new order point out that loyalty is a two-way street. Years of corporate
downsizing and finance department right-sizing have left accountants and finance professionals
young and old with a firm belief that tenure doesn't matter anymore. In fact, long-serving finance
staff employees — who generally make more money than junior colleagues — are often the first
to be let go when belt-tightening commences.

"I see firms quick to lay off highly qualified employees as soon as there is any sign of a
downturn," says one self-described member of the millennium generation. "Yet they expect their
employees to stick by them. You want loyalty, hire a cocker spaniel."

Tailgating and Fantasy Drafts
Ironically, the accounting shortage has been spawned by regulations targeting the corporate
finance function. "[With Sarbanes-Oxley], we need a lot more accountants," says John Brausch,
controller of Edens & Avant, an owner of retail shopping centers. "But more hiring shrinks the
available pool."

On campuses, top students can hardly mistake the strong message that their services are greatly in
demand. Of the 140 or so accounting majors that graduate from Villanova each year, 95 to 100
percent are sure to find jobs immediately, notes Peters.

In the current recruiting frenzy, students showing accounting aptitude are wined and dined by
audit firms — sometimes as early as their sophomore year. At the University of Alabama, top
accounting shops are prominent caterers of tailgate parties at Crimson Tide football games,
hoping to lure possible hires. Richard Houston, a professor of accounting and director of the
university's master of accountancy program, says audit firms take an intense interest in "who went
where." He says the firms treat the competition for collegiate finance talent "almost like a fantasy
baseball draft."

The wooing continues once graduates enter the job market. Kurtz says Novellus saw a 20 percent
turnover in its approximately 100-person finance department over the last several years. The
exodus roughly tracks the resurgence of start-ups and initial public offerings in Silicon Valley
after years of inactivity. With projected growth rates of 50 percent or more, these fast-rising
companies have been snatching accountants and future controllers from Novellus. Says Kurtz:
"These people were high-potential workers. We didn't expect them to leave."

Proper Care and Handling
For insight into why promising employees move on, finance chiefs might want to consult their
own résumés. In several instances recently, high-profile CFOs left after extremely short stays in
top finance positions: Alvaro de Molina, for example, lasted only 18 months as CFO of Bank of
America; Craig Monaghan left Sears Holdings last January after only 4 months; and in August,
Steve Sordello quit as CFO of Tivo Inc. after less than a year. A 2006 study by Crist Associates
of 658 large companies put the average tenure of a Fortune 500 CFO at four-and-a-half years —
not exactly a lifetime of service.

What's more, who's to say that the old ways of running a finance department are necessarily the
best? In truth, some finance chiefs may be holding on to idealized — and inaccurate — views of

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their early work experiences. Jay Jamrog, a senior vice president of research at the Institute for
Corporate Productivity, says CFOs need "to challenge some of their assumptions about how work
was done in the past."

Such reflection can have unexpected benefits. Brausch of Edens & Avant recalls that rigid chain-
of-command structures were much more prevalent when he was starting his career. But the
millennium group's preference for a more casual workplace has led, in some instances, to a more
relaxed style of communications between employer and employee. "Twenty-five years ago,
would I go talk to the CFO right out of college?" asks Brausch. "Probably not. But that happens
every day today."

Kurtz, too, says he now has one-on-one talks with new finance hires about their career objectives
and educational needs. "By providing a clear path of development," he says, "we've seen we can
have a better rate of retention." To mark that path, Novellus has installed a two-year training
program for the eight or so new finance and accounting graduates it hires each year. Each
participant is assigned a mentor for two years. In their second year, the employees spend two six-
month periods working in different disciplines, such as financial-planning analysis or treasury.

After completing the training program, employees are again promoted. Sporting three
promotions in two years, employees can see a definite progression in their career. "It
becomes clear to people that they'll be developed," says Kurtz.

Other CFOs have gone so far as to restructure their departments to appeal to the new breed of
employee. At The MC Cos., Morales has split her 15-person finance staff into two levels. At the
entry level: accounting associates, who are responsible for basic tasks such as handling accounts
payable and receivable and reconciling accounts. More-senior general accountants, who perform
higher-level tasks, report to the controller and director of finance. The new structure, Morales
says, "gives people the ability to work toward promotion."

Morales has also made changes aimed at stressing a team approach. For instance, she has blurred
the lines between the company's three activities — property development, construction, and
management. Previously an employee was slotted into one of those areas. "Now," she says,
"everyone does a little bit of everything."

Finance executives say that kind of rotation appeals to millennials. "In the past, people were more
content to dig deep and get those 10-plus years of experience and become an expert in a field,"
says Mary D. Hall, a divisional CFO for the chemicals and fibers group of Eastman Chemical.
"But younger workers seem to really want variety. They want to be generalists."

Apparently they want a lot of attention, too. "Younger employees want feedback at the touch of a
button today," Jamrog says. "If you don't answer their E-mails and give them some positive
reinforcement, you just dissed them."

And if they feel dissed, they may walk. In fact, some observers say millennials are less willing
than previous generations of workers to endure prickly situations. The University of Alabama's
Houston says that he often hears from former students, toiling away during the first weeks of their
first audit jobs in small hotels in remote outposts in the Southeast. Based on the experience of a
single grim week, they might well decide to change jobs. "People nowadays are just more likely
to focus on 'I hate this. If I go across the street, things will be better.'"


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Still, some CFOs have come to appreciate the talents that most millennials bring to their jobs.
Many are more technologically adroit than their bosses. At Edens & Avant, for example, Brausch
says he was looking for a way to shorten the budgeting process. One of the biggest challenges,
however, was streamlining the company's budgeting for cost reimbursements for such things as
snow removal and insurance costs. Those payments are set forth in the various leases of the
company's 2,300 tenants, which range from Stop & Shop and Target outlets to smaller retail
stores.

Would the company have to create 2,300 different invoices to be loaded by a hired administrator?
Brausch figured such an enormous job could take 10 weeks to complete. Then one of his finance
managers, a millennial who is a whiz at Excel, created a macro in two hours that could handle the
entire job. Says the veteran finance chief, "It was miraculous to watch."




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February 7, 2008
Irina Aleksander

What This Recession Nonsense Really Means for Us
Recession, shmecession. Everyone keeps blathering on about the dwindling dollar, the deflating
markets, and an economy that is sure to dissolve into something obscenely dire any day now. But
what does that all really mean and what exactly are we supposed to be doing about it?
For those of us who are too young—or let’s say financially challenged—to own a home or have
loads of money in various investments, the recession is something that seems utterly dreadful.
But, we’re not entirely sure why.
The full explanation of what causes a recession is too intricate to explain here. And it would
probably cure your insomnia quicker than an Ambien CR. All you really need to know is what to
expect if a recession really comes to pass.
So we phoned Villanova economics professor David Fiorenza to help us get a clue. And here
are the wonderful things he said we have to look forward to:

    •   You might have trouble getting a loan for big stuff like houses and cars. During a
        recession, banks get nervous that people will struggle to make their payments. So they
        make it more difficult—particularly for young people—to qualify for hefty loans.
    •   You might lose your job or, at the very least, you might miss out on that bonus or
        promotion you’ve been waiting for. A recession usually means that businesses lose
        money as people begin to consume less of their products. And if your boss ain’t getting
        paid, you won’t either.
    •   Your gas and utility bills may become more expensive. As your salary remains stagnant
        while oil and gas prices continue to rise, your utility bills will begin to sting even more.
    •   Your investments may take a dive. As people spend less and companies begin to lose
        dough, the market will contract. Those stocks you bet on may become less fruitful.
    •   You will not be taking that vacation. As all of the above begins to happen, you won’t
        have as much disposable income and you probably won’t be able to take that trip to St.
        Barths or wherever — especially if you don’t have a job to come back to.

So what should you do?
Well, if you haven’t figured this out already, you should probably be careful with your spending
because of the whole you-might-lose-your-job thing. Or, you can sell everything, buy nothing,
put your cash under the mattress and rock back and forth in the corner like Demi Moore did in St.
Elmo’s Fire.




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February 8, 2008

People on the Move
MISCELLANEOUS

Jim Krull has been named vice president of operations for the Trevose-based Bucks County
Technology Park, a mixed-use business campus. Krull was formerly director of business
development and planning for Reed Technology and Information Services, with offices in Fort
Washington and Horsham.
Lou Siegel has been appointed controller at Burlington County College in Pemberton, N.J. Siegel
was formerly the associate vice president of internal audit and management consulting services at
Philadelphia’s Drexel University.
Mark Mandia has been promoted to president and chief operating officer of DMW Worldwide, a
direct response advertising agency in Wayne. Prior, he was executive vice president and chief
operating officer.
ExecuTrain Northeast, a training company based in Georgia, has promoted Ron Kaufman to
senior account manager for the Philadelphia and Wilmington, Del., markets. Formerly he was an
account manager for a former franchise of the company.
Lawrence F. Shay has been named president of the patent holding subsidiaries of InterDigital
Inc., a mobile device company based in King of Prussia. Prior, Shay was the company’s chief
legal officer.
Villanova University School of Business in Villanova announced Madonna Marion-Landais
has been named associate dean for external relations. Prior, Marion-Landais served as the
vice president for institutional advancement at Rosemont College for six years.
Bachmann Industries Inc., a model train distribution company in Philadelphia since 1833, has
made three new promotions and one new hire. Philip Varughese, formerly accounting and office
manager, was made vice president of finance and administration; Dongmei Liu was made
accounting and office manager; Richard Janyszek, formerly national sales manager, was made
vice president of sales; and Lloyd Kennie returned to the company as national sales manager after
a four-year separation.




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February 12, 2008
By Jeff Gammage

Is it worth spending millions of public dollars?
One reason people thrill to the prospect of pro soccer coming to Chester is the promise that a new
stadium complex will generate a raft of jobs, spending and tax revenue - all told an astounding
$1.7 billion in economic activity.
Or not.
"A fantasy figure," scoffed Rick Eckstein, a Villanova University professor and coauthor of
Public Dollars, Private Stadiums: The Battle Over Building Sports Stadiums. "The numbers
should be treated very, very skeptically."
Despite the dozens of new stadiums built or rising in communities across the United States, and
despite the huge public subsidies they command, there's nearly universal agreement among
economists that arenas produce practically no benefits to taxpayers - a view hotly disputed by the
businessmen who seek funds and the government leaders who back them.
"The debate has intensified because the costs have escalated and these sports developments have
become larger real-estate and entertainment plays," said David Carter, executive director of the
University of Southern California Sports Business Institute.
Now, that tension has come anew to the Philadelphia region, specifically to one of Pennsylvania's
poorest cities, where Gov. Rendell has promised that a proposed $500 million stadium
development will "change the face of Chester forever." He has pledged a pivotal $47 million in
state funding that has supporters believing the city will land a Major League Soccer expansion
team. A decision is expected soon.
The team would play at a $115 million, 18,500-seat stadium set near the Commodore Barry
Bridge and surrounded by what sounds like riverfront paradise - $385 million in restaurants,
stores, offices and townhouses. The development would have boat slips and new streets, even a
supermarket. Artists' renderings show people jogging on a waterside promenade and strolling
with shopping bags.
The prospective team owners, leading a St. Louis group in the contest to secure MLS's 16th team,
predict a huge financial impact:
More than 2,600 temporary construction jobs and 800 permanent full-time jobs. About $19
million in annual tax revenue. An estimated $670 million in personal earnings and $335 million
in taxes over time.
Those are giant numbers to a city where half the households get by on less than $25,000 a year.
And they leave sports economists shaking their heads. Whether it's Kansas City or Charlotte,
Chicago or Chester, they say, the argument is always the same, and so is the result.
"Plopping down a stadium," said Temple University assistant dean Michael Leeds, coauthor of
The Economics of Sports, "does nothing for a city."
The team investors based their projections on a study by CSL International, a Minnesota
consulting and analysis firm. The report itself has not been released, making it hard to judge the


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methodology. Economists tend to dismiss such studies as one-sided - composed solely of
supporting data, presented in the most favorable light.
The problem for taxpayers, they say, is the government subsidies are so big - estimated at $87
million in Chester - that they're difficult to recoup through small-percentage tax receipts at venues
that are hardly ever open. Despite the large crowds they draw on game days, stadiums are rarely
used. The Eagles host eight regular-season games, the Phillies 81. The Chester stadium would
operate about 35 days a year for soccer games and other events.
Perhaps most of all, economists say, stadiums are poor financial engines because of "the
substitution effect." That is, spending by fans usually doesn't represent new dollars entering the
economy, but a reallocation of dollars that would have gone to other entertainment - movies,
dining, tickets to the symphony. In Chester that could be somewhat offset if the team draws
paying fans from New Jersey and Delaware.
Soccer executive Nick Sakiewicz, CEO of FC Pennsylvania Stadium, the group seeking a club,
responds to economists' somber calculations with one word: hogwash.
"These entertainment districts generate a boatload of jobs and real-estate taxes," said Sakiewicz,
credited with securing the deal for Red Bull Park, a soccer stadium now being built in New Jersey
near New York. He calls the argument for substitution spending "shallow."
"You don't go to the symphony to get your soccer fix," he said. "The soccer team is new
revenue."
He offered details about how the tax and job figures were compiled - based upon wide financial
universes and including both the spending and re-spending of dollars in Chester and other parts of
Pennsylvania. Not all the predicted economic activity, jobs and taxes would accrue to the city.
For instance, if achieved, the job creation would be impressive. The total number of people with
jobs in Chester is 10,500. So 800 permanent jobs would represent a sizable increase of about 8
percent. But that includes the jobs of the players and coaches on the team, as well as jobs created
outside of Chester as a result of the project.
The team investors, including Jay Sugarman, CEO of iStar Financial, and James Nevels,
chairman of the Swarthmore Group investment firm, insist the complex will be a magnet for
growth. Building near the new Harrah's casino and the Wharf at Rivertown offices creates a solid
base for future expansion.
"The economists have defined a narrow issue: Is the public investment in sports facilities worth it
to the public?" said John Lord, a marketing professor at St. Joseph's University. "Where
government leaders, investors ask: Is the public investment in sports facilities worth it if it draws
other development? Those could be very different answers."
Supporters also argue that stadium projects bring benefits that don't show up on a balance sheet -
entertainment, of course, but also a sense of enhanced community pride and reputation. A city
that has a sports team is presumed to have other positives, the argument goes, and that message is
transmitted to the public every time a game appears in a box score.
Fred Nance, an attorney who led the court fight to retain the NFL Browns in Cleveland, said it's
wrong to view a stadium as a strict profit-or-loss venture.
"The public subsidy doesn't have to work like a precise mathematical equation. There's all sorts of
intangibles that come back," said Nance, who has followed the plans in Chester. "If you've got a
credible developer, it could prove to be a very good development for the state."
Nance, also chairman of the Greater Cleveland Partnership, the city's chamber of commerce, said
it was worth every penny of about $1 billion spent on stadiums for the Browns, baseball's Indians


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and basketball's Cavaliers. He believes it's crucial to look beyond the initial investment to what a
stadium complex can mean for a city's long-term ability to attract money, business and people.
"If an area is perceived as hot and worth taking the risk, it can almost become a self-fulfilling
prophecy."
For the Chester project, the state has promised $47 million and Delaware County $30 million,
while the Delaware River Port Authority is being asked for $10 million. Delaware County
taxpayers would actually pay more, because the $30 million would be raised by selling bonds.
The added cost of interest payments is not yet known, officials said.
A 1997 study by the Brookings Institute, a Washington think tank, laid out the case against
stadiums in explicit detail, concluding that the impact on local economies and employment was
extremely small - and perhaps negative. That's because chain restaurants and stores that may
settle near an arena don't recirculate much money - they ship it to headquarters.
"It can actually create a 'dead zone' rather than an 'active-use zone,' " said Suzanne Clain,
who teaches sports economics at Villanova.
This is not a pro football operation moving to tiny Chester, bringing the colossal fan base
and marketing power of the NFL, she noted. This would be a team in a league that last year
drew 3 million fans - about as many as the Phillies. And anyone who thinks it's easy to thrive in
the crowded Philadelphia market should consult the Soul, Kixx, Phantoms, Wings, Barrage, Rage
and Charge.
"What does it say," asked Leeds, the Temple dean, "that they're pinning much of their hopes for
economic development on sports bars? Will parents taking their junior-high schoolers to a game
stop-off for a cold one on the way home?"




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February 12, 2008
By Kathy Matheson

Colleges Seek to Protect Church Tills
PHILADELPHIA -- The globe-trotting priest from Connecticut drove a Jaguar, shopped at
Bergdorf Goodman and bought jewelry from Cartier, all of it with money stolen from his church's
coffers. By the time the parish finance council caught on, he had embezzled $1.3 million.

Many U.S. churches have been victims of embezzlement over the years, reflecting not just moral
weakness on the part of the wrongdoers, but lax financial controls. Often, church budgets are
overseen by volunteers or employees with little guidance or professional training.

Now, some colleges are hoping to prevent such faith-shattering abuses by offering programs
devoted specifically to managing church finances and personnel.

Duquesne University in Pittsburgh and Boston College started programs in September, and
Villanova University outside Philadelphia is offering an online master's degree in church
management beginning this summer.

The concept is becoming more popular despite some among the faithful who bristle at the notion
of the church as a business, said Kerry Robinson, executive director of the National Leadership
Roundtable on Church Management, a Roman Catholic group.

"It is true that the church is not a company, and we respect and acknowledge that," Robinson said.
"But it is comprised of people, finances and facilities. Catholic theology demands that those are
managed well _ and not just well, but to the highest, exemplary degrees of stewardship."

Better financial controls might have led to an earlier uncovering of the priest sexual-abuse
scandal, said Charles Zech, director of Villanova's Center for the Study of Church
Management. Numerous financial red flags were missed as dioceses and archdioceses
quietly settled with victims and paid for treatment for priests.


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More than 60 Catholic dioceses responding to a survey by Zech and a colleague reported
embezzlements within the past five years. The survey got responses from only about half of
those contacted, but 60 amounts to around one-third of the nation's dioceses. About a half-
dozen of the dioceses that responded reported thefts of more than $500,000.

"If folks were better trained in management, a lot of problems that churches face today
could have been avoided," Zech said.

Just last year, the Associated Press found reports of more than 20 churches in 17 states dealing
with embezzlement cases. The cases included clergy or church employees who were either
charged with, sentenced for, convicted of or pleaded guilty to stealing religious funds.

The frauds involved many denominations, and included a Roman Catholic priest in Virginia who
admitted stealing at least $400,000 from his parishioners and a Lutheran youth minister in
Pennsylvania charged with embezzling more than $68,000.

Last fall, Boston College _ a Catholic school, like Duquesne and Villanova _ began offering a
master's in pastoral ministry with a concentration in church management. It also offers dual
master's degrees in ministry and business.




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February 15, 2008
By Nancy Frazier O'Brien

In U.S. pope will find multicultural church marked by stronger laity

WASHINGTON (CNS) -- What kind of Catholic Church will Pope Benedict XVI find when he
arrives in the United States in April? How similar or different will it be from the U.S. church
community that greeted Pope John Paul II on his first papal visit in 1979 or his last trip to the
U.S. in 1999?

Scholars and experts contacted by Catholic News Service at Catholic universities around the
country did not always agree on the answers to those questions, but several themes emerged.

They saw a church dealing with parish consolidations or closings and a declining availability of
priests, but also experiencing a new vibrancy in lay ecclesial ministry. They saw what one called
"a chastened church" after the clergy sex abuse scandal but a church that has learned important
lessons about accountability. And they saw a church already more than one-third Hispanic and
still learning how to adapt to the realties of multiculturalism.

There's no doubt that the United States Pope Benedict will visit has more Catholics than the
country to which Pope John Paul came in 1979 or 1999.

The Catholic population in the 50 states was less than 50 million in 1979 but grew to more than
59 million in 1999 and 64.4 million today, according to the Official Catholic Directory. That
growth has roughly mirrored the rise in total U.S. population, from 218.6 million in 1979 to 232.4
million in 1999 and 300.7 million in 2007.

The number of U.S. parishes has remained relatively steady over those years, with 18,695
parishes in 1979, a slight rise to 19,186 in 1999 and a drop back down to 18,642 last year. But the
number of diocesan and religious-order priests serving U.S. Catholics has sharply declined, from
58,430 in 1979 to 46,355 in 1999 and 41,446 in 2007.

Alan Schreck, chairman of the theology department at the Franciscan University of Steubenville
in Ohio, said the alarming drop in the number of priests also has had a happy consequence in the
rising number of Catholic laypeople involved in church ministries.

At Franciscan University alone, there are more than 500 undergraduate theology students, "the
vast majority of them laypeople," he said, and more than 100 graduate each year with the training
once given only to clergy.

Schreck believes Pope Benedict will find "a greater maturity, a greater sense of direction and

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mission" among American Catholics today than Pope John Paul did 28 years ago.

"For me, the most positive thing in 2008 is that laypeople are immensely more aware of their
responsibility for the church present and future," said Paul Lakeland, director of the Center for
Catholic Studies at Fairfield University in Connecticut.

Lakeland said the clergy sex abuse crisis had one positive result: It convinced Catholics that "we
need to have more of a voice in our church."

"It didn't matter if you were on the left or the right," he added. "You were equally scandalized."

Michael O'Keeffe, a theology professor at St. Xavier University in Chicago, said he hopes Pope
Benedict will acknowledge during his visit that the issues raised by the sex abuse scandal are not
over.

"I believe that the pope would be well served by speaking to people about this issue and
becoming more engaged in helping the church to heal," O'Keeffe said.

"I might also ask the pope to take the time to hear about the health of the American Catholic
Church, not simply from the bishops, but from the people, especially those people that feel they
have been pushed to the margins," he said.

Charles Zech, professor of economics at the business school at Villanova University, near
Philadelphia, and director of the school's Center for the Study of Church Management, said
the sex abuse scandal brought "pressures at all levels to be more transparent."

And the decline in the number of priests led more and more laypeople to take on
"responsibility for the things priests and nuns used to do," he said.

Together, those trends have left many laypeople in need of "the skills to run a faith-based
nonprofit," Zech said, adding that the 2-year-old National Leadership Roundtable on
Church Management is working to fill those gaps.

Msgr. Kevin Irwin, dean of the school of theology and religious studies at The Catholic
University of America in Washington, said Pope Benedict will find "a higher awareness of the
multicultural reality of the church" than Pope John Paul might have seen on any of his U.S. visits.

Hispanics now make up an estimated 35 percent of the U.S. Catholic population, and more than
half of all U.S. Catholics under age 25 are Hispanic or Latino. With Mass celebrated in more than
three dozen languages around the United States, "there's lots of work being done" to promote
multiculturalism, "and more that needs to be done," Msgr. Irwin said.

Eileen C. Burke-Sullivan, director of the master's program in ministry at Creighton University in
Omaha, Neb., said she has heard little advance publicity about the upcoming papal trip, in sharp
contrast to Pope John Paul's 1979 visit, "which stirred enthusiasm and excitement all over the
country but especially here in the heartland."

"It strikes me that the gap between the bishops and ordinary Catholics has so widened in this
country that even if the bishops are excited about Benedict's coming they are not in a position to
stir up the energy of lay Catholics to care a great deal," she said.


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Although there are some exceptions to "this enduring malaise," Burke-Sullivan said, most U.S.
Catholics today are "willing to work on their own faith, be loyal to their own local clergy if they
feel attended to by them," and are "somewhat uncaring about the universal expression of the
church."

Schreck hopes Pope Benedict will inspire "a revitalization" that will help American Catholics
resist "the increasing pressure toward secularization, to be part of the mass culture."

"Catholics in America do need to be reminded we are in a struggle" against the prevailing cultural
norms, he said. "They have to understand this is really a battle."




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February 23, 2008
By Jeremy Pittari

Habitat gets help, donation, from a Pennsylvania university
Item Staff Writer

PICAYUNE — Students from Villanova University in Pennsylvania came to Picayune to help
Pearl River County’s Habitat for Humanity build two houses currently under construction.

During the visit, the group of 27 students and two professors brought with them a donation from
the Karr Family Foundation, based in Pennsylvania.

“We periodically make donations to charities. This was an easy one to make,” said Bob Nydick, a
professor of management at Villanova. “It was really easy to see their good work going on down
here.”

Nydick said with larger organizations it is more difficult to see where their donations go, but with
organizations such as Habitat for Humanity the work is clear.

The donation totaled $75,000 and will help Pearl River County’s Habitat for Humanity finish the
two houses under construction on South Haugh and will help fund ground breaking for two more
houses next door.

Work conducted Friday and Saturday on the two houses included insulation and dry wall
installation. If the weather permitted, the group planned to do some siding work, said Villanova
professor Daniel Wright.

On a previous trip, the professor said he and another group of students from the university framed
and put roof sheeting on the same homes they worked on Friday and Saturday.

“It’s a lot of work for those two days,” Nydick said.

While this is Nydick’s 14th Habitat for Humanity trip, this is his first time to work on the same
house.

The group from Villanova flew into New Orleans on Thursday and began work Friday morning.
Thursday evening they had a chance to meet the families they were helping.

Work will continue Saturday, but Sunday the group plans to attend church services in New
Orleans before enjoying some free time touring the Big Easy in the afternoon.

All of the students paid their own way to get to Picayune and even brought a donation of their

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own from last year’s class. Each year students at the university raise money to donate to various
causes. This year the group brought $1,000 from the last year’s student efforts to add to the
$75,000 donation from the Karr Family Foundation.

Villanova Management and Business Law student John Ducci said he is enjoying his first time on
a Habitat for Humanity trip. Ducci said previously he had worked with the Habitat for Humanity
in Connecticut.

“I wouldn’t be surprised to find myself on a another one of these,” Ducci said.

That may be hard since the school fervently supports students taking trips like these, prompting a
large amount of student response.

“You honestly have to wait in line if you want to volunteer,” Ducci said.

This week’s trip was the third a group has made to help Pearl River County’s Habitat for
Humanity. Three other trips have been made to help other Gulf Coast region efforts recover from
Hurricane Katrina.

Gene Yeager with Habitat for Humanity said the organization will apply for a grant to match the
donation provided by Villanova. While the local Habitat group has not yet submitted the
application, members feel confident they will get the funds.

Nydick said another trip is planned for October where Villanova students plan to help with the
construction of at least one of the other two homes on Haugh Street.

Several people have asked Nydick why he donates his time to bring students to Habitat for
Humanity projects.

“If I have to explain it, they won’t understand it,” Nydick said.

He said while the experience will not change a student’s life, it is an experience they will not
forget.

Donna Fischer with Pearl River County Habitat for Humanity said she expects to be able to
dedicate at least one of the homes being built to the eligible family by May 16. Fischer actually
would like to be able to dedicate both of the homes by that date but cannot guarantee it.

The time and work Villanova donated to Habitat for Humanity in Pearl River County is
appreciated.

“Villanova has been our guardian angel,” said Habitat representative Martha Sheppard.

Additionally, Villanova recognized the efforts of Pearl River County’s Habitat for Humanity.

“This is the most well run and organized Habitat organization,” Wright said.

Local organizations also donated some assistance to the cause. Fischer said Joey Douglas of
Douglas Drywall donated the Sheetrock that will be installed in the homes. Local builder Dennis
Collier also is donating his time as construction supervisor, Fischer said.


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HABITAT FOR HUMANITY — A group of students from Villanova University in Pennsylvania donated their
time and energy to help construct Pearl River County Habitat for Humanity homes. The group brought with
them a donation of $75,000 to help fund the remainder of the homes’ construction. Students begin
unloading Sheetrock to be used to sheath the inside walls. (Photo by Jeremy Pittari)
By Jeremy Pittari / By: Jeremy Pittari




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February 25, 2008
By Raj Dayal

A higher education on church management awaits
Innovative degree addresses the managerial shortcomings of faith-based organizations.

Universities and seminaries are recognizing the need for advanced business and leadership
training regarding the management of churches. While most pastors and administrators have full-
time responsibilities, they can now enroll in several management and leadership programs
throughout the country and online. Most of these programs offer a combination of theology and
business degree or certificate of study.

In May 2008, The Center for the Study of Church Management in the School of Business at
Villanova University, Villanova, PA, will offer a Master of Science in Church Management
(MSCM) almost entirely online. Church Executive spoke with the director of the center and
economics professor Dr. Charles Zech about the new program and the necessity of management
training for clergy and church staff.

Why did the center decide to offer a program specifically on church management?

The center conducted a survey in 2005 funded by a grant from The Louisville Institute, and we
found that there was a real internal financial control problem in churches. It was sent to the CFOs
of 174 Latin rite dioceses. We found that of the 78 total usable responses, 85 percent experienced
some sort of embezzlement within the last few years.

The purpose and reasoning behind the MSCM became obvious. Church management has become
so complicated; leaders need professional help and training. It’s impossible to manage a church,
especially a large one, with just the help a few well-meaning volunteers.

In the summer of 2007 the center held a conference on church management. Were any
significant findings revealed about the state of church operations?

The main thing that jumped out to me at the conference was the need for performance evaluation
of people in management and leadership roles at churches. The law is very clear that churches are
granted no exception in regards to employee termination. There must be a paper trail.

Also, many of the things such as financial controls and human resources that businesses
understand routinely, are often absent from churches for one reason or another.

How did the program develop in order to address these needs? What is covered in the
curriculum besides an increased emphasis on financial management?

The courses are holistic. The majority of the courses were developed in the business school with
the specific focus on church management. We offer courses on the usual business topics but with
focus on how these elements work for more effective church management.

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We offer courses on technology in business, human resources and accounting. There are also
courses required on church law and civil law — which are often in conflict. The first course
students take is on leadership and ethics. Specific for the church management program are
courses on stewardship, planning and a unique course on what it means for an organization to be
a church.

Is the program solely offered to Catholic clergy and administrators? What are the
admission requirements?

This program is open to people of all denominations provided they meet the qualifications. The
MSCM program requires students to have earned a BA from an accredited college and experience
in church leadership and management. Experience is heavily weighted. We seek to foster an
environment where students can learn from each other and have back and forth communication
on message boards that they can relate to their specific churches.

Why is the program being offered mostly online with only a brief requirement at the
Villanova campus?

We feel that by offering the program online, it offers more people the chance to enroll. This gives
the MSCM program a national reach — even international. We have had people apply from all
over the country and the world with various backgrounds; among them are a priest from Ireland
and a Presbyterian minister in Cameroon, Africa.

What is the expected cost to students completing the full MSCM degree requirements? Is
tuition assistance available?

We expect most students to be supported by their diocese, church or organization. We will also
reduce the cost by 25 percent if a student’s church or organization pays for a third of their tuition.
It’s important for us to emphasize to churches and religious organizations that church
management training is essential.

Are there other programs, degrees and certificates offered through the center that focuses
on church management that doesn’t require the same amount of time to complete as
MSCM?

We offer the Summer Church Management Institute, which is an intensive executive education
experience that will be held July 7 – 11 at the Villanova Conference Center, Radnor, PA. The
institute is intended to offer leaders the latest expert information in sound managerial practices
within a faith-based environment.

What future programs or projects is the center currently working on?

We are planning on introducing a series of nationwide conferences on best practices in
congregational technology. That is, we hope to create an environment where church leaders are
working together to learn from each other about how to best use technology to manage their
churches and religious organizations.


Master of Science in Church Management curriculum


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The 30-credit MSCM curriculum is designed to be completed in just 24 months, and includes the
following:

Introduction: Leadership in Religious Organizations/Organizational Ethics/Catholic Social
Thought (6 credits)*
Civil Law and Church Law for Church Administrators (3 credits)
Stewardship and Development (3 credits)
Financial Reporting and Controls (3 credits)
Human Resource Management in a Ministry Setting (3 credits)
Organizational Management (3 credits)
Information Technology (3 credits)
Church Teaching and Belief (3 credits)
Pastoral Strategic Planning (3 credits)
*Course commences with an introductory one-week residency on the Villanova University
campus, May 2008. This course is a prerequisite for the rest of the curriculum. For more
information visit www.villanova.edu/homepage/index.htm.




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February 26, 2008
MBA Roundtable Press Release


The MBA Roundtable Elects a New President
The MBA Roundtable, a nonprofit international business school consortium, has elected Rodney
Alsup as its new president. Alsup is the former senior associate dean for executive education
programs at Kennesaw State University, and currently serves as director of international
programs for ASEBUSS, the Romanian-American Postgraduate School of Business. A highly
experienced and regarded leader in management education, Alsup has held multiple faculty and
administrative leadership roles, published and taught in the field of accounting, and served on
advisory boards for the Graduate Management Admissions Council(c), The Association to
Advance Collegiate Schools of Business, and the Executive MBA Council throughout his career.

"I am extremely pleased and honored to serve as the MBA Roundtable's president," says Alsup.
"As business grows and changes, so must graduate management education. Through the
collaborative efforts of our growing list of member schools, the MBA Roundtable is uniquely
positioned to advance curricular innovation in MBA programs."

Alsup succeeds James Danko, dean of the Villanova School of Business, who was elected
president for three consecutive terms. Danko played an instrumental role in advancing the MBA
Roundtable's mission and reach through membership growth, the launch of the symposium series,
and introduction of the new member publication, MBA Innovation. Danko will continue to serve
the MBA Roundtable as a member of its board of directors.

Founded in 1995, the MBA Roundtable is a unique, collaborative organization that fosters open
discussions around the design and delivery of graduate business programs as a way to advance
the practice of management worldwide. Delivering information and resources relating to MBA
curricular innovation to member schools is at the heart of this mission.

More than 150 business schools are members of the MBA Roundtable.

The MBA Roundtable




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                                                                  JONATHAN WILSON / Inquirer Staff Photographer
 Detective Sgt. Joseph A. Ryan (left) and Martin Morfin, a senior accounting major at Villanova, review
 embezzling case data.


February 27, 2008
By Mari A. Schaefer

Delco student interns help fight crime
The Delaware County District Attorney's office figured the case against a Swarthmore investment
adviser involved perhaps $50,000 in missing funds.

But that was before a Villanova University student started going through bank records and
discovered one discrepancy after another.

They added up to $1.9 million of questionable transactions.

Not only did the Delaware County District Attorney's office put the culprit away for five years,
but it saved thousands in professional forensic accounting fees.

In a program apparently duplicated in few other jurisdictions, undergraduate students from
Villanova's business school work side-by-side with detectives from the county's economic crime
unit investigating embezzlement, identity theft, forgery and fraud cases.

The students have traced more than $5 million in stolen funds since 2004.

"What we do in this unit is follow the money," said Sgt. Joseph A. Ryan.

Previously, the county would hire professional firms at $150 to $300 per hour. Villanova students
earn about $12 an hour.

"It was fascinating," said Lauren Schulman, a 2006 Villanova grad. "I got to be part of the whole
prosecution.


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With the number of white collar crimes increasing along with the cost of each investigation,
District Attorney G. Michael Green and Ryan contacted their alma maters to gauge interest from
the forensic accounting program.

Villanova called back.

The students, Ryan said, help with the "nuts and bolts" of combing through "boxes of records"
looking for irregularities, allowing the detectives to focus on more typical detective work.

The efforts of the program's first co-op student, Matthew Nobel, led to the arrest of Thomas J.
Motley, the Swarthmore investor. In 2005, Motley pleaded guilty to 22 counts of fraudulent
business practices and securities fraud in two investment schemes and received five years in
prison.

Nobel is now working at Goldman Sachs, an investment banking and securities firm, in New
York. Goldman Sachs would not allow Nobel to comment for this story.

"It's real life," said Martin Morfin, 22, a senior accounting major who began the six-month co-op
in January. "Before I started I didn't think it would be hands on."

Now, Morfin finds himself working side-by-side with the detectives, even going along on
interviews as they build their case.

He sifts through boxes of records looking for discrepancies in bank statements, charting financial
deposits or withdrawals, combing through work schedules and other company or personal
records, to spot inconsistencies. He then sets up spreadsheets tying the information together.

"We get them involved in every aspect," said Ryan. "They are a member of the team, not an
intern."

So far, there have been nine undergraduates who have traded the student life for the working life.

"This keeps our detectives doing what they do best," said Green.

Green does not know of another district attorney's office using students to help with forensic
accounting investigations.

Neither does David Hoffman, general manager at the National Association of Forensic
Accounting. Hoffman is unaware of any other university programs or postgraduate programs in
forensic accounting where students get hands on experience.

"It is a good way for them to do some investigation work with experienced professionals," said
Hoffman.

"They are the equivalent of a full-time employee in the D.A.'s office," said Brenda Stover,
director of professional development and business institutes at Villanova University. She said the
co-op program was far more intense than an internship.




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Participants in the program must have taken three required accounting classes, be a finance or
economics major, hold at least a 3.0 GPA, and pass a background check and security clearance.
They usually complete the co-op in their junior year.

Schulman, 23, juggled a 40-plus hour work week, swim team practice and a night class as a co-op
student.

"After the program, I realized this is something I wanted to get involved in; this is my field," she
said.

Schulman spent much of her time cross-checking prison computer records with cash log books
from defendant Sandra Belt, a prison official at Delaware County jail who was found guilty in
2005 of stealing money from inmate accounts.

Schulman, who now works for AlixPartners, a financial consulting firm, said the co-op gave her
an edge over other job applicants.

"Alix is known to hire experienced professionals, and I got the job right out of undergraduate,"
said Schulman.

Since starting work, Schulman has traveled to China, Japan, Israel, and California for her work.

Morfin, of New Egypt, N.J., already has a job lined up with Ernst & Young after graduation. But,
the work in this co-op has rekindled an interest in law enforcement and working for the FBI. Or,
even law school.

"It could be an option down the road," Morfin said.




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March 1, 2008
By Kate Plourd

CSI Pennsylvania
A Pennsylvania district attorney uses Villanova accounting students to help root out
financial crimes.

Some Villanova University undergraduate students are learning first-hand how accounting skills
can help take a bite out of crime.

Every six months, Pennsylvania's Delaware County District Attorney's office accepts an
accounting student from the university's business school into its cooperative work program. The
student works in the economic-crime division, scouring the financial documents of people under
investigation for everything from fraud to embezzlement. In the past four years, the program has
not only saved Delaware County taxpayers an estimated $20,000 a year in forensic accounting
and consulting fees, says District Attorney G. Michael Green, but has freed up detectives to
conduct more interviews and take on larger caseloads.

The program also gives students a unique accounting experience. The most recent student to
complete the program, Michael Busby, a finance and accounting major, spent last fall combing
through financial records for a fraud case in which the secretary of a sewage-treatment company
had been arrested for embezzling almost $1 million over nine years. "It taught me a lot about how
accounting is applied in law enforcement, as well as about how different organizations keep their
books," says Busby.
The program is a résumé builder as well, says Green, who has seen former participants easily land
forensic-accounting jobs. "They're investigating individuals who are extremely skilled at
perpetrating economic fraud," he says. "Exposure to this field is an experience you can never get
in a classroom or at an accounting firm."




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March 4, 2008
By Ian Mount

Slump-busting strategies
These small businesses are prepared to thrive - even if recession strikes.

As the CEO of Commonwealth Worldwide Chauffeured Transportation, Dawson Rutter painfully
rode out the downturns of 1982, 1991, and 2001. Now the Boston-based entrepreneur is putting to
work the lessons he learned.

He has beefed up his sales staff from five to 14 in the past year because he remembers that
competitors who slashed their marketing efforts got killed in 2001. He is concentrating on
executive travel because he watched businesses with low-end customers get hit by price wars and
defections. And he plans to invest in new cars - beyond the RR.L he just purchased - so he is
poised to take advantage of the post-recession boom.

"Even if we have to accept more debt to grow, we'll do it," says Rutter, 56, whose firm had $47
million in sales last year. "We don't worry about retrenching."

With meager cash reserves and credit, little fat to cut, and a dearth of geographic and
industry diversification, small businesses are typically hit harder by a slowing economy
than are large corporations. During each of the past three recessions, about 500,000 small
businesses closed or went bankrupt, says Villanova School of Business professor John
Pearce II, who culled the figure from federal bankruptcy data.

While the U.S. has not officially entered a recession (fourth-quarter GDP growth was still
positive, albeit an anemic 0.6%), smart entrepreneurs are already planning on one - and the
smartest have been doing so for years. In November and December, the National Federation of
Independent Businesses optimism index, which has measured small-business attitudes since 1986,
fell to lows previously seen only in 1991 and 1993.

Each recession hits entrepreneurs differently. Seven years ago, companies in travel and
technology got slammed hardest, while this time those involved in real estate are worst off.

But today, as in past downturns, some small-business owners - even some in housing and
construction - are nimble and savvy enough to thrive. Where others see only calamity, they see
cheap credit, bargains on equipment and property, and new opportunities to hire topflight
employees.

There are a few common themes to their success: They didn't wait for Congress to decide on a
stimulus package; they moved quickly to adjust their products and business plans to take
advantage of more lucrative niches. Some diversified. Others identified new customers. Almost
all cut behind-the-scenes costs.




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And the most aggressive, like Rutter, are investing in new technology, equipment, and personnel
to seize market share from competitors large and small who entered the hard times poorly
prepared.

"Recessions are a period of opportunity," says Pearce. "During recessions, large companies
abandon marginally profitable customers, and small businesses can get those customers.
And recessions are healthy. They reward a history of fiscal responsibility. They discipline
the economy for its excesses. And the great thing about recessions is, they end."




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March 10, 2008
By Kim Hart

Text-message spam on the rise

The spam messages that have long plagued e-mail inboxes are now finding victims through a
more personal route: the cellphone.

Text messages are the latest tool for advertisers and scammers to target consumers. But unlike
junk e-mail that can be deleted with the click of a button, text-message spam costs money for the
person who receives it and chips away at the mobile phone's aura of privacy.

"It's so annoying because I get charged every time I get one," said Ryan Williams, 27, of Falls
Church, Va., who receives half a dozen spam messages on a daily basis. They ask him to
download ring tones, visit questionable sites over his phone's Internet connection or urge him to
subscribe to horoscopes or sports-score updates.

Williams downloaded a program that was supposed to block texts from numbers not stored in his
phone's contact list, but the junk messages still get through. More than 1 billion text messages are
sent every day in the United States.

U.S. consumers are expected to receive about 1.5 billion spam text messages this year, up from
1.1 billion last year and 800 million in 2006, according to Ferris Research, a San Francisco
market-research firm. Those are conservative figures; some estimates are far higher. Verizon
Wireless said it blocks more than 200 million spam text messages every month, and cellphone
companies are ramping up efforts to shut them out by taking spammers to court and using more
sophisticated filters.

Spam is often a nuisance, but more malicious messages can lead to a new form of fraud called
smishing, a variation of a spam e-mail attack known as phishing. Smishing attacks disguise
themselves as legitimate messages from e-commerce or financial sites such as eBay, PayPal or
banks, and seek to dupe consumers into giving up account numbers or passwords.

Most text messages are sent without any form of encryption, allowing tech-savvy spammers to
intercept the messages and get access to personal information, said Larry Ponemon, founder of
the Ponemon Institute, a privacy and security research firm.

As of 2005, federal agencies banned companies from sending unsolicited commercial e-mail and
text messages to mobile phones. To receive promotional material or updates, consumers typically
must text a message to a five-digit short code to opt in to the service.




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But Simeon Coney, marketing director at anti-spam software maker AdaptiveMobile, said
spammers are breaking the law, bombarding cellphone users with unwanted mail that could infect
phones and BlackBerrys with viruses.

Consumer complaints about text-message spam have been sporadic, according to the Federal
Trade Commission, the FBI and Consumers Union. But Coney said his firm is starting to see
"overall increases in mobile-spam traffic."

The rise of spam could spoil trust in text messaging as a mode of communication, according
to Charles Taylor, a Villanova University professor who studies online and mobile ads.
"Trust is crucial for an ad to be effective, and the minute you start clogging up cellphones
and BlackBerrys, it's a real turnoff and an invasion of your personal space."

The revenue generated by data services, such as text messages, has grown along with the
consumer demand. About 20 percent of wireless carriers' total revenue now comes from the
delivery of text messages, said Roger Entner, senior vice president for the communications sector
for IAG Research.

Each text message typically costs between 10 and 20 cents, although the four largest U.S. carriers
— AT&T, Verizon Wireless, Sprint Nextel and T-Mobile — are rolling out flat-rate plans for text
messaging.

The carriers said they have rigorous filters to block spam, and they allow customers to block
messages from certain numbers. They also try to remove charges for unsolicited spam.

"We have every incentive to stop spam texts from getting through, since we end up footing the
bill for a lot of it," said Verizon Wireless spokesman Jeffrey Nelson. "The longer a service like
text is out there, the bigger the bull's-eye gets."




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March 18, 2008
By Jeannine Aversa

Analysis: Fed's Bold Moves Have Risks
WASHINGTON (AP) — There's a risk in Federal Reserve Chairman Ben Bernanke's bold moves
of late.

If recent history is any guide, the euphoria that met the Fed's three-quarter-point reduction to a
key interest rate Tuesday could be short-lived. With a string of urgent and aggressive actions, the
Fed itself could end up feeding the panicky mind-set that it so desperately wants to calm.

Even inside the Fed there was disagreement about just how much the key interest rate — its most
potent tool in dealing with economic trouble — should be lowered.

Two Fed members dissented, preferring a smaller cut, while Bernanke and seven others prevailed
with a more powerful three-quarter-point one. Cuts of this size are pretty infrequent. Bernanke, in
an emergency session in January, ordered one — making for the single-biggest reduction in more
than two decades.

Wall Street was ebullient Tuesday — soaring 420 points — even as it had hoped for greater relief
— a rare reduction of one percentage point. Yet, one wonders just how long the good feeling will
last. Wall Street has been largely engulfed in turmoil since last year — swinging wildly at times
between relief and panic.

In a bid to revive a sagging economy, the Fed dropped its key rate to 2.25 percent. In turn, the
prime lendng rate for millions of consumers and businesses fell by a corresponding amount, to


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5.25 percent. Both are the lowest since late 2004. It held the door open to the possibility that rates
would fall even lower in the months ahead.

The Fed's action was the latest in a series of extraordinary moves — many in just the past few
days and weeks — that the Fed has resorted to as it seeks to prevent a financial catastrophe that
could plunge the country into a deep and painful recession.

Yet, it raises the question: can the Fed in its very efforts to contain spreading credit and financial
crises, end up also spreading fear?

"I think it is true that Federal Reserve actions coming closely one after the other in the last few
weeks — while no doubt are helpful for the economy — they carry with them a risk that people
will perceive them as involving some slight desperation," said Marvin Goodfriend, economics
professor at the Carnegie Mellon University.

The Fed's words — not just its actions — matter a lot and can color how people view the
economy and their own financial fortunes.

On Tuesday, the Fed was blunt in its assessment that the country's economic health has worsened.
"The outlook for economic activity has weakened further," the Fed said. "Financial markets
remain under considerable stress and the tightening of credit conditions and the deepening of the
housing contraction are likely to weigh on economic growth over the next few quarters."

Such words can make people more nervous. The Fed walks a fine line between trying to give the
public an accurate picture of what is going on and at the same time not spooking them — or
investors.

"Saying nothing could also trigger a panic as well" and undermine the Fed's credibility,
said Victor Li, an economics professor at the Villanova School of Business. "People would
be more nervous if the Fed sat back and did nothing."

Still, the Fed's rate-cutting campaign, which started in September, and turned much more
forceful in January, hasn't put people into a better frame of mind where they are more
willing to spend. Instead, they have hunkered down, adding to the economy's problems.
"Maybe the public is saying, the Fed can't really do much about the impending recession,"
Li said.

The Fed's lifelines — through interest rate cuts and other moves — probably won't pull the
country back from the brink of its first recession since 2001. Many believe the country has
slipped into recession.

With jobs harder to come by, most people probably will feel skittish for a while. Employers
slashed 63,000 jobs in February, the most in five years. It was the second month in a row of
nationwide job losses. The unemployment rate, now at 4.8 percent, is expected to rise to around
5.5 percent later this year.

And, many believe the market's volatility will persist for some time, too.




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"Volatility is to be expected. You'll have good new one day, bad news another day. The market is
trying to find a stable point in being buffeted by good and bad revelations of matters involving
credit," Goodfriend said.

Just a week ago, Wall Street soared by nearly 417 points — the biggest rally since 2002 — when
the Fed unveiled a new and innovative way to deal with the worsening credit crunch, — letting
big Wall Street firms borrow up to $200 billion in ultra-safe and much-in-demand Treasury
securities and pledge harder-to-sell mortgage securities as collateral. The euphoria, however, was
short-lived, and investors fell back into a nervous funk.

A few days later, the Fed, in a rare use of authority dating back to the Depression-era days of the
1930s, backed a rescue package of venerable investment bank Bear Stearns, which teetered on the
brink of collapse. Wall Street, however, tumbled by nearly 195 points as the Fed's action stoked
concerns about the severity of credit troubles and whether other big financial firms might falter.

Two days after that — on Sunday — the Fed took more bold actions — including backing JP
Morgan's takeover of Bear Stearns and guaranteeing up to $30 billion in troubled mortgages and
other assets that brought about Bear Stearns' downfall. Critics contend it's akin to a government
bailout.

The Fed also Sunday agreed to let big investment houses get emergency loans directly from the
central bank for the first time. The new lending facility — similar to one that's been available to
commercial banks for years — started Monday and will continue for at least six months. The
following morning, stocks around the world fell sharply. Investors remained skittish in the United
States, although the Dow Jones managed to finish the day up slightly.

The panicky mind-set that has swept over investors since last summer has made credit become
harder and harder to get. Financial institutions, which racked up huge losses due to soured
investments in mortgage-linked securities, became increasingly wary of lending and hoarded
cash.

"The menacing beast is not a recession but the credit crisis," said Greg McBride, senior financial
analyst at Bankrate.com. "Recessions happen and we'll get through them particularly with the
Fed's rate cuts and the government's stimulus (of tax rebates and tax breaks). But without
properly functioning credit markets, the economy can't grow. It is like starving a fire of oxygen."




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March 21, 2008
By Bill Frogameni

The pitfalls of shrouded finances
Santiago “Charlie” Feliciano spent two decades working as an in-house lawyer for the Cleveland
diocese. When he finally left in 2000, he had been the general counsel, Bishop Anthony Pilla’s
main legal adviser, for 16 years.

Feliciano held one of the top posts in the diocese’s Financial and Legal Office. Yet, talk to
Feliciano and he’ll tell you how large swaths of diocesan finance remained a mystery to him.

He paints a picture of himself as a man who was inside, but really on the outside. Someone who
should have known the details of questionable schemes then being cultivated -- schemes that later
mushroomed into the ugliest diocesan-level money scandal to hit American Catholicism in
decades.

But Feliciano says he didn’t know.

“They never let me anywhere near a checkbook,” he said.

The Cleveland case may present an extreme example of a lack of financial accountability, but it
hardly stands alone. Cases of embezzlement and improper handling of parishioner and diocesan
money are so widespread that the U.S. bishops were prompted recently to emphasize the need for
controls. But there is little the bishops as a group can do to enforce their own recommendations,
since each bishop is autonomous and without oversight when it comes to running his individual
diocese. A number of lay groups have attempted to highlight the issue of financial accountability
within the church. One group of professionals has put forward recommended standards for
accountability.

In Cleveland, Feliciano was cut out of policy meetings, where he might have expressed legal
opinions about the imprudence of self-dealing or other questionable executive compensation
practices. “They should have regularly run things by me, but they chose not to,” he said.

The Cleveland scandal, now approaching its last act in federal court, involves Pilla and other top
diocesan officials, one of whom, Anton Zgoznik, was convicted last year in federal court and
another, former chief financial officer Joseph Smith, who faces his own trial later this year.

It was only after Feliciano left the diocese that another insider mailed a stack of financial
documents to Cleveland media -- the proverbial smoking gun. It was then, said Feliciano, that he
started to get a clear picture of the embezzlement that had been happening more or less under his
nose.


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If it seems a bit peculiar for a top church insider to be that out of the loop concerning church
finances, what can the average parishioner expect to know about the finances of an institution
where virtually all control is in the hands of local bishops and the diocese is largely exempt from
publicly disclosing its financial operations to the Internal Revenue Service?

Special protections

In the United States, churches, church auxiliaries and many other religious-affiliated institutions
enjoy special financial protections. As nonprofit establishments, they are exempt from paying
taxes, although they are still obligated to abide by tax laws regarding accurate accounting,
executive compensation, insider deals and so forth. Unlike most secular nonprofits, churches and
many religious affiliates are not required to file IRS Form 990, a comparatively simple disclosure
that gives a basic picture of an institution’s finances and, perhaps most important, is available for
public scrutiny.

Within the Catholic church, individual dioceses often have tens of millions of dollars in assets
under management. Given the scope of church operations, mandatory public disclosure via IRS
Form 990 could make the difference between good stewardship and the kind of fiasco that has
rocked the Cleveland diocese.

There is a growing awareness in clerical, lay and academic circles that church financial policies
need to be improved, but no mechanism exists to force something to be done about it. In January
2007, an advisory committee to the U.S. Conference of Catholic Bishops called for greater
internal financial controls at the parish level. The committee recommended the bishops
implement several “best practices,” including greater documentation and “prosecution for all
cases of fraud in the diocese.” For several years, the bishops’ conference has also had in place
detailed recommendations for financial management at the diocesan level. The recommendations,
however, remain only that: Canon law and civil law don’t obligate any bishop to answer to his
brother bishops in other dioceses.

Making the church publicly account for finances is a goal of numerous reform advocates,
including Professor Charles Zech of Villanova University’s Center for the Study of Church
Management. In 2006, Zech published a study that identified embezzlement in 85 percent of
U.S. dioceses for the five years prior to the study. Zech’s study compiled data from the chief
financial officers of 78 dioceses who responded to a survey that 174 diocesan CFOs were
asked to complete. If the percentage of dioceses reporting embezzlement seems startling,
“you can only wonder about those [96] dioceses that didn’t respond to our survey,” Zech
told NCR in 2006.

Zech thinks the church needs an overhaul to achieve reliable fiscal stewardship. He
recommends better internal controls but barring that, he thinks a good start would be to
make it mandatory for all incorporated Catholic entities to face the external scrutiny that
comes from reporting to the IRS. “There’s no reason why we don’t [file 990 Forms]. ...
These forms aren’t that onerous,” said Zech.

The ease or difficulty of filing 990 Forms notwithstanding, most nonprofits are required to do so.
The most notable exception is for standalone nonprofits (for example, those unaffiliated with
other nonprofits) that have gross yearly receipts of $25,000 or less.



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Churches are universally exempt from filing. While the IRS is understandably at pains to offer a
concise definition of “church,” everyone seems to agree on the generic “house of worship”
model. In this sense, a church is a brick and mortar institution where people congregate to
practice religion. Beyond that, things get tricky.

‘Loosey-goosey’ laws

The IRS, in its literature, distinguishes between “churches” and other “religious organizations,”
such as nondenominational ministries and interdenominational or ecumenical organizations.

In general, the IRS is reluctant to talk in layman’s terms or even discuss hypothetical examples of
religion in action. That may largely be because the IRS faces great political pressure when it
comes to religion, says a U.S. Senate tax aide who asked to remain anonymous. The agency’s
reluctance may be compounded because “the tax-exempt laws generally are very loosey-goosey,”
according to the aide.

So how is the government, or even a Catholic bishop, supposed to define reasonable
compensation for key executives of a church? Difficult as that question is to answer, it’s even
more difficult, given the lack of mandatory public oversight regarding religion, to identify
financial wrongdoing in the first place.

“It’s hard for the public to understand ministries’ expenses because they’re not required to file
public disclosure of their activities, while other nonprofits have to file a Form 990 that offers
some information about their activities,” said Iowa Republican Sen. Charles Grassley, the ranking
member of the Senate Finance Committee, who is conducting an investigation of six (non-
Catholic) televangelist ministries. Grassley isn’t yet making the leap to advocating mandatory
990 filing for all nonprofits. “But, in general, more transparency helps the public understand how
tax exemption is used,” he said.

Since the widespread exposure of the clerical sex abuse crisis in 2002, Catholic reform groups
such as Voice of the Faithful have advocated sweeping changes in church governance and
transparency. In response, some dioceses have begun to make financial statements publicly
available. The reports are sometimes compiled by outside accounting firms hired by the dioceses,
but the reports -- when dioceses provide them -- are under no obligation to reveal the diocese’s
finances with the kind of detail required by IRS Form 990. Unlike the 990, the self-reports of
dioceses are typically meaningless, said Tom Gallagher, a Catholic and former Wall Street
securities lawyer.

Gaping holes

“Any seasoned pro can look at the audited financials most dioceses put out and find gaping
holes,” said Gallagher, who favors mandatory 990 filing. To illustrate his point, Gallagher
dissects the 2005 and 2006 financial statements of the Los Angeles archdiocese, which are
available on the archdiocese’s Web site. Digging through the footnotes, Gallagher questions the
consistency and transparency of the audit on several points. One notable omission is a breakdown
of salary and benefits for key employees -- including Cardinal Roger Mahony.

Were 990 filing mandatory, every American diocese would have to list its top employees and
their compensation. Gallagher thinks that would constitute a positive step toward discouraging
bishops and others who control the coffers from excessively compensating themselves. The same

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dynamic would work in parishes incorporated separately from their parent diocese or other
Catholic entities, such as schools below the college level and religious orders, which are currently
exempt from filing.

In addition to providing a detailed image of a nonprofit organization’s financial status, the 990
requires disclosure of the compensation of each officer, director, trustee and key employee.

Likewise, the 990 requires disclosure of the compensation of the top five highest paid contractors
employed by the nonprofit. This requirement could be helpful in identifying artificially inflated
contracts and scuttling kickback schemes, said Gallagher. One can only speculate what effect this
latter provision might have had on the $17.5 million in contract work that Cleveland’s Joe Smith,
the former diocesan financial officer, steered to his friend, the now-convicted Anton Zgoznik.

The 990 is “the one document that gives you a snapshot of the health and wellness of an
organization” said Gallagher. To Gallagher’s mind, there’s much to gain and little to lose if tax
disclosure becomes mandatory for all nonprofits.

But unless lawmakers muster the political will to make that happen, Cleveland Catholics are
unlikely to get a complete picture of how their church fell into a financial quagmire. And Charlie
Feliciano, the Cleveland diocese’s former top lawyer, will still be scratching his head, wondering
exactly what happens after the basket goes around on Sunday.




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March 26, 2008

Radio merger waiting on FCC
Now that the Justice Department has endorsed the $13 billion marriage of XM Satellite Radio and
Sirius Satellite Radio, all eyes are on the Federal Communications Commission, which could
hinge approval on one or more conditions.

So far, District-based XM and Sirius of New York have introduced an "a la carte" programming
scheme that includes packages priced at less than the companies' existing $12.95 monthly
subscription fees. The companies also promised to introduce "interoperable" radios capable of
receiving both signals.

But a slew of proposed merger conditions from interested parties have cropped up in recent
months.

Private equity group Georgetown Partners wants the commission to require a combined XM and
Sirius to lease one-fifth of their total channel capacity and infrastructure to a "totally independent
and unaffiliated third party, such as Georgetown, to remedy the anti-competitive monopoly that
would otherwise result," according to the company's FCC filing.

HD Radio pioneer iBiquity Digital thinks any new satellite-radio receivers should be equipped to
play both over-the-air broadcast radio and HD radio, a requirement it says should last for three
years in cars and one year for stand-alone radios.

The nonprofit Media Access Project urges any approval to be contingent on the company
relinquishing half its spectrum, which would be used as either a set-aside for educational
programing, leased to another commercial firm or returned to the FCC for a federal auction. D.C.
public interest group Public Knowledge likewise calls for a set-aside (5 percent of channel
capacity) for educational broadcasters, but also urges a three-year freeze on the new company's
combined programming.

Those groups and others endorse a proposal from U.S. Electronics, which makes car devices, that
calls for an "open access" condition to force the companies to allow any hardware manufacturer
to make a satellite-radio receiver.

Of all the wish lists, Clear Channel Communications' appears to be the longest. The radio giant
wants half of the satellite-radio spectrum to go to a competitor, as well as a 5 percent "public
interest set-aside." Clear Channel also wants a prohibition on local programming and local
advertising revenues. Like iBiquity, it wants HD radio receivers embedded in satellite-radio

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receivers.

Clear Channel's most ambitious request is that satellite-radio content — which unlike broadcast is
based on a pay-to-play model — be subject to broadcast indecency standards.

The Justice Department on Monday approved the merger with no conditions, concluding it is not
likely to harm consumers. The FCC proceeding is separate, but the agency typically is influenced
by the department's assessment of market conditions.

Alan Dozinger, a professor at Villanova School of Business, said the FCC likely will
consider issues affecting satellite subscribers, such as pricing and equipment. The
companies have said that no radios will be made obsolete by the merger, but Mr. Dozinger
noted that XM uses geosynchronous technology and Sirius uses a low-orbit satellite.

"It won't be so hard for [Sirius and XM] to satisfy future subscribers, but what are they going to
do about the 17 million people who already have these systems? I suspect the FCC will put
something down on that," he said.




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March 31, 2008
By Joseph Weber

Not So Fast, Mr. Paulson
The Chicago Mercantile Exchange objects strenuously to the Treasury Secretary's
regulatory reform plan—and it's not afraid of a fight

As Treasury Secretary Henry Paulson labors to overhaul the U.S. financial regulatory system, he
could run into a buzz saw in Chicago. The broad-shouldered folks who run the Chicago
Mercantile Exchange (CME) have handily fought off would-be interlopers in the past, whenever
their freedom to do business as they like has been threatened. They blew away critics who said
their board was too heavily packed with exchange-industry insiders, for instance. For years,
they've shoved aside competitive threats from rival exchanges that tried to make inroads into their
business. And they beat back a competitor that tried to thwart their purchase last year of the
Chicago Board of Trade.

They may just do the same now with the latest threat to the status quo for the CME: Paulson's far-
reaching reform plan. Longtime observers argue that the parts of Paulson's Mar. 31 plan that
could sharply rein in the free hand CME generally has are doomed. Most conspicuously, the idea
of creating a new superagency that would put the CME's Washington overseer, the Commodity
Futures Trading Commission (CFTC), under the same roof as the Securities & Exchange
Commission (SEC), the stock-trading watchdog agency, is getting a chilly reception.

Charges of Lack of Understanding

The CME wasted no time in picking up the gauntlet Paulson threw down. A statement hurried out
to respond to the former Goldman Sachs (GS) chief thundered against "an overly homogenized,
less effective, and less competitive model" of regulation that it suggested could emerge from the
Paulson plan. The outfit added pointedly that CME officials would work closely with all parties
to make sure different regulatory approaches—one for its futures world and one for the stock
world—are preserved. Exchange officials even got personal, saying Paulson's suggestion that
certain rules governing stocks and futures ought to be "harmonized" reflects a lack of "sufficient
understanding" of differences in the markets. Blending them, it warned "is certain to cause more
harm than good."

Indeed, the CME leaders hailed points Paulson made that seem likely to delay—or kill
altogether—the idea of putting stock and futures exchanges under a single regulator. They
welcomed the Treasury's suggestion that an SEC-CFTC merger required further study and isn't a
short-term move, for example. And they agreed with Paulson's suggestion that the heavily rules-
oriented SEC ought to shift to the lighter-touch governing philosophy, a so-called principles-
based approach espoused by the CFTC. "Principles-based regulation in U.S. futures markets has
spurred unparalleled growth, innovation, and competition," the CME leaders said.




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An Alliance of the Regulator and the Regulated

The CME's tack is being echoed by leaders of the CFTC, whose gentle regulatory touch certainly
has helped the exchange become the world-beating bourse in futures. While the creation of a
single regulator could bring efficiencies, CFTC Acting Chairman Walt Lukken said in a
statement, he warned that any reform "must preserve the benefits of the CFTC's principles-based
model and recognize the distinct functions of the futures markets and the mission of the CFTC."
One particularly outspoken CFTC commissioner went even further in carrying the CME's
message forward. "What I don't hear is a call from the countryside for moving boxes around in
Washington, D.C., or the need for some omnipresent super-regulator," Commissioner Bart
Chilton argued. "We shouldn't be about trying to cure what isn't sick."

Lukken even took the chance to toot his horn for the CFTC, which some observers say has a
potent instinct for self-preservation and wouldn't want to disappear into the SEC: "The CFTC is a
world-class regulator because of its focused mission, market expertise, manageable size, problem-
solving culture, and global outlook—all of which may be jeopardized with the creation of a larger
regulatory bureaucracy."

Industry observers say officials at the CFTC and the CME share a common interest in
ensuring that little really changes. "There may be strong vested interests to stay with the
status quo," says Michael Pagano, a professor of finance at Villanova University who
follows the exchanges. "That is what has defeated things in the past."

Worlds Blurring, Converging

Still, the financial meltdown that has swept away Bear Stearns (BSC) and is now
threatening much of Wall Street could reorder the alphabet soup of agencies in
Washington—if Paulson can overcome the power of united bureaucratic and commercial
interests. Pagano argues that distinctions between the stock and futures worlds are
blurring, and he points to the CME's recent acquisition of Credit Market Analysis, a
London outfit that will let the CME move into the over-the-counter world for credit
derivatives. Such products, he says, are similar to the structured financial products
involving mortgages that got Bear Stearns and other investment banks in big trouble.

Moreover, some of the players in the battle over the regulatory overhaul are lining up on different
sides. NYSE Euronext (NYX), for instance, supports Paulson's plan. The parent of the New York
Stock Exchange argues that "greater regulatory convergence, in the U.S. and abroad," would
better serve U.S. capital markets, a spokesman for the bourse says. It'll be tough to achieve in the
short-term, the New York exchange argues, but would be worthwhile over time.
NYSE Euronext has its own vested interest in such "convergence." While the CME has largely
stayed out of the stock markets, NYSE Euronext is increasingly moving into futures and
derivatives. It has a big futures operation in Europe, picked up a big options business—another
form of derivative—by buying the American Stock Exchange, and is now buying the gold and
silver futures business of the CME's Chicago Board of Trade unit. NYSE Euronext would prefer
to deal with a single regulator, rather than answer to two separate masters. Commonly in Europe,
it deals only with single regulators in both arenas.

Change-Resistant Forces

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Even if a single superagency emerges in Washington, just how powerful it will be is hardly clear.
Some analysts say the regulatory overhaul could wind up weakening the SEC, on whose watch
Bear Stearns collapsed after all. Sandler O'Neill & Partners analyst Richard Repetto argues that
the CFTC's "principles-based" tack is likely to prevail and that any combination of the CFTC and
SEC wouldn't be an "automatic negative" for the exchanges.

In the end, however, the lame-duck Bush Administration and its lame-duck Treasury Secretary
almost certainly will wind up handing the idea of such reforms over to the next Administration.
"Right now, we're just looking at something that is just a discussion piece," says Zacks
Investment Research analyst Charles Rotblut, who is skeptical that any real change will take
place. As the discussion proceeds, the powerful lobbying forces of the CME and other big players
will surely press their cases against too much change.




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April 1, 2008
By Jack Pearce

Retaining Patent PROFITS; When patents expire, profits fall. But,
there are some strategies to get more mileage out of branded
pharmaceuticals.
Dr. John A. Pearce II - VSB Endowed Chair in Strategic Management and Entrepreneurship,
Villanova School of Business, Villanova University

The principal consequences for an expired patent holder are that its product loses market share
and considerable profitability in a very brief period. Fortunately, for the holders of expiring
patents, innovative strategists can create options to forestall the company’s loss of profits—
specifically the preemptive launch of a generic, layering innovations, and line extensions.

Once a brand-name manufacturer loses patent protection for a profitable and popular product,
generic substitutes capture the majority of the market because they are typically priced 25% to
70% lower than their brand-name equivalents.

The experience of Bristol-Meyers Squibb (BMS) typifies the dramatic impact that generic
products can have on competition after patent expiration. The patent on BMS’s Glucophage,
which had sales over $2 billion in 2001, expired in January of 2002. One month later, more than
85% of that drug’s market share had been taken by generic alternatives.

Strategy 1: Preemptive launch of a generic

To combat loss of revenues to new competitors, a drug originator can introduce its own generic
prior to its drug’s patent expiration. Using an “authorized generic,” the branded pharmaceutical
company gives permission to a preferred generic firm, or its own generic subsidiary, to sell and
possibly to manufacture an authorized version of the drug. This authorized generic is then
launched on the same day as the first generic competitor, thereby effectively eliminating the 180
days of marketing exclusivity provided by the Waxman-Hatch Act of 1984.

Brand-name pharmaceutical companies also have the unique ability to market a generic version
of a patented drug before the expiration of the patent. They approach customers with a generic
version of their own patented drug at a substantially reduced price for a contract period that
extends beyond the patent expiration. Customers are attracted because such contracts make
irrelevant any concerns that they have about the availability or quality of a future competitor’s
generic substitute, and because such contracts cut their drug costs immediately. Despite its short-
term revenue forfeiture from the loss of monopolistic profits, the brand-name firm also benefits. It
“locks-in” customers at a higher than generic price for a set period following patent expiration
when the likely alternative is to lose those customer accounts altogether.



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For example, Upjohn succeeded in retaining control of 90% of the generic market for its patented
drug Xanax by introducing its own generic over-the-counter version one month before the Xanax
patent expired. Upjohn was aware that it is a common practice among pharmacies to stock the
first generic substitute that becomes available and to stay with that generic even in the advent of a
second generic. Effectively, Upjohn traded one month of sales at its high patent drug price for
years of generic drug sales at 90% of its previous level, albeit at a substantially reduced price.

An authorized generic also makes sense from the perspective of the theory of complementary
assets. A patent-holder and an independent generic manufacturer can share benefits from an
exchange of capabilities: the preservation of the pharmaceutical company’s market power and the
avoidance of duplicative commercialization investments, specifically those associated with
manufacturing, marketing, and distributing a generic. Branded firms generally regard their
production facilities as far too valuable for the manufacturing of high-margin, patented drugs to
commit them to generics. Symbiotically, generics manufacturers, which commonly have excess
production capacity awaiting the release of drugs from patent protection, pin their survival on
access to the markets that the branded firms have controlled. By partnering to produce an
authorized generic, the complementary assets of branded and generics firms can be optimally
deployed for mutual benefit.

Strategy 2: Layering innovations

The second pre-expiration strategy for pharmaceutical manufacturers involves layering patents
one upon another by patenting innovations on a base drug to maintain an exclusive market
position. The result is an enhanced product that enjoys a monopoly market guaranteed by
additional periods of patent exclusivity. The FDA grants such periods in recognition of significant
innovations, including alterations in active ingredients, strength, dosage form, route of
administration, or conditions of use. Other forms of patentable innovation involve alternative
delivery methods for a drug, such as offering a tablet, a time-release capsule, an injectable, or an
ointment as a substitute for an original patented capsule.

FDA exclusivity periods range from six months to seven years, but all have the same effect in that
no generic drugs can be approved during the protected time span. In 1996, AstraZeneca obtained
three years of exclusivity based on the patenting of a preservative added to the drug Diprivan.
This exclusivity was granted as the patent protection on Diprivan expired and delayed the
approval of a generic version submitted by Sicor, a subsidiary of Teva Pharmacueticals USA.

Manufacturers of brand-name pharmaceuticals have one more special extension option available.
Since 1998, the Department of Health and Human Services has given makers of more than two
dozen brand-name drugs an extra six months of market exclusivity as an incentive for them to
conduct clinical trials to determine how well their medicines work in children. Pediatric clinical
trials typically cost the patent holder several million dollars, but can protect many millions of
dollars in additional sales as was the case with the ulcer drug Prilosec that earned $11 million a
day under extended patent protection for AstraZeneca, the patent-holder.

Strategy 3: Line extensions

Another strategy for pharmaceutical companies is to promote revised versions of the original
drugs through line extensions. The goal is to switch current users to a new version of the drug
before generic introductions of the old versions can appear on the market. Eli Lilly negated much


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of its lost revenues from the patent expiration on Prozac by getting FDA approval for Sarafem,
which is a new name for fluoxetine, the active chemical in Prozac.

The principal consequences for an expired patent holder are that its product loses market share
and considerable profitability in a very brief period. — Dr. John A. Pearce II, Villanova
University approved by the FDA to help hair loss in men, under the name Propecia.
GlaxoSmithKline’s antidepressant Wellbutrin was given the additional name, Zyban, and
marketed as a cigarette smoking-cessation medication.

Forest Labs used a line extension when it abandoned its antidepressant drug Celexa, even though
it had two years of patent protection remaining. Its 2,300 sales representatives were retrained to
promote Lexapro, which is nearly identical in chemical composition to Celexa. In its first six
months on the market, Lexapro grabbed 10% of the $8 billion antidepressant market. Lexapro is a
“me-too” drug, i.e., a slight modification on an existing drug that allows its maker to seek a new
commercial patent to replace sales lost when the initial patent expires. This highly successful
strategy of Forest Labs was different from one that involves the layering of patents because the
intent was not to extend the life cycle of the base product but rather to replace the original with a
“new” drug that would begin a new lifecycle of its own.

In an interesting twist on line extensions, holders of expiring patents can apply to the FDA for
approval to make new claims that help reposition a familiar drug. This tactic worked for BMS
when it repositioned Excedrin as Excedrin Migraine and for Johnson & Johnson’s McNeil
Consumer Healthcare when Motrin was promoted as Motrin Migraine Pain, despite the fact that
the active ingredients in both products remained the same.

The potential of pre-expiration strategies

The preemptive launch of a generic product by the patent holder is particularly promising when
the firm can contractually commit major purchasers of the product for multi-year periods.
Locking-in important purchasers helps to guarantee a sizable income stream for the patent holder,
keeps its production costs low, and dissuades generic firms from entering the market because it
makes economies of scale more difficult to achieve.

Layering innovations usually forces a patent holder to face a scaled down version of its original
R&D decision, namely, should the firm invest in a new undertaking given the market potential
that a new or distinguishably improved product provides. The layering decision usually involves
lower risks of product failure and market rejection. However, it also usually forecasts lower
financial returns than the initial product investment because consumer and competitor options
have likely changed in their favor during the interim time period.

Creating a line extension is attractive when market niches have been identified that would
welcome a tailored version of the product. Since such extension must usually be financially self-
sufficient, a patent holder would want to attend to the needs of a market splinter only when the
number of customers was sufficient in size or financial wherewithal to support the additional
costs incurred by the firm in developing and marketing a specialized version of the product.

Dr. John A. Pearce II is the VSB Endowed Chair in Strategic Management and Entrepreneurship
at Villanova University. He is an active consultant to pharmaceutical firms and an experienced
expert witness.


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April 1, 2008
By Lisa Sodolo

Not-for-Profits Reap Rewards
From health to human rights and children’s welfare to wildlife, non-governmental or not-
for-profit organizations play a vital role in promoting business and public interests in
China.

        Early this year, the Hong Kong Red Cross provided emergency supplies to 200,000
people affected by the disastrous snowstorms that hit China. Non-governmental organizations
(NGOs) such as these are key providers of our public services here and rank third after the
government and businesses.

        The first NGOs entered China during the late-1970s and according to Xinhua, China’s
state news agency, there were approximately 354,000 officially registered NGOs in China in
2006. As the number of NGOs in China has grown significantly over the last two decades
(confirms the World Bank), so has their contribution to China’s socio-economic development.

         In China, the term ‘NGO’ extends to public schools and universities, scientific
research institutes, private not-for-profit hospitals – all of which have links to the
government – as well as fundraising charities and non-profit making support
service/campaign groups. Strictly speaking, NGOs are not classed as businesses and they
cannot make profits. “NGOs are private, not-for-profit organizations that aim to serve a
particular public interest,” clarifies Jonathan Doh, a professor and expert in NGOs at
Pennsylvania’s Villanova School of Business. “As opposed to growing and expanding a
business, they are working to resolve a broader challenge in our society.”

NGO Challenges
        But many challenges still face NGOs in China, particularly compared to the generally
business-friendly climate. There are unclear regulations on how to register an NGO, and rigid
operating rules for both domestic and international organizations. At the same time, the Chinese
government has given the impression of welcoming NGO activities in the country.

         Although NGOs are not classed as businesses, they generally have business-like
managerial practices. “Our managerial activities are very similar to a company,” says Duan
Defeng, communications coordinator in Beijing for Oxfam Hong Kong, an NGO that has been in
China since 1987 offering support with livelihood, disaster management, health issues, and basic
education. Operating an NGO involves budgeting, human resource management, delivery and
evaluation of services, and fundraising strategies – common requisites for businesses.

       Non-governmental organizations are diverse in the interests they serve. They often
employ volunteers, but are typically staffed by paid employees with a wide range of skills, from

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accountants and scientists to doctors and fundraising managers. Recruitment for paid positions is
a competitive process. “It rivals that of major corporations with candidates having to meet
requirements based on qualifications and years of work experience,” according to Rhea Leung,
corporate communications manager for the Hong Kong Red Cross, which has been providing
services such as disaster relief and blood donation promotional projects in China since the 1990s.

Getting Registered
          Despite the Chinese government’s somewhat cautious, regulatory controls, many NGOs
still prefer to register officially. (The Regulations on the Registration and Administration of
Social Organizations (RRASO), adopted by the Chinese government in 1998, is the main legal
document, states a Reuters report.) NGO registrations are supervised by the Ministry of Civil
Affairs, and the registration process requires a government sponsor. The capital required for
Chinese national level NGOs is 14,000 USD and can be as high as 2 million USD for foreign
organizations.

         Although registration is compulsory for both national and foreign organizations, the
presence of non-registered NGOs seems to be tolerated. “We’re trying to register now,” explains
Duan of Oxfam Hong Kong, an NGO active in China since 1987. Additionally, the government
reserves the right to review the activities of any NGOs operating in China. However, there are
signs that the government’s attitude is opening towards NGOs that provide practical services with
real value to the local communities, according to Save the Children UK, an international NGO
dedicated to children’s rights in China since 1920.

Accountability and Funding – Major Issues
        In China, NGOs cover a diverse range of interests, services and issues. Health, labour,
human rights, children, women, ethnic minority communities, wildlife, conservation and the
environment are catered for in the NGO spectrum. It’s often difficult, yet important to judge
successes. At World Wildlife Fund (WWF) China, a conservation NGO working in China since
1980 with over 40 projects from restoring the Yangtze River wetlands to environmental education
and panda conservation, a board of directors and committees makes assessments. Other NGOs
choose to collaborate with external auditors for accountability of many of their activities. “We
work closely with government partners such as education authorities and civil affair departments
to achieve long-term sustainability,” said a Save the Children UK spokesperson.

        Vital links have been forged between NGOs and international and local businesses to
expand the NGOs reach and network. For example, “Carrefour has supported WWF by
disseminating campaign messages throughout its store,” says Linnet Kwok, deputy head of
marketing for WWF China. The French retailer is also an alliance member of WWF China where
they provide funding to support conservation projects in China.

         Budgets for NGOs vary greatly. Oxfam China had an annual budget of 7 million USD
from 2006 to 2007, but the Hong Kong Red Cross had 45 million USD for the same period. The
source of funding also varies, and raises questions of independence. At the WWF, 70 per cent of
their funding is contributed by individual donations, with the remainder provided by government
aid agencies, private companies and foundations. Some NGOs, such as Greenpeace, refuse any
governmental or corporate support in order to prevent any perception of outside influence.
Funding is the major issue for NGOs, even if they only aim to stay at the grassroots level.

        Non-governmental organizations maintain tight budgets but profit is never a goal;
their only mission is to continue to serve their key stakeholders, and to address a specific or
environmental problem, according to Doh of Villanova School of Business. “For instance,

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WWF was founded to bring attention and respond to the global environmental threat,” says
Doh. Since the 1970s, the wealth disparity between urban and rural dwellers has been
growing. The United Nations Development Programme states that a Chinese citizen living
in an urban area earns on average 1,000 USD annually, compared to 300 USD for their
rural counterpart. In this context, NGOs are a welcome complement to government services
and aid as well as a substitute for absent businesses. “International NGOs can bring
knowledge, expertise and insight regarding various issues,” affirms Doh.

         Geographically, NGOs that deal with poverty have a strong presence in western China,
which has yet to experience the phenomenal growth of the eastern coastal regions. “We
chose western provinces like Guizhou, Yunnan, Guangxi, Gansu because they are the poorest
areas in China,” explains Duan Defeng of Oxfam Hong Kong. In developed urban areas such as
Beijing and Shanghai, NGOs provide services to migrant workers, orphans, and the elderly.

        NGO numbers have increased as these employees and devotees work to spread their
message. From WWF China’s joint efforts with corporations in helping local communities build
sustainable living conditions or Greenpeace China urging restaurants to stop using
environmentally unfriendly disposable chopsticks, they’re here to stay and we need them more
than ever.




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April 5, 2008
By Rachel Zoll

Pope Will Find Diverse Church in US
In his visit this month to the United States, Pope Benedict XVI will find an American flock
wrestling with what it means to be Roman Catholic.

The younger generation considers religion important, but doesn't equate faith with going to
church. Many lay people want a greater say in how their parishes operate, yet today's seminarians
hope to restore the traditional role and authority of priests.

Catholic colleges and universities are trying to balance their religious identity with free
expression, catching grief from liberals and conservatives in the process.

Immigrants are filling the pews, while whites are leaving them. Nearly one-third of U.S. adult
Catholics are now Hispanic, and they worry about being considered a separate, ethnic church.

Despite these divisions, Catholics across the spectrum of belief have been energized by the pope's
trip. The man who was once responsible for enforcing adherence to Catholic doctrine isn't likely
to do much scolding. Instead, he's expected to recognize the relative vibrance of the American
church, while emphasizing core Catholic values: the reality of absolute truth, the relationship
between faith and reason, love for the faith.

"I think he's going to come in and try to inspire. As pope, he's really taken the positive track on a
lot of issues. I don't think there's any reason he wouldn't continue to do so now," said Dennis
Doyle, a theologian at the University of Dayton, a Marianist school in Ohio.

Benedict has traveled to seven other countries since he was elected in 2005, but a papal journey to
the U.S. is like no other because of the church's size and influence.

In a nation founded by Protestants, Catholics comprise nearly one-quarter of the population.
Catholic America is the biggest donor to the Vatican. The U.S. also is home to more than 250
Catholic colleges and universities.

There's an added urgency to this visit. While it will be Benedict's first trip to the country as pope
— he made five visits when he was Cardinal Joseph Ratzinger — it may also be his last. He turns
81 during his April 15-20 visit to Washington and New York, and he has less interest in travel
than his globe-trotting predecessor, Pope John Paul II.

Americans don't know much about Benedict. But surveys conducted ahead of his visit found
three-quarters of U.S. Catholics view him favorably. They are clamoring to see him.


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"I get 30 to 40 requests a day to get into the speech he's going to give at Catholic University,"
said the Rev. David O'Connell, president of Catholic University of America, where Benedict will
address leaders of the nation's Catholic colleges and universities. "There's a fascination with Pope
Benedict, perhaps it is because there is more mystery about him."

They have less enthusiasm for religious observance.

About one-third of the more than 64 million U.S. Catholics never attend Mass, and about one-
quarter attend only a few times a year, according to a 2007 study by the Center for Research in
the Apostolate at Georgetown University. A majority never go to confession or go less than once
a year.

The generational split is stark: About half of Catholics born before the 1960s say they attend
Mass at least once a week, compared to only 10 percent of those born since the 1980s.

One of Benedicts' core goals is strengthening Catholic culture to combat these trends, stressing
the importance of religious life, and observing Holy Communion and other sacraments.

Beyond religious practice, young and old American parishioners hold vastly different
worldviews.

Older Catholics who remember the Second Vatican Council of the 1960s are still debating its
modernizing reforms. The council changed everything from the role of lay people to the direction
priests face while celebrating Mass.

Benedict has revived some traditions and prayers that had been largely abandoned since Vatican
II, refueling the debate.

But young adult Catholics are fed up with the fight, according to James Davidson, a Purdue
University sociologist of religion who studies American Catholics.

"They've become very impatient, and probably rightly so, with older generations, who see
everything in terms of conservative-liberal, liberal-conservative, who they see as sometimes
enjoying the ideological battle, even if it doesn't get them anywhere," Davidson said. "Problems
aren't being solved, but people are yelling at one another."

The next generation of priests generally hold that same outlook.

Monsignor Thomas Nydegger, vice rector of the Immaculate Conception Seminary School of
Theology at Seton Hall University, said seminarians today are reaching back in Catholic tradition
— like Benedict does — for rituals and clerical garb they find inspiring.

But they blend that interest with modern church goals: to serve parishioners and the larger
community and to reach out to people of other faiths, he said.

"There is a great sense of the pastoral needs of the people of our parishes — the sick, the dying,
the people dealing with tragedies in their lives," Nydegger said. "They want to reach out and let
them see that the church embraces them."



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Unfortunately, their numbers don't match their zeal.

The priesthood has been shrinking for decades. More than 3,200 of the 18,600 U.S. parishes don't
have resident priests. Some dioceses are now hiring recruiters to travel overseas to find clergy
candidates. The number of priests from other countries is growing so steadily that Seton Hall and
other seminaries have been adding English classes, hiring accent reduction tutors and developing
courses explaining U.S. culture — inside and outside the church.

After ordination, the men are finding fewer resources to support their work.

While U.S. Catholics donate the most to the Vatican of any country, they donate to the local
church at about half the rate of Protestants, according to Chuck Zech, a Villanova
University professor who studies church finances. Church buildings are aging and are badly
in need of maintenance. As the Catholic population grows in the South and West, new
parishes are needed.

Many dioceses still haven't adjusted to the loss of free labor from nuns and priests, and are
paying such low wages that turnover in schools and for other church work is high, Zech
said. The Lay Faculty Association, a teachers' union, recently authorized a strike at 10 New
York-area Catholic schools during Benedict's visit.

Beyond the daily expenses, dioceses have been paying out hundreds of millions of dollars in
claims since the clerical sex abuse crisis erupted in 2002. Abuse-related costs for the church since
1950 have surpassed $2 billion.

One visit from Benedict won't solve the problems of the American church. But by coming to the
U.S., he can show Catholics — even briefly — what it might be like to be truly united by faith.




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April 27, 2008
By Henry J. Holcomb

Slight Correction in Career Plans
A few months ago, Brad Kleinman, 22, was feeling good. He was about to graduate from
Villanova University with a degree in finance, and he had a good job lined up at Bear
Stearns.
"Then Bear's stock tanked," he recalled the other day, sharing how he lived through the
collapse of the iconic Wall Street firm.

Classmate Kate Finley, 21, who gave up plans to become a doctor when an internship gave
her a taste of Wall Street's competitive atmosphere, learned that Bear's stock was sinking
while she was studying for a midterm exam. She spent the weekend with a computer in her
lap, poring over news reports about her future employer.

Their anxiety was short-lived. Within two days, Bear executives called with encouraging
news: They'd probably have jobs at JPMorgan Chase & Co., the firm that is taking over
Bear. They were hired within two weeks.

They quickly regained confidence that Wall Street would remain the place to be for finance
majors for years to come. If the credit crisis leads to more regulation, that will mean even more
jobs. And rapid development overseas will mean even more money to manage, more
opportunities to use skills that long have been a hallmark in the free-market United States.

Still, the students, at the urging of their deans, professors and placement officers, are taking the
economic uncertainty to heart. Finance and accounting majors once looked forward to picking
from among several offers. Now, they are planning to network more and develop a broader range
of skills and interests to reduce the risk of future unemployment.

Recent college graduates fare better in a weak economy than those without degrees and laid-off
older workers. "If you look at the March unemployment rate, it was 5.1 percent. But it was only 2
percent for those with a bachelor's degree," said Beth Paulin, associate professor of economics at
LaSalle University.

"Banks, large companies and consulting firms rely on the university talent pipeline," said Patricia
Rose, director of career services at the University of Pennsylvania. "In the last recession - late
2000 through 2002 - some companies rescinded offers, and that hurt their reputation on campus."

Joseph A. DiAngelo, business dean at St. Joseph's University, agreed. "It took a while to build
back the bond they had with students and faculty," he said.




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Rescinding offers also causes a ripple of problems, Rose said. When people were ready for
promotions, no one was ready to replace them.

Finance and accounting graduates are among the first hired, usually in the fall before June
graduation. Hires for marketing and other jobs come much later, placement officers said.

Campus placement centers report that most finance majors are getting hired, though in some
cases later than they would in good times.

A spokeswoman for Goldman Sachs said they were honoring all job offers. They are hiring 1,700
interns and about 1,800 analysts this year, about the normal amount.

Bank of America would not disclose how many new graduates and interns it has hired. But
spokeswoman Kelly Sapp said the firm was honoring all offers and filling vacant positions.

"We are active on campus," she said, "seeking to deepen relationships and be the employer of
choice."

JPMorgan said it was honoring job and internship offers Bear made before its collapse, except in
investment-banking areas that were being eliminated because they would duplicate existing
operations. Those whose full-time job offers JPMorgan won't honor are allowed to keep their
signing bonuses and relocation allowances, and the company is helping them find jobs elsewhere.

JPMorgan will pay the interns it cannot use, if they work for nonprofit organizations. Those who
do that will be considered for employment after the internships.

Even finance and accounting majors who haven't yet found jobs are optimistic.

At Drexel University, Eric Meyer, 27, who grew up in Harrisburg, didn't get the Wall Street
capital analyst position he wanted, and he has expanded his search to other finance-related jobs.
He "has a good lead in Baltimore" and is working to develop others.

"You live and learn, take what you can get, and get experience you can apply when the job you
want opens up," Meyer said.

Some who didn't get the Wall Street job they wanted were seeing advantages in the jobs they did
get as places to learn while investment banking recovered. Drexel's Warren Bloom, 28, who grew
up in Huntingdon Valley, took a leadership-development job with a corporation instead. He's
excited about the overseas experience it will offer.

Jason Weber landed a vice presidency at a smaller brokerage. He sees the problems at big firms
as a grand opportunity to "create business and bring in revenue," using the entrepreneurial
training he gained getting a master's of business administration at Drexel.

The students say watching the credit crisis unfold has taught good lessons.

"You've got to be more careful with the risk you take on," said Kleinman, "and you've got
to be more careful about new products."


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In the future, said Alexander Zozos, 23, of Villanova, "the people who survive are the ones
who can look past the current state, look at the long term and remain professional."

Meanwhile, DiAngelo, the St. Joseph's dean, is giving faculty members summer fellowships to
build ethics lessons into courses they teach.

Villanova has revised its curriculum to better integrate finance, accounting and operations.
Professors from different disciplines will team-teach courses that blend multiple disciplines.

This is designed, said James M. Danko, dean of the business school, to give students a
clearer picture of the relationship of these disciplines in the real world and to help them
avoid becoming a part of something like the Bear Stearns collapse.




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April 28, 2008
By Brian Blackstone

Fed Looks Set to Enter New Cycle
It’s time for Ben Bernanke, a noted basketball buff, to show Wall Street his pivot move.
After an unprecedented three-month period of fastbreak policy easing and credit market
intervention — when the Fed threw half-point and even three-quarter-percentage-point cuts in the
fed funds rate at the economy and markets — the cycle appears to be reaching an end. In what
must be a pleasant surprise to Bernanke and his FOMC colleagues, Wall Street seems OK with
that.
The Federal Open Market Committee is widely expected on Wednesday to reduce the target fed
funds rate at which banks lend money to each other, but by only 0.25 percentage point to 2%.
Officials have already lowered fed funds by three percentage points since September, including
two percentage points over a two-month period between January and March alone.
Many Wall Street firms expect the Fed to take an extended pause after this week and gauge how
the mix of fiscal and monetary stimulus in the pipeline, as well as the Fed’s recently created
credit mending facilities, affect the economy and markets.
Brian Sack, a former Fed economist now with Macroeconomic Advisers, summed it up the
change in strategy this way: Since January, the Fed’s task was to ease even more aggressively
than markets expected “to convince markets that the Fed was on the job.”
“Now you could be seeing the opposite,” he said, with the Fed offering fewer rate cuts than once
hoped.
Communicating such a shift is usually a tricky task, especially when markets are fragile. After all,
it isn’t worth disappointing investors if it leads to the type of negative fallout that forces further
easing. That seemed to be the case last year, when the Fed’s more modest pace of easing didn’t
shore up the economy and led to this year’s much more assertive response.
But Bernanke caught a big break in April, as Wall Street essentially did his work for him. After
pricing in half-point rate cuts in the wake of the March meeting, market sentiment has done a
remarkable turnaround in the weeks leading up to the Tuesday-Wednesday meeting. Futures
markets now expect only a quarter-point reduction.
The economy has more or less performed according to script. Though the first quarter may be a
bit better than first feared, that appears to be coming at the expense of a slower recovery later in
2008.
“This is a situation where we’re not out of the woods, [but] it’s not a situation that forces the
Fed’s hand,” said Lyle Gramley, a former Fed governor now with The Stanford Group.
Against that backdrop, “I’m leaning toward [a quarter-point reduction], but I wouldn’t be shocked
if they did nothing,” Gramley said.
So with the economy still growing and tax rebates arriving in the next few days, why not stop
now? After all, in order to firm up his anti-inflation credentials, Bernanke will have to disappoint
Wall Street at some point. And a pause wouldn’t completely blindside investors.

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Economists think the Fed still has little to lose by going an extra quarter-percentage point.
While the Fed needs to shore up its inflation credentials at some point, “I don’t think [this
week] is the time to do it,” said Victor Li, associate professor of economics at the Villanova
School of Business. “The data clearly indicate that we are either in a recession or a recession
is imminent.”




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April 30, 2008
By Henry J. Holcomb

Businesses angling to get piece of stimulus checks
With federal economic-stimulus checks arriving in mailboxes soon, retailers are scrambling to
lure customers, checks in hand, to their stores.

Many offer 10 percent bonuses, for example, if you buy store gift cards with the government
checks. That idea is spreading to local businesses. Restaurateur Derek Davis pondered the idea
today and declared, "I can do that. Only I'll give a 15 percent bonus."

The deal's good at Derek's, his restaurant on Main Street in Manayunk, but not at his upscale
retail store, Mainline Prime in Ardmore.

He is offering the deal even though business has been better than last year. He attributes that to
neighborhood people coming in to avoid the high price of gasoline, choosing to stay local rather
than venture farther away for entertainment.

High gasoline prices may be helping Davis, but they hurt others.

"Business has been tough," said Joe Magarity, who sells Chevrolets in Flourtown and Fords in
Chestnut Hill. He said he would knock $500 of the price of a car, new or used, in addition to any
other deals he may be offering, if the customer signs over their stimulus check as part of the
payment.

"We need to sell some cars," Magarity said.

He and others hope the checks - $600 for individuals, $1,200 for married couples who filed joint
tax returns - will help.

Wal-Mart Stores Inc. and its Sam's Club stores, which typically charge up to $3 to cash
government and payroll checks, say they will cash these federal checks free.
Sears, Kmart, Lands' End, big grocery chains and others are among those offering a 10 percent
bonus if customers buy gift cards with their federal checks.

ShopRite grocery stores said today that, beginning Friday, it would add a 10 percent bonus to
$300 gift cards that are purchased with either stimulus or tax-refund checks.

For some businesses, such a discount would wipe out their profit and undercut the impact of the
stimulus program. It is hard for a travel agent "to discount even 10 percent. We work on 10
percent margin," said Helene Singer, of Singer Travel, of Reading.

The checks are part of a Bush administration proposal and have prompted broad skepticism about
whether they will lift the economy or get eaten up by the debt crisis.

William Madway, a marketing and market research professor at the Villanova University
School of Business, said the stimulus checks were not how he would have tried to help the

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economy. But, he added, "pumping over $100 billion into the economy is going to have some
impact. If I'm a retailer, I want to figure out how I can get my share . . . and how to get
people into stores with their checks."

Promotions that give "consumers more bang for the buck," Madway said, "will help the
economy." If the checks just go to offset higher gasoline costs, he said, "that money is not
going to stay in the country."

Madway said he would urge businesses to resist the temptation to deeply cut prices. The
idea behind the stimulus package "is to put money into a company's hands so it will hire
more people. If they're not able to make money, that won't happen."

Erica Hession, a Drexel University junior majoring in entrepreneurship, was asked what she
would do if she was running her own business.

"If I owned an auto dealership, I would offer incentives to promote hybrid cars that use less
gasoline, which would get other rebates" and further stimulate the economy, Hession said.
If she owned a grocery store, she would build promotions of locally grown products around the
stimulus checks. In a home-improvement store, she would promote energy-saving products and
workshops on how to make homes use less energy.

These approaches, she said, would keep the stimulus money "cycling within the local
community" and send less overseas to buy oil.




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May 16, 2008

Financial review for Milwaukee Archdiocese parishes planned

More than 200 parishes in the Archdiocese of Milwaukee will undergo financial reviews by
outside professionals, a Catholic official said.

Milwaukee Archbishop Timothy Dolan decided to require the reviews after consulting with
advisers, but is awaiting recommendations from a special committee on how extensive and how
frequent the reviews should be, said Katie Hoeller, director of the Parish and School Financial
Services Office.

Dolan discussed the matter in his Thursday column in the archdiocesan newspaper, saying the
church "must be scrupulous in sound stewardship of the money entrusted to us by God's people."

He also noted the archdiocese itself has had an annual audit for decades.

The reviews of parish finances would cover more than $198 million in unrestricted donations and
fees that parishes and their schools collect each year.

The move comes amid a larger effort by U.S. Catholic bishops to improve church stewardship
and tighten financial accountability in the aftermath of the priest sexual abuse scandals. The U.S.
bishops conference strongly encouraged dioceses last November to routinely audit parishes.

"Every church has the same problem of being too trusting of their priests and ministers and
church workers," said Chuck Zech, director of the Center for the Study of Church
Management at Villanova University.

"It's not unique to the Catholic Church," he said. "... No one would think that a priest
would embezzle, and no one would think that a church worker would, so they don't put in
the kinds of internal controls common in the business world."

The Milwaukee archdiocese's financial guidelines call for an internal financial review of each
parish every four years to make sure it is following the required accounting procedures. But
Hoeller said that has not been done since 2000 because of additional duties given to the
archdiocese's Financial Services Office.

About 25 parishes have had annual reviews, either because they requested them or because of
irregularities in the parish's financial reports, the turnover of key parish staff members, the
posting of deficit budgets or other factors, she said.




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                                          MSNBC.com
May 21, 2008
By Eve Tahmincioglu


How to make your job layoff-resistant
Human-resource managers offer tips to make a pink slip less likely

    Thomas, a 60-year old project manager for a construction company, knows there’s a
possibility for layoffs at his firm because of the sagging housing market. And Brandon, a
customer service representative for a phone company in Oregon that’s about to be bought out by a
telecommunication’s giant, fears his days may be numbered.

It’s impossible to know for sure if either man will be fired until they actually get that tap on the
shoulder by their manager asking them to come to their office for a chat.

During tough economic times almost everyone wonders if they’ll end up on the chopping block,
and we hope the companies we work for make sensible choices when choosing who will stay and
who will go.

But alas, sense doesn’t always prevail.

“Employees think bosses fire on a last-in, first-out basis, [and] that firing is somehow based just
on performance,” says Stephen Viscusi, author of the forthcoming book, "Bulletproof Your Job:
How to Ride Out the Rough Times and Come Out on Top at Work." “It’s not. It is not objective.
It is subjective. Bosses keep the people they like regardless of experience or performance and
fire people they don’t like — plain and simple.”

Viscusi says managers disguise their decisions as a business decision when it’s actually “a human
and often personal decision. That’s why bosses' and HR’s favorite line is “don’t take it
personally.”

So, is there a type of employee that is more likely to get axed than their co-workers? Is there a
personality trait or job history that pegs a certain worker as dispensable? Is there an anatomy of a
person most likely to get canned?

I decided to ask some of the human resource managers I know at companies around the country if
they could pinpoint the employee that’s most likely to get laid off, and I got a range of responses.

One thing I can tell you, based on their feedback: If you’re a loner with no friends at work; make
lots of money; and don’t think twice about coming late to the office, you may want to start
sprucing up your resume.

"I have worked with some managers whose first words out of their mouths are 'let's get rid of X
because we're paying too much for the return we're getting,’" says a human resources manager for
a major publishing company.



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But, she stresses, HR managers like herself try to coach bosses not to do that and often try to
encourage them to base decisions on seniority because it’s easier to defend if a worker comes
back with a lawsuit.

When it comes to personality types, says another HR executive who works for a top insurance
company, the area where that’s most critical is “for leadership positions where someone has not
built relationships or credibility with a broader array of colleagues. This can make them an easier
target.”

But, he adds, “performance and contribution tends to trump all in my view. Relationships and
alliances are important in these kind of situations, however, once again the performance has to be
there as well.”

This particular HR veteran warned against putting too much emphasis on whether someone gets
along with others or not. “I would not consider the layoff process to be like a "Survivor" episode
where people are voted off the island based on popularity and alliances. It's different in that these
decisions tend not to be a vote or consensus and a track record of performance is a critical factor.”

As for slackers, there seems to be a consensus. “If you can't make it to work on time,” he says,
“then certainly all bets are off. This would translate to lower performance.”

Another thing to keep in mind is whether or not you toot your own horn, says Cheryl Asher,
Assistant Professor of Economics and Statistics at the Villanova School of Business.

If you’re kicking butt but no one knows about it you may end up on the layoff list; and this is
particularly a problem for women, who aren’t great on singing their praises at work, Asher notes.
(See a past column I wrote on the topic.)

Working in a particular division, or segment, of a company can also make your position more
precarious in a down-turning economy.

Jim Lanzalotto, vice president of staffing company Yoh, says workers more likely to get fired are
those who “aren’t close to the customer. If you’re working on non-core, or infrastructure projects,
or 'nice to have' kind of projects, it’s a tough environment to stay successful now.”

If you’re on the team that’s working on a major company product or service, he says, then you
probably have job security, as opposed to support or back office staff.

But, he admits, “A lot of times it comes down to the relationships you have in an organization and
the perceived value you bring to the table. It’s not always people who are suck ups, but people
who’ve built relationships.”

Their perceived value may be greater than actual value is, he adds but enough people like them
and decide they can stay.

So, is it time to take your colleagues out for drinks after work or start learning jokes so you
become the worker everyone loves?

Not a bad idea. No one’s going to paint a layoff-target on a worker who everyone loves.

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Rich Gee, a career coach, suggests you “stop having lunch by yourself, at your desk.”

“Have strategic lunches once a week — get out of the building, meet a colleague, a friend, or a
new acquaintance — get the skinny on what is happening outside of your circle,” he says. “Talk
to everyone you meet. Not just exchange pleasantries. Ask them questions, look interested and
then ask more questions.”

Here are some more tips from Viscusi’s upcoming book on how to keep your gig:

    Perfect the art of looking busy — being active makes a great impression. The boss should
never wonder whether you have enough to do… because you should always have things to do.
    Come in early, stay late. (Even when there is nothing to do.) This aggressive stance as a hard-
working employee is always remembered when it comes time to decide who will be on the
chopping block.
    Look good — dress for success. Look the part — neat hair, clothes, and invest in whitening
strips for your teeth. (Yes, whitening strips.) Be sure to dress appropriately for your work
environment. Be sure to look professional and not stick out. Stay away from exaggerated colors
and styles.
    Take initiative — volunteer for the hard assignments that no one else wants. (As long as you
are sure that you can accomplish these tasks well.) Taking on a project that you have no chance
of completing successfully can be as damaging as not taking initiative at all.
    Share credit — this shows a lot about what kind of person you are, and in difficult times, a
positive personal trait like that may help you keep your job.

But if you do get that pink slip, remember, don’t take it personally and move on!




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May 19, 2008
By Charles R. Taylor

Lifestyle Matters Everywhere
Marketers Need to Stop Targeting Consumers by Country and Instead
Target Based on Habits, Likes, Dislikes                                               Charles R.
                                                                                       Taylor
Over the past several decades, it has become clear that around the world,
consumers' habits, likes and dislikes are becoming much more similar. Sushi is becoming a
common dinner option for many in Middle America, for example, and one can easily find
Chinese and European students wearing Major League Baseball caps on their college campuses.
But despite the trend toward a more global consumer, there has been little effective
implementation of cross-market segmentation. Instead, marketers continue to demographically
segment markets largely on a country-by-country basis, with very little focus on cross-market
segmentation.

While there has been periodic talk of a few marketers targeting the "global teen" or "global elite"
segments, very little has been discussed on how to identify and target cross-national market
segments. The time is now for grouping consumers together -- independently of their home
country.

Cross-market segmentation refers to grouping consumers across all markets in which a product is
offered, independent of nationality. The growth of the global economy has initiated a market
experiencing significant convergence in consumer tastes and preferences in several product
categories. Marketers have been aware of this for some time now with respect to luxury goods.
As observed by Radha Chadha and Paul Husband in their book, "The Cult of the Luxury Brand,"
more than half of the world's $80 billion (annual) market comes from Asian consumers.
Consumers around the world seek out brands such as Gucci, Ferragamo, Coach, Chanel, Armani,
Burberry and Ralph Lauren. Remarkably, more than 90% of women in their 20s in Tokyo own a
Louis Vuitton.

Given the striking evidence of a global market particularly in the luxury industry, what do
marketers and advertisers selling these types of goods need to do to be competitive?

Transnational preferences
The results of recent studies I have conducted -- in conjunction with Dr. Eunju Ko of Yonsei
University in Seoul, among others -- indicate that targeting consumers by lifestyle will provide
better results than targeting by country of origin. In our recently published article in International
Marketing Review, U.S., Korean and European female consumers' reactions to advertising
campaigns run by Chanel in the Asian, European and American editions of Vogue magazine were
analyzed. In assessing reactions to the ad campaign, findings proved lifestyle to be a more
important segmentation criterion than the consumers' country of origin. In addition to eliciting
consumer reactions to the advertisements, the study asked consumers questions about their

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attitudes, values, buyer behavior and demographics. The study was able to identify four distinct
fashion-lifestyle segments of female fashion consumers which cut across cultures: conspicuous
consumers, information seekers, sensation seekers and utilitarian consumers.

1. The conspicuous fashion consumer (19% of the consumers in the study) holds a strong belief in
the value of prestige brands with an upscale image. These women are concerned about social
status and value the attention and prestige that associated brands bring. Others' opinions matter
considerably to this group. They are clearly less price sensitive, and in many cases, are willing to
make sacrifices to own elite brands. For this reason, this group cuts further across income
segments than one might expect. An important feature of the conspicuous fashion consumer is the
belief that well-known, prestigious global brands are of the highest quality. Moreover, members
are largely unwilling to consider investing time in information searches for products they are not
familiar with, even if these alternatives might actually be of high quality. How should marketers
target this segment? By emphasizing prestige, elegance and status.

2. Information seekers (27%) are women who are willing to put considerable effort into
researching fashions by consulting books and magazines. Information seekers are very
information-oriented and more open to considering new brands, or brands with which they do not
have prior experience, than the conspicuous consumer. Consumers within this segment are very
fashion conscious and seek information to keep up with fashion trends. As a result, they show a
high level of interest in advertising for fashion products. To reach this segment, marketers should
leverage advertising that emphasizes quality and trendiness.

3. Sensation seekers, which accounted for 30% of the sample, clearly value aesthetic elements in
clothing. Sensation seekers are especially interested in color coordination and believe they have
good taste in choosing clothing products. They place high priority on aesthetic aspects of clothing
-- tastefulness, color, design, coordination -- and weigh this heavily in making purchase
decisions. Likewise, they tend to respond to fashions that are eye-catching and think about
fashion in a holistic sense. Sensation seekers believe they have an "eye for fashion" and are less
influenced by information on trends than the information seekers. Target this segment with ads
highlighting coordination.

4. The final segment is utilitarian consumers, which accounted for 25% of consumers in the
sample. Women in this segment are primarily concerned with the comfort and functionality of the
clothing. Purchasing clothing is viewed as a necessity or chore as opposed to a fun use of leisure
time. Utilitarian consumers are very value-oriented and are not prone to making purchases on a
whim. Instead, purchases are made based on rational calculations that weigh quality, comfort,
functionality and price. Utilitarian consumers are price-conscious, though quality is often
important as well. To target, emphasize both the functional aspects of clothing as well as value.

Today and in the future -- in industries where consumer needs are similar, such as women's
fashion -- the global consumer should be targeted by considering lifestyle and consumption
patterns. While savvy fashion advertisers already are incorporating a significant degree of
standardization into their advertising programs to establish brand image, the firms that
successfully target the appropriate cross-national segments to whom their brands appeal will
develop a sustainable competitive advantage.




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May 21, 2008
By Dan Gross

Dan Gross: Flyers mark the end at Borgata

AFTER HAVING their behinds handed to them by the Penguins in five games, most of the Flyers
drowned their season's-over sorrows with steaks and drinks in Atlantic City at the Borgata's Old
Homestead restaurant.

Executive chef Romeo DiBona is a huge Flyers' fan and took good care of the party of 40. Some
of the players also partied at the hotel's mur.mur nightclub, where they took over the VIP area
with friends and fans Monday until almost dawn.

Owen Wilson hangs at Rick's

Owen Wilson spent several hours and hundreds of dollars at Rick's Cabaret (2908 S. Columbus)
late Thursday night, according to the New York Post's Page Six, which reports he got private
dances from some busty blondes, while sucking down a few brews.

One dancer reportedly told the paper that Wilson, here shooting "Marley & Me," had his mind
elsewhere despite the fact that her "36D boobs can hypnotize anyone."

Movie mentions

Brad Ingelsby is about to move to Los Angeles to write screenplays full time. He's off to a
great start, having sold his first film, "The Low Dweller," last month to Relativity Media
for $650,000. So far. He could collect $1.1 million if the film gets made and he's the only
writer credited.

The thriller, set in small-town Indiana in the 1980s, has Ridley Scott attached to direct and
Leonardo DiCaprio slated to star. Inglesby, 28, wrote most of the screenplay while a student
at the American Film Institute, which he attended after graduating from Villanova's School
of Business.

The Archbishop Carroll grad is working for his father, Villanova basketball legend Tom
Ingelsby, at Berwyn-based insurance company Kistler Tiffany Benefits. The 6-foot-3
Ingelsby played ball at Carroll, but wasn't as good as his dad or brother Marty, a star at
Carroll and Notre Dame, where he's still a coach. Inglesby has a few screenplay ideas
kicking around but is keeping them close to the vest.




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May 25, 2008
By Rebecca Trounson

L.A. parishes help pay archdiocese's $720 million in abuse settlements
With gifts large and small, they're heeding Mahony's appeal for help in paying victims.

Blessed with a nest egg of nearly $1.5 million, a Woodland Hills parish donated almost all of it,
leaving just $1,000 in its savings account. An Encino church offered a $100,000 interest-free
loan. And a Boyle Heights parish decided it could spare $500 after ruling out the idea of raising
money with tamale sales.

With gifts large and small, parishes across the sprawling Roman Catholic Archdiocese of Los
Angeles are answering an appeal from Cardinal Roger M. Mahony to help the archdiocese dig out
of the financial hole resulting from its multimillion-dollar legal settlements with victims of clergy
sexual abuse.

"It's important that we the church take care of this," said Father Scott Santarosa of Dolores
Mission Catholic Church in Boyle Heights, which gave the $500 from its limited unrestricted
funds. "It's like a family trying to take care of itself. Every family has parts that break down or
need help. That's part of the church too, and we can't turn our backs."

Some parishes have told the archdiocese they cannot contribute because they are too poor or in
debt from construction projects or real estate purchases. Others have yet to decide, their pastors
said in interviews. But whatever the circumstance, the choice is not easy, several said.

"Either way, it's controversial," said Msgr. David A. Sork, pastor of St. John Fisher Church in
Rancho Palos Verdes, who said he is praying about the issue and consulting parish leaders but has
not yet decided. "It's a tough one."

On the one hand, Sork said, his congregants are asking why they should pay for mistakes that
occurred in other parishes, not theirs. "Or they say, 'Why do we have to pay for something that
happened 30 years ago?' That's hard for many to understand," he said. "But not helping means the
archdiocese's services to all parishes, including this one, will be hampered."

Mahony made his request in a series of meetings around the archdiocese between January and
March. Speaking to clergy and lay leaders, Mahony offered details of his financial recovery plan
for the archdiocese, which has been staggered by abuse settlements totaling $720 million,
including last summer's record $660-million agreement, in hundreds of civil cases.

Mahony, 72, whose remarks at one session were recorded for distribution to the parishes,
apologized for "mistakes and miscalculations" he said he had made in handling the abuse crisis.
He asked for help, saying the settlement costs were more than expected. To pay its $292-million
share of the bill, he said, the archdiocese had cut administrative staff, liquidated investments and
begun to sell off about 50 properties, including its headquarters on Wilshire Boulevard.

The archdiocese's central office is also trying to trim its budget an additional 10% and has asked
parishes to increase their annual assessments to the office by 2% for five years beginning July 1.


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Mahony said he had decided against trying to raise funds directly from the L.A. area's estimated 5
million Roman Catholics, saying he feared such a move might create ill will among parishioners
and lead to resentment of the abuse victims. But he asked any parish that could afford it to assist
with gifts or loans, mostly to pay down $175 million borrowed from an Irish bank to cover part of
the settlements.

"I need to say to you very openly: I need your help," Mahony said, his face and voice somber.
Without such assistance, he said, retiring the debt could take up to 15 years and force even deeper
cuts in administrative and support services the central office provides the archdiocese's 288
parishes.

The cardinal also wrote letters seeking help from about 100 parishes that had undesignated funds
of $100,000 to $1 million in the archdiocese's centrally managed investment pool, spokesman
Tod Tamberg said.

One such parish was St. Bernardine of Siena Church in Woodland Hills, which had significant
savings, much of it from a $1-million bequest from a parishioner who died several years ago.
After Mahony's appeal, the church's pastor, Father Robert McNamara, held two long meetings
with his finance council, staff and lay leaders.

In the end, McNamara decided to give nearly all of his parish's savings, almost $1.5 million. He
declined recent requests for comment but explained the decision in several letters to parishioners.

"I prayed a lot, had some sleepless nights too . . ," McNamara wrote April 27. "I kept asking what
kind of parish is St. Bernardine's."

McNamara reminded parishioners that both the church and its school still had substantial
endowments and that the parish also had an emergency maintenance fund of about $540,000. And
he said he had been inspired by his parishioners' generosity in raising nearly $170,000 in recent
years for the victims of Hurricane Katrina, the Southeast Asian tsunami and famine in Africa.

"You have given like a people who wanted to make a difference, and a difference you did make,"
he wrote. "That continued generosity inspired my decision then to help by giving all our savings
minus $1,000." That amount was held back to keep the savings account open.

McNamara acknowledged that the decision had come after meetings that included "some heated
exchanges. There was some venting -- anger, disappointment, frustration, concern for victims,
etc., all coming from the shame we felt as Catholics and our empathy for the victims," he wrote.
But he said most of the responses since then had been supportive.

At least one longtime member of St. Bernardine said she remains upset about the priest's decision,
saying all parishioners should have been consulted. The woman spoke on condition of anonymity,
saying she feared she would be criticized for speaking out against the gift.

"When the basket came around, we were told that if we kept giving to the church, the money
would not go to pay for anything related to the abuse," she said. "Now all that money is gone, and
it's gone exactly where it wasn't supposed to go."

But Eileen Fewless, the church's director of religious education who attended one of the
discussions, strongly supported the gift. "Everyone in that meeting had a thoughtful, prayerful
attitude, and I think most were really in favor of giving," she said. "That's the kind of parish we

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are."

Charles Zech, director of the Center for the Study of Church Management at Villanova
University in Pennsylvania, said Mahony's request to parishes was unusual but not
unprecedented, with dioceses in San Diego and Tucson among those that also have asked
parishes to help pay abuse settlements.

"The ultimate source of money for any archdiocese or diocese is the parishioners," he said.
"They're going to pay for this one way or the other."

But Zech also said he considered such appeals to parishes to be fair, as long as any
contributions were voluntary.

Some parishes, even in relatively wealthy areas, said they could not afford to contribute because
they are paying off loans for building projects.

And others, including Resurrection Church in Boyle Heights, simply cannot. "We have no
discretionary funds," said Msgr. John Moretta. "We are in a parish that is in a survival mode
itself, but others are very graciously stepping up to the plate."

At St. Anne Church in Santa Monica, Father Michael D. Gutierrez said the meeting in his
Westside deanery with Mahony, priests and lay leaders was tense at times. "There were some
really hard questions, but I thought the cardinal did a good job explaining why he needed this," he
said.

The priest said his own parish, a relatively poor congregation that has struggled in recent years to
keep its small school open, nonetheless wanted to contribute. He said it will give $25,000 --
$5,000 a year for each of the next five years. Gutierrez also is among local priests who have
donated a month's salary to help pay down the debt.

"I think we've all learned from these mistakes and we've moved forward," he said. "We do good
work now and we need to help the church move on."

At St. Cyril of Jerusalem, a congregation of about 1,400 families in Encino, Msgr. Carl Bell said
he and his finance council had decided to lend the archdiocese $100,000 interest-free and would
be paid back over the next decade. And at St. Denis Church in Diamond Bar, Msgr. James
Loughnane said he had consulted parish leaders. Although no decision had been made, he
expected they would contribute.

"They understand that at this point, blaming anyone isn't the answer," Loughnane said. "We need
to rally around the situation and take care of it."




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June 2, 2008

De-Departmentalizing the B-School
Today, you need to know a little bit of everything, But Villanova University’s undergraduate
business school curriculum, starting this fall, is designed on the theory that you don’t need an
individual course in everything.

James Danko, Villanova’s business dean, said the “fundamental root” of the new curriculum is
to have a multidisciplinary perspective. Several courses that used to be taught stand alone will be
integrated into one course. For example, the introductory courses in finance and in accounting,
which used to be two separate courses, will become one. The new course, financial management
and reporting, will be six credits and taught by two instructors.

Walter Tymon, associate professor of management, explained another new course, in business
dynamics, will also be taught over two semesters. It was created by a team of professors from
accounting, business law, finance, information systems, management and marketing. Faculty
members from these areas will each teach a section. The first semester will focus on giving
students a “context for studying business.” Questions the course will cover include: “What is
business and how does a business create value? Who are the various stakeholders in a business
and how do they, and should they, influence decision-making? How has business evolved, and
what are the important issues associated with the global business environment, ethics,
leadership, teams, communication, motivation, and the structure and culture of companies.”

The second semester will focus on concepts from “each functional area of business with an
emphasis on integration and how each discipline is part of a total system to achieve a business
mission.”

Building on the growing trend of colleges requiring new students to read a common book before
they enroll, Villanova is having its new business majors read Pour Your Heart into It: How
Starbucks Built a Company One Cup at a Time, over the summer prior to beginning the course.
Students will discuss the book in the business dynamics course, and in small groups led by
business executives who graduated from Villanova’s Executive M.B.A. program.

“That’s going to be taught from a broader perspective,” Danko said.

Also, instead of having separate courses about skills such as communication or technology,
Danko said there will be an emphasis in these skills being taught throughout the curriculum.

The changes came about in attempt to respond to the current business world, Danko said. The
current curriculum has not had a significant overhaul since the 1950s and is based on an
economic model that is no longer applicable into today’s world, he said.

Tymon, who was on the faculty committee that looked at curriculum revision, said that one of
the factors that led to the change was “the fact that we do have a global economy.” He also
mentioned students need to be able to see the “big picture” and the intent behind it, which means
they need to have knowledge across the disciplines of business. “Students really need to be able
to integrate across functions,” he said.


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Danko said 85 percent of the faculty voted in favor of the proposed changes.

John J. Fernandes, president and chief executive officer of AACSB International: The
Association to Advance Collegiate Schools of Business, said an integrative curriculum like the
one Villanova will be using is increasingly common.

“It’s definitely the wave of the future to build an integrated curriculum,” he said.

In addition to the new curriculum, there have also been changes in how the faculty and
departments have been structured. When Danko became dean three years ago, he proposed a
new organization, which included compressing some departments and opening new ones.
Operations management was merged with management and strategy. The economics department
became economics and statistics. Accounting and management information merged to make
accounting and information systems. In addition, Danko said he made “trial departments” called
strategic initiative groups. Professors were offered the chance to take a “leave of absence” from
their own department to join these groups. Some of these groups have focused on course
development while others have focused on research. He said he encouraged the faculty to work
in a “multidisciplinary way.” This faculty reorganization became a precursor to the change in
curriculum.

Although most business schools don’t follow this model, Fernandes said he thinks that will
change in the future because the traditional model is not sustainable, and more business schools
will rethink structures.

“They’re going to have to, personally I think they should, but they’re going to have to,” he said.

Johns Hopkins School of Business is going even further than Villanova in its approach to faculty
organization. The school, which only opened in 2007, will have no departments, beginning July
of this year, said Yash Gupta, the dean. All professors will be encouraged to be part of
multidisciplinary centers for research. But Gupta said that departments aren’t needed.

“Business decisions are integrative,” he said.




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June 6, 2008

PEOPLE ON THE MOVE
The Villanova School of Business has announced that Robert F. Bonner was named associate
dean of graduate and executive programs. Previously, Bonner led the graduate programs at
Temple University’s Fox School of Business as assistant dean of MBA and MS programs.



      Bonner




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June 16, 2008
By Andrew R. McIlvaine

Creating Dress Codes
Workplace-appearance standards are based on community standards and are not gender neutral,
experts say. While employers have a lot of leeway in requiring appropriate dress codes, they need
to ensure that policies do not place an undue burden on one sex over the other. Religious
considerations also play a part.

A woman who worked as a waitress at Nathaniel's Restaurant in Owen Sound, Ontario, was told
by the owner to take the summer off without pay after she shaved her head to raise money for a
local charity benefiting cancer research.

The waitress, Stacey Fearnall, told a local newspaper that her bosses at the restaurant asked her to
wear a wig after she shaved her head and, when she refused, told her to leave until her hair grew
back in.

"Our staff is expected to come dressed appropriately and we did not feel that this was
appropriate," the restaurant's co-owner, Jeff Ferris, told the Owen Sound Sun Times, adding that
he and the restaurant's other owner had expressed discomfort with the idea to Fearnall prior to
when she shaved her head and asked her to find other ways of supporting the charity.

Meanwhile, a group of female employees at the Mid American Credit Union in Wichita, Kan.,
protested the company owner's policy of requiring female employees to wear pantyhose at work.

"My own professional view is, I grew up with women wearing pantyhose, and I just think they
look great in them," Jim Holt, the company's 58-year old president, told ABC News.

Several female employees said the policy was unfair, noting that the firm did not require male
employees to wear ties, for example.

Are there different rules in effect for men and women when it comes to workplace appearances?

Most assuredly there are, according to several employment experts questioned for this story --
and what's more, in most cases it's perfectly legal, at least in the United States. However,
employers do risk crossing the line when their workplace-appearance policies place a greater
burden on one gender than another or when they conflict with religious beliefs.

If Fearnall worked as a waitress at an American restaurant, she probably would have had
little success had she chosen to pursue the matter in a U.S. court, says John A. Pearce, a
professor of strategic management and entrepreneurship at Villanova University in
Villanova, Pa.




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"The overriding principle is whether Fearnall's behavior or appearance matches
community standards," he says. "An employer can argue that if an employee's appearance
goes against the norm, then their business could suffer."

Community standards in most regions of the country mean that a female waitress with a shaved
head certainly stands out -- and not in a positive way, says Andria Ryan, a partner at Fisher &
Phillips in Atlanta.

"A man with a shaved head is not an oddity, but a purposely bald woman is," she says, adding
that -- particularly in the restaurant, retail and hospitality industries -- an employer can argue that
workers who choose to sport a certain look that deviates from "community standards" can
potentially harm the business by alienating some customers.

Where employers potentially get into legal trouble is when their appearance policies end up
placing a bigger burden on female employees instead of men, or vice versa, say Susan K.
Lessack, a partner in the labor and employment practice at Pepper Hamilton in Berwyn, Pa.

"Requiring women to wear dresses but not requiring men to wear suits may impose an undue
burden," she says.

That may have played into the conversations at Mid American Credit Union, where Holt agreed
to rescind the company's pantyhose policy after conferring with his HR director and outside
sources, according to ABC News.

Had Mid American's female employees chosen to pursue a legal remedy, they might have been
successful, says Ryan.

Such was not the case for Darlene Jesperson, a former bartender at Harrah's Casino in Reno,
Nev., who sued the company in 2000 after she was fired for refusing to comply with a company
requirement that female bartenders wear makeup while on the job.

The U.S. 9th Circuit Court of Appeals held, in a 2-1 decision issued in 2003, that there was no
evidence that Harrah's requirement imposed an unequal burden on male and female employees.

"The court said the Harrah's policy was appropriate and reasonable, that it was part of the
community standard," says Pearce. "In the United States, case law has supported the differences
between genders."

On the whole, however, most appearance policies tend to be more restrictive of men than women
-- such as those barring men from wearing earrings at work or from wearing their hair below a
certain length, says Lessack.

Employees have been far more successful in challenging appearance policies that conflict with
their religious beliefs.

In recent years, for example, many female Muslim employees have won the right to wear hijabs,
a headscarf that covers the head, or burkas, which are coverings that conceal the entire body, over
employer objections, says Ryan.



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In most cases, courts will side with employees on religious matters unless the employer can
demonstrate an undue business burden or safety hazard would be created by accommodating such
a request, she says, adding that these protections extend to practitioners of non-mainstream
religions as well.

"The threshold for proving you have a sincerely held religious belief is pretty low, so it's likely
the courts will uphold these requests," says Lessack.

When all is said and done, employers must also consider the impact of their policies on the
morale of other employees -- and on a potential backlash from the public, she says.

In Owen Bay, the owners of Nathaniel's restaurant have since issued an apology to Fearnall and
the charity she represented. The apology came in the wake of a rash of angry editorials, protests
and coverage of the issue throughout Canada and the world -- a reaction that has apparently taken
a toll on the restaurant's owners.

"I am upset for [the owners]. They are a physical wreck today," kitchen employee Cathy
Cruickshank told the Toronto Sun. "It just breaks my heart."




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June 20, 2008
By John Curran


Catholic sex abuse crisis far from over in Vermont diocese
BURLINGTON, Vt. (AP) - Many Roman Catholics believe that the worst of the clergy sex abuse
scandal is over. But in the Diocese of Burlington, it's deepening.

The case of one cleric, assigned to Vermont parishes in the 1970s despite warnings from an
Indiana bishop that the priest was suspected of molesting boys, is battering the local church.

Last month, a former altar boy who said the Rev. Edward Paquette molested him repeatedly three
decades ago won an $8.7 million jury verdict in a negligence lawsuit against the diocese.

Attorneys for the diocese say they have insurance that could cover part of the $8.7 million payout,
but they can't find their copy of the policy and have sued the insurer to get it.

To make certain that the settlement is paid, a judge put a $10.2 million lien on the diocese's
central offices. An appeal is pending. But even if the verdict is overturned, 16 more people who
said Paquette molested them in Vermont have filed their own claims.

"Clearly, the diocese can't afford 18 more of these $8.7 million awards," said Chuck Zech, a
Villanova University economist who researches church finances.

It's an expense the Vermont church will have to scramble to avoid.

Paquette is not known to have faced criminal charges, but he acknowledged in a 2006 deposition
that he was "sexually involved" with boys while in parishes in Massachusetts, Indiana and
Vermont. That deposition was for a negligence claim brought by a former Vermont altar boy who
reached a nearly $1 million settlement with the Burlington Diocese.

The diocese, which serves all the state's 148,000 Catholics, put its individual parishes under
charitable trusts two years ago to shield them from what Burlington Bishop Salvatore Matano
called "unbridled, unjust and terribly unreasonable assault."

The diocese also faces at least six additional negligence cases involving other Vermont clergy.

Matano is considering selling property -- including a Lake Champlain site that has been used for
more than 20 years as a summer camp for children with cancer.

The accuser's attorney in the recent jury trial, Jerome F. O'Neill, called it a publicity stunt to
generate sympathy for the diocese. He contends that the church was considering selling Camp
Holy Cross before the recent verdict.




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Zech said that the diocese should have sought bankruptcy protection, as six other American
dioceses did in response to multimillion-dollar abuse claims. But Tom McCormick, a lawyer
who represents the diocese, said church officials would only file for Chapter 11 as a last resort.

Beyond money, parishioners' trust in the diocese is at stake.

Three of the pending Paquette lawsuits are headed to trial beginning in August, with juries likely
to see documents and hear testimony about how church officials knew of Paquette's past, yet
allowed him to work in Vermont.

Paquette, 79, who is still a priest but has been barred from any church work, could not be reached
for comment on this story. He has no listed telephone number for his Westfield, Mass., home, and
could not be reached through his former Vermont attorney or through the Diocese of Springfield,
Mass.

He had served as a pastor in Fall River, Mass., and Fort Wayne, Ind., before applying to the
Burlington Diocese in 1972. He said he wanted to be near his parents in Westfield.

At the time, Bishop Leo Pursley of the Diocese of Fort Wayne-South Bend told Vermont Bishop
John Marshall that Paquette had been accused of molesting boys. If the Burlington Diocese
decided to take the priest, he should be assigned to an institutional chaplaincy -- a hospital or
senior center away from children, Pursley said, according to church documents entered as
evidence in the recent jury trial.

But Vermont church officials ignored the advice, assigning Paquette to a parish in Rutland, then
transferring him twice over six years -- to Montpelier, then Burlington -- after he was accused of
abuse in each church.

He sometimes groped altar boys while giving "pony rides" after Mass in which he sat them on his
knee and groped them, according to the altar boy who won the $8.7 million judgment. The man,
who does not want his name published, testified last month that he and other altar boys
nicknamed Paquette "Father Pockets," joking that he always had something in his pocket for
them.

The 40-year-old Lakewood, Colo., man served Mass with the priest as an 8-year-old and said he
was molested by Paquette 40 to 100 times over two years. He said he never reported the abuse
because Paquette was "the next closest thing to God," but years later went "ballistic" after
learning about Paquette's history and the warnings to church officials about the priest. The
Associated Press does not publish the names of sexual assault victims without their consent.

Church officials have defended their handling of abuse claims in the 1970s, saying that at the
time, it was believed prayer and counseling could cure sexual attraction to children.

Matano declined to be interviewed. He told Vermont Catholics in a letter read at Mass on May 18
that he hopes that the "needed ministries will continue uninterrupted and parishes remain
unaffected by a burden that does not belong to them."

O'Neill argued that the diocese has more than enough resources to fund the settlements, including
$42 million worth of property in Burlington alone.


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"It's payment of a past-due debt, ever since Bishop Marshall and other parts of this diocese
permitted those priests to abuse boys," O'Neill said.

But Zech said that if the diocese sells its real estate to fund the settlements "they might as
well cease to exist."




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June 27, 2008
Reid Kanaley

How Dow Now?
After yesterday’s 358-point haircut on the Dow, how low can the stock market go?

Economists answer as follows: Much lower. No lower. Impossible to tell.

Take your pick. It all depends on who’s talking.

The Dow Jones industrial average, Nasdaq composite index, and Standard & Poor‘s 500 index
each fell about 3 percent yesterday. For the year, the Dow is off 13.7 percent, the Nasdaq is down
12.4 percent, and the S&P has fallen 12.6 percent.

William Dunkelberg, economics professor at Temple University’s Fox School of Business, said
the Dow has about a 25 percent chance of falling another 500 points before a turnaround.

Or maybe it’ll be a 1,000-point slump. Hard to tell, he said.

But, Mark Zandi, chief economist at Moody’s Economy.com in West Chester, said he feels that
the brakes already are on.

“I think we’re there. This is the bottom, roughly speaking,” Zandi said.

The bad news, from Zandi’s view, is that it’ll be another six to nine months before a recovery
kicks in.
Until then, the market will have “good days and bad days, good weeks and bad weeks, good
months and bad months.”

David Shaffer, finance department chairman at the Villanova University School of Business,
said he doesn’t know how low to go.

The credit crisis, continuing uncertainty over how the Federal Reserve is going to react, and
the volatile energy markets are fueling relentless market turmoil, he said.

“I don’t know what the bottom is. I’m stunned, day after day.”

“What we’re facing is just an enormous amount of uncertainty. … Every day we think
we’ve cleared another hurdle, some more bad news comes,” Shaffer said.

Meanwhile, Dunkelberg — of the possible 500-to-1,000 point decline — has some advice for
investors: Buy stock.
According to him, no matter how insane the economy looks, the old rules still apply. What goes
down will come back up.


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“Profits are the fundamental driver of share prices in the long run,” he said. “There’s tons of
money sitting on the sidelines, and this is about psychology.”




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July 1, 2008
By Erika Morphy


Google Media Server: A Giant Toe in the Door?
Google is entering the scramble for pieces of the media convergence pie with a new software
application that lets users view content from a computer on a television. Is this one small step on
a trajectory leading to TV domination?

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for your business needs. Make the eco-friendly choice.

It already dominates the Internet -- why not the TV? Probably Google (Nasdaq: GOOG) wasn't
thinking exactly in those terms when it conceived the idea for Google Media Server, its latest
addition to a ballooning product line. But planting a foothold in a medium in which it so far only
dabbles is clearly the driver behind this release.

Google Media Server is the company's latest enhancement to its Google Desktop suite. Basically,
it is software that allows users to view content from the Internet on a television.

Unlike many other media server software applications, it can support videos from YouTube and
photos from Picasa Web Albums -- both Google properties.

It runs using Google Desktop technology -- e.g., Desktop gadgets for the administration tool and
Google Desktop Search to locate media files. "All you need is a PC running Google Desktop and
a UPnP-enabled device such as a PlayStation 3, wrote Software Engineer David Garcia.


True Convergence
If nothing else, anytime Google makes a new announcement or acquisition, it is difficult to resist
reading into what that one-off development really means for the big picture. The Google Media
Server is no exception.

Media Server illustrates the vanishing distinctions between the Internet, mobile phones and
more traditional communication channels such as television -- a blurring of the lines that
Google is leveraging very well, William Madway, a marketing professor at the Villanova
School of Business, told TechNewsWorld.

"So media content has to be able to migrate to any platform," he said. "What's interesting
about this is that the content is migrating from PCs to a stationary device; that's in contrast
to most of the migration occurring today, but nonetheless, a very wise move. It also is very

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open in its architecture, working with the video leader, YouTube, intstead of a proprietary
software."

Others take a more parochial view.

Google Media Server "is a bit -- but an important bit -- player in its long-term strategy of creating
true convergence," Jordan Hudgens, CEO of Vidshadow, an online video network, told
TechNewsWorld.

Google has become the largest distributor of online media on the Web, he continued -- and now it
is exploring the potential of cross-platform distribution.

The point, of course, is the continued monetization of its content. With the TV in is grasp,
Hudgens said, Google has another channel for placing targeted ads.

"These ads will get different rates and have different targeting and relevance for advertisers," he
predicted.

Reinventing the Wheel?
Google is not the first Internet player to try to make the leap to the living room TV screen, notes
Sterling Market Intelligence Principal Analyst Greg Sterling. Other market entrants include
SlingMedia, TiVo, Apple TV and Hulu. One way or another, he said, "the two "platforms" are
quickly becoming interoperable, and the screen in the living room will eventually just be a big PC
in addition to an on-demand premium content distribution channel."

More provocative, though, is Google's move into original content distribution online through an
initial deal with Seth MacFarlane, creator of TV's "Family Guy" cartoon, says Sterling.

There are two ways to view that move, he wrote: "It is either a creative extension of Video for
AdSense and related experiments, or it's Google moving into original content creation and
distribution."

Google as a TV network? Who knows? Maybe Google really was thinking about TV domination
when it conceived of Media Server.




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July 6, 2008
By Henry J. Holcomb

Ethics 101
College business schools are taking a hard look at how they teach ethics, looking for ways to help
graduates think and prevent future scandals and half-baked business experiments that backfire.

"Too many times the focus of ethics courses has been on not stealing pencils," said Joseph A.
DiAngelo, dean of the Haub School of Business at St. Joseph's University.

The need for change is more complex than that.

"There are overarching business issues that business schools cannot ignore," said James M.
Danko, dean of the Villanova School of Business.

Schools of all sizes are developing fresh ways to teach how to assess the impact of decisions on
others and how to search for better alternatives.

St. Joseph's is weaving ethics into every business course and giving professors time and
assistance to figure out how to do that effectively.

Villanova University's business school is merging some courses and having professors from
two disciplines team-teach them. This, officials say they believe, will give students a more
realistic view of how decisions get made and help them think more about consequences,
near- and long-term.

"For ethics to be effective, you've got to understand how it applies in real situations, how it
permeates everything," Danko said.

Gettysburg College, a small liberal-arts school, takes management students to the sewer-treatment
plant. "I want students to see how even routine decisions have an impact on other people's
interests. . . . Their jaws drop when they realize that our treated sewer water goes into the
Potomac River and Washington's drinking water," said Daniel R. Gilbert Jr., a Gettysburg
professor.

There is a sense of urgency as the nation reels from the hubris of banks collecting fees for
bundling bad loans with good. Last month, federal authorities arrested 406 people on mortgage-
related charges and accused two former Bear Stearns Cos. Inc. hedge fund managers of fraud.

"We're seeing a pervasive pattern of good people going bad. We want to put students in
situations where they have to make decisions under pressure to succumb. We want them to
experience how once you're on the slippery slope, it is hard to come back," said Jonathan P.
Doh, director of the Center for Global Leadership at the Villanova School of Business.




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New, more dynamic exercises are being developed to simulate - rather than just look at and
discuss - decision-making. Rather than follow a script, students act out roles, responding in
real time to what happens as the scenario plays out.

"We want students to experience what it will feel like when they are caught between a client
and a partner who wants to keep the client happy. We want," Doh added, "to build the
strength and competence of character to stand up to the client or executive. We need to
teach them how to do it. . . . The only way is to make them feel the sweat and pressure."

There is a new emphasis on role-playing exercises and observations that simulate the reality of
decision-making.

This is in contrast to the ethical case studies that have been around for years - on the Internet and
in textbooks.

Some traditional case studies are based on situations in which people such as Enron Corp.'s Ken
Lay went wrong at the expense of many. Others describe thorny situations involving sales,
advertising, accounting, purchasing, what people are required to wear to work, getting friends to
leak information, and ignoring safety warnings. Many have a script with lines for people to spark
discussion.

This traditional approach often leads to "a vigorous discussion, with opinions bouncing around
the room. But often no one walks out with a way to come to a conclusion," said Stephen J. Porth,
associate business dean at St. Joseph's.

"Too many are focused on legal, not moral, answers," DiAngelo said.

Scandals spawn laws and rules, but there has been too little focus, professors say, on what led
people onto the slippery slope. Examinations of ethical failures often find "that the people
involved didn't see the whole picture" so they could think about consequences, Danko said.

Professors say teaching must go beyond knowing right from wrong. Students must develop the
skills to participate in processes - involving many cultures and disciplines - that produce ethical
behavior.

New initiatives seek to promote a more critical view of business.

"Maximizing shareholder value is a legitimate objective, but it has to be pursued within a moral
context. . . . The singular pursuit of any objective can produce perverse results," said John J.
McCall, professor of management and philosophy and director of St. Joseph's Pedro Arrupe
Center for Business Ethics.

"We must teach that business is not primarily about making money. It is about providing goods
and services that other people need. Businesses that are the most successful are the ones that pay
attention to what they're doing and how they're doing it," McCall said.

These companies develop a corporate credo, and "they don't just hang it on the wall, they live it,"
McCall said.



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Such businesses, he and others said, take a hard look at the sustainability of new ventures and
avoid doing things that lead to laying off workers and leaving communities with debt from
utilities and schools built to support plants that failed early.

The pressures for profit on corporations can crowd out critical thinking and block important
information, said David M. LeVan, former chairman and chief executive officer of Conrail Inc.,
the Fortune 500 railroad. His concerns about ethics led to a $1.25 million gift to Gettysburg
College to fund an ethics professorship - his first contribution after Conrail was taken over by
rivals and broken up in 1999.

"I decided to do this based on observations, particularly after I became CEO," he said in his office
of the Gettysburg Harley-Davidson dealership he and his wife, Jennifer, own.

Students must learn to overcome "the natural tendency to protect the boss from bad things." If
they become CEO, he said, they will have to "bypass normal channels and tap into key places to
find out what's going on."

And, he added, they will have "to create an environment where people are confident enough to
tell the truth."

Crafting fresh approaches to teaching ethics is just beginning. Deans and faculty are meeting with
companies that recruit their students, graduates, current students and others.

The new emphasis is on principles, not rules.

"Ethics is a tradition of disciplined thinking. I teach 21-year-olds to think in disciplined ways they
haven't thought before," said Gilbert, who holds the professorship LeVan endowed.

"Enrons come and go," Gilbert added. "I don't think a scandals-based approach to teaching works.
I want to connect ethics with everyday lives, teach that organizations couldn't operate if people
didn't tell the truth and come to the aid of each other."




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July 9, 2008
By Michelle Williams

Real Deal: Block Text Message Spam!
It's annoying and it can cost you - spam that comes across your phone in the form of a text
message! But there is a way to stop it.

"It seems like the spammers come up with more and more creative ways to get through,"
says Professor Charles Taylor of Villanova University.

Advertisers are now using text messages to target consumers. If you haven't gotten one yet, you
will.

"It's projected that it's going to go way up over the next 10 years, getting into the billions of
dollars," says Professor Taylor.

We've gotten used to junk-email but that doesn't cost us anything, except the time it takes to
delete it. When we get spam on our cell phone is different.

"Consumers really view it as an invasion of their personal space," says Professor Taylor.

Villanova Marketing Professor Charles Taylor says trust is crucial for an ad to be effective.
An unwanted SMS text breaks that trust.

"Boy, an SMS comes in and it might cost you more minutes or more money. Really
annoying in terms of being irrelevant to you and in terms of about paying for it as well,"
said Professor Taylor.

Unless you have an unlimited text plan, each annoying ad could actually be costing you money.

Federal law bans companies from sending unsolicited commercial e-mail or texts to your cell, but
that doesn't stop it.

"We've probably had more complaints in last several months than we've had in last several
years," says Sheldon Jones of Verizon Wireless.

Verizon Wireless tells us they use filters to block up to 200 million spam messages every month.
"It's a cat and mouse game," says Jones.

The company also set up a website, www.vtext.com ,so you can block spam from getting through
to your phone.

Other cell carriers have similar programs. For step-by-step directions for each one, click here for
my blog.

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"These messages that come across our network are pollutants. So we don't want that on our
network and we certainly don't want it invading the privacy of our customers," says Jones.

Most of the time these spammers are phishing and they're looking to find numbers that are active.
If you respond to the text, they know they've got you - so never respond!




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July 15, 2008
By Kelli B. Grant

5 Ways to Save on Online Shipping Fees
WITH GAS PRICES blowing past $4 a gallon, fewer shoppers are heeding the call of a trip to the
mall. In order to save some cash, they're turning to the Internet to get their shopping fix instead.

The problem is that many of those budget-conscious consumers aren't always saving that much
money. Thanks to sluggish sales and higher fuel prices, many online retailers have been forced to
boost shipping fees, a move that can significantly add to an order's final tally. Old Navy's
"famous $5 shipping," for example, quietly rose to $7 in May when the retailer's web site merged
with those of sister brands Banana Republic, Gap (GPS1) and Piperlime. This month, Staples
(SPLS2) increased its charge for orders under $50 from $7.95 to $9.95.

Afraid of alienating fickle shoppers, many web retailers, however, still aggressively market free
shipping offers with the hope of recouping the cost in other ways (say, fewer coupons). "History
has shown that online shoppers will go to great lengths to avoid shipping charges," says
Eric Karson, associate professor of marketing and business law at Philadelphia's Villanova
University. According to a study conducted by technology market research firm, Forrester
Research, 61% of online shoppers say a free-shipping offer would sway them to pick one retailer
over another. Encountering unexpectedly exorbitant shipping at checkout, on the other hand, is
enough to make 43% of shoppers abandon their virtual carts entirely, reports PayPal and
comScore.

"There's a huge psychological impact from free shipping," agrees Dan de Grandpre, CEO of
bargain-hunting site Dealnews.com3. "It's magic. It takes away, for most people, the biggest
barrier to shopping online." That's why, despite the added expense for web retailers, free shipping
remains the most popular online promotion. These days, however, shoppers should expect such
promotions to come with a few added strings attached, such as higher order minimums or a
requirement to pay with a store credit card.

Here are some of the best ways to avoid getting dinged by shipping fees while shopping online:

Crunch the numbers
To continue offering free shipping, some smaller retailers may pad item prices, warns
Karson. Before you jump on a free shipping offer, use a price-hunting search engine like
PriceGrabber.com4 or NexTag.com5 to find the cheapest total price from a reputable store,
including taxes and shipping fees.

Hunt down free-shipping codes
Stores are increasingly forgoing standard free-shipping policies in favor of regular promotions.
To get the best deal, in many cases, requires a promotion code. Two new web sites,
FreeShipping.org6 and FreeShippingOn.com7, offer exclusive free shipping promotions and codes
from more than 700 retailers each. Users can search by retailer name or by product category.


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One thing to keep in mind is that major retailers often run more than a dozen promotions at one
time, with different minimums and restrictions, so be sure to compare all of their current offers.
J.C. Penney (JCP8), for example, currently offers one code (JCPCHOT) for free shipping on
orders of $99 or more, and another (BBFAM8E) for free shipping on orders of $75 or more. Both
expire July 31.

Check for minimum-order requirements
"Retailers still want to offer free shipping, but now they're requiring more," says Luke Knowles,
founder of FreeShipping.org. Accessory retailer Fossil (FOSL9), he says, raised its minimum
spending requirement for free shipping from $40 to $75. If your order balance is close to the limit
(say, its $70 in the case of Fossil) then you may want to consider buying a cheap filler item to
snag the free shipping. Amazon.com's (AMZN10) Super Saver Shipping, which offers free ground
shipping for orders of at least $25 in qualifying items, is such a popular promotion that sites like
Amazon Filler Item Finder11 now exist to help people meet the minimum and save.

Use your store credit card
It's often the key to low, or even no minimum order requirements. Gap, for example, offers its
silver-level cardholders free shipping on any order. Meanwhile, Kohl's (KSS12) also offers codes
for free shipping, with no minimums to its cardholders.

Become a member
Both Amazon and Sears (SHLD13) offer annual subscription memberships that come with free
shipping — a cost that you can easily recoup if you order frequently enough or buy heavy items,
says de Grandpre.

Sears ShipVantage: For a $79 annual fee, you get free ground shipping at Sears.com and
Kmart.com, as well as upgrades to two-day and overnight shipping for $0.99 and $3.99,
respectively. (In comparison, someone ordering a single large bookcase14 would pay $90 in
shipping costs.)

 Amazon Prime: For $79 a year, you get free two-day shipping on every order, as well as
upgrades to one-day shipping for $3.99. The service is particularly useful if you use Amazon as
your online grocer, de Grandpre says. (The megastore is routinely 20% cheaper than grocery
stores15 on bulk packs of items like cereal and snacks.)




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Jul. 20, 2008
By Bob Fernandez

Lesser Giant
General Motors' stock market value is now below that of several Philadelphia-area
companies.

Poor, shrunken General Motors.

The American auto icon has fallen so far on Wall Street that several Philadelphia-area companies,
in comparison, are looking like world-class corporate titans.

One is hip Philadelphia retailer Urban Outfitters Inc., whose recent value on the stock market -
over $5 billion - nearly matched that of GM in recent weeks. GM gained significant ground last
week after announcing a restructuring, but the company's total stock value, $7.5 billion, remains
half of what it was in late 2007.

Urban Outfitters markets products with whimsical brands like "Fairytales are True" and "Sparkle
and Fade." Sales to mostly younger women are growing 29 percent a year.

Half of its 10,000 employees work as part-timers. Its revenue last year was $1.5 billion.

The South Philly company wouldn't seem to be in the same business league as General Motors, a
company with 13 percent of the global auto market and $181 billion in 2007 revenue.

But indeed, according to investors, it is.

The Pennsylvania chocolatier Hershey Co., which has annual revenue of about $5 billion, and
whose chocolate bar with almonds is celebrating its 100th birthday this year, has a stock-market
value of $8 billion - bigger than GM.

Other Philadelphia-area companies - Campbell Soup Co., Rohm & Haas Co., Tyco Electronics
and Comcast Corp. - are significantly more valuable than GM as soaring oil prices and a
recessionary economy have beaten down shares in the nation's largest domestic automaker.

On Tuesday, seeking to calm speculation that the company might be forced to eventually seek
bankruptcy protection, the automaker's top executive announced several steps to slow its cash
burn: eliminate the cash dividend, cancel retiree health benefits, and eliminate thousands more
jobs.

"As I've said from the start, our goal is not just to change GM's bottom line from red to black, our
goal is to change GM for the long haul," said chief executive officer Rick Wagoner.

The immediate goal, analysts said, was to stay solvent beyond 2009.



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GM shares revved through the week. Before Tuesday, the difference in stock-market value
between GM and Urban Outfitters was hovering between $300 million and $500 million. But by
Friday, GM had closed with a stock-market value, or market capitalization, of $7.5 billion,
compared with Urban Outfitters' market cap of $5.4 billion. This is what it would take for a
corporate raider or private-equity investor to buy all the stock in the companies.

Still, these are deflated times for GM, which peaked in market cap at about $47 billion in 1998,
according to Bloomberg. To put its recent decline in context, let's wander Pennsylvania, South
Jersey and Delaware - a land of towering giants when compared to the ailing automaker.

Dow Chemical this month agreed to purchase Rohm & Haas Co., the specialty chemical maker
located on Independence Mall, for about $15 billion in cash - about twice the value of General
Motors.

In Camden there's Campbell Soup Co., whose $13.1 billion in market cap is 77 percent higher
than GM's.

Tyco Electronics, in the western suburbs, weighs in at $17.4 billion in stock-market value.

In Wilmington, Dupont Co.'s $39.8 billion is over five times GM's stock-market value.

And then there's the gorilla in our midst: Center City's Comcast Corp. At $59.9 billion in stock-
market value, the pay-TV and Internet company is roughly eight times more valuable than
General Motors.

For Philadelphia boosters these market caps don't signify a muscling-up of the region's
companies, but an enfeebling of a Rust Belt icon.

A book, The End of Detroit, published in 2003, explored problems at GM, Chrysler and Ford.
Author Micheline Maynard discussed the U.S. carmakers' inability to focus on quality and failure
to consistently deliver sedans that excited American consumers, such as Honda's Accord or
Toyota's Camry.

Chrysler is privately owned, and Ford has suffered, similar to GM, from high oil prices and the
waning popularity of big vehicles. Ford's market cap on Friday was $12.2 billion.

U.S. auto executives failed to lead their companies out of danger, said V.K. Narayanan, a Drexel
University business professor for strategy and entrepreneurship. "I will not condone the lack of
cars. It's not like we don't have the know-how. We have the know-how. What we have not seen is
reasonable leadership coming from the domestic auto industry," he said.

It would be a mistake, he said, if the U.S. lost its domestic auto industry, which supports
hundreds of thousands of jobs and engineering innovation. "GM should transform itself,"
Narayanan said. "I'm hoping it will happen. It's not a strategy. It's a hope."

Last year, General Motors lost $39 billion on its $181 billion in sales. The losses were largely
attributed to deferred taxes. The company sold 9.4 million vehicles around the world. Its share of
the U.S vehicle market fell to 19.4 percent in 2007 from 20.7 percent in 2006 and 22.6 percent in
2005, according to its regulatory filings.


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William Madway, visiting instructor in marketing and business law at Villanova School of
Business, said a big problem is GM's many brands - Chevy, Cadillac, Pontiac, Buick, GMC,
Saturn, Hummer and Saab. GM has said it could dispose of the gas-gulping Hummer.

Madway said he recently gave a Toyota dealership a $1,000 deposit to get on a list to
purchase a gas-sipping Prius hybrid. "The biggest issue now is that no one wants their
vehicles," Madway said of GM. "It doesn't feel like they have been a pioneer in any way."

Peter McCausland, the chairman and chief executive officer of Airgas Inc. in Wayne ($4.9 billion
market cap), sympathizes with GM's management, which had to negotiate labor contracts with the
United Auto Workers.

He enumerated other challenges the domestic auto industry has faced:

Japanese automakers were game-changers. The cost of health care battered companies, most
painfully those with large numbers of retirees. GM operated older factories that had to be
modernized. The company does business in a nation that lacks a coherent energy policy. "We got
sucked into cheap oil," McCausland said.

But no one said business was easy.

"We've faced our difficulties and addressed those core difficulties and learned from our
mistakes," McCausland said of Airgas.




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                                            MSNBC.com

July 21, 2008
By Eve Tahmincioglu

Beware of social networking overload
As Web sites proliferate, focus on one or two; don't be like Marcia

    There’s a great scene from "The Brady Bunch" when Marcia — just turned high school
freshman — is nervous about fitting in and making friends so she signs up for every club listed on
the school bulletin board.

This is sort of what I see happening with many of you and all the social networking sites out
there.

I’ve been getting questions from readers, colleagues and friends about the social networking
explosion in cyberspace. It seems like there’s a new site popping up every day, and no one wants
to be left out of the latest and greatest group. The choices are endless, everything from Black
Planet, a site for African Americans, to Xing.com, a site for professionals with an international
flair.

But with all the choices comes a digital daze.

Here’s what people have been asking me lately: “Is it enough just to be on LinkedIn and
Facebook?” “I just got an invite from a friend who’s on Plaxo. What is it and should I join?”
“Will I dilute my networking effectiveness if I’m on MySpace, LinkedIn, Facebook and
Twitter?”

Marcia! Marcia! Marcia!

You can’t be in every club. It’s just not humanly possible.

I know, there’s a hint of desperation in the air because of the tough economy, and everyone wants
to have lots of connections just in case layoffs are looming.

But beware. You might end up with social networking overload.

Enhancing your brand
Trust me. In researching this column, I signed up for as many of the networks out there as I could
and what did I get? A headache.

Suddenly my e-mail inbox was flooded with friends accepting my invites for Plaxo, Twitter, etc.,
and I realized there was no way I was going to have time to do any of these sites justice.
Especially since I’m already a member of LinkedIn and Facebook, and I barely have time to keep
those up-to-date.

So what’s the best strategy?



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“There are two purposes to social networks,” says Jason Alba, author of “I'm On Facebook, Now
What?” and “I'm on LinkedIn, Now What?” “One is for networking, and the other is to enhance
your brand.”

Neither will happen overnight, he says, so you should take time to figure out your best
networking options.

First, you need to be part of at least one of these networks.

Let’s face it, these sites have helped many workers with their careers. I hear great stories all the
time about people being recommended by their connections and ending up with dream jobs.

Greg Moore was a victim of the mortgage mess and ended up out of a job when the San Diego
bank he worked for shuttered. But LinkedIn led him to new employment.

“I had heard about LinkedIn through a guy I met at a golf tournament,” he explains, He signed up
ASAP, created a profile and started making connections. Next thing he knew, he got an invitation
to link up from someone who worked at I Love Rewards, a Toronto-based employee incentive
company, who saw his profile and knew the golf buddy.

“Now I’m business development manager for the company,” he says.

LinkedIn and Facebook
When it comes to professional networking, most experts say, LinkedIn is probably one site you
want on your list.

“LinkedIn has carved out a strong identification within the professional, job-seeking
world,” says William Madway, professor of marketing at the Villanova School of Business.
 “It can offer more contacts and a professional, trustworthy environment for career-related
networking. So, if I were attempting to advance myself professionally or career-wise, I’d be
very inclined to turn first and foremost to LinkedIn.”

Dan Abelon, the founder of SpeedDate.com, says he uses LinkedIn heavily for hiring. “It is
extremely useful for finding appropriate candidates based on skills and work history,” he
explains.

If LinkedIn just seems too suit-and-tie for you, Facebook is a good alternative and also on the list
for many networking gurus.

I find you can get a good feel for what certain companies are like on this site because managers
and employees seem to let their hair down a bit more, offering a glimpse of what the corporate
culture may be really like. Where else can you get a cyber feng shui invitation?

Be sure to use Facebook’s privacy settings. This allows users to separate their party photos from
the weekend from the professional information they want prospective employers to see, says
Adam Ostrow, editor of the social networking news Web site Mashable.com.




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The best of the rest
Another site getting a lot of attention these days is Squidoo, a favorite for marketing expert Penny
Sansevieri.

She says it’s the best site for career enhancing because “you can upload a video of you, the page
is very interactive, you can add widgets, a blog, just about anything.”

It’s a useful way to “showcase your knowledge,” adds Mashable’s Ostrow, because you set up
something called a lens on any topic you’re interested in, and then create a section that’s almost
like a personal Web page that includes links and news on the subject.

When a hiring manager Googles your name, your Squidoo page can be a great selling point if
your lens includes expertise a company is looking for.

Pulse, a service launched last year by online address book company Plaxo, is another great way to
get into the social networking space. It works as an aggregator, with a space on the site where you
can see updates on activity on many of your other social networks, Ostrow explains.

It’s a good idea to check out all these sites to see what they have to offer, and then it’s up to you
to choose one or two. You can add more than that if you have time to keep your friends and your
profiles up to date, but don’t dilute your social networking juice.

It’s not going to help your career if you have a bunch of profiles, or pages on a bunch of sites, and
no time to check all the connections and news happening everyday. It’s better to focus your
efforts and building a solid network on one site.

Once you pick one main, general networking site, you might also consider finding a network that
targets your profession or industry.

Jon Ruiz, career services advisor at The Art Institute of California in San Francisco, recommends
mainstream sites such as LinkedIn and MySpace to design students, but he also points them
towards industry sites like Real TV and Coroflot.

There’s also some value in joining online networking groups that are focused on a particular
geographic area, adds Mashable’s Ostrow.

He recommends using Meetup.com to find out about groups in your area. Just put in your topic of
interest and zip code, and you can find out about networking opportunities in your town.

That way you can put away your mouse, bypass the tweets and try your hand at the most effective
career networking strategy: face to face. And I’m not talking avatars, folks!




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July 25, 2008
By Kathleen Ryan O’Connor

When bloggers attack
Online criticism can be hard to take. Lashing back isn’t the answer - but a diplomatic response
can turn the situation around.



      Reese Adams, Lewis Advertising, Rocky Mount, N.C.
What is the current opinion on how to handle negative blog posts about your company or brand?
Respond or don’t respond?




       By Kathleen Ryan O’Connor, Fortune Small Business contributor
Dear Reese: Many businesses, both large and small, are still grappling with Web 2.0 - so it’s not
surprising that your question drew a spirited response from bloggers, experts, and academics.

But before we relate their opinions, was there an easy consensus?

Yes. Respond. Honestly, quickly and transparently. In nearly every circumstance, our experts
thought it was best to engage with bloggers and try to find common ground.

First, read the post carefully. Did the writer have a bad experience with your product or service?
Don’t try to sweep that under the rug - ask if you can fix it. Treat bloggers like valued customers.
But if you believe they have a negative agenda or that they’re armed with bad information, stand
up for your business and set the record straight.

Investigate how the blog has handled such responses in the past - do they post corrections? Make
sure you’re prepared to back your claims. Consider setting up a link to a page where readers can
access more information, and find advocates for your position, such as valued customers.

Before you hit “send,” carefully reread your e-mail. While a traditional journalist rarely has the
space to reprint a message in its entirety, a blogger can - and often will - do so, especially if it
comes across as snide, exasperated, or unintentionally funny. Assume that everything you write
could be reprinted in full, and proceed with caution.

Will Chen, editor of the personal finance blog Wise Bread: Living Large on a Small Budget, says
he once wrote a “pretty critical post” about the privacy policy of Google (GOOG) Reader, which
was later changed. According to Chen, many companies become emotional, or even hostile, when
they come across unfavorable blog write-ups - a big mistake.

“When you encounter negative posts, see it as an opportunity,” Chen says. Blogs, whether
positive or critical, give companies access to a new audience. He says most bloggers want to be
fair, but laughingly admits that “we have a certain egocentrism.”

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It’s helpful to consider how a professional blogger operates. While a traditional news reporter
might bang out one or two stories a day, a blogger could be under the gun for five to ten posts in
as little time. Bloggers are out to get eyeballs: trackbacks, unique visitors, and repeat visitors are
their badges of honor.

So use that to your advantage. Send bloggers information about your company, or offer to
contribute your perspective on a subject that’s relevant to your expertise. You could be providing
them with the post they’ve been sweating over all morning.

But while it’s often smart to engage with bloggers, there are some situations where silence is the
best policy. Aaron Schoenherr, Chicago-based executive vice president of Greentarget, a PR firm,
advises you to look at the blog itself. If it’s an industry-specific outlet that critiques your work,
you probably don’t want to respond unless the writer is making a false accusation.

Ask yourself if the blogger is getting enough traffic to make it worth your time to respond. “Is the
blog slick and professional, or was it made with a free template?,” Schoenherr asks.

John Pearce, professor of strategic management and entrepreneurship at the Villanova
School of Business, says: “If the attacker is mainly a nuisance with transparent motivations,
whose wild claims appear on page three or later in your search engine listings, you can
ignore him, as most other prospective customers will do.”

But there are some sites that can’t be ignored. For example, Yelp, a popular venue where
customers post reviews of businesses, draws 10 million monthly unique visitors. Matt Dornic,
president of 3 Dog Agency, a Washington-based PR agency that specializes in online reputation
management, says you should bow to the power of Yelp’s search placement.

“They’re going to kick your butt no matter how great your search-engine optimization is,” he
says. Since you can’t beat them, says Dornic, you should join them. “Sign up for the community,
and be a true user: understand how it works, have a planned response to criticism, and review
other people’s businesses. I’m brutally honest on Yelp.”

According to Dornic, bloggers can rarely ding a business with a transparent, expansive Web
presence. It’s easier to produce positive Internet hits than fix negative ones. To control your own
search results - and crowd out unwanted hits - Dornic suggests creating avatars on different social
networks, posting how-to videos, and even uploading Yahoo’s (YHOO) Flickr pictures from the
company’s holiday party. You can also piggyback on others’ traffic by commenting on popular
blogs. Be sure to provide your name and URL, but don’t publish overly self-promotional or
superfluous comments.

For an owner who doesn’t have time to update a slew of sites, Dornic recommends channelme.tv,
a service that enables you to upload videos and content to your own page. Dornic himself uses the
site and says it’s garnered him more hits than his professional home page.

If you feel that blog attacks are seriously damaging your business, consider calling in
reinforcements. Pearce says it can be useful to engage the services of a professional online-
identity management firm, but advises you to check whether it’s worth your money. Some
of these firms charge thousands, he says, to do what you can do on your own - create
profiles on Facebook and Linkedin that will push back negative mentions in search engine
results.

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Businesses facing an abundance of posts can also hire companies to track their Internet
appearances. “The blogosphere is a fluid thing,” says Jeff Catlin, CEO of Lexalytics, an Amherst,
Mass. firm that helps businesses manage information online. “You might not know about another
post until it’s too late.” The average small-business owner, however, can catch references with
Google alerts and determined surfing.

You should also pay attention to whether there are bloggers within your own ranks. Zach
Hummel, an expert in labor and employment law and a partner in the New York office of Bryan
Cave, handles cases involving negative blogs created by current and former employees. Hummel
encourages small companies to develop a blogging policy to preclude such issues. “It’s a
protective measure that may be important in the long-term,” he says.

Hummel adds that it’s much more difficult to take non-employees to court for online slander.
“The growth of blogging has been huge,” he says, “and the legal system is still coming to grips
with these things.”

For now, you’ll have to rely on your own policing - but keep in mind that it’s generally wiser to
be politely corrective than to act the part of vigilante.




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July 27, 2008
By Tom Taulli

Entrepreneur's Journal: Five key steps when starting a business
Over the years, I've started several businesses. All in all, the process has been exciting. But, at the
same time, there were lots of risks and frustrations.

So, if you're thinking about making the leap, what are some things to consider? Let's take a look:

1. Know your industry: I read lots of business plans. And, one common theme is: the entrepreneur
has only a sketchy understanding of the industry and competition.

And, I think this can be a dangerous sign.

However, with the internet, you can get a great understanding of an industry. For example, you
can look at trade association websites, industry publications and even government sources.

Finally, there's a good book on the subject: Successful Business Research: Straight to the
Numbers You Need--Fast!.

2. Write an executive summary: With your industry research, this should be easier to do. Also,
specify the business model (how do you make money?); the competition; a forecast and key
milestones; and marketing strategies.

Make this simple and concise (hopefully the summary is only one page).

3. Where's the money? That is, how will you get customers to pay you?

For example, according to James Klingler, who is the Assistant Professor of Management
and Operations at the Villanova School of Business:

"Too many businesses are started without a clear path to money. Often this stems from not
really understanding who the customer is and how the business will reach that customer.
Self delusion can often be found in the assumptions made about getting to the customer."

So, it's a good idea to talk to potential customers. And talk to many of them.

4. Leverage: Don't do everything yourself. In fact, with virtual assistants, on-demand applications
and outsourcing, there are cost-effective ways to deal with many business functions (such as
payroll, customer management systems and so on).

So, I had a chance to interview Tim Berry, who is the founder of Palo Alto Software (which
develops business plans and marketing software) and the author of a new book, The Plan-as-You-
Go Business Plan. He says: "One of the mistakes I made along the way was trying to do too much
alone. Even if you're the lone ranger, don't try to do all the legal and all the bookkeeping and all
the administration and all the selling and all the marketing and ... whew, I need to take a breath.
Way too many people fail because they don't recognize that nobody's really good at everything.

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They play too close and too tight. Get help. Make sure you have an attorney you trust and an
accountant you trust, at the very least. This is the real world; it takes a village to build a
business."

5. Reality check: Take a realistic assessment of yourself. Can you deal with lots of stress? Are
you OK with working long hours? Can you sell your products and services?

Yes, it's tough stuff. But, if done right, starting a business can be a tremendous experience.




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July 28, 2008
By Tom Avril

New trans fats warning labels may not be effective
A requirement that package labels show the amount of harmful trans fats in foods may
not be effective, says a new study from Villanova University and the University of
Arkansas.

When shown a simulated label describing a serving of crackers with 4 grams of trans fats,
diabetic and coronary heart-disease patients were unlikely to view this as a large amount
unless they were given additional health information, the study found. In fact, this
amount represents about 70 percent of the average U.S. daily intake of these fats, which
are blamed for raising "bad" cholesterol.

Patients who were given extra information in advance - on the cardiovascular health risks
and average consumption of trans fats - were far more likely to recognize that 4 grams
was a lot, said John Kozup, director of the Villanova Center for Marketing and Public
Policy Research.




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July 28, 2008
By Brian Steinberg

Pay-for-Play Wends Its Way Into TV News
McD's, Others Get Exposure on Morning Shows as PR Yields to Paid Placements

NEW YORK (AdAge.com) -- The revelation last week that McDonald's paid to have iced-coffee
drinks set in front of the news anchors on Las Vegas' KVVU created a stir, even though the news
personnel went about their business, didn't sip them and didn't give their inanimate co-stars even
the slightest mention. Those outraged will be sad to learn that paid appearances for cold java are
no longer that unusual.




Sit there and look cool: Iced joe on KVVU was untouched.

Meredith has allowed similar placements at a CBS affiliate it owns in Atlanta, said Paul
Karpowicz, president of the Broadcast Group at Meredith Corp., which owns the station. Other
stations hold the line against such stuff, but have found other ways to weave marketers into select
broadcasts. KCPQ, a Seattle Fox affiliate owned by Tribune Co., has in the past let McDonald's
place logos against certain onscreen elements. Fox's WFLD in Chicago has a man-on-the-street
segment in its "Good Day Chicago" program called "Breakfast Buzz," which is sponsored by
McDonald's and shot in front of one of the chain's outlets, said Judson Beck, VP-general sales
manager, Fox Chicago. The chain's logo is on screen during the segment and viewers are told
afterwards that McDonald's was the sponsor, he said.

"Advertisers look at it as an opportunity to have some visibility on their product and not get
caught up in a traditional commercial break," said Mr. Karpowicz.

Will marketers -- or more important, viewers -- look at the technique as crossing a line? It's one
thing for Ford Motor Co. to pay for prominent appearances in programs such as "24" or "Knight
Rider," where the stories are fictional and journalism is the furthest thing from any viewer's mind.
But it's quite another to insert advertisers' wares into programs where serious, unbiased coverage
of any number of topics is supposedly the hook that gets people to watch. The coffee cups in Las

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Vegas, first reported by The Las Vegas Sun, are also a signal that marketers are moving from
overt promotions to more subtle ones that usually involve public relations and guerrilla
marketing, and are willing to live with the risk that viewers might find the practices duplicitous or
offensive.

Potential disaster?
"Despite station managers' promises that accepting paid product placements won't affect
their station's news coverage, I think it most likely will, in time," said William Madaway,
professor of marketing at the Villanova University School of Business in Philadelphia. "And
even if they do hold the line, it will undoubtedly affect the public's perception of the
independence and integrity of TV and radio newscasts, and that would be a disaster for
viewership or listenership."

Indeed, news programming can be a veritable minefield. "As you enter the news-program world,
the line between what is news and what is promotion has always been a little more clear. And as
we see more and more of these things it's going to be important that producers of these shows are
transparent about what is an endorsement and what's actually news," said Fred Cook, CEO of
Interpublic Group's GolinHarris, which works for McDonald's but had no role in the coffee
placement.

Nonetheless, he says paid placement outside of entertainment shows is a growing trend. "It's not
uncommon these days to be asked to pay for a placement on a talk show. Those used to be done
in exchange for the product, but now there are often fees associated with it because the programs
are trying to create new revenue streams."

Then there's the question of how effective such below-the-radar placement can be. "I guess if you
have a cup of McDonald's sitting in front of you it's a subtle endorsement. It's like a billboard but
I'm not so sure what the ROI is given the expense," said Margi Booth, president, M Booth &
Associates. "If I had my druthers I'd much rather go with: spend the money to get a spokesperson
or product on when there's something to say about it. That's much more valuable."

Both business and news executives see where product placement in news programs could go too
far. Steve Kraycik bristles at the idea of letting a potential subject of coverage entrench itself too
deeply into a news broadcast. "You want to maintain a separation between paid advertising and
news product as much as possible to retain your credibility," said Mr. Kraycik, KCPQ's news
director. "That newscast needs to remain pure," agreed Chicago's Mr. Beck.

Acceptance
Whether consumers care enough about intrusions into space usually considered sacrosanct is a
matter for debate. In a survey of about 800 respondents conducted by two Iowa State University
professors, traditional product placement was generally considered acceptable, with people saying
they knew it when they saw it. Negative reaction rose 30%, however, when viewers perceived
products onscreen were designed to sell something, said Jay Newell, a professor of advertising at
the university.

The separation of news and ads is an idea that TV executives arrived at over time, and the line has
been crossed depending on the type of newscast being broadcast. In the early days of TV, when
entire programs were often owned or sponsored by a single marketing entity, NBC's nightly news
program was known as the Camel News Caravan and backed by the cigarette maker. More
recently, advertisers have paid to have radio hosts talk about products on air in the belief that it
sounds more enticing and relevant than a stock 30-second commercial. "There are tasteful ways

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to do it," said MJ Keehn, partner-media director at WPP Group's Cole & Weber/United. "We're
not talking about turning Tom Brokaw or Katie Couric into Billy Mays selling OxiClean."

Much of this new push is driven by economics. Network newscasts have steadily lost viewers for
years, and morning-news shows have become more focused on lifestyle and celebrity than on the
serious news of the day. In a sign of the pressure on the formats, CBS's "60 Minutes," NBC's
"NBC Nightly News" and ABC's "ABC World News" have all in the last few years let advertisers
such as Philips Electronics and Pfizer sponsor entire broadcasts in exchange for running fewer
ads, with more time for news segments.

Marketers, too, have their reasons: Broadcast TV is snaring fewer viewers, who have more power
than ever to skip past a 30-second ad.

It's no surprise that some rules have begun to form. At KVVU, the McDonald's placement is
disclosed by an on-air announcement as well as on-screen graphics, Mr. Karpowicz said. And the
company wouldn't allow such stuff on more serious newscasts, including its evening and late
news shows. Should a story about McDonald's or the fast-food industry come up when the chain's
coffee is on screen, he said, the station would cover it "vigorously and aggressively." What about
the coffee? It'd be taken "off the set, just as we remove the commercials for airlines" when an air
disaster strikes.




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July 30, 2008
By Jack Neff

Study: Skinny Women Better for Bottom Line
Researchers Find Thin Models Make Viewers Like Brands More, but Themselves Less

BATAVIA, Ohio (AdAge.com) -- Thin is still in for advertising, new research suggests, unless
you're trying to sell cookies or self-esteem.

                                              Women who had just seen thin models were nearly
                                              four times more likely to turn down a snack pack of
                                              Oreo cookies offered as thanks for their
                                              participation in the study than women who hadn't.

                                              A study by business professors at Villanova
                                              University and the College of New Jersey, inspired
                                              by Dove's "Campaign for Real Beauty," shows that
                                              ads featuring thin models made women feel worse
                                              about themselves but better about the brands
                                              featured.

Seeing thin models also made college-age women far more likely to turn down a snack pack of
Oreo cookies offered as thanks for their participation in the study, or to opt for a reduced-fat
version. Women who had just seen thin models were nearly four times more likely to say no to
Oreos than women who hadn't, and 42% more likely to opt for reduced-fat cookies if they did
indulge.

Women in a sample of 194 college students aged 18-24 expressed more negative feelings about
their sexual attractiveness, weight and physical condition after seeing thin models than before.
So-called high self-monitoring women, or those more concerned about what others think of their
appearance, were the most negatively affected by seeing the thin models in the study.

More likely to buy
The professors are still preparing a written report on results from a second phase of the research,
which found that despite the negative effect on their body image, women preferred ads showing
thin models and said they were more likely to buy products featured in those ads than in ones
showing "regular-size models," said Jeremy Kees, a business professor at Villanova.

Karen Becker-Olsen, a business professor at the College of New Jersey, also has been conducting
the research. She couldn't be reached for comment by deadline.

"The really interesting result we're seeing across multiple studies is that these thin models make
women feel bad, but they like it," Mr. Kees said. "They have higher evaluation of the brands.
With the more regular-size models, they don't feel bad. Their body image doesn't change. But in
terms of evaluations of the brands, those are actually lower."

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Mr. Kees acknowledged the findings create something of a quandary for marketers, who might
have a positive effect on young women's self-esteem by showing more typical women in ads, but
suffer in the marketplace as a result.

"I'd tend to be cautious about using models in advertising that wouldn't maximize the attitudes
and evaluations of the advertising and the brands," he said. "Certainly [Dove is] getting a lot of
publicity, and it's a great, innovative campaign. But in terms of the bottom line of how that might
be impacting ... purchase behavior, I'm not sure."

Appetite suppressant
Mr. Kees said the professors landed on the Oreo tactic, in which study participants didn't know
their post-ad-exposure cookie-eating would be monitored, as a way of studying real behavioral
impact in addition to the usual survey responses regarding ads.

                                 The Dove Self-Esteem Fund, backed by its Campaign for Real
                                 Beauty, has exceeded its original goal of reaching 1 million
                                 young girls by this year and expanded its target to 5 million by
                                 2010.

                                The data shows a definite, if short-term, link between thin
                                models in ads and eating behavior, but Mr. Kees said he wasn't
comfortable making the leap that seeing thin models could cause eating disorders.

Dove and its agency, Ogilvy & Mather, Toronto, weren't reluctant to connect those dots in their
"Onslaught" viral video released last year, splicing scenes of yo-yo dieting and bulimia into a
montage of beauty advertising.

"That's a far stretch to infer an eating disorder from a one-time choice," Mr. Kees said, but added,
"That's certainly a scenario that would be rich for future research."

The new study in part concurs with and in part diverges from some prior research on the impact
of thin models. Research reported in 2005 and 2006 from psychology professors at University of
Sussex and University of West England in the U.K. concluded that ads featuring ultra-thin models
do make women feel worse about their looks, but aren't any better at selling products than ads
featuring more typically proportioned women.

The Lower Chamber of France's Parliament earlier this year passed a law that would ban the use
of ultra-thin models in ads, and authorities in Spain last year banned ultra-thin models from
runways. Unilever also vowed to not use size-zero models in any of its advertising.

Unilever stays the course
In a statement, a spokesman for Unilever said the company believes its approach works.
"Unilever is confident in the effectiveness of its advertising," he said. "We believe women have
the right to feel comfortable with their bodies and not suffer from lack of self-esteem brought on
by images of excessive slimness."

Dove's campaign, he said, has "penetrated society and started a dialog about real beauty," adding
that "we are thrilled by the overwhelming positive responses we have received from women (and
men) as a result of the campaign."


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The Dove Self-Esteem Fund, backed by the campaign, has exceeded its original goal of reaching
1 million young girls by this year and expanded its target to 5 million by 2010.
Campaignforrealbeauty.com, he said, already has reached 4.5 million people.

Despite those efforts, he said, "There is no question that women and young girls are being
bombarded with unrealistic messages and images of beauty that impact their self-esteem." But, he
said, "We are excited to see now (and have seen in the past couple of years) a growing trend
towards more realistic and healthy looking women in advertising and in the media."




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July 30, 2008

Skinny Models Turn Women To Masochists



                                             Ladies, have a look at this ad featuring skinny
                                             supermodel Kate Moss. How does it make you feel?
                                             Wait, let me tell you how it makes you feel: it makes
                                             you hate your own body, but really want to purchase
                                             that handbag Kate Moss is advertising! What am I,
                                             psychic? No, I'm just telling you what the advertising
                                             industry has discovered in a breakthrough new study
                                             about skinny models. Women love to hate
                                             themselves and keep coming back for more,
                                             apparently!

The actual, scientific study found that "ads featuring thin models made women feel worse about
themselves but better about the brands featured." They make you despise your own "normal"
body, and subconsciously try to correct the situation with therapy consisting of shopping. Oh, the
pretty girls have all the pretty brands!

A Villanova professor who ran the study ferreted out just what advertisers bank on: masochism.
""The really interesting result we're seeing across multiple studies is that these thin models make
women feel bad, but they like it," he said.

The advertising industry always knew you were a bad, bad girl.

And in the most entertaining twist to this whole thing, the study also found that images of skinny
models make women stop eating. Surprise!:

Seeing thin models also made college-age women far more likely to turn down a snack pack of
Oreo cookies offered as thanks for their participation in the study, or to opt for a reduced-fat
version. Women who had just seen thin models were nearly four times more likely to say no to
Oreos than women who hadn't, and 42% more likely to opt for reduced-fat cookies if they did
indulge.

No telling what this means for Spanx.




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July 31, 2008
By Kai Ryssdal

Kai Ryssdal's Final Note ...

This final note today: It's about fear and self-loathing in the marketing business.

Professors at Villanova University gathered a group of college-aged women together and showed
them ads featuring thin models. Then, as thanks for participating, the women were offered a pack
of Oreo cookies. The overwhelming majority said no to the cookies, but they did say they would
buy the brands and products that the ads featured.

One researcher said the analysis went something like this: That thin models make women feel bad
about themselves, but they like it, and that ads using normal-sized models didn't affect womens'
body image, but they didn't like the brands and products that those ads featured either.




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THURSDAY, JUL 31


Shockingly Plus Sized Models Don't Make
Women Want to Buy Stuff




Adage wrote a story about new research that states the obvious- Advertisers prefer thin models
because it makes consumers like the brand more, but no so much themselves.

According to the article, the study was done by business professors at Villanova University
and the College of New Jersey and was inspired by Dove's "Campaign for Real Beauty". It
concluded that "ads featuring thin models made women feel worse about themselves but
better about the brands featured".

Since when is this news to anyone? That's been the deal all along. Sure we had a few months of
"conscious" fashion designers that weighed their models and put full figured models on the
runway. But we all know that was just to try make women feel better about themselves long
enough to get them shopping again. They mentioned that women that had just seen a thin model
were less likely to opt for cookies like Oreos out of negative feelings about their own body, but
still preferred brands that used ads with thin models.


What a self loathing society. Giving more validity to spokemodels that look "better", but aren't a
real representation of society. But it appears that Dove will continue with its effort to promote
real women and real lifestyles. The article noted that a spokesman for Unilever said the company
believes its approach works. He says that "Unilever is confident in the effectiveness of its
advertising. We believe women have the right to feel comfortable with their bodies and not suffer
from lack of self-esteem brought on by images of excessive slimness."

I think that's a noble thought, but probably one that's wasted.

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The "All Black" Issue Of Italian Vogue: Both A Success And A Failure

It's official: The "all black" issue of Italian Vogue is a hit. According to Time magazine's Jeff
Israely, "After the original run of the July issue sold out in the U.S. and U.K. in 72 hours, Vogue
Italia has just rushed to reprint 30,000 extra copies for American newsstands, another 10,000 for
Britain and 20,000 more in Italy. The only complaints about the reprints might come from those
currently trying to sell copies on eBay for $45 apiece." But not everyone thinks the issue is
ground-breaking enough. Writer Priyamvada Gopal has a column in today's Guardian in which
she claims black women actually have "little to gain" from the issue. So for whom should we
chalk one up?


Gopal writes:


Well, it certainly is one for the inalienable right to be tall, thin, and airbrushed… Black models?
Sure. But there's not a "natural" or "kinky" in sight, indeed, barely even a mop of curly hair. This
is black girls-as-white girls: all aquiline noses, large eyes, oval faces (bar the standard exception
of "unusual" Alek Wek), hair coaxed into silky straightness or carefully turbaned away in shot
after shot. As for "black", it's more latte than americano.


By simultaneously marking blackness as "special" and yet ensuring conformity to dominant
(white and European) ideas of sophistication and beauty, the "black issue" tells us a great deal
about race and ethnicity in the media today. To be non-white is to be constantly relegated to a
"special issue", while the regular edition remains determinedly white.


She has a point. Magazines are not inclusive. There's absolutely a euro-centric point of view; a
Westernized, Caucasian standard of beauty. But I'll argue that without the "special" issue, some
people would not be talking about the race problems in the fashion industry at all. Model mogul
Bethann Hardison spearheaded conversations about the lack of black models last fall; I attended


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her "Out Of Fashion" discussion in October. Then another one in January. The number of people
at the events grew; the number of news outlets discussing the issue grew. By June, Vogue had
acknowledged the problem. Italian Vogue may be but a hammer blow to the wall put up around a
billion dollar industry; a fortress to which, for years, only willowy Eastern European 16 year-olds
had access. It wasn't always so; black models worked in the '70s and '80s more than they do now.
Does Italian Vogue solve the problem? No. But every little bit helps. A dialogue helps.


And the next wall to break through just might be weight: With the exception of Toccara, all
of the models in the "all-black" issue held to the slim standard. Unfortunately, according to
a study by business professors at Villanova University and the College of New Jersey, ads
featuring thin models made women feel worse about themselves but better about the brands
featured. Writes Jack Neff for AdAge, "Despite the negative effect on their body image,
women preferred ads showing thin models and said they were more likely to buy products
featured in those ads than in ones showing 'regular-size models,' said Jeremy Kees, a
business professor at Villanova." Why do we expect magazines to embrace women of all
colors, shapes and sizes, when we, the women reading them, fail to do so?




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8/1/08
Real Women Not as Good as Skinny Women in Ads

By George Anderson


The move by marketers to use "real" looking women has brought them positive publicity
and, along with it, sales. A new study by professors at the College of New Jersey and
Villanova University, however, suggests that these very same companies might have actually
done better if they did away with using everyday women as models and just stuck with,
well, real models.

Jeremy Kees, a business professor at Villanova, told AdAge.com, "The really interesting
result we're seeing across multiple studies is that these thin models make women feel bad,
but they like it. They have higher evaluation of the brands. With the more regular-size
models, they don't feel bad. Their body image doesn't change. But in terms of evaluations of the
brands, those are actually lower."

The exception to the above rule is in snack advertising (women prefer to see real women eating
cookies than waiflike creatures) where women were four-times more likely to turn down an Oreo
after seeing an ad with a thin model than one who was normal size.

While the research made a case for skinny models, it did not involve assessing ads in the
marketplace that feature regular-sized women.

Unilever's Dove brand, with its "Real Beauty" campaign, has no reservations about the
effectiveness of its advertising. A company spokesperson said in a statement, "We believe women
have the right to feel comfortable with their bodies and not suffer from lack of self-esteem
brought on by images of excessive slimness... We are thrilled by the overwhelming positive
responses we have received from women (and men) as a result of the campaign."

The spokesperson added, "There is no question that women and young girls are being bombarded
with unrealistic messages and images of beauty that impact their self-esteem. We are excited to


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see now (and have seen in the past couple of years) a growing trend towards more realistic and
healthy looking women in advertising and in the media."

Discussion Questions: Does the research from professors at the College of New Jersey and
Villanova University make a stronger case for using thin models in ads or presenting images
that bolster women's self-esteem? Should brands be pushing buttons that may, in some way,
be harmful/hurtful to consumers while generating sales or should they find a way to drive
sales without making people feel bad about themselves?




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August 1, 2008
By Sean Scully

Business management by the Bible
The Villanova University School of Business can teach you many interesting things — how to
run a Fortune 500 company, how to finance a multibillion-dollar acquisition, how to audit
complex balance sheets.

Add to that now how to run your own Roman Catholic parish.

Starting this summer, the school will offer a master’s degree in something called “Church
Management.”

Villanova says it is the first graduate-level business school program in the nation tailored
exclusively to the needs of the lay staff who run churches and the pastors who supervise them.
“Things have gotten such that in most churches, the pastors have gotten so overwhelmed with
their spiritual duties that really it’s unfair to ask them to also take over temporal duties,” said
Economics Professor Chuck Zech, head of the school’s Center for the Study of Church
Management. “So more and more, these are being assigned to laypeople who sometimes lack the
training in what it’s like to be a manager in faith-based organizations.”

Dwindling numbers of priests, widespread cases of embezzlement, and growing demands for
transparency from parishioners are prompting a greater emphasis on practical business training
for church managers.

The courses will examine regular business concepts but with a focus on ethics, theology and
church law and practice.

Barbara Purnell-Small, one of the 28 members of the inaugural church management class, is the
sort of person the program was designed to help, Zech said.

Purnell-Small serves as director of religious education at St. Francis of Assisi, a small parish in
the Germantown section of Philadelphia.

Although she has some religious training, she has no experience running a business. Yet the
parish is so small, she said, that she is in effect assistant to the pastor.

The two struggle constantly to manage the books and maintain the parish.

“We have extremely large church buildings,” Small said. “Now, I’m not going to get a plumbing
degree or learn how to do the heating, but there are a lot of issues … that come up through the
course of the day, and you need a good, solid foundation — beyond theology — to be able to
answer ‘how do you do this?’ Or ‘what do we do next for the church?’”



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Although the classes are targeted largely at Catholic churches, seven of the 28 students are
Protestant, as is at least one instructor, Zech said, and the Lutheran Theological Seminary of
Philadelphia plans to send over some graduate students in the fall.

“All churches have the same problems, but every church has different solutions,” Zech said.
Students spend a week on campus at the start of the program and complete the rest online.
The initial class has American students from as far away as California and Idaho and even a priest
from Hong Kong.

A number of trends are putting a spotlight on the need to educate church managers.
First, lay staff is becoming increasingly important as the number of priests and nuns dwindle.
“For years, you could have had people who had no skills, no training, running $2, $3 million
operations,” said Monsignor Louis Marucci, the pastor of the Church of St. Vincent Pallotti in
Haddon Township, N.J., and one of the inaugural students. “You’d never see that in the corporate
sector, but it’s been allowed to develop in the church because … the tradition was that the Father
did it all. We’re moving into a whole different type of management model in the church.”
Priest sex abuse scandals have also led to greater demands for transparency by parishioners,
particularly on financial matters, Marucci said.

The Archdiocese of Philadelphia has not yet sent any priests to the Villanova program, but it has
used other nonbusiness school programs, such as classes by the Philadelphia-based Catholic
Leadership Institute.

Monsignor Timothy Senior, the archdiocese’s Vicar of Clergy, said the archdiocese is interested
in “strengthening the secular skills” of its priests as they find themselves in charge of an ever-
larger collection of professional and volunteer lay employees.

“A priest is more frequently alone or the only priest where there is a large lay staff,” Senior said.
“So he has to be a leader among all the other leaders within the group. And that is a unique skill
set.”

Meanwhile, Zech said, awareness is growing that churches are as vulnerable to theft and
mismanagement as any secular business.

A survey last year by Zech’s center found that 85 percent of all U.S. dioceses had experienced
embezzlement sometimes running into the multimillions of dollars.

“It’s not enough to run this as a mom-and-pop shop any more,” Zech said. “We need some people
with a professional background.”

The two-year program costs $23,400 per student, with a substantial discount for anyone whose
church steps up to pay at least a quarter of the cost.

Half of the first class received the 33 percent discount.

“We want to encourage churches to realize that this is an important ministry,” he said. “If you’re
to survive, you have to start supporting finance like you support the other ministries you have.”




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August 10, 2008
By Brad Forsythe



Villanova University Professor of Marketing, and Marketing Business
Law, Discusses The Olympics, International Branding, And Why More
Advertisers Should Pursue A Cross-Cultural Segmentation Strategy
This week Co-Host Brad Forsythe interviews C. Raymond Taylor, John A. Murphy
Professor of Marketing, Marketing & Business Law, Villanova University.

Charles R. “Ray” Taylor is the John A. Murphy Professor of Marketing at Villanova University.
He received his Ph.D. from Michigan State University. Taylor served as President of the
American Academy of Advertising in 2005, having previously served as Vice President and
Treasurer. Dr. Taylor also serves on the Advisory Board of the Center for Responsible
Leadership and Governance at Villanova and on the Board of Directors for the Marketing and
Society special interest group of the American Marketing Association. Dr. Taylor’s primary
research interests are in the areas of international advertising and advertising regulation.

Dr. Taylor has provided consulting services to numerous businesses and organizations and has
served as an expert witness in several court cases. Clients have included Viacom, General
Motors, Philip Morris, U.S.A., McCann Erickson, Clear Channel Communications, Magic Media,
Inc., Eller Media, Star Storage, Lamar Outdoor, Magic Media, Inc., Craig Realty, the Outdoor
Advertising Association of America, the International Sign Association, Dechert LLP,
Rossbacher and Associates, Mattioni and Associates, and the Center for Information on Beverage
Alcohol (United Kingdom) as well as other companies.

Professor Taylor has been named a Fulbright Senior Specialist by the Council of International
Exchange of Scholars. Taylor has taught courses in Korea, China, Germany and the Czech
Republic and has given lectures at many locations throughout the world. Taylor has also given
speeches at the meetings of several major organizations, including ICORIA (European
Advertising Association), the Academy of Marketing Science, the Korea Advertising Society, the
International Sign Association, and the Transportation Research Board. He has provided
testimony to the U.S. House of Representatives as well as state legislatures and has served as an
expert witness in litigation involving marketing and advertising issues. He has also given
speeches or lectures at prestigious Universities, including Harvard, Columbia, Ludwig
Maximillians University, University of Amsterdam, Autonomous University of Madrid, Korea
University, Harbin Institute of Technology, University of Texas at Austin, and Rutgers, and
others.

Professor Taylor has published numerous books, journals, and conference papers. He has
published academic articles and book reviews in outlets that include: Journal of Advertising,
Journal of Advertising Research, Journal of Marketing, Journal of International Marketing,
Journalism and Mass Communication Quarterly, Journal of Public Policy and Marketing,
Thunderbird International Business Review, Journal of Marketing Research, and Journal of
Current Research and Issues in Advertising. He serves as Associated Editor of Journal of Public


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Policy and Marketing and on the Editorial Review Boards of Journal of Advertising, International
Journal of Advertising, Journal of Business Research, Journal of Current Issues and Research in
Advertising, Journal of Marketing Communications, Advances in International Marketing,
Psychology and Marketing, and Journal of Consumer Affairs. He also serves as an ad hoc
reviewer for Journal of Marketing and other journals in the marketing field.




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Aug. 11, 2008
By Stacey Burling

Too many firms use jargon to convey ideas
So you're at a party getting to know a couple of attractive strangers.

"What do you do?" you ask one of them innocently.

"I'm a market-leading provider of technology-enabled process-optimization tools to reduce and
right-size inventory, improve forecast accuracy and service, optimize production resources, and
reduce cycle time across the supply chain," your new acquaintance intones.

Whoa, time to get out of here, you think. But you recover your social graces enough to look
hopefully at his friend.

"Well," the friend says, "I develop small-molecule, orally administered pharmacological
chaperones for the treatment of human genetic diseases."

"How interesting," you lie, edging toward the door. "I'm sorry to run, but I just remembered I
have to clean the cat boxes. Nice meeting you."

Obvious as it may be that such heinous assaults on the English language would send people at a
party running, this is how real businesses introduce themselves to reporters - and anyone else who
reads their news releases on their Web sites - every day.

After enduring this literary torture nearly to the breaking point, we thought it might help to share
our pain, plus some thoughts from business experts - dare we say "thought leaders" - about the
virtues of clear communication. After all, if potential customers cannot figure out what your
company does, that might be a problem.

"Maybe it's technology. Maybe it's poor schooling, but I think we're becoming a nation of
weaker, more jargonistic communicators," said Kelly O'Keefe, who is director of executive
education at Virginia Commonwealth University's Brandcenter. "It's certainly not good for
brands."

Maybe the people who write these descriptions are so steeped in jargon that they think we all
know what managed telephony, online motion content, powerful enterprise server technology,
mission-critical strategies, operational outsourcing solutions and "under-banked" consumers are.

One company "helps pharmaceutical companies create competitive advantage and shareholder
value through unparalleled insights into the drivers of physician prescribing behavior." Another
English abuser describes itself as "the global leader in applying Advanced Enterprise
Management Systems™ to help public- and private-sector clients transform into resilient
organizations that proactively mitigate strategic risk, further competitive advantage, and optimize
enterprise performance."



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Rich Sherman, an Austin, Texas, marketing consultant, who wrote the description for our first
partygoer - Lead Time Technology of Wilmington, Del. - put a lot of thought into his wording,
and was happy to defend it.

Sherman, who is on Lead Time's board, said his target readers were supply-chain managers and
trade-press writers, not reporters for daily newspapers. "It is not our strategic intent for you to
understand," he told an Inquirer reporter.

The description was purposely wordy, he said, to use as many key Internet search words as
possible. He is phasing in some simpler language, but would never just say Lead Time is going to
improve your company's efficiency.

"So what? Who isn't?" he said. "The simpler you get, the less effective you get."

Alan Siegel, who runs a branding company whose slogan is "simple is smart," thinks most
Dilbert-worthy writing stems from naive attempts to impress. People, he said, "are using
overblown, imprecise, confusing gobbledygook to try to sound big and important."

The problem is "worse now than it's ever been," he said.

He concedes that some tech companies are complicated, but thinks there's no excuse for using
"nonsense language."

Not surprising, given his company's approach, he thinks customers prefer plain English. "It's a
definite business advantage and strategic advantage to communicate with clarity and coherence . .
.," he said. "All the audiences of these big companies are crying for clarity."

The Brandcenter's O'Keefe says the most successful brands are built on simple messages. Think
Target and democratized style. "Most consumers crave simplicity," he said. (While Target's ads
are masterly, its news-release description of itself refers to customers as guests, not the sort of
simplicity we crave.)

Some of the problem may stem from confusion within companies. "A lot of corporations really
don't know who they are," O'Keefe said.

Leaders of three local business schools say they're trying to create better communicators.

James M. Danko, dean of the Villanova School of Business, said his school had revamped its
curriculum to include more writing and oral presentations. Temple University's Fox School
of Business is adding a business communications class this fall that will focus on clear, concise
business writing and speaking.

Drexel University's LeBow College of Business worked with its English department to bring
more writing instruction into the business school and has started sending out examples of student
work to alums in the working world for critique.

While there is a sense in the business world that obtuse language impresses people (yes, we know
this is true in other fields, too), students should know that clear writing is a sign of good thinking,
said Frank Linnehan, LeBow's associate dean of undergraduate and graduate studies.

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"Being able to describe a complex concept clearly and succinctly is really an indication of how
well you know that subject," he said.

Some of the most puffed up, buzzword-laden writing is, of course, meant to dress up
unremarkable ideas. It survives because of what Linnehan calls "emperor's-new-clothes
syndrome."

Davia Temin, who owns a marketing, reputation- and crisis-management firm, says turgid writing
may start at the top, not with the lowly writer of a news release. Many business leaders, she said,
want to include "every one of their marketing messages" in company boilerplate. "A lot of these
guys, they want to throw in the kitchen sink, obfuscate with jargon," she said. "To get them off of
that, it takes a major war."




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August 11, 2008
By Rebecca Cullers

Thinness still has upper hand in advertising
Following up on the Looking Glass Foundation ads from Canada,
Jeremy Kees of Villanova University has published a study that
suggests that seeing skinny women in ads makes women feel
worse about their personal body image but better about the brands
advertised. When "regular-sized" models were used, the
participants didn't feel any differently about their personal body
image, but they gave those brands lower marks. Seeing the skinny
models also resulted in at least short-term behavioral alteration,
making the women 42 percent more likely to opt out of the "thank
you" Oreos given away at the end of the study. The study,
conducted jointly by Villanova and the College of New Jersey,
stops short of making the link between a one-time cookie opt-out and advertising's role in full-
blown eating disorders. Still, it poses excellent ethical questions for us in the biz. Although it
would clearly not be a good idea if you're selling Oreos, assuming you think the study's findings
are correct, would you use anorexics in your ads if testing showed it sold the product better?




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Aug. 14, 2008
By Linda Loyd

Oil pumps inflation up in July, but just wait

The higher-than-expected jump in U.S. consumer prices in July can be summed up in a word: oil.

Inflation in July rose 5.6 percent over the last 12 months, the largest annual gain since 1991.
From June to July, the rate rose 0.8 percent, twice as fast as economists were expecting.

But with energy prices now retreating, July's increase in the Consumer Price Index is history, a
one-month snapshot and not necessarily a trend. With oil prices heading down in the last few
weeks, experts say the next monthly CPI report, for August, will be interesting.

In other words, prices may ease up this month for the same reason they rose last month: oil.

Here's how a few economists addressed the key points about prices:

What drove the higher-than-expected July CPI number?

Gasoline, food, clothing and communications - your telephone and cable bills. Tobacco prices
have been soaring. Transportation costs - public transit, trains and airplane tickets - mostly
because of energy. - Joel Naroff, Commerce Bank and Naroff Economic Advisors

This one-month number is largely driven by energy, by oil. We already know that energy
prices have receded. This number is not all that worrisome to me. CPI is released monthly;
energy prices are every day. - David Shaffer, finance department chairman, Villanova
School of Business

What is the Fed and Chairman Ben S. Bernanke likely to do?

I think they will do nothing based on this number. This is a July number. The Fed does not
make policy by looking through the rearview mirror. Analysts are already looking at
August and beyond. We all know that oil peaked in July. But oil has been dropping since.
The August number is going to be interesting, not so much the July number. - David
Shaffer

While these inflationary pressures are broad-based and of concern, the economy is even softer.
Right now, the Fed is likely to continue to focus on the weak economy by keeping rates stable,
not lowering rates but not raising them either, possibly all through this year. - Joel Naroff

How will the stock market react?

The market is likely to discount the CPI report with hopes that future reports will be better
because of the declines in energy. The market is focusing on oil and is therefore able to discount
the CPI. - Joel Naroff


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The market already saw oil peak in mid-July, and the market also knows that oil has
dropped fairly substantially. The market is factoring in that information more than this
CPI number. In fact, the market is up almost 200 points today. [It eventually closed up 82
points.] This CPI number reflects history, and since the third week in July oil has been
dropping. That is far more relevant to the market than this July number. - David Shaffer

Is there a worst-case scenario from these CPI numbers?

The inflation picture really teeters on what oil does. If oil goes back up substantially, I think
that would be an inflation risk to the economy. If we see another spike in oil that has some
permanence. The major fear would be that higher oil prices would seep into all areas of the
economy. - David Shaffer

Consumer prices by themselves are not going to create a recession. If we had consistently high
numbers like this, the Fed could be forced to raise rates, and that would hurt the economy,
possibly forcing it into a recession. - Joel Naroff

Much of the increase in food was due to a strong reading for "food away from home" - meals at
restaurants, vending machines, etc. - which respond to changes in food-commodity prices only
with a long lag. This could imply that food inflation will remain elevated longer than we
previously expected . . .." - Zach Pandl, Lehman Bros. Holdings Inc., quoted in the Wall Street
Journal

Any reason for optimism?

The recent decline in oil prices. If oil does not return to $140 a barrel, I don't think this CPI
number is too much of a worry going forward. - David Shaffer

When we get the August Consumer Price Index report, it's going to look an awful lot better. It
could be flat or even down. We are seeing a rollback in energy costs as well as some other
commodity costs. It's likely that we may have seen some of the worst of the inflation numbers. -
Joel Naroff




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September 9, 2008
By Raj Daval

An advanced business education will create better stewards
Leaders share insight about obtaining management education while serving at their
churches.

It’s important for today’s church leaders and administrators to have and develop strong business
management acumen in addition to a solid theological foundation in order to manage more
effectively. In recent years this necessity has become increasingly evident in light of sexual abuse
scandals and countless financial misappropriations. To meet this need for additional training,
several universities began offering continuing education programs, including the Master of
Science in Church Management (MSCM) program at Villanova University, Villanova, PA
and Biola University’s Master of Arts in Organizational Leadership (MOL) in La Mirada,
CA. (See Church Executive, March 2008.)

With an initial class of 27 students that began this May, Villanova’s MSCM program —
which is almost completely online — developed by the Center for the Study of Church
Management is a pioneering program in the field. Victoria Bailey, who does strategic
planning for churches, including her own, First Baptist Church of Vienna, VA, is among the
inaugural class. “I am currently facilitating a seven-year strategic planning project. It did
not take me long to realize that church management is a lot different from managing a
business for profit,” Bailey says.

Bailey searched for educational programs that would help her meet her objectives but only
found one or two day seminar options, and she felt that her MBA would not be enough.
“After searching for church management courses that would provide me with a broad scope
of topics, I selected Villanova’s program because there curriculum was in line with my
needs,” Bailey says.

Equipped to lead

The MOL program at Biola has been offering classes since 1988, in several modular options.
Nicole Maiocco, director of local outreach, Mariners Church, Irvine, CA, enrolled in the MOL
program because she felt it would equip her to be a better leader. Maiocco graduated in 2006. “I
learned so much from the program; I learned so much about myself as a leader,” Maiocco says.

The MOL includes a Leadership Challenge as part of the program which is an intensive
teamwork exercise. “The Leadership Challenge was eye-opening. It put me in a situation that I
was uncomfortable with and made me push myself to get through it,” Maiocco says. “It
reconfirmed the value and importance of teamwork. Throughout the program, I was forced to deal
with my strengths and weaknesses and to come to terms with how they affect my role as a
leader.”

Sheila Anderson, chief business officer for Reid Temple African Methodist Episcopal Church in
Glenn Dale, MD, found out about the MSCM program after the application deadline had
passed. However, she persisted to the director, Charles Zech, that the curriculum was
exactly what she was looking for. Anderson is also currently enrolled in a graduate certificate

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program in management at The Carey School of Business at Johns Hopkins University. Before
the MSCM she was constantly trying to tailor the program to fit what she does for her
calling in church business administration.

“As a former civil litigator, I have a particular interest in risk management strategies for
the church,” Anderson says. “I’m presently laying the foundation for future
implementation of innovative strategies/alternative approaches to church business
operations.”

Many backgrounds are represented

The aspect of the program that has been the most energizing for Anderson has to do with
the people who are enrolled. “Currently, we represent several denominations, with diverse
backgrounds and ethnic groups. I would never have imagined that 27 adult students could
meet via distance learning and immediately become such a loving family,” Anderson says.

Jen Hurst, coordinator of small groups, Bel Air Presbyterian Church, Los Angeles, CA, graduated
from the MOL program in 2005. “Understanding different styles of leadership has been
immensely helpful to me as I oversee small group leaders, coaches and project-based teams
which have planned and executed large-scale events,” says Hurst. Bel Air organized the 34
Degrees Small Group Conference in partnership with Mosaic Church in November 2007.

“I have also found that my understanding of organizational development has been key in the
continuing effort to change the culture of BAPC from being a church with small groups, to being
a church of small groups,” Hurst says.

While continuing education for church leaders is a valuable tool for leaders and administrators,
this type of intensive training requires students to take time away from their families and the
responsibilities they have at their respective churches.

When Bailey began the program at Villanova, there was an adjustment period. “At first it
was difficult because it has been awhile since I was in school. But when I reorganized my
time and recognized the value of what I am learning for the things I am currently involved
in, this became an extension of my duties,” Bailey says. She suggests that if people commit
to a program of continuing education as an extension of their work, it becomes easier to
manage responsibilities over time.

Maiocco’s experience in the MOL program also proved demanding, but ultimately beneficial. “It
was challenging at times, but having class one night a week didn’t feel overwhelming,” Maiocco
says. She was able to take a few classes on Saturday, which provided added flexibility.

“I feel very fortunate that Mariner’s Church was very supportive of my attendance in the
program,” Maiocco says. “Because the material we were studying was so relevant to and even
entwined with my job, I was able to complete some of my coursework while at work.”

For those seeking to further their management skills, there are now programs that include focused
curriculums. Because of the often overwhelming responsibilities required of church lead ers the
new church management programs offer a variety of options. The potential impact on local
churches and communities by leaders that receive intentional church business management
training is immeasurable.


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“At a minimum, the contribution to your local church will be immediately meaningful; at best,
the reward of making lasting contributions to the business operations of your church is
invaluable,” Anderson says. “Being equipped with the resources and networking strength of those
with similar vocations and areas of expertise will enable us to keep the focus on ministry,
outreach and leading souls to Christ.”




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August 29, 2008
By Miriam Hill

GlaxoSmithKline drug ad sparks a debate
Advertisements appearing this week that attack GlaxoSmithKline P.L.C. don't beat around the
bush:

"DON'T BE FOOLED: GlaxoSmithKline's scare tactics are only concerned with protecting its
profit, not the health of people with HIV/AIDS," the ads read.

The AIDS Healthcare Foundation (AHF) is running the spots in the Washington Blade, the
Village Voice, and Frontier Magazine to counter GlaxoSmithKline ads that the group fears will
scare patients away from new treatments.

In those ads, sharks circle and lions stalk alongside the tag line "avoid hidden dangers from
changing your HIV medicine."

GlaxoSmithKline, one of the largest providers of HIV drugs, has defended its ads as educational.
And AHF itself has come under fire from other HIV advocates who say its tactics are
questionable. Consumer drug ads are often such a touchy subject that controversy is their most
common side effect.

This year alone:

Pfizer Inc. pulled Lipitor ads featuring artificial-heart pioneer Robert Jarvik after it emerged he
was not a practicing doctor.

Merck & Co. Inc. and Schering-Plough Corp. stopped advertising their cholesterol pill Vytorin
amid questions about why the companies had delayed reporting disapppointing results from a trial
of the drug.

Ads for Lipitor, Vytorin and other drugs came under attack during a May congressional hearing
titled Direct-to-Consumer Advertising: Marketing, Education or Deception?

That question sums up the disparate views of what is often called "D To C," or "DTC" for short.
Drug companies must submit ads to the U.S. Food and Drug Administration before they appear,
but the agency does not preapprove them. The FDA may issue a warning letter after an ad
appears, but the agency considers only whether the promotions make accurate claims and disclose
side effects.

"Basically, in very short and lay terms, an ad cannot be false, cannot be misleading, and must
have what is called fair balance," said Thomas W. Abrams, director of the FDA's division of Drug
Marketing, Advertising and Communications.

The pharmaceutical industry is facing several years of soft sales as patents for blockbuster drugs,
such as Lipitor, expire. It is countering that slide with an onslaught of ads. The number of ads


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submitted to the FDA has more than doubled - from 31,000 in 2001 to 68,000 last year, Abrams
said.

He would not comment on the GlaxoSmithKline HIV ads. HIV activists also have criticized a
Bristol-Myers Squibb Co. ad featuring an image of a toilet bowl that reads, "Ask your doctor if
there are HIV medications with a low risk of diarrhea." Bristol-Myers' antiviral drug Reyataz is
believed to be less likely than other drugs to cause that side effect.

GlaxoSmithKline, an early leader in HIV treatment, has been losing sales. Since 2003, the
company's share of U.S. sales of HIV antiviral drugs has shrunk from 15 percent to 6 percent,
according to IMS Health Inc.

Ads undercutting competitors are common when products have been on the market for a while,
pharmaceutical-marketing experts said.

"They're more or less fighting for market share at this point," said Michael Capella, an
assistant professor of marketing at Villanova University. "One of the classic examples of
that would be the Pepsi challenge."

Bob Huff, antiretroviral project director at Treatment Action Group, a New York advocacy group,
said images of sharks and lions only made patients fearful.

"From my perspective, this is the way that GSK has always kind of handled things in the past,"
Huff said. "Their modus operandi is always kind of to bash the competition, and they do that in a
number of ways."

AHF President Michael Weinstein said, "Running Jaws ads is just going to raise the anxiety level
very high. For people nervous about getting treatment, this could put them over the edge."

But Debra Parmer, who works to educate people about AIDS in northeast Ohio, said she thought
the GlaxoSmithKline ads were effective. They reminded her of a group that promotes condom
use by filling a casket with condoms and using the slogan, "A tisket, a tasket, a condom or a
casket."

That image is negative, too, but she said it had encouraged people to use condoms and seek
treatment.

Representatives from both Bristol-Myers and GlaxoSmithKline, which has extensive operations
in Philadelphia, said they had vetted their ads with people who have HIV before running them.

AHF often mounts public attacks such as this one, which calls the GlaxoSmithKline ads the
"Worst Drugs Ever."

It has criticized many companies in ways that at times have aggravated other HIV/AIDS activists.

Paul Dalton, director of treatment information and advocacy for Project Inform, an advocacy
group for people with HIV and AIDS, said he respected AHF for the treatment it provided to
people with HIV and AIDS.



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But he said the group's campaigns "are always self-serving."

In 2004, for example, AIDS activists criticized AHF for settling a lawsuit it had filed against
Abbott Laboratories over the price of its AIDS drug by accepting funding for AHF treatment
programs even though Abbott did not lower the price of the drug.

In 2003, GlaxoSmithKline's then-chief executive officer, Jean-Pierre Garnier, accused AHF of
blackmail after it had sued the company over its drug prices.

AHF spokesman Ged Kenslea said the group's sole goal was providing good treatment for
patients. He said AHF had gone after many companies, including Gilead Sciences Inc. Gilead's
general counsel, Gregg Altman, is on AHF's board. The company competes with
GlaxoSmithKline, but in an e-mail, Altman said he was not involved in the decision to run ads
criticizing Glaxo.




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September 9, 2008

Ron Cruse publishes ‘Lies, Bribes and Peril’
International business authority Ron Cruse has published Lies, Bribes and Peril: Lessons for the
Real Challenges of International Business, the quintessential guide to success in the global
marketplace. Cruse has built three multi-million dollar companies over a career spanning three
decades in virtually every headline grabbing hot spot in the world.

Kirkus Discoveries called the book "engaging," "informative," and "intriguing." Kirkus
confirmed the book's broad appeal by also stating that Cruse's experiences, "will especially
interest those involved in politics, business or international relations." The review continued to
say, "the author's instructions will aid anyone attempting to interact with other cultures."

From Russia to Zimbabwe, from Pakistan to Nigeria, and from Germany to Afghanistan, Cruse
relates stories of his dealings with an unusual cast of characters -- a gentle Sudanese, a Harvard-
educated Saudi, a Masai guide, an Indonesian shopkeeper, a Kazak official, an Iraqi driver, and
many more -- in a way that entertains as well as informs. His fast-paced, enthusiastic style
colorfully illustrates how culture affects perceptions, actions, thinking, communication, legal
frameworks, and even personal security when doing business globally. In addition, the book
demonstrates how doing business across political borders and cultural divides can transform even
ordinary events into bizarre challenges that must be carefully navigated to ensure success.

"This book is a must-read for anyone looking to succeed in business outside the United
States," says James Danko, the Helen and William O'Toole Dean at the Villanova School of
Business. "Ron Cruse offers critical insights into the fact that there's more to succeeding in
global business than just numbers."




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September 8, 2008
By Erika Morphy

Multifamily Mull Implications of GSE Takeover
WASHINGTON, DC-The commercial real estate industry has had 48 hours to absorb the news of
the GSEs’ conservatorship. The initial assessment--both by the larger global financial community
and the commercial real estate industry specifically--is one of cautious approval. Global stock
markets have soared as a result of the weekend’s news that the Federal Housing Finance Agency
is assuming the power of the Board and management of Fannie Mae and Freddie Mac, with rises
ranging from 2% in the US indexes, by mid morning, to as much as 4.5% in Europe and Asia.

The Treasury action is also a positive for the US housing market, Mark Zandi, chief economist
and co-founder of Moody's Economy.com, told listeners in a conference call this morning. While
the measures by themselves "are no silver bullet" for the greater problems troubling the housing
and capital market, the Treasury takeover will likely result in lower mortgage rates and increased
availability of mortgage credit. "A better capitalized Fannie and Freddie will be empowered to
step up their provision of credit," he said.

The multifamily sector, for its part, is busily trying to determine whether these same benefits will
filter into their niche of the commercial real estate market. For many that question is still unclear,
with several financiers declining to comment for this article for that reason. Fannie Mae and
Freddie Mac did not return a call in time for deadline.

"I think it is too early to tell how capital allocation will be effected by the takeover.,"
Professor Shawn Howton, associate professor of Finance and director of the Villanova
School of Business Center for Real Estate, tells GlobeSt.com. "It might stabilize these giants
and allow them to better serve their markets. Since the government is providing an infusion
of capital to the firms lending through them might not be impacted and price and volume of
multifamily deals might improve. It is very hard to tell but the markets seem to be
responding very favorably to the news."

There is also a growing body of opinion that, yes, the GSEs’ multifamily lending operations will
also receive a boost from the conservatorship. "I don’t see why multifamily will be different than
any other facet of the industry," Matthew Krauser, director of Integra Realty Resources in New
York City, tells GlobeSt.com. He predicts that the government action will provide a significant
boost with multifamily lending.

"We should see more competitive rates in multifamily as a result," Allan Domb, principal of
Philadelphia’s Allan Domb Real Estate, tells GlobeSt.com. Spreads in the multifamily sector
have widened significantly over the past year, he continues. "Spreads for conduit loans have gone
as high as the mid 6% to 7% range. Now, I think they will start to compress."



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Much of these benefits will not be realized immediately, Dave Baird, national director for
multifamily for Sperry Van Ness, tells GlobeSt.com. "Overall the ability [to finance multifamily]
will still be there. The two GSEs have funded huge amounts this year. In the short run, though, I
think there will be some confusion and delays." That all said, the multifamily community is
understandable nervous about this sea change in government support given the importance the
GSEs have to the sector.

When asked whether the government actions will be beneficial to multifamily finance, Doug
Bibby, president of the National Multi Housing Council, responded with "we hope so." Probably
it will provide a boost in the short run, he tells GlobeSt.com. "However I am most concerned
about the effective and efficient functioning of the multifamily market in the long run. Our
business is heavily dependent on [the GSEs’] portfolio execution. We hope the government
doesn't de-emphasize portfolio execution to the point that it winds up hurting multifamily
business."




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By Vigyan Arya on Tuesday, September 09, 2008

Thin is still in for the advertising world, despite majority of female consumers showing
resentment. New research on the subject shows that many women may personally resent thin or
super-thin volunteers approaching them for promoting various products, but they do take the
message                                                                           seriously.

"It's a case of conveying an aspiration message," says Matina Covello, a strategy executive with a
marketing        communication        company       based     in     Dubai       Media       City.

The conclusive message is derived out of two such research conducted by Oreo cookies and
Dove, in their recent "Campaign for Real Beauty". On the face of it, the survey conducted by
cookie makers Oreo revealed that women who had just seen thin models were nearly four times
more likely to turn down a snack pack of cookies offered as thanks for their participation than
women                                       who                                          hadn't.

On similar grounds, college-going girls that participated in a research to study the impact of
Dove's "Campaign for Real Beauty," shows that ads featuring thin models made women feel
worse about themselves but better about the brands featured. The study was conducted at
Villanova    University    and    the    College      of    New     Jersey,    in   the   US.

Seeing thin models also made college-age women turn down a snack pack of Oreo cookies
offered as thanks for their participation in the study, or to opt for a reduced-fat version.

Women in a sample of 194 college students aged 18-24 expressed more negative feelings about
their attractiveness, weight and physical condition after seeing thin models than before. So-called
high self-monitoring women, or those more concerned about what others think of their
appearance, were the most negatively affected by seeing the thin models in the study.

"At a personal level, all the participants, or for that matter women in general," explains Martina
"may not be appreciative of the slim figure of promotional girls, but they clearly understand the
message      and        it's     in      fact      absorbed      for     long-term      retention."

Communication experts are still collecting data and are in the process of collating a detailed
research report, but initial indications in survey found that despite the negative effect on their
body image, women preferred ads showing thin models and said they were more likely to buy
products featured in those ads than in ones showing "regular-size models".

"The really interesting result we're seeing across multiple studies is that these thin models
make women feel bad, but they like it," said Jeremy Kees, a business professor at Villanova
about the study in a special paper on the subject. "They have higher evaluation of the
brands. With the more regular-size models, they don't feel bad. Their body image doesn't
change. But in terms of evaluations of the brands, those are actually lower."

Martina believes that this is a sensitive areas where advertisers cannot impose a thin image in the
minds of consumers beyond a point, as "that may backfire in reality".


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The findings create something of a quandary for marketers, who might have a positive effect on
young women's self-esteem by showing more typical women in ads, but suffer in the marketplace
as                                          a                                           result.

"I'd tend to be cautious about using models in advertising that wouldn't maximise the
attitudes and evaluations of the advertising and the brands," said Kees in support of the
rational. "Certainly [Dove] got a lot of publicity, and it's a great, innovative campaign. But
in terms of the bottom line of how that might be impacting ... purchase behaviour, I'm not
sure."

Kees said the professors landed on the Oreo tactic, in which study participants didn't know
their post-ad-exposure cookie-eating would be monitored, as a way of studying real
behavioural impact in addition to the usual survey responses regarding ads.

The Dove Self-Esteem Fund, backed by its Campaign for Real Beauty, has exceeded its original
goal of reaching one million young girls by this year and expanded its target to five million by
2010                           in                            the                             US.

The data shows a definite, if short-term, link between thin models in ads and eating
behaviour, but Kees said he wasn't comfortable making the leap that seeing thin models
could                    cause                     eating                    disorders.

"That's a far stretch to infer an eating disorder from a one-time choice," Kees said in
response to a query fromAdAge, but added, "that's certainly a scenario that would be rich
for                                   future                                  research."

The new study in part concurs with and in part diverges from some prior research on the impact
of thin models. Research reported in 2005 and 2006 from psychology professors at University of
Sussex and University of West England in the UK concluded that ads featuring ultra-thin models
do make women feel worse about their looks, but aren't any better at selling products than ads
featuring             more              typically            proportioned              women.

There has been an onslaught at government level against the phenomenon of using thin models
with authorities and brands vowing to discourage being thin to the extent of being unhealthy.

France had earlier this year passed a law that would ban the use of ultra-thin models in ads, and
authorities in Spain last year banned ultra-thin models from runways. Unilever also vowed to not
use         size-zero         models         in       any        of         its      advertising.

In a statement, a spokesman for Unilever said the company believes its approach works.
"Unilever is confident in the effectiveness of its advertising," he said. "We believe women have
the right to feel comfortable with their bodies and not suffer from lack of self-esteem brought on
by                  images                  of                 excessive                 slimness."

Dove's campaign, he said, has "penetrated society and started a dialog about real beauty," adding
"we are thrilled by the overwhelming positive responses we have received from women (and
men)            as          a            result           of            the           campaign."

Despite those efforts, he said: "There is no question that women and young girls are being
bombarded with unrealistic messages and images of beauty that impact their self-esteem." But, he


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said: "We are excited to see now (and have seen in the past couple of years) a growing trend
towards more realistic and healthy looking women in advertising and in the media."




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THE FED


Rate cut could happen as soon as Tuesday

Move, once thought extremely unlikely, now in play
By Greg Robb, MarketWatch
Last update: 12:50 p.m. EDT Sept. 15, 2008
WASHINGTON (MarketWatch) - Only 48 hours ago, a Federal Reserve rate cut was
considered off-the-table, but in the wake of the Wall Street turmoil and shake up at two of
the nation's largest investment banking firms, the central bank may well decide to cut
interest rates, economists said.


Diane Swonk, chief economist at Mesirow Financial in Chicago, saw a 75% chance that the Fed
would cut rates by a quarter-percentage point to 1.75% and a smaller chance of a half-point move.
The move would be designed to bolster investor confidence and to try, once again, to get markets
functioning, Swonk said.


"It is an attempt to shore up confidence, but also an attempt to deal with the reality that market
mechanisms are not working and the economy is weakening," Swonk said.
The backdrop of rising unemployment and a moderation in inflation may help the Fed decided to
move, analysts said.


Most economists were not as sure as Swonk that the Fed would move. They said the situation was
very fluid and stock market trading leading up to the meeting would play an important role in the
final decision. But Swonk said the market was relatively calm because of expectations of a rate
cut.


But they agreed that a rate hike was now a definite possibility, but may not be the most-likely
scenario.


"It wouldn't hurt," said one economist who couldn't comment on the record because there was a
disagreement at his firm about what the Fed would do.


Other Wall Street economists said they had been told not to comment to reporters on such a
volatile day.


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The fact that the Fed may cut represents a lightening-fast change in the outlook for interest rates.
Only last Friday, almost all economists saw the Fed remaining on hold at 2% with the next move
being a rate hike.


But the stress in financial markets has changed all of that.


Late on Sunday night, Lehman Brothers announced that efforts to find a partner failed and the
company would file for bankruptcy. In addition, Bank of America announced that it would
acquire Merrill Lynch.


The events raised the possibility of concerted rate cuts from the Fed, the European Central Bank
and the Bank of Japan, economists at Morgan Stanley told clients.


"A precondition for such action would be disorderly markets," the Morgan Stanley economists
wrote in a note to clients.


Fears that the collapse of Lehman Brothers could cause worried banks to freeze lending to each
other and customers prompted the Fed, the ECB and the Bank of England to aggressively add
liquidity to money markets Monday.


Maury Harris, chief economist at UBS, was one of the few economists expecting a rate cut by the
Fed before the end of the year.


But Harris was skeptical that the Fed would cut at its meeting on Tuesday. Rather, he said, the
Fed would issue a statement leaning in the direction of lower rates.


"There likely will be reluctance at this point for Fed officials to quickly cut the
funds rate in response to the market turmoil," Harris said.


Many Fed policy makers have been anxious for the Fed to tighten monetary policy, believing that
low 2% rate was fueling the public's expectations of higher inflation.


But the majority of Fed members have been reluctant to move rates higher.


Victor Li, associate professor of economics at the Villanova School of Business, said that a
rate cut might be counterproductive.




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"I see very little gain of lower rates at this time and some may argue that extremely low
rates may encourage the type of risky behavior on the part of investors which is exactly
what the Fed wants to avoid," Li said.




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September 15, 2008                                                             By Jeannine Aversa

Wall Street crisis could put Fed rate cut in play
WASHINGTON (AP) — Wreckage from a massive crisis on Wall Street could prompt the
Federal Reserve to do an about face and once again cut a key interest rate this week or possibly
later this year, economists said Monday.

Just a few days ago, a rate cut appeared largely off the table. Now it has emerged as a possibility
as the Fed prepares to meet Tuesday against a backdrop of historic upheaval in the U.S. financial
system.

Lehman Brothers Holdings Inc., the country's fourth-largest investment firm, filed for bankruptcy
protection on Monday. And, Bank of America is buying Merrill Lynch in a $50 billion deal.

"It puts a Fed rate cut back on the table," said Stuart Hoffman, chief economist at PNC Financial
Services Group.

Seeking to calm frazzled markets, President Bush assured the country his administration is
"working to reduce disruptions and minimize the impact of these developments on the broader
economy."

The Dow Jones industrial average plunged more than 300 points in afternoon trading.

On the other side of the Atlantic, major European central banks plowed billions into markets
Monday with the hope of averting a lending freeze-up in the wake of Lehman's failure.

"It is an ongoing process and we have to remain extraordinarily alert," said European Central
Bank President Jean-Claude Trichet.

In Asia, China's central bank cut a key interest rate to stimulate growth as inflation has eased. It
was the first rate cut there in almost six years. Chinese regulators have steadily raised interest
rates over the past three years to contain inflation pressure.

During emergency sessions over the weekend, Fed Chairman Ben Bernanke and Treasury
Secretary Henry Paulson made clear there would be no government bailout of Lehman. The Fed
took steps Sunday night to keep cash flowing to major Wall Street players by expanding its loan
programs, however.

Before the extraordinary events over the weekend, the prevailing wisdom was that the Fed would
hold its key interest rate steady at 2 percent at its next meeting on Tuesday.

Although that still could happen, a growing number of economists and investors now believes
there is a chance the Fed could reduce its rate by one-quarter or even a bolder one-half percentage


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point on Tuesday. Much hinges on the information the Fed gets about how the inner workings of
the U.S. financial system are functioning and how Wall Street investors react to the crisis.

"It is a different ballgame. Anything can be expected and a rate cut is possible," said economist
Richard Yamarone, economist at Argus Research. Yamarone thinks the Fed on Tuesday will
decide to stay the course and leave rates alone, fearing another cut would hurt the value of the
U.S. dollar more. Hoffman, too, isn't convinced a rate cut will happen.

Were the Fed to slice its key rate, the prime lending rate for millions of consumers and businesses
— now at 5 percent — would drop by a corresponding amount. The prime rate applies to certain
credit cards, home equity lines of credit and other loans. The Fed's key rate and the prime rate are
at four-year lows.

Even if the Fed doesn't lower rates on Tuesday, analysts believe the central bank could switch
signals and suggest it could cut rates sooner down the road.

Over the last few months, Bernanke and his Fed colleagues have signaled that the central bank's
next move on interest rates would probably be an increase to fend off inflation. Given all the
economic and financial stresses, though, economists are now saying the likelihood of a rate
increase over the next six to nine months is virtually nil.

A recent retreat in record-high oil prices and improved readings on wholesale prices, however,
gives the Fed more leeway to lower rates if needed or at least hold them steady.

The Fed in June halted its most aggressive rate-cutting campaign to shore up the economy out of
fears that those low rates were aggravating inflation. It didn't budge the rate at the last meeting in
August for the same reason.

Fed officials have suggested that harder-to-get credit and financial troubles have blunted the
energizing impact of the central bank's already-ordered rate cuts on consumers and businesses.
Economic growth is slowing and the unemployment rate is at a five-year high of 6.1 percent.

Some argued that an additional rate cut might offer a psychological boost to shaken Wall Street
investors, but probably wouldn't do much to turn around worried consumers and bolster the
economy. Others feared another rate cut could send a wrong message to financial companies that
made bad bets.

"I see very little gain of lower rates at this time and some may argue that extremely low
rates may encourage the type of risky behavior on the part of investors which is exactly
what the Fed wants to avoid," said Victor Li, an economics professor at the Villanova
School of Business.




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By Erika Morphy

Lehman, Merrill Distress Could Bring Buying Frenzy

NEW YORK CITY- By now the shock and dismay stemming from the events of the last forty-
eight hours is wearing off, replaced--at least in some quarters-–by calculated opportunism.

These events, of course, are Lehman Bros.’ Chapter 11 bankruptcy filing and Bank of America’s
sudden acquisition of Merrill Lynch for $50 billion. To be sure, the impact will be a severe one
by many measures: there will be a significant toll on employees of these firms, as well as the
local economies in many financial-center cities besides New York. The national economy is also
certain to suffer as banks continue to scale back lending in all sectors, from credit cards, to
business loans to auto loans.

That said, for some well-positioned firms, the implosion of these investment banks represents
new buying opportunities. Indeed, if the discounted assets and securities are priced appropriately,
their influx onto the market could finally launch that much-awaited buying spree by the equity
that has been sitting on the sidelines for the last 18 months.

“If these loans are priced to market and there is a cram down, that could help precipitate a quicker
movement through this downturn,” Steve Pumper, executive managing director in Transwestern’s
Investment Services Group, tells GlobeSt.com.

And if that happens, speculates Anthony LaMalfa, a senior manager at the real estate practice at
BDO Seidman, the securitization market is bound to follow. “There is a lot of cash out there, and
sooner or later it will have to be deployed,” he tells GlobeSt.com.

For people that have capital, this will provide an excellent opportunity over the next 12 to 24
months for them to make investments and earn above-market returns, Pumper says. But there are
a number of moving parts to this theory that could go wrong, the Transwestern executive readily
admits. First, investors are not at all convinced that we've hit bottom, which means they will hold
off on acquisitions and purchases of distressed debt. Also, he says, many investors are likely to
wait for loans that are coming due in 2009 and 2010--assets that will sustain a double hit with a
drop in value plus a much lower LTV available from banks.

Making market-wide prognostications is also difficult because investors are still trying to assess
the quality and quantity of these assets. “One number we have been able to verify today
[Monday] is that Bank of America has been involved in an estimated $28 billion of commercial
real estate transactions since 2001,” Hessam Nadji, managing director of research services with

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Marcus & Millichap Real Estate Investment Services, tells GlobeSt.com. “Each of these entities
has exposure to both properties and mortgages that were issued or acquired after 2005. The most
vulnerable part of the market is late vintage paper or properties that transacted at the height of the
market in 2006 or 2007.”

Those are the assets most vulnerable to price pressure, he says. Mortgages and properties issued
or transacted before 2005 most likely have few performance issues and should have value built up
despite the correction that has occurred in the market over the last year.

The key question is how disposition of these assets will be handled--a subject of intense debate
and speculation over the past several days. “I assume that all assets are fair game," says
Professor Shawn Howton, an associate professor of finance at the Villanova School of
Business and director of the Daniel M. DiLella Center for Real Estate. "This includes real
estate. There is a fire sale going on of any assets backed by either commercial or residential
property.”

“I assume the bankruptcy reorganization will involve selling as many good assets as possible
to make creditors whole or happy,” he tells GlobeSt.com. “Equity holders are in for a very
long ride with Lehman.” Unfortunately, he adds, “we need a firm bottom in the housing
market before all of these positions can be unwound and some of the uncertainty resolved.

“Without that bottom, the increase in foreclosures and housing supply will continue to
reverberate in the rest of the economy, and these real estate assets will continue to lose
value, hurting the credit quality of institutions across the board. At the end of the day, there
are assets at the bottom of many of these contracts, they are just assets that are declining
quickly in value in very levered firms.”




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Sep 16, 2008
By Ben Simmoneau

Wall Street Woes Hitting Home
PHILADELPHIA (CBS 3) ― Monday's freefall may have happened on Wall Street, but it is
hitting home in communities across the Delaware Valley.

At the Maris Grove Retirement Community in Concordville, retirees are watching their nest eggs
closely.

"You're inclined to want to panic," says Dick Smyth, a long time Verizon employee. "Your
senses tell you don't panic, because that's what the problem is right now."

And despite losing $10,000 in Lehman Brothers bonds, fellow retiree Ike Walton is taking the
losses in stride – even laughing it off.

"If things go bad with us, they go bad with everybody," he says.

Still, both Walton and Smyth have spoken with their financial advisors over the past few days,
seeking advice about the best course of action.

"She said to me, 'we've got to hang in there – you're used to this, we've got to hang in there,' and I
agree with her," says Smyth.

That is exactly what most financial experts will tell you to do in most cases – even if it is
tempting to stop making those 401(k) payments.

"That's not a very good idea," says Dr. Mike Pagano, a former financial accountant and
professor at Villanova University. "I think if you look historically over the last 75 years, the
markets have gone up."

If you drop your stocks too quickly, you could end up losing more than if you just stay put.

"There are studies that show if you miss out on the 12 months, it [the market] moved the
most, you've missed out on about 50 percent of the upside of the marketplace," says
Pagano. "So, there's a lot of danger to just stepping out of the market."

But that is difficult to do when, like the Smyth's, you're looking at a loss in the 6-figure range just
over the past year.

"I grew up in South Philadelphia," Smyth says. "That's a lot of money!"

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September 17, 2008
By Jessica Borg

How to deal with the banking crisis
PHILADELPHIA - September 16, 2008 - (WPVI) -- With the ongoing crisis in the financial
sector, what should you do with your money?

The experts say, ignore the impulse to move your cash around.

"It's better to stay calm and relaxed and think about what's happening at the stock market
over the last 20 years. It's gone up and down and eventually in the long run, it gets back to
normal," said John Matthews of Villanova University.

"I'm a big believer in not doing anything panic-oriented," said Ken Podell of First Financial
Group. "The market is so down right now that if people move all of their assets out of stocks,
they're just compounding their misery that the market is already giving them and locking in their
losses."

If you're a customer of AIG, and you're concerned about the government's $85 billion loan to
keep the company afloat, be patient. Experts who spoke with Action News Tuesday say it's still a
developing situation, and you should wait until the dust settles before making a move.

When it comes to retirement, remember: this could be an unbeatable opportunity.

"People are terrified about the state of their 401K's. They are and one thing they need to know is
that if they're more than 10 years away from their retirement, this is a fabulous buying
opportunity. You don't need to want to be buying high, that's not the way to make money in this
market, it's to be buying low," said Podell.




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Is there security in troubled securities?
By Lou Baldwin
Special to The CS&T

How       serious      is    the       current     financial     crisis        gripping       America?

First of all, in terms of “corrections,” as Wall Street euphemistically calls its periodic melt-
downs, so far this one is in no way the biggest — at least in terms of the bellwether Dow Jones
Industrial Average. In the two days of Oct. 28-29, 1929, the Dow lost 24.5 percent of its value.
Although there was a temporary rebound, by July 1932, the index had plummeted a whopping 89
percent.

In a more recent “correction” between 1972 and 1974, the Dow lost 42 percent of its value.
Contrast these to the latest crisis. From the all-time high closing of 14,164 on Oct. 9, 2007 until
the Sept. 18, 2008 close at 11,019, there was an approximate 22 percent drop. While this was
certainly serious (and it could go lower) it was not epic compared to past downturns.

What makes the 2008 crisis unique is the heavy concentration of very serious losses in a single
sector of the economy — the financial industry; the banks, insurance companies, brokerage
houses and mortgage lenders, triggered by a high rate of mortgage defaults. This caused the
financial sector virtually to collapse with resulting bankruptcies, mergers at fire-sale prices and
government                         takeovers                     and                       bailouts.

Some local Catholic professionals shared their insights into what ordinary people can or should
do,                      under                         the                       circumstances.

“We’re getting a lot of people panicking right now and rightfully so,” observed Brian Allen, a
financial consultant and first Vice President at RBC Wealth Management in Conshohocken.
“Early in 2003 the market tanked but people saw their investments come back in the last year or
so. This is a different animal; it’s more financial and technical. Fixed income securities are being
beaten                                            to                                         death.”

Everybody     is    taking   a     beating,   Allen   said,    but    “we’ll     get      through   it.”

People with stocks, he believes, should look at their portfolio and make sure they are diversified.
Core industries that might be the safest would include energy and agriculture, he suggests.

Shawn Howton, an associate professor of finance and director of the Daniel M. DiLella
Center for Real Estate at Villanova University, said the housing market is at the cause of
the crisis and those companies in trouble “made bad business choices.” The situation won’t
ease, he believes, “until we find the bottom of the housing market.”

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If you need your funds in the short term, you should be in equities (bonds), not stock, he
advises.

But if you know you won’t need the money for five or 10 years, “you shouldn’t pay
attention to this. The best thing to do is nothing.” Also, Howton noted, bank deposits under
$100,000                  are                 insured                and                safe.

The whole housing crisis began, Howton said, because of bad loans. “People forgot about
risks,” and after this crisis, “some sanity will come back into the lending market,” he said.
The sad part of the situation now is that small businesses and people who have relatively
good           credit            can’t          get         loans,          he          said.

Robert Sims, chairman of Sims Financial Services in Wayne, believes the crisis is “mainly a
mental crisis.” But he added, “we built too many houses and we built too many cars.”

Mortgages were granted with no documentation when in the past “you brought your tax return
with    you     to    prove     you    could    afford     the     house,”    he     said.

Another     villain,   he   believes,    is    the   over-aggressive     marketing     of    credit.

“It’s too easy to borrow money,” Sims said. “Review your spending habits. Give your charge
cards a break for a month. If you go out to dinner have the drinks at home, the restaurant bill will
be half. If your job may be in jeopardy because of the crisis, prepare for it. Open your mind for
another               way               to              make                a              living.”

Also, as people grow older, they often find themselves with more house than they need.
“Examine           your          housing          options,”        Sims           said.

Matthew McCloskey IV, the president of McCloskey Financial Group, said, “Greed got in the
way,” and the companies in trouble “are paying for past sins. They were playing with people’s
lives.”

He describes himself as “extremely cautious” and thinks the financial problems are deeper than
most people realize. “The fact that the government has taken such extreme steps to correct it tells
you                         something,”                          he                          said.

People with investments should seek the advice of their financial advisors, he suggests. “Are they
adequately protected? What is their risk tolerance? Some people have more risk tolerance than
others.” If they can’t afford risk, “they should take the opportunity to get rid of weak stocks, but
keep the strong ones.”




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Friday, September 26, 2008


Student P.O.V.
Carla Bobka
Philadelphia Business Journal




Carla Bobka
View Larger
Age: 43.

School: Villanova University, executive MBA student.

Current job: Senior account manager, Archway Marketing in Aberdeen, Md.

Why did you choose this program?: Villanova’s approach to its curriculum is “systems thinking
methodology.” Systems thinking is the antithesis of analysis. It looks at the big picture and how
organization silos are interconnected.

What makes this program different?: The professors have experience and passion. Many sit on
boards of directors. They use current material (we study Bear Stearns and Countrywide, not
Enron and Andersen).

Describe a typical student: Classmates are experienced contributors in the classroom with diverse
experiences and deep domain expertise in almost every vertical. They are geographically diverse
from locals to transcontinental commuters.

What does having an MBA mean to you?: I have built muscle. I have the ability to lead in any
role I take on, not just those where I have experience. The results are paying off everyday and
increasing with every session attended.




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MONDAY, SEPTEMBER 29, 2008
Academia debates whether Paulson bailout is the right
course of action

More than 160 economists last week signed an open letter to the leaders of the U.S. House of
Representatives and Senate expressing concern over the $700 billion financial-sector bailout plan.

Emanating from the lauded University of Chicago economics department, the letter criticizes the
plan’s fairness, ambiguity and long-term effects. (Besides 44 Chicago school signatories, there
were 14 from the University of Pennsylvania.)

The Chicago school pans Treasury Secretary Henry Paulson’s initiative as a “subsidy to investors
at taxpayers’ expense.” The economists agree that “bold action” is needed to keep the financial
system functioning, but this bailout isn’t it.

“We ask Congress not to rush,” it states.

I expressed some of the same worries last week about the pell-mell push this massive, ill-defined
effort was getting.

And in response to my column, Villanova School of Business finance professor David
Nawrocki told me that I and 166 economists are wrong.

“We need this rescue plan,” Nawrocki wrote me in an e-mail. “It is a bigger-scale problem
than Resolution Trust … but it is basically the same issue.”

Nawrocki, like others, points to the success of the $125 billion Resolution Trust Corp. that
cleaned up the mess left by the failure of dozens of savings and loans in the late ’80s and
early ’90s. The federal entity took on the assets of those institutions, sold them off in a 48-
month period, and disappeared.

To me, the big difference is that the Paulson plan would have the federal government buying bad
assets from financial institutions that still have a pulse - good or bad - and sitting on them until it
can auction them off. While we don’t have details of how the mechanism would work, it stands to
reason that some “bad” banks would be able to whistle past the graveyard after littering it with
their junk.

Is that a good idea? Shorn of the liabilities of their bad decisions, will those bankers suddenly
make ethical and sound lending choices, once again lubricating the gears of the American
economy?

Wouldn’t it be better to let the Washington Mutuals of the world fail?

Not to Nawrocki. He doesn’t see why any banks need to collapse. “I understand the natural
evolution of value creation and value destruction, but I like the idea that a lot of people at the
lower levels of these institutions still have a job at the end of the day,” he said.




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Counter to the free market/no regulation crowd, Nawrocki said governmental intervention is
needed to jump-start a market for assets that no one wants to touch right now. Only some federal
entity willing to step up and buy mortgage-backed securities and other derivatives can begin to
restore confidence, he said.

“Markets are powerful when they can do price discovery,” Nawrocki said. The trouble with
a lot of the derivatives dreamed up on Wall Street is that they lack transparent secondary
markets and that’s why no one knows what these “toxic” assets are worth.

He’s been telling his students since January that Congress was going to have to pass some
kind of rescue plan. His estimate then was $400 million to $500 million.

Despite the poor sales job by Paulson and others on this rescue plan, the country can’t
afford to wait, according to Nawrocki.

“We need the Paulson plan to start us out of this mess and then Congress has to revamp the
whole market regulation process,” he said.

“We are not bailing anyone out. We are fighting for the survival of our credit market
system,” he said. “Credit is needed in order to maintain a level of GDP - if the credit goes,
the GDP goes. Very simple.”




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September 30, 2008
By Miriam Hill

Citigroup buys Wachovia for $2.16 billion
The historic sale of Wachovia Corp. to Citigroup Inc. for a bargain price of $2.16 billion will
create one of the country's largest banks, with 4,300 U.S. branches and $600 billion in deposits.

Both companies had fallen prey to the nation's home-loan crisis.

Even so, the deal was greeted with a sigh of relief because federal regulators were so worried
about Wachovia's financial health that they had urged the bank to find a stronger partner.

"This morning's decision was made under extraordinary circumstances with significant
consultation among the regulators and Treasury," Federal Deposit Insurance Corp. Chairwoman
Sheila C. Bair said in a statement. "This action was necessary to maintain confidence in the
banking industry, given current financial-market conditions."

She urged Wachovia customers not to worry.

"For Wachovia customers," Bair said, "today's action will ensure seamless continuity of service
from their bank and full protection for all of their deposits. There will be no interruption in
services, and bank customers should expect business as usual."

The sale announcement arrived on a day of intense market turmoil. The Dow Jones industrial
average lost more than 777 points after the U.S. House voted down the proposed $700 billion
bailout of the country's financial system.Rumors of a sale had swirled around Wachovia for
weeks as losses on subprime mortgages mounted.

"The thesis, at least as far as the market is concerned, is that the combined institution will be
better off than the two apart," said Michael Greenberger, a former regulator and now a law
professor at the University of Maryland.

Less than a year ago, Citigroup's portfolio of securities tied to home loans was in such bad shape
that it sought and got $7.5 billion in fresh capital from the Abu Dhabi Investment Authority.
Citigroup also replaced its chief executive officer, Charles Prince, in December with Vikram
Pandit.

Since then, the bank seems to have rebounded, and market watchers say they believe regulators
would not have allowed the Wachovia sale if they did not see Citigroup as financially strong.

Wachovia stumbled badly after it acquired Golden West Financial Corp. in 2006 and its portfolio
of "pick-a-pay" loans, which allowed home borrowers to choose a payment so low that the
balance grew.

Citigroup said in a statement: "FDIC has agreed to provide loss protection in connection with
approximately $312 billion of mortgage-related and other Wachovia assets."



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Citigroup has agreed to assume the first $42 billion of any losses connected to distressed assets
and $53 billion of Wachovia debt. The New York banking company also will pay the FDIC $12
billion in preferred stock and warrants.

Citigroup shares closed down 11.91 percent, or $2.40, to $17.75. It is paying about $1 per
Wachovia share. Wachovia shares plunged 81.60 percent to close at $1.84. News reports also
identified Wells Fargo & Co. and Spain's Banco Santander Central Hispano S.A. as potential
bidders.

New York's Citigroup has about 22 branches in the Philadelphia area. Wachovia, based in
Charlotte, N.C., has about 200 and is the largest bank in this region, as measured by deposits. The
combined institution will have almost 10 percent of the U.S. deposit market.

The companies would not comment on whether the deal would mean a new name for
Philadelphia's Wachovia Center, home to the Sixers and Flyers. Wachovia is not selling its A.G.
Edwards brokerage division or Evergreen Investments operations.

Michael Pagano, a business professor at Villanova University, said the Citigroup-Wachovia
deal made sense because the two companies had large operations on the East Coast and
should be able to cut costs. Citigroup predicted yesterday that the combined company would
save about $3 billion yearly.

Wachovia's vast deposit base gives Citigroup, the company that pioneered the credit card, a large
group of customers to sell its loan products.

"Citigroup has a very strong banking operation," Pagano said. Several of the company's
units reported record profit this year, partly because of success overseas.

But University of Michigan finance professor Sreedhar Bharath remained skeptical.

"It's not by any means all an advantage for Citigroup," he said. "There are downsides," including
risk in both companies' loan portfolios and the possibility that the merger will not achieve
expected savings or growth targets.

At Wachovia's administrative offices on South Broad Street in Center City yesterday, there was
anxiety among employees.

Two women taking a sidewalk smoking break, who declined to give their names because of the
turmoil surrounding the bank, said the merger with Citigroup had so battered the company's stock
price that employee 401(k) accounts had taken severe beatings. They said many employees –
particularly those not working face-to-face with depositors – spent much of the day on and off
Web sites for news about the merger and the government bailout.

"Washington should pass that bill," said one woman. "The market is down as much as 700 points
today."

The turbulence of the stock market had finally been felt on a personal level, said the other
woman. "You really feel the impact now," she said, "because somebody came and bought us out."



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 Three will wield tremendous power
 By Dave Carpenter
 The Associated Press
last updated: September 30, 2008 0:38:10 AM

 NEW YORK -- The sale of Wachovia's deposits and other assets to Citigroup on Monday
 leaves the nation with three superbanks, reshaping the U.S. banking landscape in the midst
 of unprecedented financial upheaval.

 For customers of those institutions -- Bank of America, Citigroup and JPMorgan Chase --
 the consolidation may result in higher fees on everything from checking accounts to
 bounced checks and overdrafts, and lower interest rate yields on deposit accounts, banking
 experts said.

 Loan availability remains in question in the near term, particularly after congressional defeat
 of the government's proposed financial bailout plan.

 "The larger the bank is, theoretically the more power they have to set pricing and other
 policies," said Nancy Atkinson, senior analyst at Aite Group, a financial services research
 firm. "I expect we'll start to see free checking accounts start to disappear and rates on
 overdrafts could go up. Savings rates could drop."

 But the news isn't all bad. Atkinson and others are convinced that the approximately 8,500
 remaining regional and community banks nationwide will continue to play a role, providing
 consumers with more options.

 "If you are a customer of the Big Three, you're probably going to see some increased fees
 because these banks have increased their market shares -- dramatically in some instances,"
 said Tim Yeager, associate professor of finance at the University of Arkansas and a former
 economist at the Federal Reserve Bank of St. Louis. "From the community bank point of
 view, I don't think you're going to see much change."

 More customer service glitches can be expected as Citigroup Inc. absorbs most of
 Wachovia Corp. and JPMorgan Chase & Co. consolidates the branch network of the
 nation's largest savings and loan, Washington Mutual Inc., according to Michael
 Pagano, finance professor at the Villanova University School of Business. That could
 range from delays or inattentiveness to confusion over fees as two systems are
 integrated.

 However, Pagano was not overly concerned about the risk of much higher costs from a
 quasi-monopoly created by the recent bank purchases.




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"If we had five banks in the whole country, I'd be worried about market power,"
Pagano said. "But there are more than 8,000 banks. And even credit unions are a
viable alternative, from large ones to small mom-and-pops with $10 million in assets."

Wachovia, headquartered in Charlotte, N.C., on Monday became the latest casualty of the
widening global financial crisis after Citigroup agreed to buy its banking operations for
about $2.16 billion in a deal brokered by federal regulators.

The deal greatly expands New York-based Citigroup's retail franchise, with more than 4,300
U.S. branches and $600 billion in deposits.

But it comes at a cost: Citigroup Inc. said it will slash its quarterly dividend in half to 16
cents. It also will dilute the value of existing shares by selling $10 billion in common stock
to shore up its capital position. Citigroup shares closed down $2.40, or 11.9 percent, to
$17.75 on Monday.

In addition to assuming $53 billion worth of debt, Citigroup will absorb up to $42 billion of
losses from Wachovia's $312 billion loan portfolio, with the Federal Deposit Insurance
Corp.agreeing to cover any remaining losses. An estimate for that figure was not available.
Citigroup will issue $12 billion in preferred stock and warrants to the FDIC.




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                                          CNBC.COM
Business Schools Prepare For A New Wall Street
WALL ST. IN CRISIS, CREDIT CRUNCH, ECONOMY, INVESTMENT BANKS, BUSINESS SCHOOLS,
EDUCATION, LEHMMAN BROTHERS
By Joseph Pisani
News Associate
CNBC.com
| 30 Sep 2008 | 12:04 PM ET


As Wall Street tries to survive the credit crunch, business schools are planning their own rescue
plans: tinkering with their curricula and preparing students for a different job landscape.


“Our advice to them is that this will pass,” says Joseph Baczko, dean at Pace University's Lubin
School of Business in New York City. “We’ve gone through this before,” he says, referring to
other crises like the 1987 stock market crash.


If tumultuous market swings weren't enough in recent weeks, Wall Street has undergone
structural changes that are likely to shrink the number of jobs available to future business school
graduates.

Investment banks Goldman Sachs and Morgan Stanley have opted to become bank-holding
companies, while others—Merrill Lynch, Lehman Brothers and Bear Stearns—have either
been bought up or filed for bankruptcy protection.

As a result, many schools are working to reduce the anxiety their student's are feeling by re-
evaluating the curriculum and helping students navigate the gloomy job market.


At the Villanova School of Business, in Villanova, Pa., Dean James Danko sent a letter to all
business school students on Friday Sept. 19, 2008; the end of a week that saw Lehman
Brothers file for chapter 11 bankruptcy protection, Merrill Lynch agreed to a takeover by Bank of
America and AIG receive an $80-billion federal rescue package. The letter encouraged
students to meet with career services and to investigate “different career paths, industries
and companies.”


That thinking was evident at other schools as well. Take Dean Van Tassell, 27, a senior in the
MBA program at Pace.




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“I’m starting to develop a contingency plan,” he says acknowledging that his dream job on a
trading desk may be even harder to attain in this market. He's now also seeking opportunities in
other areas like corporate finance and portfolio management.


Villanova dean Danko said the school is working with a more diverse group of companies
looking to recruit business students including teen clothing retailer American Eagle
Outfitters , conglomerate General Electric (the parent company of CNBC and CNBC.com)
and British engine maker Rolls-Royce.

Ed Fredericks, a professor at Pepperdine University’s Graziadio School of Business and
Management in Malibu, Calif. says that areas of growth for newer grads will be in smaller
“boutique firms.” He recommends students intern over the summer to improve their chances of
landing a job upon graduation.

That was the case for Andrew DeVries, 29, a senior in the MBA program at Emory University's
Goizueta Business School in Atlanta, Ga., who was recently offered a job at a Wall Street firm he
interned at over the summer.

"Most of the banks seemed to strictly [hire] out of their summer classes," says DeVries.


Graduates may have another reason for optimism. “They’re cheaper than the older talent,” says
Baczko.


Cheaper indeed. The credit crunch has hurt entry level pay and starting bonuses more than during
other downturns. Sign-up bonuses are lower because there’s more people in the job pool, says
Van Tassell, who’s now actively job hunting. “They aren’t competing for labor right now.”


Curriculum Changes

In addition to helping students navigate the new job market, many schools say they are shifting
the curriculum so that students graduate with a broader business background.

Emory's business school has done that and more, while Villanova now offers a combined
finance and accounting course that exposes students to both fields.




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Change and challenges aside, schools say they are not expecting a drop in applications. “The
classic situation is that when certain sectors go down people look to sharpen their skills,” says
Baczko.


In fact, many have seen an increase this year as the economy stumbled. A survey conducted by
the Graduate Management Admission Council, an association of graduate business schools
around the world, shows that 77 percent of full-time MBA programs reported an increase in
applications in 2008, the highest in five years.

In the testing year ending June 30, 2008, the GMAT, the standardized test used to get into MBA
programs, was administered 246,957 times, the highest ever, according to GMAC. The second
highest year the test was administered was in 2002, the time of the last downturn.

Some, however, are seeing signs of a shift away from business schools.


Lisa Jacobson, CEO of Inspirica, a high-end, one-on-one test preparation firm says many of her
students are changing plans and opting for law school, which happened during other slumps. The
joke is they’ll be busy doing bankruptcy work, she says.


“This younger generation has never really seen a bad economy," says Jacobson, "To them it’s
really scary.”




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Posted on Sat, Oct. 4, 2008



The Bank Merger: In a surprise move, Wells Fargo heads off Citigroup
at the pass to rescue Wachovia.
By Diane Mastrull

Inquirer Staff Writer

Taking on the look of a classic Wild West shoot-out, Wells Fargo & Co. has outbid Citigroup Inc.
for Wachovia Corp. in another stunning turn of events on the banking prairie.

News just four days earlier that Citigroup had acquired Wachovia still was being digested when
word came early yesterday morning that Wachovia had decided to run off with another suitor.

And just like that, the Philadelphia region found itself in the middle of an OK Corral of sorts, its
200 Wachovia bank branches an attractive expansion lure to both San Francisco-based Wells
Fargo and New York's Citigroup, neither of which have a significant presence in the region.

Unlike the $2.16 billion Citigroup deal - considered a steal for Wachovia, based in Charlotte,
N.C. and one of the country's largest banks - the $15.1 billion acquisition by Wells Fargo would
require no financial help from the Federal Deposit Insurance Corp. or any government agency.

In the stock-for-stock transaction, Wells Fargo would acquire all outstanding shares of Wachovia
common stock and all of Wachovia Corp., its businesses, obligations and banking deposits,
according to a joint statement by the companies.

"This deal enables us to keep Wachovia intact and preserve the value of an integrated company
without government support," Robert K. Steel, Wachovia's president and chief executive, said in
the statement.

The agreement, approved by the banks' boards late Thursday night, requires the approval of
Wachovia shareholders. By noon yesterday, trouble was on the horizon.

Citigroup had issued a statement calling Wachovia's agreement with Wells Fargo "in clear breach
of an exclusivity agreement between Citi and Wachovia."

"Citi was negotiating in good faith and [had] nearly completed the definitive agreements required
to consummate the Citi/Wachovia transaction," the bank said.

Sheila Bair, head of the FDIC, issued a statement saying the agency, which insures deposits at the
nation's 8,451 banks and savings associations, "stands behind its previously announced agreement
with Citigroup."

It went on to say that the FDIC "will be reviewing all proposals and working with the primary
regulators of all three institutions to pursue a resolution that serves the public interest."

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Representatives for Wachovia and Wells Fargo declined to comment.

Locally, the Wells Fargo deal was getting thumbs-up from business and financial experts who
found no downside to a West Coast banking company with $609 billion in assets, a strong
balance sheet, and a highly regarded reputation for customer service rolling into town.

"It may well be a remarkably positive outcome in remarkably negative times," said Mark
Schweiker, president of the Greater Philadelphia Chamber of Commerce.

Against a national backdrop of the $700 billion federal bailout package, "the fact that taxpayers in
no way have to step into a potential bailout here . . . lightens the load by a couple of bricks," said
Ed Nelling, associate professor of finance at Drexel University.

Nick Schorsch has built a thriving business out of buying banking offices that banks no longer
need. Over the last six years, his American Realty Capital, based in Jenkintown, has bought more
than 2,000 buildings in 39 states and 370 markets, mostly to reposition them for future use as a
bank branch. He has a contract with Wachovia.

Whether Wachovia is acquired by Wells Fargo or Citigroup, he said, the result will be good for
the Philadelphia market because of both banks' virtual absence from the scene. That means that
massive branch closings and layoffs of branch employees would not be likely, Schorsch said.

It was the idea of Wells Fargo - its logo a stagecoach - emerging as the victor in this banking
showdown that had marketing experts here chortling yesterday but predicting no major culture
clashes.

"Stagecoach equals rescuing," said Bill Madway, a marketing professor at Villanova
University. "It could have positive connotations - riding into the rescue."

At AgileCat, a branding, advertising and public relations agency in Center City, president Peter
Madden's thoughts drifted to an entertainment venue in South Philly that currently bears the
Wachovia name.

"Is the Wachovia Center now going to have a giant cowboy hat on top of it?" he asked.

By pure coincidence, the home to the Sixers and Flyers owned by Comcast-Spectacor broke with
tradition yesterday and allowed its employees to wear jeans to work.

It was to raise money for charity, not to get into the Western groove, spokesman Ike Richman
said. He declined to discuss whether the arena's name would change should Wells Fargo become
the owner of Wachovia's banking operations. Should the deal be finalized, Wells Fargo would
own the naming rights to the center, he said.

In Narberth, headquarters of Royal Bancshares of Pennsylvania, Marc Sanders, director of
marketing, was unrattled by the prospect of Wells Fargo galloping into the market. Why would he
be?




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Officials of the company's Royal Bank America have been sporting cowboy hats on billboards
looming over the region's highways for 25 years. The late founder, Dan Tabas, was big on image
and he believed the hats conveyed confidence - as in Texas oil tycoons, Sanders said.

"We're not worried about stagecoaches," he said.




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Fed becomes 'lender of last resort'
Credit is so tight the Fed is now loaning money to businesses in need of short-term cash. Should
we be worrying about the Fed's new role as America's ATM? Washington Bureau Chief John
Dimsdale reports.

TEXT OF STORY

Kai Ryssdal: The Federal Reserve reached into it financial toolbox yet again, this time to shore
up the $1.6 trillion commercial paper market. Those are short term loans that companies take out
to cover their immediate need for cash, to pay workers or buy supplies, for example. To make
these loans to businesses, the Fed is dipping into rare emergency powers that haven't been used
since the 1930s. John Dimsdale reports.

John Dimsdale: Over 1,700 businesses use commercial paper loans. But the market has shrunk
by about $150 billion in the last few weeks as lenders worry that credit-squeezed companies
won't pay them back. So the Fed announced it will make loans for three months to eligible
companies.

During a speech to economists in Washington today, Fed chairman Ben Bernanke said the move
is designed to unfreeze credit markets.

Ben Bernanke: The expansion of federal reserve lending is helping financial firms cope with
reduced access to their usual sources of funding.

In some cases, the Fed will not require collateral, although borrowers will pay up-front fees. Bob
Reed, an analyst with the B-net business Web site, says the Fed is betting that money will begin
to flow again.

Bob Reed: Bernanke is taking a gamble here that says, look, I need to restore confidence not only
to the economy as a whole, but specifically to the credit market which has been tightening so
dramatically over the last couple of weeks. So, he's trying to send a signal to lenders and
borrowers that the government will back up their play.

The Fed essentially has unlimited resources to make commercial paper loans. But if companies
don't pay back, the federal deficit swells and interest rates rise. Villanova University Professor
Victor Li says the Fed finds itself in an uncomfortable position.

Victor Li: This is really something that the Fed doesn't typically do. They can intervene in
this way, but typically they would rather have financial markets work themselves out in
terms of the commercial paper aspect of the market.

Credit markets eased a bit after the Fed's move on hopes the government loans will relieve a cash
shortage for many companies. In Washington, I'm John Dimsdale for Marketplace

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Business experts see some edge for regional banks

By LISA CORNWELL Associated Press Writer

Published on Tuesday Oct 07, 2008

Some of Ohio's regional and community banks may have an edge over industry giants as the
banking sector struggles to cope with the financial meltdown that resulted in the federal
government's $700 billion rescue plan, some experts say.

Those advantages may lead consumers to turn to from bigger to smaller banks, according to
business analysts. Even though the stock of Ohio banks such as National City Corp. and Fifth
Third Bankcorp has been pounded by the financial crisis, analysts say some regional banks
already are seeing increasing deposits from customers pulling money out of the skidding stock
market or worried about larger banks like Wachovia being bought.

In better times, depositors might be drawn to larger, well-known banks like Wells Fargo or
Citigroup, but that reputation factor has reversed some, said Michael Pagano, a finance
professor at Villanova University School of Business.

"If I'm in Columbus, Ohio, and I see a bank that has been there for decades, maybe it's
time to trust that bank more than the big guys," he said.

Ohio regional banks are important to the state's economy _ providing capital for small- and
medium-sized businesses to operate and loans for farmers and homeowners. Shares in Ohio's
Columbus-based Huntington Bancshares Inc., Cincinnati-based Fifth Third and Cleveland-based
National City _ rose after Congress approved the rescue plan, but they haven't escaped concerns
over the financial fallout.

National City shares plummeted Monday as the market tumbled and after its ratings were cut by
Fitch Ratings. Fitch said National City could face more losses on mortgage and home equity
portfolios in the weakening economy.

Some analysts have been concerned by Huntington's exposure to Franklin Credit Management
Corp. _ a mortgage servicer tied to Sky Financial Group, which Huntington acquired last year.

Robert W. Baird & Co. last month downgraded shares of Fifth Third to "neutral" amid concern
that the weak economic environment may make it difficult to sell off assets as planned.

One plus for regional banks is that they rely primarily on stable deposits for funding, said Scott
Valentin, an analyst with FBR Capital Markets Corp. He said big banks like Citigroup depend
more on capital market-based funding that is either very expensive or not available now.



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"Most regional banks tend to have pretty straightforward balance sheets," said Valentin. "They
make loans and take deposits."

The big banks are more complex, involved in capital-market activities, acting as broker-dealers
and having more international exposure.

"Right now, in a market where everyone's nervous and there's no risk appetite, many want to
avoid complex business models," Valentin said.

Many regionals also weren't as involved in the ill-fated acquisitions during the 2002-2006 heyday
of real estate growth and the corresponding increase in subprime lending that left larger banks in
trouble, according to Pagano.

One of the biggest problems for Wachovia _ one of the nation's largest banks _ was its 2006
acquisition of California-based Golden West Financial Corp., Pagano said. He said
Wachovia ended up with option ARM mortgages, shaky loans and bad credit when
everything came crashing down.

An option ARM is an adjustable-rate mortgage allowing borrowers to choose among
several payment options. Some borrowers chose low payments that didn't cover the interest,
which was then added to the principal, Pagano said.

"With real estate values sliding and their debt going up, there is very little financial
incentive for those borrowers to continue making payments, so they decide it's better to go
into default," he said.

One disadvantage for some regionals is that they are less geographically diversified than big
banks.

Regionals operating in areas where the real estate market went boom and then bust are
hurting more than some large banks and other regionals, Pagano said.

"I think one reason regional banks in the Philly area kind of survived unscathed is because
we didn't have that kind of real estate boom and bust that affected other banks," he said.
"If you are a regional bank in California, Nevada or Florida where you had more of that,
you are going to have more real estate-related problems."

Kevin Kabat, Fifth Third's chief executive, said last month at a conference held by the now-
bankrupt investment bank Lehman Brothers, that Fifth Third's mortgage losses were concentrated
primarily in Florida and Michigan, where home value deterioration has been the most severe.

"While certain pockets of the Midwest exhibited softness or a couple of lumpy credits, we've not
seen anything similar to the magnitude of the issues in Michigan and Florida," said Kabat, also
Fifth Third president and chairman.

Analysts say banks should expect weakening credit to put more pressure on small businesses and
commercial real estate.




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"The issue with housing is still going on, but at least people are able to estimate the problem,"
said Valentin. "We haven't seen the other shoe drop yet in commercial real estate."

While Ohio wasn't as exposed as other states to extreme real estate fluctuations and related
mortgage troubles, all banks will be impacted from "guilt by association," said Xavier University
finance professor Phil Glasgo. "Rightly or wrongly, banks that didn't do stupid things are going to
be lumped in with those that did. They just need to be a little more conservative and ride out the
storm."




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Posted on Sun, Oct. 12, 2008



How electronic trading has added to market's volatility
By Chris Mondics

Inquirer Staff Writer

More than anything else, raw fear has been driving the huge declines in stock prices over the last
seven trading days.

But also adding fuel to the Wall Street bonfire has been the proliferation of online trading and
electronic trading, which have accentuated the hair-trigger reactivity in the markets, according to
market experts.

"Before, you had to call a broker; now, you can see the pain" on laptops or television screens,
said Bruce Rader, assistant professor of finance at Temple University's Fox School of Business.
"So you are sitting here and you are down and you see that immediately. So I tend to think it
makes people more reactive."

Said James Jablonski, professor of finance at Villanova University: "It is easier for the
individual investor to see the news and react to that immediately."

Rader said signs of growth in online and electronic trading were widespread. On
commodity exchanges alone, electronic trading has grown from near single digits in the
mid-to-late 1990s to 90 percent today, he said. The actual number of traders on the floor of
the New York Stock Exchange also appears to have declined as traders instead do their
work on personal computers.

When markets turn sour, the impulse to check on account values is all the more powerful.

Patrick Lane, president of Wachovia Securities Direct, said that his company had noticed in
recent months that there had been an increase in the number of clients logging in to check on
accounts and to trade stocks.

However, he said it was unclear whether that activity had added to market volatility.

One great advantage to online trading is that it costs less, and that too may have added to the
volatility, said Itay Goldstein, associate professor of finance at the University of Pennsylvania's
Wharton School and an expert on financial crises.

Goldstein said that one barrier to selling stocks during tumultuous market events of the past was
the cost of executing a trade. But since online trading costs are substantially below those of going
through a broker, that disincentive likely has become less powerful.

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"Before, you had to pick up the telephone, but now you can do it in one minute and be done with
it," Goldstein said.

Goldstein emphasized that the larger forces driving the current downturn were emotional, but he
said that online trading could affect that trend on the margins.

"I don't think the underlying economics justified what we are seeing here," Goldstein said. "There
was a bubble in the housing market and the bubble crashed and it had some spillover effect."

Yet people are emotional when it comes to money.

"We now have a society where people take courses in trading; it is so easy to open a trading
account. It doesn't take a lot of expertise," said Rader of Temple. "It doesn't take a lot of expertise
if you have the money."

And inexperienced traders tend to react emotionally, he said.




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Why Some Brands Cheer a Sour Economy
Oct 12, 2008

-By Kenneth Hein and Steve Miller <http://www.brandweek.com/bw/content_display/news-and-
features/retail-restaurants/mailto:feedback@brandweek.com>
It is a good time to be McCormick spices. While not the sexiest of brands, "The taste you trust" is
positioned extremely well for an economy that looks to be in a recession.

While many companies are suffering at the hands of one of the worst economic downfalls in the
history of the country, others are quietly prospering.

"If you're a brand you eat, drink, smoke or wash yourself with, you're going to be OK," said Marc
Babej, partner at the strategy firm Reason, New York. "McCormick spices, think about it, you
will always need that. No matter how bad things get, you will still cook at home." McCormick's
net sales for the brand rose 9% to $782 million for its third quarter.

Similarly, production of snack foods, tortillas and confectionary products are expected to grow
next year, per industry research firm IBISWorld, Los Angeles. Snack foods industry constant
dollar revenue will grow 5.3%, tortillas (3.1%) and confectionary products (2.7%).

Another likely beneficiary of the down economy: Private label. Some retailers are already seeing
the bump. Walgreens, for example, announced its private label sales were up 15%.

Private label is "positioned to move and grow," said Gary Stibel, CEO of New England
Consulting Group, Westport, Conn. "Kroger and CVS are two examples of brands that are doing
a great job of promoting their own labels."

Likewise, Wal-Mart, which seemed to be losing brand power only a year ago, today is poised to
reap the rewards of consumers who are looking to save some cash. In September, as same-store
sales for Kohl's and Nordstrom fell 5.5% and 9.6%, respectively, Wal-Mart's rose 2.4%. Author
and branding expert Rob Frankel thinks the retailer's gains will closely mirror the economy:
"Wal-Mart is the brand that reminds people they are poor. Nobody shops at Wal-Mart because
they want to; they shop there because they have to. The minute the economy recovers, Wal-Mart's
sales will drop like a brick."

Wal-Mart's not the only discounter to see business improve. Wholesale clubs same-store sales
grew 7.4% last month compared to the same period last year, per the International Council of
Shopping Centers, New York.


Meanwhile, discount retailers, thrift shops, consignment stores and goodwill stores saw an 85.5%
increase in customers (January-August 2008), per the National Assn. of Resale & Thrift Shops.
About 63% also saw an increase in sales.

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While they may be looking for inexpensive groceries and second-hand items, consumers are
willing to spend on some forms of escapism. Entertainment can expect to fare well during a
downturn, experts say. The weekend after a $700 billion bailout was passed by Congress,
theatergoers flocked to the malls, sending the weekend gross for the top dozen flicks to $95.4
million, up 41.5% from the same period a year ago, per Media by Numbers, Encino, Calif.

"The conventional wisdom is that an economic downturn helps the movie business," said Paul
Dergarabedian, president of Media By Numbers, Los Angeles. "They find escapism for a
relatively small amount of money."

Then there's beer. It seems only logical that watching the Dow plummet into the abyss would
drive some to drink. The U.S. beer industry is expected to post its second consecutive year of case
sales gains, per the Beverage Information Group's 2008 Beer Handbook. Wine and spirits are also
expected to continue to grow though consumers may be less likely to trade up as had been the
trend.

Another category that's already enjoying a boom in this economy: vocational and two-year
colleges, which were seeing a migration of students who are priced out of four-year colleges,
noted Robert Coen, svp and director of forecasting at Universal McCann, New York. "It doesn't
add up to a whole lot for the industry in terms of ads. But they can kick up enrollment at a pretty
good clip right now."

And finally, for those looking to avoid school in the immediate future, a sector that looks
particularly strong is repair services.

"During tough times we typically point to certain categories/sectors," said William
Madway, marketing professor at the Villanova School of Business. "Repair services,
remodeling services, do-it-yourself products, services and retailers . . . [Still], every brand
has the potential to be successful if they adapt to the economic realities."




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                                                                MSNBC.com
Investing October 24, 2008, 12:01AM EST text size: TT

Five Myths About the Election and the Stock Market

With the Obama-McCain contest nearing the finish line, BusinessWeek
debunks some Wall Street notions about bulls, bears, elephants, and
donkeys
By Ben Steverman

For the first time in 76 years, a financial crisis is occurring at the same time as a Presidential
election. Based on recent polls, the coincidence seems to have boosted the chances that Illinois
Senator Barack Obama, the Democratic nominee, will defeat Republican Arizona Senator John
McCain on Nov. 4.

The financial crisis has affected the Presidential race, but how is the election affecting the
financial markets? Pundits offer endless theories on that question, and their answers are often
suspiciously similar to their political views.

Thus, right-leaning market experts insist Obama's tax proposals would be disastrous for investors.
More liberal Obama supporters insist the market will celebrate if he is given the job of leading the
world out of the financial crisis.

Some of these claims are impossible to prove or disprove. But there are some myths about the
election and the stock market that need clearing up.

Myth No. 1: The stock market is waiting to see who wins.

Stock traders are used to looking at the data, weighing probabilities and making investing bets
based on them. Among fund managers, analysts, and other market professionals interviewed in
the past week, there is little doubt which is the more likely outcome of the 2008 Presidential
election.

Consider two pieces of evidence the "smart money" on Wall Street would be likely to take
seriously: On the Iowa Electronics Market, traders can put up money to make bets on the
outcome of the Presidential race. On Oct. 3, Obama was given a 70% chance of winning. On Oct.
23, it was 87%.

Then there are the polls. Nate Silver, who first achieved renown in the area of baseball statistics,
runs a sophisticated daily analysis of all polling data that incorporates state-by-state demographic

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factors, historical data and polling firms' past track records. On Oct. 23, Silver's site,
www.fivethirtyeight.com, rated Obama's victory a 93.5% likelihood.

That's not to say that McCain can't win the election. (Google the name "Thomas E. Dewey" when
you have a spare moment.) He still has a chance, but based on the forecasts the Street is watching,
the probability of a win is so small that very few investors are going to bet money on a McCain
victory.

Myth No. 2: Wall Street is disappointed at Obama's lead in the polls, because it always
wants the Republican to win.

There is anecdotal evidence that investors in some sectors are worried about an Obama victory.
With Democrats in control, Washington could squeeze profits for health-care firms or energy
companies, for example.

And it's true that it's not hard to find a Republican on Wall Street: Wealthy investors and financial
professionals tend to favor low taxes and deregulation, planks of the Republican party platform.

However, Obama has plenty of supporters among investors, too. Berkshire Hathaway (BRKA)
Chief Executive Warren Buffett is an Obama supporter, and many hedge fund managers and
others have contributed to his campaign. In fact, according to the Center for Responsive Politics,
donors in the securities and investment industry have given $11.1 million to Obama's campaign,
and only $7.7 million so far to McCain.

A 2004 academic study (by Scott Beyer, Gerald Jensen, and Robert Johnson) found that, from
1926 to 2000, the broad Standard & Poor's 500-stock index actually performed better under
Democrats than Republicans, 15.24% vs. 10.78%. However, that Democratic advantage
evaporated when the impact of the Federal Reserve—which sets interest rates—was taken into
account.

Myth No. 3: Investors and traders are watching the election closely, following the
candidates' proposals and rhetoric.

"Truly I don't think the market is paying much attention," says John Merrill, chief investment
officer of Tanglewood Wealth Management, when asked about the election. "Today the market
and the economy are shaping events much more than the Presidential election."

It's not that the Presidential election doesn't matter to investors. It's just that other events—
particularly the financial crisis and the economic slowdown—have taken center stage. "We have
so many other things on the table right now that we haven't even thought about the election," says
Greg Church, president of Church Capital Management.

Wall Street often shows a healthy skepticism to candidates' rhetoric and party platforms.
American history is full of examples of politicians who abandon campaign promises once in
office. McCain, if victorious, would have trouble getting his proposals through a Democratic
Congress, observers say. And both candidates would need to adjust their policies to the realities
of the financial crisis and recession. What matters is "less who is elected than what policies they
pursue," says Andy Bischel, president of SKBA Capital Management and co-manager of the
AHA Socially Responsible Equity Fund (AHSRX).


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Myth No. 4: The market is alarmed by prospects the capital-gains tax rate could be raised.

Earlier this year, some were worried about a stock market sell-off if Obama was elected, due to
his proposal to raise taxes on capital gains for wealthy investors. The theory was that investors
would rush to sell stocks before the higher tax rate took effect.

Though higher taxes can be a burden on the economy, this theory of a short-term impact from
Obama's tax plans was always open to question. "You try not to let tax implications dictate
[investment] decisions," says financial planner Micah Porter of Minerva Planning in Atlanta.

As stock prices plunged the last two months, those worries have mostly evaporated. The S&P 500
closed at 908.11 on Oct. 23. In the last 10 years, the market has traded above this mark for all but
a brief period, from July 2002 to April 2003. If you bought stocks at any other time, there's a
good chance you have no capital gains to be taxed.

Myth No. 5: Wealthy investors can breathe easier because the next President wouldn't dare
raise income taxes in a recession.

Investors don't like paying taxes, so Obama's proposals to raise taxes on the wealthy are a
frequent subject of conversation among market professionals. Economists and Washington
observers, however, see few prospects to avoid higher taxes—even if McCain is elected.

One reason is the federal government's bailout plan, which adds $700 billion or so to an already
bloated federal budget deficit. Even before the crisis hit, President George W. Bush and a
Republican Congress had been unable to extend Bush's tax cuts beyond their scheduled expiration
in 2010.

While higher taxes can hurt, a huge budget deficit is "really a problem in the long run,"
says Victor Li, an economics professor at the Villanova School of Business. "Whoever wins,
the revenues have to be raised somewhere. Taxes have to be raised."

Many hope that Obama—or McCain, cutting a deal with a Democratic Congress—can delay this
tax-raising until the economy revives. Obama "needs to be really realistic about raising taxes in
an economic environment that could be really nasty," Church says.

"Right now, the focus of the Democrats is on stimulating the economy," says Daniel Clifton of
Strategas Research Partners. However, a tax increase during a recession wouldn't be unusual, he
adds. "Generally the government has to raise taxes in a recession because the federal deficit gets
so big."

Join a debate about whether Election Day should be a paid holiday.




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October 30, 2008
By Darren Dahl

Trust Me: You're Gonna Love This
Getting employees to embrace new technology.

Although the promise of the paperless office has long eluded businesses, David Zugheri, co-
founder of First Houston Mortgage, a mortgage bank based in Texas, really wanted to take a stab
at it. Three years ago, his 125 employees were using about a million sheets of paper a year. The
files for each of First Houston's 1,500 customers usually contained up to 250 pages, including
applications, credit reports, tax returns, pay stubs, and other documents. And employees would
often make two or three hard copies of each file to send to underwriters, title companies, and
other parties involved in the mortgage approval process. Plus, because most of the documents
contained sensitive customer information, First Houston was shelling out $550 a month to a
shredding service.

Zugheri decided to buy a few multipage scanners, and one night, after all his workers had gone,
he went around the office and unplugged every printer. The next morning, at 8 a.m., he
announced a new rule: no paper. All documents would be scanned and stored digitally. An uproar
ensued. Two employees threatened to quit. By noon, Zugheri had plugged the printers back in.
"After playing a human punching bag for four hours, I realized that we couldn't just change our
technology overnight," he says.

When it comes to instituting new technical systems, snafus like Zugheri's are common. Up to 70
percent of IT projects wind up as flops, according to Forrester Research (NASDAQ:FORR). In
many cases, the new systems -- whether hardware, software, or Web-based applications -- sit idle
because employees either find them too difficult to use or simply refuse to try. "IT projects fail
not because of the technology but because human beings resist change and uncertainty," says
Moez Limayem, who chairs the information systems department at the Sam M. Walton College
of Business at the University of Arkansas. Here are a few ways to get your employees on board
with your next upgrade:

Work From the Bottom Up

The most common mistake in implementing new technology occurs when the selection
comes solely from the top, says Stephen Andriole, a former chief technical officer who
teaches business technology management and corporate strategy at Villanova University's
business school. Employees bristle at being force-fed new ways to do their jobs, especially if
the technology is difficult to use and actually makes those jobs harder in the short term.
"Many users will happily nod their head as the technology gets deployed," Andriole says.
"But within days, they have figured out ways around it so they can do their job the way
they always did, which results in a big waste of time and money all around."

Ben Swartz, co-founder and president of Marcel Media, an interactive marketing firm in Chicago,
learned that the hard way about five years ago. He spent several hundred dollars on software that


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was supposed to help employees find the best search-engine keywords for clients. Months later,
he discovered that employees had stopped using it. They told him they got better results using
their own methods and the free tools offered by the search engines.

Today, Swartz goes about things differently. He holds weekly meetings at which his 14
employees are encouraged to discuss ideas about new software. "By getting employees involved
from the beginning, we no longer run into issues of buy-in," he says. For example, when the
company recently began shopping for new project management software, a group of employees
researched programs and tried several demos. When it came time for a decision, Swartz allowed
employees to make the call. "We operated like a jury room," he says. "We didn't move forward
until we had a consensus from our employees."

Invest in Training

Another mistake companies make is skimping on training, says Patrick Gray, president of
Prevoyance Group, a Fort Hill, South Carolina, consulting firm that specializes in IT strategy.
"The more training employees receive," he says, "the greater the chances that the project will be a
success." Gray says rolling out new technology over a period of months, while employees
continue to use existing systems, helps iron out unforeseen problems. Because employees don't
all learn the same way -- some may prefer more formal sit-down sessions, while others would
rather just learn on the fly -- organizations benefit when they take a multipronged approach. He
recommends giving extra training to "power users," select employees who will be able to guide
their peers and help reduce the number of calls to the IT help desk.

Barkley, an independent advertising agency in Kansas City, Missouri, has taken this concept to
another level by creating an internal training program it calls Digital Ninja. Every month,
employees meet to learn about the latest technology in advertising -- topics such as blogging,
podcasting, and virtual reality. Employees who have earned the distinction of "subject matter
experts" teach the lessons, says Mark Logan, who heads the program. "This helps us get everyone
in the company fired up about the latest tech trends," Logan says.

Create Incentives

Often, business owners don't give employees enough motivation to use the new systems. "Simply
saying, 'The company will be better off if we do this' just doesn't cut it," says Limayem. He
suggests stronger incentives: making a salesperson's commission tied to his or her use of the new
CRM system or giving bonuses for completing training programs.

After his first attempt at creating a paperless office tanked, Zugheri at First Houston Mortgage
decided he needed to create an incentive: a more flexible work schedule. He paid a programmer
about $30,000 to devise an electronic mortgage application, a tool for accepting electronic
signatures, and a program to organize the company's electronic documents on its servers. Zugheri
spent about three months designing a formal process for the saving, naming, and virtual handling
of the files.

When he finally gathered his employees to demonstrate the new system, Zugheri emphasized the
benefits for his workers, many of whom commuted an hour or more each day. Because the
customer files would now be stored on an Internet-accessible server, employees would be able to
work from home on Fridays, stay home with a sick child, or take a weeklong vacation without
worrying about losing track of their accounts. "I could literally see their attitudes change through

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their body language," Zugheri says. "And I felt confident that when we left that room, we were all
moving in the same direction."

Zugheri's company, which is in the process of changing its name to Envoy Mortgage after recent
acquisitions, now employs about 475 people and has been praised by mortgage industry
publications for its use of technology and for cutting back on paper waste. Though Zugheri
concedes that his firm will never be completely free of paper, he is excited about the progress his
employees have made -- and that he is saving about $150,000 a year on paper and toner. But
perhaps the greatest benefit of Zugheri's new system came in September, when Hurricane Ike
devastated the Houston area. Even when 80 percent of his employees were unable to make it to
the office because of flooded roads and debris, business continued to hum, as many of them were
still able to log in via the Internet and do their work.

For more on educating and motivating employees -- including advice on developing lesson plans,
structuring employee rewards, and calculating training costs -- read Inc.'s how-to guide on
employee training at www.inc.com/guides/hr/training.html.




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November 1, 2008
By Jane M. Von Bergen

Volatility: Measure could signal a bottom.

Halloween this year came with an added scare: the VIX index. Wall Streeters like to call it the
barometer of investor fear.

This measure of wild and wacky swings on the stock market hit an all-time high in October.

"Now we're in uncharted territory," Bruce Rader, an assistant finance professor at Temple
University, said yesterday.

The volatility index, or VIX, is a measure of predictions of future volatility in the market -
remember those days last month when the Dow Jones average rose and fell by huge amounts -
down 733 points one day, up 401 points the next?

All through the year, the VIX hovered in the 20 percent to 30 percent range, but then in
September, it rose to a whopping 40 percent of what might be considered normal.

"That was considered outrageous," Rader said.

Then, on Oct. 24 - a day that world markets took what seemed like a coordinated nose-dive, and
the 79th anniversary of the 1929 stock market crash - the VIX reached an all-time high of 89.53
percent. Yesterday it closed at 59.89 percent.

"Going up to the 80s and 90s is unheard of," Rader said. "It is a measure of how much people
have panicked."

So what is the VIX?

It's complicated, says James Jablonski, a finance professor at Villanova University and
former professional trader.

The VIX is a formula created by some mathematical jiggering based on all the prices of all
the options of all the stocks on the Standard and Poor's 500 index, he said.

It factors in various timing scenarios, or what its creators on the Chicago Board Options
Exchange like to call "the whole volatility skew."

Most of us buy and sell shares of stocks. Some people also trade in options - the right to buy or
sell shares at some future price.

Options can be an investment, but many people think of them as a way to hedge their losses.




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If you are worried about the price of your shares going down, you can buy the right to sell them at
a higher price, even if the shares fall. That protects your investment.

It's like buying insurance on your $20,000 car - you pay a premium in case you get into a wreck.
As long as you survive, all you've lost is the premium and deductible.

The more likely you are to crash your car - or the more likely it appears that share prices will fall
- the more you'll pay for your car insurance premium, or your "put" stock option.

But the VIX takes a wider view of the market, based on the S&P 500. The more crazy up-and-
down swings there are, the more people hedge their bets out of legitimate fear and the more they
are willing to spend for these options.

As the market careened in October, there was a lot of option buying going on, with an average of
16.6 million contracts traded per day. By contrast, five years ago, the October average was 4.2
million.

This year, for the first time, three billion contracts were sold in a single year. That happened Oct.
20.

"People are a lot more willing to pay for insurance in the marketplace with the underlying
asset moving abruptly," Jablonski said.

Traders, who will bet on anything, actually make trades on the VIX itself.

Rader says the VIX acts as another forecasting tool. To him, the high VIX, now mitigating,
signals a bottom. "When there is blood on the streets, it's time to buy," he said. "So now we're up
to our throats in blood."




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November 10, 2008
By Anthony H. Catanach Jr. and Paul L. Walker
Professors at the Villanova and University of Virginia business schools

Sounding the Financial Alarm

The Sarbanes-Oxley Act of 2002 requires annual reviews of public companies' financial reporting
controls by their independent auditors. But as far as we know, only one of the big auditing firms
actually sounded an alarm before a series of financial-services companies collapsed or required
bailing out in recent months. (The lone firm was PricewaterhouseCoopers, in the case of AIG.)

In fact, just weeks before the credit-market collapse, management of several of the largest
companies involved (including Bear Stearns, Fannie Mae, Lehman Brothers, Wachovia and
Washington Mutual) reported that their operating policies and procedures were good enough to
reliably prepare financial statements - findings supported by each of their external auditors.

How is this possible? As bankers, investors and regulators continue to struggle with valuing
billions in subprime loans and exotic financial instruments, we wonder how these executives and
their independent accountants missed what appear to be glaring deficiencies in these companies'
financial reporting.

We acknowledge that predicting a global financial meltdown may be impossible, and these large
auditing firms may have prevented some reporting failures. But we remain puzzled as to how they
could have missed the dangers of increasing leverage, declining asset quality, complex derivative
valuation, and the liquidity risks that ultimately plagued these firms.

Complicating matters, many of the Big Four auditing firms are still facing numerous lawsuits
related to recent audits. These legal pressures create huge incentives for them to focus on short-
term survival strategies, rather than long-term solutions to provide the market with the high-
quality auditing it desperately craves.

In fact, the Big Four continue to aggressively lobby legislators and regulators for liability caps.
It's particularly troubling that many regulators now view these large auditing firms as "too big to
fail" because there is no auditing alternative.

Clearly, the status quo is not acceptable. The magnitude of the recent global market meltdown
and government bailouts requires a serious rethinking of auditing's role and standards. The Public
Company Accounting Oversight Board also needs to seriously reevaluate its role in monitoring
auditing quality and setting standards.

In addition to reviewing the work of the Big Four firms, perhaps the board could emulate the
National Transportation Safety Board: When a financial-reporting disaster or audit failure occurs,
it could send in a team of governmental experts to investigate how it happened and what could
prevent a recurrence.



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A fresh look is needed. Legislators and regulators should answer a few questions: How can we
get a "real" audit for a publicly traded company? How can we encourage accountants, auditors
and executives to look for financial-reporting fraud? Can we design a compensation scheme that
rewards these firms for detecting weaknesses and deficiencies?

We simply cannot accept another "too big to fail" argument to justify support of a
profession that promises oversight but delivers much less.




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November 14, 2008
By Sean Scully

Business schools scramble to adjust curricula after the Wall Street
collapse
Lessons of the fall

As Wall Street began to collapse in September, so too did Professor Jonathan Scott’s syllabus for
his “Introduction to Financial Markets” class for business students at Temple University.

“I pretty much threw the plan out the window from the last two weeks of September and first
week of October,” Scott said. “And still as things transpire, I try to get them to think about what’s
going on in the markets.”

Faced with what may be the worst meltdown in U.S. financial markets ever, Scott turned his
advanced undergraduate seminar class into a real-time laboratory for his students. At every
session, they discuss the latest twists and turns in the markets, look at the underlying financial
processes, and try to reason out why it happened and where it may be going.

“I have tried to emphasize to them that this is historic,” he said with a laugh. “Just this morning, I
said to them ‘this is as historic as the Phillies winning the World Series.’”

The fantastic events of the past two months have left students and faculty of Philadelphia’s
business schools reeling, with students reconsidering how to find a job in a devastated business
sector and instructors trying to explain what is happening.

“As a student it’s pretty terrifying looking out at that,” said Joseph Negri, 21, a senior in
Villanova University’s business school. “But there are a couple of things you have to
remember — first, the economy is cyclical; two, you did go to school with a general finance
degree, a general accounting degree,” so there are plenty of places to find jobs off Wall
Street.

Maryellen Reilly Lamb, senior associate director of Wharton’s MBA Career Management
program at the University of Pennsylvania, senses a real nervousness among her students.

“For many of our students, it’s been a big adjusting of expectations of the summer and for
graduation as well as coming up with Plan B that’s going to keep their dream alive … what can
you do for the next 18 to 24 months to 36 months that will allow you to get the same sorts of
rewards as the other career” they might have hoped for, she asked.


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Fortunately, Lamb said, it doesn’t look like banks and other stricken firms will eliminate
recruiting completely, as many did during the recession of 2001 and 2002. Instead, they will
continue to recruit as a way to keep talent in the pipeline, but they will cut the number of
positions that are available.

“For our students, that just means they have to be above and beyond ‘prepared,’” she said. “If
they are going to get into one of those opportunities, they have to make sure they are super-
prepared.”

Frank Linnehan, associate dean for graduate and undergraduate programs at Drexel University’s
LeBow College of Business, said he expects to see a shift away from finance-related majors, with
more students focusing on the accounting skills that will be required to clean up the vast mess.

“There are definitely options” for students, he said. “The accounting people are going to be in
demand. It’s now about how to evaluate value [of assets]. In the short term, there is going to be
tremendous demand for people who can do that.”

Drexel student Brennan O’Brien said he and his colleagues in the one-year MBA program remain
committed to careers in business, but even those who weren’t considering Wall Street careers are
having to rethink their job search strategies.

“I’m looking at my job prospects being a lot dimmer than what I thought they’d be. … I think
everybody is trying to make sure they have two or three options, just knowing that everybody is
tightening up because of the economy,” he said.

Instructors, meanwhile, find themselves struggling to make sense of economic events and turn
them into a useful lesson.

“Even the professionals are trying to figure out how this happened so quickly,” said Rakesh
Sambharya, professor of management and international business and director of the MBA
program at Rutgers University-Camden. “As far as the business schools, we’re just trying to
figure out what’s going on.”

Although it will take years for academics to understand and teach the lessons of the latest crash,
he said, some obvious topics are entering business classrooms.

“There will be more regulation,” he predicted. He said that professors are explaining “that we
need not just more regulation for the sake of regulation, but more sensible regulation, so that
things don’t get out of hand and everyone gets affected and we don’t have $700 billion bailouts.”

While the economic crisis may have shaken up students and confounded the faculty’s class plans,
Sambharya said, it may in the long run be a good thing for business schools.

“You’ll be surprised: When the economy goes down, our applications go up. You get laid off,
you want to retool, go back to school. It’s good for us, perversely,” he said. “When it’s boom


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time, they keep postponing school … and we’re getting a lot of applications to teach people
who’ve been in the industry, maybe at Merrill Lynch, all of a sudden you’re laid off.”




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November 17, 2008
By Carol Zimmermann

"Economic Downturn Brings Call for Extension of Unemployment
Benefits"

WASHINGTON (CNS) -- Behind the grim statistics about the nation's rising jobless rate are men
and women who need help, according to Catholic Church officials and economists at Catholic
universities.

One immediate response to the nation's high unemployment rate should be an extension of
unemployment benefits, said Tom Shellabarger, domestic policy adviser for the U.S. bishops'
Department of Justice, Peace and Human Development. He called it "unconscionable" that by the
end of the year the unemployment benefits will run out for close to 2 million workers.

According to the U.S. Labor Department statistics released Nov. 7, the jobless rate rose to 6.5
percent in October when employers fired 240,000 workers. That figure put the total number of
unemployed Americans past 10.08 million, the highest level in 25 years. More than 22 percent of
the nation's unemployed have been out of work for six months or longer -- something which also
has not happened in 25 years.

One year ago, the jobless rate was 4.8 percent. Many economists are saying the rate could climb
to 8 percent or 8.5 percent by the end of 2009.

Job losses nationwide have occurred in nearly every occupation. Construction companies,
retailers, mortgage bankers, securities firms, the motel industry, appliance factories, shipping
companies and steel plants have all cut positions this year.

The staggering economy has delivered a strong blow to the country's poor faced with rising
utility, energy, food and housing costs, said Father Larry Snyder, president of Catholic Charities
USA.

In a letter this fall to House and Senate leaders, he asked members of Congress to "remember the
low- and middle-income Americans whose lives and economic security are being shattered by the
current economic crisis."

He specifically called on them to extend unemployment benefits and to increase food stamp
benefits and social service assistance.

Unemployment benefits were created in 1935 in response to the Great Depression as a means to
provide partial wage replacement to unemployed workers while they looked for a job.
Unemployed workers can get these benefits -- administered by the states -- for up to 26 weeks.

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On occasion, the federal government has extended the number of weeks these benefits are
available. This June, Congress extended the program by 13 weeks.

Congressional Democrats are currently pushing for a further extension of unemployment benefits
in a new stimulus package.

Shellabarger said he was looking forward to working with Congress on legislation to help the
unemployed even if a larger stimulus package does not get passed.

But he also sees problems with the way unemployment figures are measured and said the system
"needs an overhaul," especially since it was designed when people primarily worked 40-hour
weeks. Now, some people work less but want to work more or work on a contractual basis and
therefore do not qualify for unemployment benefits.

"How do we make sure people that are part of the workforce yet can't find work get the money
they need to feed themselves and maintain shelter?" asked Shellabarger in a Nov. 13 interview
with Catholic News Service.

Economists have likewise stressed the need to help low-income families in the complexities of
this economic crisis.

Steve Conroy, an associate professor of economics at the University of San Diego, said, "As
Catholics, we must consider the human side of this economic crisis, particularly the impact of
economic policies on workers and their families."

Tax cuts alone cannot help the country get back on track, said Conroy in an e-mail response to a
query from CNS. Instead, he recommended the government focus on infrastructure development
projects, taking a page from President Franklin Roosevelt's New Deal, which was a series of
programs that had as a goal the creation of jobs for the unemployed in the 1930s.

Conroy said focusing on public investment projects would reduce unemployment levels and help
to jump-start the economy.

Suzanne Clain, associate professor of economics and statistics at the Villanova School of
Business at Villanova University in Pennsylvania, similarly recommended job-creation
programs that would grant public service jobs to displaced workers. She said in an e-mail to
CNS that these jobs were preferable to simply extending unemployment benefits.

Clain also emphasized that from the perspective of Catholic social thought the government
should be "especially conscious of the economic impact of the crisis on the poor and
vulnerable, and should take action -- or see that action is taken by others -- to cushion the
blow."




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November 21, 2008
By DeNeen L. Brown and Richard Leiby

The Very Image of Affirmation
In Michelle Obama, Black Women See A Familiar Grace & Strength Writ Large

Michelle Obama emerged, long and lean, from a black limousine that pulled up at the White
House the other day. She stood in a bold red dress that followed her lines. She smoothed her hair
and moved between her man -- the president-elect -- and the first lady. Tall in shiny red pumps,
Michelle seemed to tower over them all.

As she stood there, many black women on this side of the White House gate saw something else
in Michelle Obama that sunny afternoon: bits and pieces of themselves.

They saw their family in hers, or the family they dreamed of having. Saw a woman whose
husband seemed to adore her, giving her hugs and pecks on the lips as if the whole world were
not watching.

Women watched Michelle Obama until she disappeared into the White House. Then they began
talking.

"I like the way she carries herself," says Liz Nolan, 65.

"I like the fact that she walks with him," says Shenee McRae, 31, "not behind him or in front of
him."

"For black women, she is visible proof that you can be anything you want to be," says Greer
Jones, 37.

These particular women were at A Natural Motion, Nolan's beauty salon on Georgia Avenue
NW. Elsewhere, in offices, in kitchens, on the radio, over the telephone, in churches, on blogs,
women are talking and whispering a chorus of amens. Not just black women -- all women. They
comment on what they see, or don't see. They opine about Michelle Obama's intellect, her style.
Fascinated by Michelle. That's what they call her, Michelle -- first-name basis already.

They noticed the way Michelle, 44, wore her hair pulled back in a ponytail to vote, as normal
black women would on the way to the hairdresser the morning before a big event. Two daughters
in tow in plaits. They liked the way she wore J.Crew on Jay Leno. And noticed that she told her
husband he needed to be home for Valentine's Day.

It would be too trivial to say that she is smashing stereotypes of black women, because the
stereotypes are so flat, so one-sided, so unreal, that smashing them would be like punching a
cloud.




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"There's the stereotype of the powerful black woman, the aggressive black woman; there is the
stereotype of the over-sexualized, overly sexed black woman; there is the stereotype of the
mammy," says Aziza Gibson-Hunter, 54, a conceptual artist and mother of four who lives in
Northwest Washington.

What she sees in Michelle Obama is strength: "I saw it in my mother. When I was a kid, I saw it
in the women in the church, this dignified strength. I think that is real.

"I think Michelle Obama is her own woman. I think people with the stereotype thing need to get
over it. She is forcing people who have never taken the time to know who we are as black women
to take a second look. To actually see, for once in their life, that there are black women that are
brilliant and graceful, intelligent, well spoken and have their own sense of themselves. And it
doesn't have to be measured up to anyone else."

Gibson-Hunter is sitting on the black leather sofa in her home with her husband, Jawara, an
anesthesiologist. Their brown dachshund just jumped in her lap. Her 16-year-old son is on the
computer in the other room "supposedly doing homework." They have just finished a dinner of
tofu, salad and naan flat bread.

"I think for nonblack people, they are going to have to maybe deal with the stereotypes in their
heads," Gibson-Hunter said. ". . . What this whole situation is doing is inviting people to look
behind the projections in their own minds and maybe begin to do some work to deconstruct some
of that and find the truth."

"She is educated. She is not like 'Michelle the housewife.' It's 'Michelle the attorney,' " says
McRae. "She is smart. She is not an airhead. She's not the pretty girl. She's not the ugly girl. She's
not the trophy wife."

"Nobody wants to see anybody in a Chanel suit," says Diavian Jeffreys, 24.

"I look at her head to toe, and I can't find one fault," says Nolan.

The stage is set for soul-searching. "Michelle Obama will be under the microscope in a way no
other woman of color has been," said Donna Brazile, a Democratic commentator and strategist
who offered advice to the Obama campaign. "There's no question that Michelle Obama will alter
the playbook for black women for years to come. . . . We're long overdue for this."

During the presidential campaign, Michelle Obama found herself branded "Obama's baby mama"
in a Fox News graphic. Some conservative pundits labeled her an "angry," unpatriotic black
woman after she remarked in February, "For the first time in my adult life, I am proud of my
country, because it feels like hope is finally making a comeback. And I have been desperate to
see our country moving in that direction." By July came a depiction of Michelle Obama as an
Angela Davis type, fist-bumping her husband on a satiric New Yorker cover that famously
backfired.

She says she ignores labels, telling NPR: "I have not paid much attention about what people say
about me who don't know me." She said she was saying one thing -- how proud she was that more
Americans were participating in the electoral politics -- and the way people interpreted it was
another thing. African Americans say they knew exactly what she was talking about: For too
long, they felt excluded from the political process. The Obamas changed that.

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But the controversy highlights how the first lady will need to practice "impression
management," said Quinetta Roberson, a Villanova University business school professor
who co-authored a law journal article analyzing public perceptions of the future first lady.

"One of the other perceptions around her is that she is a very strong woman, and her
influence on her husband and family is very clear," Roberson said. "In his acceptance
speech, Barack Obama said she is 'the rock of our family.' Other politicians may say my
spouse is my ally or inspiration, but it doesn't necessarily suggest an equal role. 'Rock of
our family' means she is right next to him and a critical part of his foundation."

Yet the positive can easily be spun as a negative, into a stereotype of an "aggressive,
somewhat overbearing woman," Roberson says.

"She can help girls with the decision that when they grow up, what kind of man you should want
by your side," Greer Jones says. "Do you want a man to stand on the corner or do you want a
man who has potential to become president?"

"In Chicago, she stood right there till her man finished his last word," says Patricia Johnson, 34.

People have been drawing conclusions about Michelle Obama by refracting her words through
their own experiences and biases. There are blogs following her every move: the school-selection
process for her daughter, her performance on "60 Minutes," her figure. Essayist Erin Aubry
Kaplan posted this on Salon.com: "Barack's better half not only has stature but is statuesque. She
has coruscating intelligence, beauty, style and -- drumroll, please -- a butt."

Still to come will be more serious assessments based on the causes she promotes, her first official
journey outside the country, her first state dinner.

"I have no doubt that she is prepared for the challenge," said Lani Guinier, a Harvard Law School
professor and onetime Clinton nominee for a top Justice Department post. "She and her husband
embody a very healthy relationship. That in itself is quite a public and political statement."

Guinier added: "I toast to the time when this is all normal -- or otherwise unremarkable."

Portia Pedro, 29, a third-year student of Guinier's, is pursuing the same degree held by the
incoming president and first lady. "The hope for young black professional women that's
embodied in Michelle Obama is a bit different from the hope invested in Barack Obama," she
said. "As we go higher and higher into education, we outnumber black men, and there is a not-so-
silent concern that you are less likely to get married and less likely to have children. The career
part is not in question, but can you do that and be married and have a family?

"If she can do that, then it opens possibilities for other black women."

Alice M. Thomas, a 45-year-old professor at Howard University School of Law, said the Obama
marriage should help redefine the image of black relationships.

With his election night tribute to Michelle as "the love of my life, your next first lady," Thomas
said, the president-elect crowned all black women: "He had a humble enough spirit to concede
the stage to her. . . . It elevated black women in a way we haven't been elevated since antiquity:


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Queen Hatshepsut, Queen Nzinga, Cleopatra, Nefertiti. World leaders came seeking them,
admiring their beauty. They were not just beautiful, they were intelligent.

"For him to regard her and treat her and show and express unabashedly, unashamedly, his love
for her, his love for her intelligence, respecting her, romancing her, smiling at her -- for the world
to see that exchange between a powerful black man and a powerful black woman, I think it's what
is everlasting about this," Thomas said. "I don't think we can point to another power black couple
like that. Oprah and Stedman aren't married. And Stedman doesn't seem to have power. Nelson
and Winnie broke up."

Some women say Michelle Obama and her family represent nothing really new -- that there have
always been stable, married, beautiful black families living in beautiful houses and sending their
children to private schools. Mother in pearls. Dad in sharp suits. So often, black families are
depicted as statistics. But look behind the curtained windows and you'll see "normal" American
behavior: working parents, live-in grandmothers.

Michelle Obama told the Cleveland Plain Dealer during the Democratic convention: "When I was
growing up in the '80s, 'The Cosby Show' meant so much to African American families. A lot of
people looked at the Huxtables and thought, 'There's no way that family exists.' But African
Americans knew differently. If we don't see those images, then the people don't believe they
exist."

If you peeked you would see yourself, too -- a family, just a regular family. All these
years they were there, living in cities and suburbs, down the street from you. Soon, they'll
be living in the White House -- with Michelle Obama as self-described mom-in-chief,
standing in for so many women on this side of the gate.




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November 26, 2008
By Jenice Armstrong


Jenice Armstrong: A working first lady?
THE MOMMY WARS is shorthand for the on-again, off-again debate about moms who stay
home vs. those who have full-time careers.

They've spilled over onto the incoming first lady, who has been the subject of much
handwringing over whether the Harvard-trained attorney will pursue her own interests or be
forced to take a traditional role. Will she return to her community and professional pursuits? Or
will she instead concentrate mostly on more traditional first-lady duties?

"Michelle Obama opens up the possibilities for so many new things," said Quinetta
Roberson, a Villanova professor who recently completed a study about challenges Obama
will face as first lady. "Up until Eleanor Roosevelt, the first lady was a hostess, someone
who could host great parties and be a support to the president.

"When Hillary Clinton became first lady, we saw the model really move," added Roberson,
whose findings will appear in the Hasting Women's Law Journal. "I think with Michelle
Obama, that model can move even more."

Granted, the speculation is somewhat justified considering that Obama, 44, is only the third first
lady to have a graduate degree. She's also one of the few first ladies to have had a professional
career. With the inauguration still weeks away, Obama still is feeling her way through her new
role. Meanwhile, everybody has an opinion as to what she needs to do. Recently, she was
subjected to some unsolicited advice from the wife of former British Prime Minister Tony Blair.
In a piece published in the Times of London, Cherie Blair warns Obama that "you have to learn to
take the backseat, not just in public, but in private."

"When your spouse is late to put the kids to bed, or for dinner, or your plans for the weekend are
turned upside down again, you simply have to accept that he had something more important to
do."

Blair continues: "You can't confuse being a sounding board with having influence over decisions.
You always have to remember it's not you who was elected."

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Given the rigors of the campaign trail and what Obama already has been through, I hardly expect
that's going to be a problem. For starters, Obama is a quick study. Besides, Obama apparently
doesn't have a problem with her "momification" as a recent piece on Salon called it. She, herself,
uses the nickname "mom in chief." During a recent interview on "60 Minutes," Obama talked
openly about how she plans to focus on helping her daughters, Malia and Sasha, transition to a
new home and school.

She doesn't appear the least bit worried about disappointing those who wish she'd return to her
$300,000-a-year job as an executive at the University of Chicago Hospitals. As first lady, Obama
has said she wants to focus on issues she has identified as important to her such as military
families and work-life balance.

Meanwhile, Blair, who says she used to give interviews about recipes to please her husband's
critics, also points out in her Times article, "It is something of an irony that in these days of
pushing for equality those of us married to our political leaders have to put their own ambitions
on hold while their spouses are in office and keep their views to themselves.

"I, at least, had my career. That's not an option for Michelle Obama. Now they are moving to
Washington, any return to her high-flying job in Chicago would be impossible. But as Hillary
once explained to me, it would be difficult for any spouse of a president to continue working."

What an odd statement, especially considering that being first lady can be a job in and of itself.




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Posted on Fri, Nov. 28, 2008



For retail, it's likely 'Blech! Friday'

Most forecasts call for one of the bleakest holiday shopping seasons in
recent memory. Stores are scrambling to lure any cash out there.
By Maria Panaritis

Inquirer Staff Writer

Welcome to Black Friday. The day consumers wipe away tryptophan hangovers with bargain-
hunting binges on the way to holiday cheer.

Except this year, things are a bit different, in case you've been hiding under a rock. Consumers
are on a spending diet. And shop-till-you-drop seems so very, very 1999.

The way the economy has been banged and bruised over the last 12 months, this carefree kickoff
to the lucrative holiday shopping season could be more appropriately dubbed "Black and Blue
Friday."

And it could dump already-struggling retailers into a deeper sea of red if consumers don't emerge
from their fear-induced stupors and get into fighting, shopping shape.

Sure, there'll be bargains, perhaps more than usual, given how desperate department stores and
other retailers are to make money after consumers slammed the brakes on spending, analysts say.

But most forecasts call for one of the most somber spending seasons in recent memory as
shoppers test a new ethos: parsimony.

"We're in for a period of time where consumers will think about how they spend and what they
spend their available cash on very differently," said Tara Weiner, managing partner of Deloitte &
Touche L.L.P.'s Greater Philadelphia office, in Center City.

"There's evidence that suggests they're going to put off buying something for themselves to
make a nice holiday for their kids," said William M. Madway, marketing instructor at the
Villanova School of Business. "But they're going to get less for their kids, and they're going
to lower the expectations for their children."

A survey released this week by the National Retail Federation forecast that up to 128 million
people would shop today, tomorrow and Sunday. That is down 5 percent from last year, when
135 million people said they would.




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In one of the more optimistic forecasts of how consumers would behave over the next month, the
federation also projected a 2.2 percent increase in sales this holiday season.

While still in positive territory, that increase is small compared with the fact that holiday sales
increased 4.4 percent yearly, on average, over a 10-year period, the trade group said.

Even if consumers spend the $470.4 billion that the group predicts this holiday season, it would
be the smallest sales increase since the recessionary holidays of 2002.

So electronics stores, apparel retailers, big-box stores, all are hustling to grab whatever cash is out
there.

"You've got to get your piece of the pie," Madway said.

Retailers will have to lure buyers with attractive sales or by convincing shoppers that what
they sell is a real value, Madway said.

Retail stock prices have suffered sharp declines, and companies are desperate to rake in
sales to quell fears among investors, he said.

"They've got to create demand," Madway said. "They're desperate to meet their sales
quotas."

Despite the trade group's optimism, there is overwhelming agreement that shoppers will spend
less than last year. And last year was already a tough one for retailers, who were caught by
surprise when soaring gasoline prices curbed holiday spending.

Per-household spending on holiday gifts this year will average $418, compared with $471 last
year, according to data released last week by the Conference Board.

Shopper pessimism has been building as the global economic crisis has led to rising
unemployment and economic insecurity.

Deloitte's annual holiday survey, conducted on the Internet between Sept. 26 and Oct. 7, found
that 68 percent of consumers planned to change their shopping habits because of economic
concerns. Many said they would seek sale items and use coupons, Weiner said.

The findings reflected the early anxiety of the stock market turmoil that broke out in mid-
September.

Among Greater Philadelphia consumers surveyed by Deloitte, 55 percent expected the economy
to worsen next year, compared with 41 percent a year ago.

Philadelphia retail expert Brian Ford said companies had been aggressive this year with early
advertising and offers for Black Friday.

"My advice is watch the sales, watch the coupons, watch the mailers," Ford said.




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"If Macy's sends you a coupon that says you get 20 percent in these departments, stay in that
department," Ford said. "If somebody says to you that tomorrow morning for three hours we're
going to do the following, get there during the three hours. Because those are truly bargains."

Weiner suggested that consumers buy holiday gifts with their unredeemed gift cards.

Deloitte found that about 47 percent of consumers have at least one unused gift card - 5.9 gift
cards per person, compared with 3.7 last year.

"It really is time," Weiner said, "to look in our wallets and say, OK, it's time to redeem these gift
cards."




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Defining the job has challenged first ladies
By DARLENE SUPERVILLE

WASHINGTON (AP) — Among the many challenges Michelle Obama will face as first lady, the
biggest may be defining the job.

And therein lies the problem: Her newest high-profile job isn't a job, per se.

The Founding Fathers made no provision for the first lady in the Constitution, and no formal or
official description exists. The first lady is neither elected nor appointed, but comes along with
the president, for better or worse.

Nor is she paid for all that's required of her.

Many a first lady has said, in retrospect, that she had no idea how hard being first lady would be.
Even the current one, Laura Bush, according to author and first lady historian Betty Caroli.

Of all the first ladies, she should have known what was in store: Her mother-in-law, Barbara, was
first lady from 1989-1993.

"So no matter I suppose how well prepared ... she's probably going to be surprised by the
enormity of the publicity, the focus, the demands and so forth," Caroli said of Michelle Obama.

The first lady gets an office in the White House, typically the East Wing — though Hillary
Rodham Clinton caused a stir when she famously planted herself in the West Wing among the
heavy-hitting honchos of her husband's administration.

There's also a staff to help plan and execute the many social functions held every year at the
country's most famous residence, and to help her promote her chosen causes.

Still, the job description is ill-defined, said Robert P. Watson, who has written two books about
first ladies and directs the American studies program at Lynn University in Boca Raton, Fla.

"The first lady has to find her own way and match that with her husband's interests," Watson said.

So like most people in a loosely defined job, first ladies have made of it what they've made of it,
from the traditionalists like Mamie Eisenhower and Bess Truman, to the politically active like
Eleanor Roosevelt and Hillary Clinton.

First ladies have a certain freedom, then, but only to a point: For all the talk of the Obamas
changing Washington, Michelle Obama, cannot, for instance, say "no" to presiding over the
annual Easter Egg Roll, which dates to 1878.


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Laura Bush once said she didn't see herself as a certain type of first lady.

"I view my role as first lady as Laura Bush," she told the Dallas Morning News in November
2001, near the end of her husband's first year in office. "I really do think that Americans want the
first lady to do whatever it is she wants to do."

And Laura Bush did.

She started slow, with a traditional focus on reading and education, befitting a former teacher and
school librarian. But she broadened her interests and became more politically active as the years
passed. She has traveled alone through the Middle East, Europe and Africa, has championed the
rights of Afghan women and has been a frequent, public critic of Myanmar's military
government.

Michelle Obama has said her first priority is to help her two young daughters make the
adjustment to a new way of life. But many suspect a high-achiever like Michelle Obama won't sit
idle for long.

"The primary focus for the first year will be making sure that the kids make it through the
transition. But there are many issues that I care deeply about," she told "60 Minutes," singling out
military families, work-family balance, education and the Washington community. "So there's
plenty to do."

And to be criticized for.

There's the other rub for first ladies: All have met with criticism at one point or another, usually
for something they did, said or wore.

Michelle Obama has endured her share already. She still hasn't lived down the moment
when she seemed to suggest that she had not as an adult been proud of her country until she
saw the public's reaction to her husband's candidacy, said Quinetta Roberson, a Villanova
University business professor.

"People will be watching to see that patriotism," said Roberson, who co-wrote a law journal
article on the challenges awaiting Michelle Obama.

She'll be under the microscope for other things, too, with everyone watching, for example, her
clothes, how she styles her hair, how she decorates the White House for Christmas and how much
money she spends on this or that.

It's all part of the delicate balancing act for first ladies, who must tiptoe between being traditional
and activist at the same time.

Said Watson: "You can't go out too far one way or the other."




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Clergy brace for downturn in giving
By Michael Paulson, Globe Staff | November 30, 2008

NORTH ANDOVER - The crumpling economy and plunging financial markets have demolished
trillions of dollars in stock value, and now they've taken a toll on the pink stucco church on Main
Street.

A decision by the three priests of St. Michael's Church - the largest parish in the Archdiocese of
Boston - to halt construction of a long-planned $5.2 million pastoral center is one small indicator
of the enormous challenges now being faced by religious denominations and congregations
throughout the region as their endowments fall, their donors' stock portfolios evaporate, and
requests for help grow.

The next few weeks, between Thanksgiving and New Year's, will be a key indicator of how
dramatically the nation's financial crisis will affect religious organizations. Contributions to date
have been stable or up for many denominations and congregations, but this period is the high
season for American philanthropy, in part because people are motivated by the spirit of Christmas
to be charitable, and in part because people are try ing to amass tax deductions as the year closes.

"Seventy percent of our budget comes in December, so we live by faith, or by hope," said the
Rev. Jim Antal, president of the Massachusetts conference of the United Church of Christ, which
is the state's largest Protestant denomination. Antal has summoned all clergy to a January
gathering for a brainstorming session about pastoring congregations during a downturn. "I can't
tell you what's going to happen," he said.

But even before the baskets are passed and the pledge envelopes opened, many religious leaders
are bracing for a difficult next year, when, they believe, unemployment is sure to rise.

"A lot is going to depend on December, because a lot of our pledges typically get paid by the end
of December because of the tax impact," said Barry Shrage, the president of Combined Jewish
Philanthropies. "And we're expecting a very difficult campaign [next year]. We know people are
losing jobs, and it's not necessarily people at the bottom end - it's people who are [major]
contributors."

Here in North Andover, the clergy decided not to wait to find out. St. Michael's is one of the
biggest success stories in the archdiocese - the fast-growing parish has 5,200 registered families,
average weekend attendance of 3,000, 2,000 children in religious education and another 520 at
the parochial school. Just a decade ago, the parish raised $10 million to build a new church with
stadium seating, and for the last 18 months parishioners have been laying the groundwork for the
project to demolish their old convent and replace it with a three-story pastoral center that would
provide space for 60 parish programs.


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But a few weeks ago the clergy here decided the economy has gotten so bad that they didn't feel
right asking their parishioners to pony up the multimillion-dollar tab. So they have shelved the
project, indefinitely.

"How can we ask them to pledge for three years, when they're losing their jobs and their stock
portfolios are poor?" said the Rev. John Delaney, one of the parish's priests. "Now is not the right
time to proceed."

For religious organizations, the nation's economic woes hit twice. The faith groups rely for
income on sources vulnerable to a downturn - contributions from individuals, income from
investments, and, in the case of faith-based social service organizations, funding from
government. But the faith groups also aspire to assist the hungry and homeless and unemployed,
meaning that during a recession their expenses go up even as their revenue may go down.

Multiple congregations and denominations are planning for things to get worse. Jewish
synagogues are reviving congregation-based job networks that were last used during the real
estate recession of the early 1990s, and the Episcopal Church is setting aside money to help
congregations that get into trouble.

Many organizations are also already cutting. The Catholic Diocese of Worcester has imposed new
restrictions on building projects. The Unitarian Universalist Association has put off planned
maintenance work on its Beacon Hill headquarters. The Archdiocese of Boston has been steadily
cutting staff. The Episcopal Diocese of Massachusetts has cut staff and spending. And religious
colleges are cutting too, including, most recently, Gordon-Conwell Theological Seminary, an
evangelical institution on the North Shore that announced Monday it was laying off employees
and reducing spending.

Many clergy believe that religious philanthropy, especially at the local level, tends to be more
resilient than other forms of charitable giving during a recession. But they note there is no exact
precedent for the current economic crisis, making forecasting the impact this time speculative.

"Perception and fear are a greater concern now than the real economic problem, and the
fear of things getting worse will probably dominate people's reaction," said Chuck Zech, a
professor of economics who studies church finances at the Villanova School of Business.

Zech said that denominations are being hit harder than congregations, because
denominations rely more on investment income, whereas congregations are mostly funded
by direct contributions. And he said that Catholic parishes are likely to suffer more than
Protestant congregations, because Catholic parishes tend to depend on weekly collections
that are affected by ups and downs in the economy, whereas Protestant churches tend to
rely on either pledges or tithing, which are often viewed as more of a commitment by
donors.

At the denominational level, everyone says they are taking a hit because of the impact of the
market on their endowments.

"We are exposed to the markets just like any other investor, so our endowment is down, our
retirement fund is down significantly, and we're the beneficiary of several outside trusts that are
down as well," said Tim Brennan, the treasurer of the Unitarian Universalist Association, which


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is based in Boston. "Everything is down these days, and that will affect future years - we will
have less resources to draw upon."

The revenue picture seems mixed. At the New England conference of the United Methodist
Church, revenues are down 8 percent from last year, said conference spokeswoman Alexx Wood.
Wood said some congregations are reporting increased giving, and says, "it's counterintuitive, but
history has shown that when times are tough, people respond with generosity."

The Roman Catholic Archdiocese of Boston expects giving to be "off a bit this year," but "we're
more concerned about next year than this," said archdiocesan Chancellor James P. McDonough.
Giving to parishes, he said, appears steady.

McDonough said Catholic organizations in Massachusetts, most of which invest their money
together, had some good fortune - because of a decision to replace some of the Catholic
investment pool's managers, an unusual amount of the holdings had been converted to cash just
before the market tanked. But the archdiocese has had several real estate deals fall through
because buyers couldn't get financing, McDonough said.

"Like everyone else, we've taken our lumps," he said. "But we're taking a very long-term view -
the church has been around for 2,000 years."

In the Jewish community, synagogue administrators are worried. "I'm hearing tremendous
concern," said Alan Teperow, executive director of the Synagogue Council of Massachusetts.
"People in congregational leadership are concerned about the livelihoods of their members, the
emotional well-being of their members and how that's going to affect them and their families, and
ultimately whether that might affect the synagogue itself if people are unable to pay their dues."

Multiple religious organizations say they are seeing significant increases in requests for assistance
at food pantries, soup kitchens, and social service organizations that provide employment, food,
or housing aid.

"Requests for help are up, no question," said Tiziana Dearing, the president of Catholic Charities
for the Archdiocese of Boston. Dearing said her organization is facing increased requests for
assistance; among its responses has been to add extra hours for its food pantry at its Yawkey
Center in Dorchester. Dearing said direct-mail fundraising is running higher than last year, and
that attendance and fund-raising events has held steady, but that state funding, which makes up
just over half of the organization's budget, is being cut. "At the big giver level, it's a little early to
tell, and our concern is corporate giving, because we have huge donors who have lost 30 to 40
percent of their portfolios this year."

Lutheran Social Services reports a significant increase in waiting lists for affordable housing that
the organization manages, and is also facing program cuts as a result of state budget problems,
according to Heather Feltman, the organization's chief executive. Feltman said her organization's
fund-raising is up this year, but, she adds cautiously, "so far."

The Church of Jesus Christ of Latter-day Saints provides a particularly direct barometer of
economic woes, because Mormons place a strong value on avoiding government assistance, and
try to help their own unemployed members rather than rely on welfare. Clayton Christensen, a top
Mormon official locally, said the church's funds for helping its own members "are already getting
taxed to the limit."

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"Unemployment is rising, and my personal bet is that we're going to see 15 percent
unemployment within a year," said Christensen, who in addition to his volunteer role with his
church is also a professor at Harvard Business School.




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DEC. 2


Newly Tenured ... at Emerson, UNLV, Villanova
The following individuals have recently been awarded tenure by their colleges:

Villanova University

         Vijay Gehlot, computing sciences
         Keith Henderston, geography and the environment
         John Kozup, marketing
         Sarvesh Kulkarni, electrical and computer engineering
         Jean Lutes, English
         Brian Ohta, chemistry
         Paul Rosier, history
         Deborah Schussler, education and human services
         Thomas Way, computing sciences
         Seth Whidden, modern languages and literature




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Tuesday, December 02. 2008

More Recruiting Woes
Thanks to the Uniform Accountancy Act, beginning in 2010 in New York and 2012 in
Pennsylvania, undergraduate accounting students will be required to complete 150 hours of
related course work before sitting for the CPA exam. In fact, legislation has made this effective in
most states.

So what, right?

Well, in New York, where the Big Four firms have their headquarters, this will dramatically
change the way recruiting and hiring is done.

The Big Four firms had hired students out of college before they passed the CPA exams with the
understanding that they would pass it the summer after graduation. Now most accounting
students will have to complete a fifth year as an undergraduate or go to graduate school to
meet the 150-hour requirement., according to Bob Bonner, dean of graduate programs at
the Villanova School of Business in Pennsylvania.

Since many undergraduate degrees do not typically include 150 hours of accepted
coursework, college students, according to Bonner, have two choices: 1) cram extra
accounting courses into their schedules on top of what is already required for their major or
2) apply for a graduate accounting program that will help them fulfill the requirement.

There might be some good with the annoying, though – many recruiters at accounting firms say
that they prefer students to take the grad school route, a choice that may bring in better bucks in
the long run. According to the National Association of State Boards of Accountancy, master’s
degree holders receive starting salaries that are approximately 10 to 20 percent higher than the
starting salaries of those with only bachelor’s degrees.

What do you think? Good idea or just plain annoying?




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By Anne Rosivach

New York and Pennsylvania have joined the 47 states and territories that already require 150
credit hours for CPA licensing. The latest state to mandate the change is Pennsylvania, where on
July 10 Governor Edward Rendell signed a bill amending the state's CPA law to require 150
credit hours and one year experience in public accounting for licensure. The education and
experience changes will go into effect as January 1, 2012.

In New York, where students will have to meet the 150 hour education requirement to sit for the
CPA exam as of August 1, 2009, students are deciding whether to take the exam before the end of
the Spring semester.

Universities in both states are expanding existing graduate programs or designing new pathways
to a master's degree to prepare for an expected increase in enrollment, and accounting firms are
adjusting their recruiting programs to help new hires meet the requirements.

Tim Boyle, Partner in Charge of Recruiting at KPMG in Philadelphia said that that the
new law creates the need to "think about how we can help." In a conversation with
AccountingWEB, Boyle emphasized the need to communicate about the firms' needs with
both students and the schools. At the same time, he says for the interim period, "It has
forced us to be creative and work with the students." He finds that regardless of the
requirements, more students want a graduate degree and are looking for a longer term
experience in public accounting.

The additional education requirement is not going to change the plans of many accounting
students, Brian Campo, a candidate for the Masters in Accounting (MAC) at Villanova
University in Philadelphia told AccountingWEB. "Accounting students today expect to go
on for a graduate degree. The degree sets you apart and shows a dedication to the field."

Villanova offers four programs that students can choose from to earn the 150 credits,
including a popular 4-1, 1-4 program where candidates for the MAC take four courses
during the summer after graduation, one distance learning course during both the fall and
spring semesters and then return for four courses the following summer. "Since most
accounting grads will not go to work until the September following graduation," Campo
said, "this program gives them the opportunity to get into the work force and begin earning
a salary with only one summer's interruption."

Some senior accounting majors at Canisius College in Rochester, New York will sit for the CPA
exam in the summer of 2009 rather than take another year of study, said Joe O'Donnell, chair of
the college's accounting department, according to the Rochester Business Journal. "They've taken
the approach, 'I want to beat the deadline'."

One New Yorker who plans to stay in school is Peter Loney, a forward on the men's basketball
team at Damaen College in Amherst, NY. "I planned to get a master's degree anyway," Loney

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says. "I think I'll definitely be more prepared with the 150-hour degree as opposed to the 120-
hour degree."

At Villanova, faculty and administrators are working hard to ease the transition for
students. "We are going into undergraduate courses, and the faculty are talking about it,"
Villanova's associate dean Bob Bonner told AccountingWEB. "Villanova has had graduate
accounting programs in place since 2000, but at the School of Business, we are continuing to
look at enhancements."

Bonner plans to meet with the larger firms in the Philadelphia area "who also have a vested
interest in making this transition," he says, to come up with solutions and ideas "so that the
students don't have to have the conversation." Villanova, which has a large number of
students entering as freshmen with advanced placement credits, is considering a range of
additional avenues to the 150 credits that could include a nine-month compressed program
for students who can begin their program in their senior year.

As coordinator of the advanced accounting courses at the Zicklin School of Business at Baruch
College of the City of New York, Associate Professor Donal Byard says he, "tried to make sure
that all instructors in these courses informed students early about the impending changes in the
requirements to sit for the CPA exam in New York," according to the school's news site, The
Ticker.com.

About 450 accounting majors graduate from Baruch each year preparing for the CPA exam.
According to the chair of the department, Professor Masako Darrough, the department is
proposing a revised program, that would allow for more flexibility for students pursuing the
major. The program that used to require 33 undergraduate credits to meet New York's current 124
hour requirement might require fewer credits if the proposal is put into action, allowing for extra
master's level classes.

A hallmark of Pennsylvania's new law, according to Governor Rendell, is that it permits
"increased CPA mobility to practice across state lines." Accounting graduates from Villanova
practice in New York and New Jersey, Bonner says, and the requirement is becoming standard.
Currently, only six jurisdictions do not have the 150 hour requirement in place: California,
Colorado, Delaware, New Hampshire, Vermont and the Virgin Islands.

Twenty-two states allow candidates to sit at 120 hrs, but require 150 for certification. They are:
AK, AZ, CT, FL, GA, HI, ID, IA, KY, MA, ME, MI, MN, MO, NC, ND, NJ, RI, SC, VA, and
WA. Pennsylvania can be added to this list, but the 150-hour is still optional until 2012.




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Last updated: December 17, 2008 09:57am
Fed Trims Key Rate to Zero
By Erika Morphy

WASHINGTON, DC-These are trying economic times in a modern economic environment, so it
is little surprise that the Federal Reserve Bank has taken unprecedented steps in trying to curb
calamity. The Fed decided to down-size the Federal Funds Rate from an already low 1% to
between 0.25% to zero.

The industry had been expecting a modest 25 or even 50 basis points trimmed away from this key
rate. Fed officials, including Fed chairman Ben Bernanke had been sending out mixed signals of
late over their intentions--promising on one hand to use all tools available, and then noting on the
other that the Federal Funds interest rate was dropping too low to be an effective recessionary-
fighting instrument.

Clearly, though, the “use all tools” school-of-thought won out with Tuesday’s decision by the
Federal Open Market Committee. Not only was the decision to cut the rate to this level
unanimous but FOMC all but said it would keep rates at this level for as long as necessary. We
anticipate “that weak economic conditions are likely to warrant [an] exceptionally low level of
the federal funds rate for some time,” it said in a prepared statement. Furthermore, it added, the
Federal Reserve will continue to consider ways of using its balance sheet to support credit
markets and economic activity.

Given that the Fed has already been fighting this recession very aggressively, it is difficult to
imagine what else it could do. It could focus more on quantitative easing, Peter Cohan, principal
with Peter Cohan & Assoc., tells GlobeSt.com. “Basically that means, [the Fed] next try to set
longer term interest rates-- the federal funds rate is short term. To do this they would essentially
flood the markets with longer term money.”

Like the cuts to the Federal Funds rate, though, Cohan says this would be pointless. “The Federal
Funds rate, after all, was hovering around 5% some 18 months ago. It has been steadily dropping
to zero, to little effect in the economy.”

Indeed, the commercial real estate industry has met each interest rate cut with a collective shrug.
The cuts have done little to affect and industry which has been grappling with a credit crunch for
the last 18 months. This time, though, might be different. Zero percent is essentially free money,
and that is bound to have an impact in the lending market.

It may well be that with money this cheap lenders will finally be inspired to begin lending again.
“A downward movement in the Fed Funds rate is meant to induce more 'risk-taking' on the
part of the lenders, because the returns on other assets become more attractive relative to a
risk-free return,” Villanova School of Business professor Scott Dressler, tells GlobeSt.com.

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With “the Fed funds rate rendered impotent--near zero--look for the Fed to attempt to
induce more 'risk-taking' on the part of the lenders using less traditional means.” An
example of this would be to pursue 'open-market operations' in more long-term Treasury
bill markets, he adds.

One tweak the Fed may try, advises James Clark, managing principal of EnTrust Realty Advisors,
of the Alter Group: Broadening the scope of businesses that may borrow from the Fed may have
the most significant impact. “Perhaps a little competition will encourage banks to start lending
again,” he tells GlobeSt.com.

Clearly something must happen for lending to jumpstart. The $250-billion infusion of capital into
the banking system earlier this year did not inspire banks to spread the wealth.

“We have one client right now with good credit," David Weisman, a commercial Real Estate
attorney at Greenspoon Marder, tells GlobeSt.com. "and the best he can find is from a smaller,
'maverick' lender who will give him 7.5% to 8%, regardless of how low prime is."




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Who Is Michelle Obama: Angry Black Woman or Supportive Spouse?
December 22, 2008
By Zayda Rivera

"The angry Black woman is a traditional stereotype of Black women in general," says
Quinetta Roberson, professor at the Villanova School of Business and co-author of Michelle
Obama: A Contemporary Analysis of Race and Gender Discrimination Through the Lens
of Title VII. "With Michelle Obama, that was the natural kind of default mechanism or the
go-to stereotype for a lot of people."

A seasoned lawyer and mother of two girls, Michelle Obama left a high-paying salary job as vice
president of University of Chicago Hospitals to support her husband on the campaign trail. Her
natural instinct was to support her husband at all costs. Whether it was her bold statement about
being proud of her country for the first time in her adult life or her candidness when talking about
her husband's shortcomings, the country was enamored with Michelle.

"I received a five-page e-mail talking about what she might wear to the inauguration,"
Roberson says. "During interviews, Michelle Obama was kidding her husband about habits
he has or things around the house and some people thought, 'How is she going to say that
about him on national TV?' But if you think about [Barack] saying '[Michelle is] my
partner, my best friend,' that's the way partners and best friends act. They will call you on
your stuff when you may not be doing the right thing and pat you on the back when you
do."

Make the judgment for yourself, but keep in mind that Michelle Obama's acceptance stems from
the most important judge of all--her husband, President-elect Barack Obama. In a recent
interview, he said: "She makes me laugh. When I told her I was nervous before a speech, she
looked at me and said, 'Well, listen: Don't screw it up!'"




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