Bob Jensen's thread on grade inflation are at  http://www.trinity.edu/rjensen/assess.htm#GradeInflation 

March 4, 2005 message from Groomer, S. Michael [groomer@indiana.edu] 

Hi Bob.

Question -- Are you aware of any courses being conducted that deal specifically with ethics implications for accountants/auditors. One of my Business Law colleagues ask me this question. Best I know, most of this kind of work occurs in UG Auditing or in a Master's level auditing course.

Hope all is well with you. Mike

Mike Groomer, Ph.D, CPA, CISA, CITP 
Professor of Accounting and Information Systems 
Kelley School of Business Indiana University 
1309 East 10th Street Bloomington, IN 47405-1701

March 5, 2005 answer from Bob Jensen

A lot depends upon what you mean by “courses.”  Courses can range from videos to CPE training to college course modules to college courses on ethics in auditing to onsite training courses.

For reactions of accounting education to the implosion of Andersen, I suggest beginning with the following modules:

Bob Jensen's threads on ethics and accounting education are at 
http://www.trinity.edu/rjensen/FraudProposedReforms.htm#AccountingEducation

The Saga of Auditor Professionalism and Independence  ---
http://www.trinity.edu/rjensen/fraud001.htm#Professionalism 

Incompetent and Corrupt Audits are Routine ---
http://www.trinity.edu/rjensen/FraudConclusion.htm#IncompetentAudits

Future of Auditing --- http://www.trinity.edu/rjensen/FraudConclusion.htm#FutureOfAuditing

See the Dean of Wharton speak out on ethics --- http://www.globalagendamagazine.com/2005/patrickharker.asp

Wharton has probably done as much or more than any school on adding ethics modules --- http://www.wharton.upenn.edu/undergrad/topschools.html

Here are a few other suggestions for your friend:

For college courses enter “Ethics in Auditing” in the second box and “University” in the top box (don’t use quotation marks) and see the many links of interest that emerge from http://www.google.com/advanced_search?hl=en

Since the implosion of Enron, the Institute of Internal Auditors has changed its offerings on ethics training --- http://www.theiia.org/index.cfm?doc_id=883

Although the courses don’t necessarily deal with auditing per se, I always suggest visiting http://www.cfenet.com/splash/

These is a great deal on changed relationships between auditors and audit committees:
AICPA Video Courses --- https://www.cpa2biz.com/Stores/cpevideocourses.htm
Audit Committee Responsibilities After Sarbanes-Oxley

VHS/Manual or DVD/Manual — Sample video clip available
Fraud and the Financial Statement Audit: Auditor Responsibilities Under New SAS
VHS/Manual or DVD/Manual — Sample video clip available

AICPA's Annual Business Law Update See http://www.aicpalearning.org/palpha.asp I recommend going over the entire alphabetical listing at http://www.aicpalearning.org/profdevclass.asp The AICPA will also do onsite training --- http://www.aicpalearning.org/profdevclass.asp

ABLU

CPE (sometimes auditing is only a module of the course)

http://www.passonline.com/default.aspx

 

http://www.affiliateprofit.net/accounting/8/ethics-in-accounting.html

Corporate Responsibility We Help You Create Corporate Social Responsibility Policies www.Unity-Partners.com

Ethical Corporation cutting edge news & analysis in global corporate responsibility www.ethicalcorp.com

Ethics Theory and Issues Save Money on Books. Buy For Less on eBay. Bid Now! www.eBay.com

Outside Accounting

Code of Medical Ethics The Authority on Medical Ethics. AMA' s Complete Guide for Doctors.  www.amapress.com

March 11, 2005 message from Ronald Kucic [rkucic@DU.EDU] 

We are considering dropping the use of the GMAT as a requirement for admissions to our 3/2 Master's of Accountancy program. We would replace the exam with a rigorous interview with a School of Accountancy appointed admissions committee that would consist of a cross-section of School of Accountancy faculty, College admissions staff, and possibly alumni.

I know that BYU no longer uses the GMAT as part of its 3/2 admissions process. Are there other schools of which people on this list are aware that no longer use the GMAT for admission to 3/2 accountancy programs? Unless there are others on the list who are interested in this topic, those who do know of such schools can respond to me privately at rkucic@du.edu.

Thank you for your assistance.

Regards,

A. Ronald Kucic, 
Director School of Accountancy 
Daniels College of Business 
University of Denver 
2101 S. University Blvd. #355
Denver, CO 80208

March 2, 2005 question from a student

Dr. Jensen,

What is the difference between a "forward contract" that qualifies as a derivative and a generic agreement to purchase something at a set price at a set rate at a set time? I thought the only requirements to be derivatives were 1) nominal 2) underlying and 3) a market mechanism that could net settle for cash. The reason I ask is because at SBC we have some contracts to pay a certain price for electricity in the future and I was under the impression that they qualified for derivative status because they fit into the aforementioned 3 categories. We have agreed to buy a certain number at a certain price at a given point in the future. Are those not necessarily foward contracts? Your email to Ms. Walsh seemed to suggest that her situation (which sounds very similar to this) might not count as a derivative. I ask because we were trying to decide whether to disclose the agreement in the financials. Also, does materiality factor into whether you have to disclose derivatives or is it a special case?

Thanks,

Andrew

March 3, 2005 reply from Bob Jensen

Hi Andrew,

The main difference lies in the “net settlement” requirement for a derivative.  If I have a forward contract net settles for cash then it’s a derivative.  If you must take delivery of the notional amount of commodity (or principal in the case of a bond), then it does not meet the test to be a derivative scoped into FAS 133.  Purchased options never have this problem, because an option can never force delivery.  Written options almost always net settle, but OTC options might be written to not allow net settlement.

There is a gray zone where FAS 133 says that it might be a derivative if the notional can be “readily converted into cash.”  Presumably this means that the conversion does not require that you actually take delivery of 25,000 bu. of corn on your front lawn.  You might be a broker who simply takes delivery on paper and then immediately transfers that delivery to some party that actually wants big loads of corn.

Your electricity example is interesting because it relates to a huge debate that power companies had over “bookouts.”  At first the FASB took a hard stand that bookout clauses in contracts made them derivatives scoped into FAS 133.  Then it took up the matter once again but did not settle it completely.  This was widely and vocally complained about in the power industry.  Eventually FAS 138 made some NPNS accommodation.  Look up the terms “bookout” and “Normal Purchase Normal Sale” at http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm

I’m going to share your message with the class, because it is a very interesting question.  I like questions like this.  It means you are thinking.  For the mid-term examination, I want students to study the term NPNS and to understand, in theory, why firms strive to achieve NPNS status.

Dr J

Put up or call up --- know the difference between buying an option versus writing an option

When students don’t quite understand why investors like to write options, you might show them this article.  You might then guide them to the special rules of accounting for written options after you carefully explain the risks of going naked

"Investment Options," by Justin Lahart, The Wall Street Journal, March 3, 2005; Page C1 --- http://online.wsj.com/article/0,,SB110979345697268538,00.html?mod=todays_us_money_and_investing 

Complaints along the lines of "there aren't many good investments anymore" have become as common as dirt.

High stock valuations, low long-term interest rates and small differentials in yields between corporate bonds and Treasurys: These are symptoms of a world where too much money is chasing too few ideas, and where investors' desperation to eke out a return has overtaken their desire to avoid risk.

A prime example of this complacency about risk comes from the options arena. Many investors use stock options, which grant the right to buy (in the case of a call) or sell (a put) a security at a set price, as insurance against a volatile market. The more worried they are, the more the insurance costs. These days that insurance costs very little -- the CBOE Market Volatility Index, which is based on the prices investors are paying for options on the Standard & Poor's 500-stock index, has been steadily falling.

What's more, many are selling options cheaply as a way to augment returns. An investor who owns Microsoft stock, but doesn't expect the shares to advance by much over the next few months, could sell options that give buyers the right to purchase Microsoft for $30 (versus yesterday's $25.26) by June. If Microsoft isn't over $30 on the expiration day, the options expire worthless and the investor has pocketed the money he got from selling the option.

But investors aren't just selling options that expire in the next few months cheaply. In their eagerness for income right now, they are selling options that don't expire for nearly two years for far too little, says Whitney Tilson of the hedge fund T2 Partners. This, he thinks, creates a big opportunity.

A call option giving the right to buy Anheuser-Busch for $50 a share in January 2007 costs $3.50. Shares of the brewer closed yesterday at $47.58. If they advance beyond $53.50 -- $50 plus the price of the option -- in just under two years, the option will pay off. At $54, the option pays off 14%; at $55, it pays off 43%.

For value-minded investors, these options represent a better alternative than buying shares of the company, says Mr. Tilson. His strategy: Buy long-dated call options in Anheuser-Busch and other companies with proven track records, but because the options give such an outsize return if all goes well, invest much less money than he would if he were buying the underlying stock.

"We obviously expect the stock to do well, but if we're wrong, we've tied up very little capital," Mr. Tilson says.

There are special accounting rules for written options as opposed to purchased options.  Scroll down to the phrase "Written Option" at http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#W-Terms 

Moral Philosophy

March 1, 2005 message from Jagdish Gangolly [JGangolly@UAMAIL.ALBANY.EDU] 

Why use second hand stuff?

I would go to the originals, most of which are FREE.

Some examples:

1. Nicomachean Ethics, By Aristotle, Translated by W. D. Ross http://classics.mit.edu/Aristotle/nicomachaen.html

(Ross translation is the best I have read; always on my bookshelf, one of my precious possessions)

2. Eudemian Ethics, Books I, II, and VIII (Second Edition), Aristotle Edited and translated with a commentary by Michael Woods http://www.oup.com/us/catalog/general/subject/Philosophy/History/Ancient/?ci

=0198240201&view=usa

(Much neglected work, among his earliest works.

1 and 2 were really Aristotle's lecture notes;

makes me wonder to what lows we have sunk). Not free

3.a. History of the Peloponnesian War (Great Minds Series)

by Thucydides, Benjamin Jowett  --- http://snipurl.com/PeloponisianWar 

(If I were to be banished to a lonely island and I was allowed to take just one book, this would be it). Not free, but I would pay its weight in gold if I had to. One of my most precious possessions.

3.b. The History of the Peloponnesian War, Translated by Richard Crawley http://classics.mit.edu/Thucydides/pelopwar.html

Free, but I would pay a hefty price for the Jowett translation.

4. Any Jowett translation of Plato (even after all these years, I read them whenenever I can). Jowett translations are my favourite. Even today I could not improve them by virtually changing even a single word) Free. One of my most precious possessions. http://classics.mit.edu/Browse/browse-Plato.html

5. THE CRITIQUE OF PRACTICAL REASON, by Immanuel Kant http://eserver.org/philosophy/kant/critique-of-practical-reaso.txt

A lesser known sibling of 'Critique of Pure Reason'. I read it again and again from time to time.

I also would use Sophocles's trilogy. Also Dickens, Rousseau's 'Emile',... The important thing is not to make an ethics course in the image of a run-of-the-mill Intermediate Financial Accounting course. It puts tremendous burden on the instructor, but I can not even conceive of a better way to spend a semester.

I know it is a tall order these days asking students to read works of all these "dead white men". But it will be their loss (and as academics, our loss) if they don't. It is irrelevant whether one is studying to be an accountant, a farmer, rocket scientist, or a brain surgeon. It is reading works like these that make one a better human being.

Respectfully submitted,

Jagdish

Jagdish S. Gangolly, Associate Professor
School of Business & NY State Center for Information Forensics & Assurance 
State University of New York at Albany BA 365C, 1400 Washington Avenue, Albany, NY 12222
email: j.gangolly@albany.edu 

March 1, 2005 reply from Bob Jensen

You might check out the Picola Project as a potential model for applying for grants and helping accountants around the world.  This model would be great if it were extended beyond communities and into accountancy --- http://communityconnections.heinz.cmu.edu/picola/index.html 

When it comes to the academic side of ethics, I always say begin with CMU philosophy professor Robert Cavelier.

He shares some course references at http://caae.phil.cmu.edu/CAAE/webmats.htm
Some of his fantastic course materials are linked on the left side of the page at http://caae.phil.cmu.edu/Cavalier/80130/  

Part I History of Ethics

Preface: The Life of Socrates
Section 1: Greek Moral Philosophy
Section 2: Hellenistic and Roman Ethics
Section 3: Early Christian Ethics
Section 4: Modern Moral Philosophy
Section 5: 20th Century Analytic Moral Philosophy

Part II Concepts and Problems

Preface: Meta-ethics, Normative Ethics and Applied Ethics
Section 1: Ethical Relativism
Section 2: Ethical Egoism
Section 3: Utilitarian Theories
Section 4: Deontological Theories
Section 5: Virtue Ethics
Section 6: Liberal Rights and Communitarian Theories
Section 7: Ethics of Care
Section 8: Case-based Moral Reasoning
Section 9: Moral Pluralism

Part III Applied Ethics

Preface: The Field of Applied Ethics
Section 1: The Topic of Euthanasia
Multimedia Module: A Right to Die? The Dax Cowart Case
Section 2: The Topic of Abortion
Multimedia Module: The Issue of Abortion in America
Postscript: Conflict Resolution

Note that his update materials appear to be buried in a CMU Blackboard server.  I suspect Dr. Cavelier would share the updates if it was for a good cause.  

March 1, 2005 message from Glen L Gray [glen.gray@CSUN.EDU] 

When did the Internet start being called the "Internet?" I know what we now call the Internet was created in 1969, but was it called the Internet then? I believe it was first called ARPANet, reflecting the funding agency. NSFNet was used to reflect the subsequent NSF funding. 

Glen L. Gray, PhD, CPA 
Accounting & Information Systems, 
COBAE California State University, Northridge Northridge, CA 91330-8372 
http://www.csun.edu/~vcact00f 

March 2, 2005 reply from Bob Jensen

You can read the following under "Internet" at http://www.trinity.edu/rjensen/245gloss.htm 

1974 Bob Kahn and Vint Cerf refer to the term "Internet" for the first time on their notes regarding Transmission Control Protocol http://www.bangla.net/isp/tech_support/internet-timeline.html 

The "official definition" came out long after the term Internet became commonly used --- http://www.itrd.gov/fnc/Internet_res.html 

I've got all the symptoms
In the early '90s, psychiatrists and clinicians were beginning to hear of a new medical term, "internet addiction." At first, this was met with a lot of skepticism and denial, however, it became evident that the more people logged on to cyberspace, the more they got hooked.The 10 Symptoms You Need To Watch Out For:
AskMen.com --- http://www.askmen.com/fashion/body_and_mind/16_better_living.html 

"Add Even More Muscle to “What-If” Analyses (in Excel)," by James A. Weisel, Journal of Accountancy, March 2005, pp. 76-79 --- http://www.aicpa.org/pubs/jofa/mar2005/weisel.htm 

This is the second of two articles on how to use Excel to conduct powerful business analyses.  Follow along as I demonstrate how Scenario PivotTable can make your analysis of even the most complex what-if projects more efficient and effective. In part 1, “Add Muscle to What-If Analyses” (see JofA, Sept.04, page 38), we demonstrated the basic techniques for managing multiple what-if versions using Excel’s Scenario Manager. To illustrate the process, we started with a model budget for a fictitious business, PQR Co. (exhibit 1) and created a series of five scenarios with varying sales growth rates, cost-of-sales growth rates and advertising expenditures . . . 

Egads!  Is this what you call filling in where schools fail?
The College Board will administer its revised college-admissions test to thousands of high-school juniors for the first time on Saturday, and the test has generated a bonanza of new study aids. "The new SAT has led to a flurry of new products because all publishers are starting new -- there's a new thing to compete over," says Justin Kestler, a founder of SparkNotes LLC, a division of Borders Group Inc.  Adds Jon Zeitlin, manager of college-prep programs for Kaplan Inc., a unit of Washington Post Co.: "We've been on a product-creation jag for months."  Test-prep giant Princeton Review Inc., which isn't affiliated with Princeton University, has developed software that delivers test questions, including critical-reading passages, to cellphone screens -- then grades the answers and sends the results home to Mom and Dad. Its chief competitor Kaplan has software for a cellphone or a Palm device: Order up easy, medium or hard questions in reading, writing or math.  Texas Instruments Inc. is programming all of its latest graphing calculators with SAT math and vocabulary drills. And SparkNotes has its test-prep eye on the ubiquitous iPod. "We're trying to figure out how to do it in audio," says Mr. Kestler. "It's the next big killer application."
June Kronholz, "To Tackle New SAT, Perhaps You Need A New Study Device:  Test-Prep CDs, Puzzles, Cellphone Software Hit A June Market of Nonreaders," The Wall Street Journal, March 8. 2005, Page A1  --- http://online.wsj.com/article/0,,SB111024562510773081,00.html?mod=todays_us_page_one 

Jensen Comment
College admission tests serve many purposes, not the least of which is to guide students into what to learn in school.  One of the failings of our schools and the college tests is the failure to test and motivate students toward understanding personal finance.  Why is this important?  Personal finances are a major cause of suicide and divorce.  Sometimes I don't think teachers really are concerned about the tragedies of life that affect nearly all people later in life from the very poor to the very rich.  Our graduates mess of their lives because they mess up their personal finances and/or allow themselves to be screwed by credit card companies, finance companies, brokers, financial advisors, and banks (yes and banks).

Please read the following:
"Survey: Students Not Taught Basic Finance," Ben Feller, SmartPros, March 7, 2005 --- http://accounting.smartpros.com/x47289.xml 

And then look at the following:

March 4, 2005 message from a staff member at Trinity University

Think of the many people whose lives might be saved and whose marriages might be more successful if they understood the basics of who to keep out of digging themselves into financial holes and how to stop digging once they're in those holes.

Bob Jensen's threads on the dirty tricks of credit card companies are at http://www.trinity.edu/rjensen/FraudReporting.htm#FICO 

"Survey: Students Not Taught Basic Finance," Ben Feller, SmartPros, March 7, 2005 --- http://accounting.smartpros.com/x47289.xml 

WASHINGTON, March 7, 2005 (Associated Press) — More states are requiring students to learn about managing money, but personal finance remains a fringe topic in schools and a major source of federal concern.

--------------------------------------------------------------------------------

Seven states mandate that students take a course about basic finances to graduate high school, according to 2004 survey results released Thursday by the private National Council on Economic Education. That's up from 2002, when just four states required such courses.

In the standards they set for schools, most states say they want money matters to be taught - 38 states include the ideas of saving, investing, risk management and other finance themes in their standards or guidelines, an increase from 31 states two years earlier. But the survey found many states don't enforce the standards, let alone require entire courses.

"There is more good economic and financial education being offered in schools than ever," said Robert Duvall, president of the national council, which released its findings during an economic literacy summit. "But as a subject area, it continues to be marginalized as an add-on in an already crowded curriculum. We need to keep pushing to make it part of the core."

Poor understanding of personal finance can cause more than a sloppy checkbook. As young people rack up credit debt or fail to save money, they can later find themselves with bankruptcies, home foreclosures and financial stresses that divide families, experts say.

The problem of bad money management is drawing more national attention as a public education issue. Federal Reserve Chairman Alan Greenspan has prodded schools to help teach kids financial literacy so they are not saddled by poor financial decisions as adults.

The Financial Literacy and Education Commission, which represents 20 federal agencies and commissions, is working on ways to help people navigate complex money decisions.

In a national survey last year, only 52 percent of high school seniors answered correctly questions about personal finance and economics. The students struggled, for example, with questions on income tax, stocks and bonds, credit card liability and retirement plans.

The new report says that the seven states requiring students to take a personal finance course are Alabama, Georgia, Idaho, Illinois, Kentucky, New York and Utah.

Relying on colleges to teach students about money is not a good approach, Duvall said, as many kids don't get that far, and college courses are more about theory than daily life.

Duvall's council wants all states to require an economics course, including personal finance. A total of 15 states require an economics course this year, up from 14 two years ago.

States can also reinforce economic themes in other courses, such as a math class on compound interest or a history class on the Boston Tea Party and taxation, Duvall said.

William Walstad, director of the National Center for Research in Economic Education, said states should unite those varied lessons in a well-defined sequence of courses - just as they do with math and science. He said advocates need to lobby with more urgency and unity.

"Time can hurt us if we don't keep pressing the case," Walstad said.

The number of states that included personal finance in their curriculum standards dropped from 40 to 31 between 2000 and 2002 before rebounding in the new survey.

Duvall said that was a reaction by states to No Child Left Behind, the 2001 federal education law that put a greater emphasis on state math and reading progress.

"We've had a couple of years to take that in stride and figure out how to not only put a rightful emphasis on language arts and mathematics, but also financial literacy," he said.

Bob Jensen's threads on credit card frauds are at http://www.trinity.edu/rjensen/FraudReporting.htm#FICO 

I agree with the habit of spending within one’s means.  But there still is a question of stupid spending within one’s means.  For example, should families really spend extra for an entirely new car even if they can make the payments?  And do they understand the car’s financing --- http://www.trinity.edu/rjensen/FraudDealers.htm 

Free credit report offers seem to flood the Internet these days. Most companies claiming to give you a free credit report are really looking to sell you something in the long run, such as a credit monitoring service or identity-fraud protection.

So, stop surfing around online for a free credit report, most of the offers you will find are not really free. If you do not qualify for a free credit report, you are still better going straight to the actual credit bureaus and just paying the $8 that a credit report costs. Knowing what your credit file says about you is priceless.
"Free Credit Report Offers... Are They Really Free? - Consumer Alert," AccountingWeb, March 3, 2005 ---  http://www.accountingweb.com/item/100593 

Free credit report offers seem to flood the Internet these days. Most companies claiming to give you a free credit report are really looking to sell you something in the long run, such as a credit monitoring service or identity-fraud protection. Once you purchase the service, you will be given a copy of your credit report, usually from just one of the major credit bureaus. Since there are three major credit reporting agencies (Experian, Transunion, and Equifax), you will not see the complete picture if you do not receive a report from each one.

Other websites that sell credit reports are resellers for the real credit bureaus and exist to make a profit. Some of these websites are very useful if you intend to pay, and are very convenient as a centralized place to obtain a 3-in-1 report with a personalized account that you can return to at anytime to order more reports; however, you will not receive anything for free.

Under the Fair Credit Reporting Act of 1970 you are entitled to a free credit report if your application for credit, insurance or employment is denied because of information provided by a credit reporting agency (CRA). The company that you applied to must provide you with a denial notice which will contain the name, address, and phone number of the CRA that was used. You must request your report within 60 days of receiving the notice of the action. In addition, you are entitled to one free report a year if (1) you are unemployed and plan to look for a job within 60 days, (2) you are on welfare, or (3) your report is inaccurate because of fraud.

Residents of Colorado, Georgia, Maine, Massachusetts, Maryland, New Jersey and Vermont already have a right to one free report per bureau each year because of laws enacted by those states. However, a new Federal provision enacted in 2003, grants access to free credit reports to all consumers in every state.

Free Annual Credit Reports Available to Everyone

According to the Fair and Accurate Credit Transactions Act of 2003, every consumer is entitled to one free credit report each year. The final rule on this Act issued by the Federal Trade Commission in June 2004, provides for a centralized source from which consumers can obtain their credit reports from each of the three credit bureaus.

The centralized source is becoming available in cumulative stages, over a period of nine months, rolling-out from west. The rollout began in December 2004 and will be complete by September 1, 2005. Western states (Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming) became eligible on December 1, 2004;

Midwestern states (Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin) will become eligible on March 1, 2005; Southern states (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas ) will become eligible on June 1, 2005; Eastern states (Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia), Puerto Rico, and all U.S. territories will become eligible on September 1, 2005.

So, stop surfing around online for a free credit report, most of the offers you will find are not really free. If you do not qualify for a free credit report, you are still better going straight to the actual credit bureaus and just paying the $8 that a credit report costs. Knowing what your credit file says about you is priceless.

To my accounting theory students:  I probably won't examine you on this one, but you might find it of interest.

Karen Richardson, "Swapping Rates to Save on Debt ... Maybe:  Rice Financial Products Offers Cities, States Deal Rife With Benefits, Risks," The Wall Street Journal,  March 15, 2005; Page C3 --- http://online.wsj.com/article/0,,SB111083206224878924,00.html?mod=todays_us_money_and_investing 

Officials in Durham, N.C., hope that a financial transaction with a private New York firm will save the city millions of dollars on its municipal debt.

But some say the deal -- an interest-rate swap with a formula that multiplies the city's potential savings as well as its potential losses -- may contain costly risk.

"They're entering into a gamble where they believe they're going to win more money than they're going to lose," says Robert Whaley, professor of finance and a derivatives expert at Duke University in Durham. "It's just speculation."

The Synthetic Fixed-Rate Refinancing Swap, as it is known, was created by Rice Financial Products Co., which has sold such deals in at least five states. It would work like this in Durham: On existing debt of $103 million, Durham would pay Rice Financial a still-to-be negotiated fixed interest rate over 15 years while Rice Financial would pay Durham a rate that is about 0.9 percentage point greater, plus a so-called adjustment factor. Rice Financial has said the deal could save the city $8 million.

"This proposal is so complex ... that I don't know that there are 30 or 40 people in this entire state who can fully comprehend it," says Eugene Brown, a Durham city councilman who has been lobbying against the swap.

"What you really want to focus on is the all-in cost of funds," says Donald Rice, founder and chief executive of Rice Financial.

The adjustment factor is based on a combination of the Bond Market Association (BMA) benchmark index rate for tax-exempt bonds and the taxable London interbank offered rate, or Libor. Supply and demand, credit risk, tax policy, interest rates and different maturities can result in unpredictable swings in that relationship. "Understanding the dynamics of how these two rates behave in relationship to one another is not an easy task," says Prof. Whaley

The formula effectively "magnifies both potential benefits and risks" by 1.54 times, according to an analysis of the swap structure by Public Financial Management in Philadelphia, Durham's financial adviser. The firm approved the deal but recommended that the city budget the expected savings conservatively.

Rice Financial made an "unsolicited proposal" to Durham City in August after it sold a similar swap to Durham County, says Kenneth Pennoyer, the city's director of finance. Prior to meeting with Rice Financial, he says, the city hadn't been contemplating any sort of swap because most of its bonds outstanding pay a fixed interest rate.

"There's a potential savings for the city, and I think that's a worthwhile goal in itself," Mr. Pennoyer says. He is confident that a final city-council vote April 18 will approve the deal since a commission of the state treasurer has approved it and Standard & Poor's Ratings Services recently gave it its highest rating for this type of transaction.

Mr. Rice is a Harvard Business School graduate who started structuring municipal interest-rate swaps at Merrill Lynch & Co. nearly 20 years ago. He says his company has executed more than $20 billion in swaps since its establishment in 1994. "There may be a circumstance where our transaction causes dis-savings, but it requires a substantial market move ... one that's unparalleled," says Mr. Rice.

Interest-rate swaps aren't new to the municipal-bond markets, but their use has grown over the past three years. As interest rates fell to record lows, municipal issuers were looking for ways to trim costs without issuing more bonds. But with interest rates rising, fixed-rate issuers betting on a formula involving two floating rates and a multiplier effect seems imprudent to some.

"Often the political pressures are such that ... when [potential benefits] are couched in terms of 'savings,' the risk is that people are doing things they don't understand," says Mike Marz, vice chairman of First Southwest Co. in Dallas. First Southwest has advised North Carolina finance officials against using the Rice Financial swap.

Mr. Rice declined to discuss his company's compensation from the swaps, except to say that issuers' financial advisers were responsible for negotiating rates that were "fair value" in the market. On average, municipal-swap deals generate fees of 0.05% to 0.10% of the deal for bankers. Durham City's Mr. Pennoyer said Rice Financial's compensation on the $103 million swap was in the ballpark of about $800,000, or 0.8%.

In 2003 the West Basin Municipal Water District in California sued its financial adviser, P.G. Corbin & Co., in California state court, alleging it gave faulty advice in deeming a Rice Financial swap in 2001 a "fair market transaction."

A spokesman for West Basin said he didn't know the status of the case. Lawyers representing P.G. Corbin didn't return phone calls seeking comment.

Separately, this month a West Basin official was sentenced in U.S. court in California to two years in prison for extorting $25,000 from a consultant at M.R. Beal & Co., then a partner of Rice Financial, to steer the water district's debt-refinancing contract in Rice Financial's favor.

"The well-publicized events among certain of West Basin's board members are unfortunate," Mr. Rice said. "Nonetheless, we are pleased with the products and services we have provided West Basin over the years and value them as a customer."

From The Wall Street Journal Accounting Weekly Review on March 18, 2005

TITLE: Swapping Rates to Save on Debt...Maybe 
REPORTER: Karen Richardson 
DATE: Mar 14, 2005 
PAGE: C3 
LINK: http://online.wsj.com/article/0,,SB111083206224878924,00.html  
TOPICS: Advanced Financial Accounting, Derivatives, Governmental Accounting

SUMMARY: The city of Durham, NC., has entered into an unusual interest rate swap created by Rice Financial Products, Co. A Duke university finance professor, Robert Whaley, describes the transaction as speculative.

QUESTIONS: 
1.) What are the features of a standard interest rate swap? What is unusual about the interest rate swap discussed in this article?

2.) Why might a governmental entity want to engage in an interest rate swap transaction? Answer this question with reference to the current state of interest rates and the terms of the Durham, N.C. debt described in the article.

3.) Why does Duke University Professor of Finance Robert Whaley call this transaction "just speculation"?

4.) How does the assessment that this interest rate swap is speculative potentially affect the accounting for the swap?

Reviewed By: Judy Beckman, University of Rhode Island

The practice of selling high risk derivative instruments products just goes on and on in spite of the enormous scandals of the past --- http://www.trinity.edu/rjensen/fraudrotten.htm#DerivativesFrauds 

You can read more about interest rate swaps by scrolling down at http://www.trinity.edu/rjensen/acct5341/speakers/133glosf.htm#I-Terms 

Particularly important is understanding Examples 2 and 5 of Appendix B of FAS 133 and how to value interest rate swaps --- http://www.trinity.edu/rjensen/acct5341/speakers/133swapvalue.htm 

Bob Jensen's tutorials on FAS 133 and IAS 39 accounting are at http://www.trinity.edu/rjensen/caseans/000index.htm 

Forwarded by Don Mathis
A Write Shop --- http://www.awriteshop.com/e_reading.html 
Many links to free books and other readings online.

Bob Jensen's links to electronic books are at http://www.trinity.edu/rjensen/searchh.htm#ElectronicBooks 

Fannie Mae is a great source for students learning about breakdown of internal controls

From The Wall Street Journal Accounting Weekly Review on March 11, 2005

TITLE: Fannie Regulator Tightens Its Grip 
REPORTER: James R. Hagerty 
DATE: Mar 09, 2005 
PAGE: A3 
LINK: http://online.wsj.com/article/0,,SB111030895766973673,00.html  
TOPICS: Accounting, Information Technology, Internal Auditing, Internal Controls, Regulation

SUMMARY: "Fannie Mae's regulator told the mortgage company to fix 'deficiencies' in accounting-ledger and corporate-records controls. The new requirements include policies bhannien falsified signatures on journal entries and limiting employees' ability to alter databases." The internal control framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) is used as a basis for questions. For those instructors who wish to refer their students to the executive summary for this framework, it is available on the web at http://www.coso.org/Publications/executive_summary_integrated_framework.htm The Institute for Internal Auditors publishes a checklist developed by COSO which is available on the web at

http://www.theiia.org/?doc_id=374 

QUESTIONS: 1.) Define internal control and provide a proper reference to your source for that definition.

2.) What is COSO? Who or what comprises the members of COSO?

3.) What professional documents identify the basis for sound internal controls? Who establishes these standards?

4.) What internal control violations are highlighted in this article? Name each and describe the component of control being violated, based on COSO's five components of internal control.

5.) How does automation, and technical staff access to databases, add to issues inherent in systems of internal control?

6.) Compare the discussion of internal controls in the main article to the related article. How are the issues in the main article regarding internal controls consistent with problems that are identified in the related article as the basis for denying hedge accounting treatment for derivatives?

7.) Refer to the comparison made in answer to question 6. What general category or categories of internal control do you think were ultimately violated at Fannie Mae? Do you think this violation stems from the internal control environment at Fannie Mae? Support your answer.

Reviewed By: Judy Beckman, University of Rhode Island

--- RELATED ARTICLES --- 
TITLE: Fannie Faces Billions in New Losses 
REPORTER: Jonathan Weil and James R. Hagerty 
PAGE: A3 
ISSUE: Mar 03, 2005 
LINK: http://online.wsj.com/article/0,,SB110980084894668645,00.html 

"Fannie Mae Is Cited for 'Deficiencies':  Regulator Sets Conditions To Correct Internal Controls; Office of Compliance Created," by James R. Hagerty, The Wall Street Journal, March 9, 2005; Page A3 --- http://online.wsj.com/article/0,,SB111030895766973673,00.html 

Fannie Mae's regulator announced that it has instructed the mortgage company to correct "deficiencies" in its controls over accounting ledgers and other corporate records.

The new requirements include the adoption of policies banning falsified signatures on accounting journal entries and limiting employees' ability to alter database records.

The latest move by the regulator -- the Office of Federal Housing Enterprise Oversight, or Ofheo -- illustrates its tightening grip on Fannie in light of an accounting scandal that emerged last year.

Fannie's board also agreed to create an "office of compliance and ethics" and to direct the company's general counsel to inform directors and regulators of "actual or possible misconduct" at the company.

The directions to the company's board and management are included in an agreement with the regulator, signed by Fannie Mae's interim chairman, Stephen B. Ashley, and released by Ofheo yesterday. The specificity of the agreement suggests that Ofheo has found examples of Fannie employees flouting some basic standards of conduct.

An Ofheo spokeswoman declined to say whether such wrongdoing had been found but said the regulator continues to work closely with the Justice Department and the Securities and Exchange Commission in investigating Fannie's accounting and internal controls.

Rep. Richard H. Baker (R., La.), chairman of a House subcommittee that oversees Fannie and its smaller rival, Freddie Mac, said the agreement "raises many disturbing questions, especially about tampering with records, and we need to know the nature of the records and the extent of this outrageous practice." He scheduled a hearing for April 5 to look into the matter.

Mr. Ashley said in a statement that the agreement "represents the next step in Fannie Mae's cooperative effort to address issues raised by Ofheo." A spokesman declined to elaborate.

At a minimum, Fannie seems to have allowed "extreme sloppiness" in its internal controls, said Karen Petrou, a managing partner at Federal Financial Analytics Inc., a research firm in Washington.

The new agreement supplements one imposed on Fannie last September by Ofheo in the wake of findings that Fannie violated accounting rules in an attempt to smooth out fluctuations in its earnings. Those findings, backed by the SEC's chief accountant, prompted Fannie's board in December to oust the company's chief executive officer and chief financial officer.

Until recently, Fannie had the political clout to brush off concerns raised by Ofheo, but the accounting scandal has forced the company to seek a far more cooperative relationship with its regulator.

Among other things, the agreement requires Fannie to devise a plan for rectifying "deficiencies" in procedures for making and revising accounting journal entries. Those entries must be "supported by appropriate documentation," the agreement says.

In addition, Fannie agreed to "adopt appropriate internal controls" on any "overwriting" of database records by technical-support employees at the direction of management to make changes or corrections. Those changes would have to be properly documented.

The agreement also notes that Fannie's board has separated the functions of chairman and chief executive, formerly both held by Franklin D. Raines, who was forced to step down in December. Under Mr. Raines, Fannie resisted Ofheo's proposal for a regulation that would, among other things, require that the two jobs be held by different people. That proposed regulation has been held up for months by a review at the Office of Management and Budget; one person familiar with the situation said the Bush administration was reluctant to set policy on whether companies should combine the two functions. But Ofheo now has used its growing clout to persuade both Fannie and Freddie to separate the jobs, even without a regulation.

The new requirements come as Fannie is preparing to restate its results for the past four years and racing to meet a Sept. 30 deadline to raise additional capital, as previously mandated by Ofheo.

Fannie and Freddie were chartered by Congress to provide funding for mortgage lenders. Although they are instruments of U.S. housing policy, they are owned by shareholders and their shares are listed on the New York Stock Exchange.

Small Business Helpers from Smart Stops on the Web, Journal of Accountancy, March 2005 --- http://www.aicpa.org/pubs/jofa/mar2005/news_web.htm 

Food for Thought
www.businessownersideacafe.com
“A fun approach to serious business” is the tag line here, with lively graphics and laid-back narrative that punch up its material. The Small Biz Tax Center helps clarify IRS tax and recordkeeping requirements and gives tips for start-up business owners. The CyberSchmooz “lobby” opens onto message forums on e-commerce, marketing and working at home. The Your Biz section includes a “fridge” full of business forms, e-mail protocols, marketing tips and even yoga instructions.

Small Company, Big Resources
www.allbusiness.com
From forms for consulting and confidentiality agreements to advice on sales and marketing or using the Internet, this Web stop offers guidance to CPAs who advise start-ups and small businesses. The Business Plans section has articles such as “Common Business Plan Mistakes for Startup Companies,” while the Small Business Advice section provides tax basics. Users also can tap into an FAQ section or a business glossary or sign up for a free e-newsletter.

A Dear Abby for Small Business
www.score.org
Since first listed here in June 2003, this site has added resources to its Business Toolbox section including a gallery of downloadable templates for bank loan applications, business plans and sales forecasts, as well as expanded links to such small business topics as finance, franchising and international trade. The Learning Center has a list of tips for business planning, marketing, public relations and office management.

Bob Jensen's small business helpers are at http://www.trinity.edu/rjensen/bookbob1.htm#SmallBusiness 

History of the word "gay" --- http://en.wikipedia.org/wiki/Gay 

March 4, 2005 message from Ethical Performance [list_admin@ethicalperformance.com] 

As someone with an interest in corporate social responsibility, I thought you would like to know that Ethical Performance has expanded its online service to include news and analysis directly from the Asia-Pacific region.

The online version of the independent business newsletter on corporate social responsibility and socially responsible investment now offers news from 29 Asia-Pacific countries at http://www.ethicalperformance.com

Ethical Performance Online also includes a detailed list of links to companies, consultancies, investors, civil society groups and other organizations in the region that are playing a key role in CSR and SRI.

March 3, 2005 message from Carolyn Kotlas [kotlas@email.unc.edu] 

ENCOURAGING FACULTY ADOPTION OF TECHNOLOGY FOR TEACHING

"Some universities, some faculty, and even some students have increased their personal wealth by asserting ownership of the intellectual property created at the university. For many faculty, however, this new entrepreneurial orientation runs deeply counter to traditions of education and public service. Past campus debates about aspects of this cultural shift have created an environment of distrust and rancor." In a recent article Brian C. Donohue and Linda Howe-Steiger express their belief that this distrust has "spilled over into faculty attitudes toward the use of digital technologies for teaching" causing faculty to reject these technologies. This situation can be remedied if institutions "create incentives for faculty that balance public service goals with professional and entrepreneurial rewards, clarify ownership and usage rights of intellectual property generated by and for teaching, and generate additional funding for curriculum development at universities (possibly through tax credits)." They expand upon how to accomplish this in "Faculty and Administrators Collaborating for E-Learning Courseware" (EDUCAUSE QUARTERLY, vol. 28, no. 1, 2005, pp. 20-32). The article is available online, at no cost, at http://www.educause.edu/apps/eq/eqm05/eqm0513.asp .

EDUCAUSE Quarterly, The IT Practitioner's Journal [ISSN 1528-5324] is published by EDUCAUSE, 4772 Walnut Street, Suite 206, Boulder, CO 80301-2538 USA. Current and past issues are available online at http://www.educause.edu/eq/ .

Bob Jensen's threads on education technology are at http://www.trinity.edu/rjensen/000aaa/0000start.htm 

---

WHAT LEADS TO ACHIEVING SUCCESS IN DISTANCE EDUCATION?

"Achieving Success in Internet-Supported Learning in Higher Education," released February 1, 2005, reports on the study of distance education conducted by the Alliance for Higher Education Competitiveness (A-HEC). A-HEC surveyed 21 colleges and universities to "uncover best practices in achieving success with the use of the Internet in higher education." Some of the questions asked by the study included:

"Why do institutions move online? Are there particular conditions under which e-Learning will be successful?"

"What is the role of leadership and by whom? What level of investment or commitment is necessary for success?"

"How do institutions evaluate and measure success?"

"What are the most important and successful factors for student support and faculty support?"

"Where do institutions get stuck? What are the key challenges?"

The complete report is available online, at no cost, at http://www.a-hec.org/e-learning_study.html.

The "core focus" of the nonprofit Alliance for Higher Education Competitiveness (A-HEC) "is on communicating how higher education leaders are creating positive change by crystallizing their mission, offering more effective academic programs, defining their role in society, and putting in place balanced accountability measures." For more information, go to http://www.a-hec.org/ . Individual membership in A-HEC is free.

Bob Jensen's threads on assessment are at http://www.trinity.edu/rjensen/assess.htm 

---

MAKING THE CASE FOR A WIKI

The Wiki.org site defines a Wiki as "the simplest online database that could possibly work." It is a "piece of server software that allows users to freely create and edit Web page content using any Web browser. Wiki supports hyperlinks and has a simple text syntax for creating new pages and crosslinks between internal pages on the fly." Some uses of Wikis in education include collaborative writing projects, discussion forums, project spaces/libraries, and interdisciplinary projects.

In "Making the Case for a Wiki" (ARIADNE, issue 42, January 2005) Emma Tonkin explains what a Wiki is and how to choose and deploy a Wiki implementation. The article is available online at http://www.ariadne.ac.uk/issue42/tonkin/ .

Ariadne is published every three months by the UK Office for Library and Information Networking (UKOLN). Its purpose is "to report on information service developments and information networking issues worldwide, keeping the busy practitioner abreast of current digital library initiatives." For more information, contact: Richard Waller, Editor; email: ariadne@ukoln.ac.uk ; Web: http://www.ariadne.ac.uk/ 

Bob Jensen's Wiki threads are at http://www.trinity.edu/~rjensen/245glosf.htm#Wiki 

"Smart Startups Don't Wait to Set Up Accounting Systems," by Marguerite Rigoglioso in a review of a a study by Antonio Davila and George Foster, Stanford University Graduate School of Business Alumni Newsletter, February 2005 --- http://www.gsb.stanford.edu/news/research/entrep_davila_foster_acctgsystems.shtml  

The question of when to set up management control systems such as financial planning and monitoring tools haunts most entrepreneurs involved in startup operations. Until recently, there was little research on the topic, but a new study by Antonio Davila, assistant professor of accounting, and George Foster, the Paul L. and Phyllis Wattis Professor of Management, explores this area.

Davila and Foster studied 78 companies in a variety of technical and non-technical industries, each less than 10 years old. They found firms that acted quickly to institute formal mechanisms such as operation budgets, cash budgets, and financial monitoring systems (tools that measure profitability, customer acquisition costs, variance from actual budget, and so forth) had higher growth rates in terms of revenues and head count. They also had greater and more rapid increases in valuation at successive rounds of venture capital funding.

"Control systems are critical for providing executives with data they can use for their managerial decision making," says Foster. "We can't prove whether growth pushes the adoption of management systems, or whether the adoption of management systems pushes growth, but clearly both are occurring. Larger companies are more complex and need the discipline that such systems can bring. At the same time, it's generally true that managers of early-stage companies are unlikely to predict accurately exactly when growth will occur. Therefore, because significant growth does tend to happen within a year of their establishing management accounting systems, it's likely that these systems anticipate and fuel growth, as well."

Because information about internal decision making regarding management systems generally is not available publicly, the researchers used questionnaires and interviews to glean valuable data about company practices from some 200 startup executives. They found that young companies begin with few management systems in place. These firms tend to institute financial planning systems such as operational budgets on average 1.48 years after the company founding, with cash budgets following quickly. Financial monitoring systems come much later—on average three or more years after founding. Still other systems, such as product development, partnership, and marketing control, come even later.

"Management systems are the foundation for growth," says Davila. "As an executive in one of the companies we worked with described it, 'management by personality' only works up to a certain point. After that, you need to put systems in place."

One key factor driving the timing of when financial management systems are adopted is when a chief financial officer is hired, according to Davila and Foster. "We call this the 'import-in' approach to establishing control systems," says Foster. "Companies look for what's missing in their organization and hire people who have skills in those areas. Bringing on a senior financial officer typically fast tracks establishing financial planning and monitoring systems. It's generally more effective and economical than trying to create something from scratch within an organization."

The study also reveals that venture capital-backed companies tend to establish operating and cash budgets sooner than individually funded startups. "Often managers want to be sure that the funding will not be abused, so they are eager to set up controls as soon as they can," Foster says. "VCs also understand the importance of good financial management and encourage the use of these systems." Companies with more experienced CEOs adopt planning systems earlier than those with greener leaders at the helm, as well. "More experienced executives recognize the importance of formalized decision-making mechanisms and are quicker to implement them," he says.

Continued in article

"The Shape of Tech This Year," Business Week, January 11, 2005 --- http://snipurl.com/ShapeOfTech 

Certainly, plenty of excitement surrounds consumer technologies like liquid crystal and plasma TVs and wireless technologies like Wi-Fi. But for every high hope, there's a gloomy forecast of weak corporate spending and merger failures or continuing price pressure from China.

This much is known: After nearly three years of declines, 2004 was a ray of hope for tech. Business spending on technology was up, somewhere in the range of 5%. Venture capitalists started taking entrepreneurs to lunch once again. Tech employment picked up, despite competition from international outsourcing outfits. And tech stocks outpaced the rest of the stock market.

PLUSES AND MINUSES. 
Will those happy trends continue this year? Well, tech spending should keep pace with 2004. VCs look like they're ready to put money behind the young turks they've been lunching. The high-price products coming from the convergence of consumer electronics and the tech industry look like they're about to lose the ugly "high-price" moniker. Wi-Fi is about to go from cool-to-have to must-have.

But worries remain. While tech companies are hiring again, they don't seem particularly eager to increase wages. Many economists are concerned that tech salaries will stay flat or even drop this year. Either way, they certainly won't keep up with the cost of living. Meanwhile, investors happy about the software industry's merger mania may get a rude awakening: These deals may look great on paper, but they're awfully hard to pull off for a whole bunch of reasons, ranging from cultural to technical.

Most of all, investors fear that the stocks of tech bellwethers like Microsoft (MSFT ), Cisco (CSCO ), and Intel (INTC ) may take a big hit. After all, these companies have enjoyed premium share prices over the years because they were considered "growth" stocks -- companies that expand far faster than the rest of the economy.

FROM WALL ST. TO CHINA. 
Now that the tech industry is so big and these companies have such dominant shares of their particularly industries, it may be unrealistic to expect them to keep the growth pace of their younger days.

Maturity. It's not a bad thing. But it sure will take a lot of getting used to.

In this special report, BusinessWeek Online predicts seven big trends for the coming year. We'll explain why tech bellwethers may have a tough year on Wall Street, why venture capitalists are showing some moxie and investing in new ideas, and why Wi-Fi will soon be found in places unimaginable just a year or two ago. We'll look at tech employment trends, salivate at the likely prospect of big price drops for high-tech TVs, cast a wary eye toward software mergers, and count the ways China is having a big impact on the semiconductor industry.

Continued in article

Yet another hit on women
Why so few women chess masters? America's top female player ponders the question.
But Ms. Polgar is not someone who sees the two sexes as the same. "I think women are built differently and approach life very differently," she told me. And in a 2002 column for ChessCafe.com, she took on what might now be called the Lawrence Summers question. "If we talk about pure abilities and skills, I believe there should be no reason why women cannot play as well as men," Ms. Polgar wrote, but she went on to list various reasons that more female players have not reached chess's highest ranks -- among them their biological clocks, narrower opportunities to compete, cultural and gender bias, and the fact that "for years, women have set much lower standards" for themselves in chess than men. "If you do not put in the same work, you can't compete at the same level," she said then
Barbara D. Phillips, "Envoy From the Sport of Kings And Queens, Bishops, Knights," The Wall Street Journal, March 1, 2005; Page D9 --- http://online.wsj.com/article/0,,SB110964485701166720,00.html?mod=opinion&ojcontent=otep 

Susan Polgar's book "A World Champion's Guide to Chess," co-written by Paul Truong, will be released March 8 by Random House Puzzles & Games, and a book on chess tactics is scheduled for 2006. Her instructional DVD series will be available later this year. Yet another book, her "Breaking Through: How the Polgar Sisters Changed the Game of Chess," also co-written by Mr. Truong, is due out from Everyman Chess in May. And in June all three Polgar sisters will appear at the Las Vegas International Chess Festival.

Susan, who speaks seven languages, now sees herself as an ambassador for chess in America. Study after study has "shown that children who are exposed to the game are ahead of their peers who are not involved with the royal game. Chess is a wonderful tool to increase concentration, self-control, patience, imagination, creativity, logical thinking and many more important and useful life skills," she says.

Her Polgar Chess Center welcomes players of all ages, from tots to retirees. This queen of chess says the center, which opened in 1997 and moved to its current location in a ground-floor apartment on Queens Boulevard in Forest Hills last year, is the "only full-fledged chess club in New York," operating seven days a week. She lectures there on Thursday nights.

Two years ago, she founded her nonprofit Susan Polgar Foundation to promote chess to young people nationwide, with a special focus on girls. This year, more than 3,000 of them will participate in regional qualifying events for the second Susan Polgar National Invitational for Girls. The University of Texas at Dallas will award a full four-year scholarship to the highest finishing player who has not yet graduated from high school when the tournament is held in Phoenix this August. She also is looking for support, both from donations and from politicians, for her foundation's Excel Through Chess program, which aims to introduce chess to every child in every school to help them do better in their studies and in life.

And if that isn't enough to keep Ms. Polgar occupied, she writes regular columns not only for ChessCafe.com but for Chess Life magazine.

Looking back, she says one of her biggest disappointments in the sport was in 1986. After qualifying for the Men's World Championship, the first woman -- girl, really -- ever to do so, she was not allowed to participate. But Zsuzsa (as Susan is also known) persevered and would have her share of victories. They included "breaking the gender barrier and becoming the first woman to ever earn the overall (men's) International Grandmaster title. Winning 10 medals in the Chess Olympiad, with five gold, four silver and one bronze. Winning four Women's World Championships and being the only World Champion, male or female, to win the triple crown in chess -- World Blitz, usually each player has five minutes for the entire game; Rapid Championship, usually 25 minutes for each player per game; and Classical Chess Championship, where the games usually last six to seven hours. The reason this is so special is because it is like winning the 100-meter dash, 800-meter race and marathon, or winning tennis on all three surfaces....Most players are good at one and not at the others."

And her latest victory? "After a more than eight-year break from international competition, I made a triumphant return to the Chess Olympiad, this time representing the U.S." That was in October of last year, when she picked up four of those 10 shiny objects in her collection. "I am proud to win the first-ever medals for our Women's Chess team -- two gold and two silver."

Did I mention that just before that, in Lindsborg, Kan., she tied seven-time World Champion Anatoly Karpov in "The Clash of the Titans," which was the first officially sanctioned match between a male and female World Champion?

Some of her clashes have mixed the bitter with the sweet. In 1999, FIDE stripped Ms. Polgar of her classical Women's World Championship title in a dispute over the timing, location and purse of the event in which she was to defend her 1996 crown. She calls it "a bitter moment in my life." But the feisty player fought back, suing FIDE. In September 2001, she won a $25,000 judgment from the International Court of Sports Arbitration in Switzerland. "Basically, I got the minimal monetary compensation, which I consider like a moral victory, because the courts take so long that by the time they decided, it was too late...by then they had another World Championship."

She had planned to take some time off from international competition to focus on her family, anyway, but "the break would not have been that long if I had had a chance to defend my title at the time," she says. "Then it would have been just two, three years. That was really the problem. They wouldn't let me defend my title and I got kind of upset."

Ms. Polgar says her comeback at the 2004 Olympiad in Spain "was fun." And she flew home to Forest Hills expecting the mainstream American press to be buzzing about Team USA's strong showing and her own return to the chess limelight. Instead, she was greeted with near silence. But if anyone can raise the profile of American chess -- and women in chess -- it is Susan Polgar, the self-appointed envoy from the sport of kings and queens, bishops, knights, rooks and pawns.

Continued in article

National Cancer Institute --- http://cancer.gov/ 

"Encouragement, not gender, key to success in science," by Janet L. Holmgren and Linda Basch, Carnegie Perspectives, March 2005 --- http://www.carnegiefoundation.org/perspectives/ 

This month's commentary was written by the chair of Carnegie's Board of Trustees, Mills College President Janet Holmgren, and Linda Basch, president of the National Council for Research on Women.

Harvard President Lawrence Summers' observations that women may be under-represented among scientists because of "innate differences" between the genders have already generated a good deal of discussion. This Perspective, published previously in the San Francisco Chronicle, offers information from NCRW's 2001 report on the participation of women and girls in the sciences and calls for a more "constructive discourse" around this serious problem.

Dictionary of Canadian Biography Online ---  http://www.biographi.ca/EN/index.html 

From The Wall Street Journal Weekly Accounting Review on March 4, 2005

TITLE: Executives Find Restricted Stock Pays Dividends from the Get-Go 
REPORTER: Phyllis Plitch 
DATE: Feb 28, 2005 
PAGE: C3 
LINK: http://online.wsj.com/article/0,,SB110955473657465520,00.html  
TOPICS: Compensation, Disclosure Requirements, Dividends, Financial Accounting, Accounting

SUMMARY: While "restricted stock generally requires continued employment...[and] employees don't have ownership rights on the shares until several years after they are awarded...executives are getting paid dividends on their restricted stock before it has vested." Disclosures of executive compensation often exclude these dividend payments.

QUESTIONS: 
1.) What is restricted stock? Why is restricted stock used as a form of executive compensation?

2.) What does the author say companies indicate as reasons for paying dividends on restricted stock?

3.) How is it possible that executives may receive dividends on stocks they never end up owning?

4.) Paul Hodgson, a researcher in executive compensation, estimates that some companies reinvest the dividends for executives holding restricted stock. How does this alleviate the concerns raised in this article?

5.) Prepare summary journal entries, without dollar amounts, made by companies that award dividends on restricted stock and then require the dividends to be reinvested.

6.) Compare the results of the transactions described in question 6 to the results of a stock dividend, explaining both similarities and differences. Do you think that these two transactions are perceived differently by stockholders?

7.) As stated in the article, ""Dividends are additional compensation and should be disclosed as exactly that.'" Are dividends on restricted stock paid to executives included in compensation expense in the income statement? Support your answer.

8.) What disclosures are required regarding dividend payments? How can analysts and investors "crunch the numbers" using these disclosures to determine dividends received by executives on restricted stock if disclosure of that amount is not made under compensation disclosures?

Reviewed By: Judy Beckman, University of Rhode Island

"Executives Find Restricted Stock Pays Dividends From the Get-Go," by Phyllis Plitch, The Wall Street Journal, February 28, 2005, Page C3 --- http://online.wsj.com/article/0,,SB110955473657465520,00.html 

Here's a deal any investor would love: You receive dividends on stock you may never own.

Sound far-fetched? That is exactly what is happening for many executives reaping dividend payments on restricted stock, a popular form of compensation.

Restricted stock generally requires continued employment, and most forms are so-called time-vested shares, meaning the employees don't have ownership rights on the shares until several years after they are awarded. But in many cases executives are getting paid dividends on their restricted stock before it has vested.

What critics find vexing is that investors can find this information only in the footnotes of securities filings. Even then, they have to numbers-crunch to figure out how much executives are getting from the arrangement, which can amount to hundreds of thousands of dollars.

Take Altria Group Inc. Chairman and Chief Executive Louis C. Camilleri. The tobacco company last year raised its quarterly dividend to 73 cents from 68 cents. Mr. Camilleri, in turn, earned more than $1.5 million in dividends on 450,000 unvested restricted shares held at the end of 2003 and an additional 125,000-share tranche granted in January 2004. The company declined to comment.

In footnoting the explanation that dividends are paid on unvested shares -- and not breaking out the exact dollar amount -- companies say they are adhering to disclosure rules, because nothing more is explicitly required. But questions about dividend disclosures are coming to the surface as the Securities and Exchange Commission considers requiring companies to be more open about compensation.

Alan Beller, who heads the SEC's division of corporation finance, recently issued a stark warning to companies that even current rules require them to include in proxies all compensation for the highest-paid executives.

"Restricted shares are pure compensation," says Paul Hodgson, senior research associate in executive and board compensation at the Corporate Library, a corporate-governance research firm that often takes a hard line on compensation. "Dividends are additional compensation and should be disclosed as exactly that."

Companies paying the dividend generally declined to comment on the rationale behind the practice. Several stressed that executives have to pay taxes on the dividends at their ordinary tax rate. But because an executive could leave before these shares vest, "it's better to defer the dividends until vesting," says Ira Kay, national director of compensation consulting at Watson Wyatt Worldwide.

Mr. Hodgson estimates that 90% of U.S. publicly traded companies award dividends on restricted stock, with 85% of those awarding the payments at the time the regular dividend is paid and the remaining 15% reinvesting the dividends.

Bob Jensen's threads on compensation are at http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm 

Center for Applied Linguistics --- http://www.cal.org/ 

Why Business People Speak Like Idiots
Here's the kind of guff that we've all had about enough of (and if you've already had more than enough, feel free to skip ahead): "Technological innovation, globalization, complex regulation and increased accountability at the senior management and board level have all combined to significantly change the landscape of risk management today. To help address these issues, our security professionals deliver services to address the various elements of security and trust associated with communicating, transacting and accessing in this environment."
Why Business People Speak Like Idiots (Free Press, 175 pages, $22) aims to put prose like that -- especially the spoken version of it -- out of its misery. Good idea.
Barbara Wallraff, "Assessing the Parameters Of Issue-Driven Discourse," The Wall Street Journal, March 1, 2005, Page D9 --- http://online.wsj.com/article/0,,SB110964096311766617,00.html?mod=opinion&ojcontent=otep 

The authors -- Brian Fugere, Chelsea Hardaway and Jon Warshawsky -- positioned themselves to write this book by developing software called Bullfighter in 2003, when all three worked at Deloitte Consulting. The computer program scoured business documents for snippets of unlovely jargon and suggested plain-English replacements. More of a gizmo than a killer app, Bullfighter was nonetheless a hit.

But business jargon, like a flu virus, keeps mutating. It's not enough to zap "bleeding edge," "frictionless," "results-driven" and other such words and phrases, one by one. The real goal is to avoid jargon instinctively, in the moment. Software can't help with this. To achieve the larger goal, you have to use your head. Another good idea.

So, the book's argument goes, if you can avoid four "traps" -- being obscure, being anonymous, overpromising and being tedious -- you'll knock 'em dead. "Why Business People Speak Like Idiots" follows its own advice. It's blunt, lively and chockablock with personality.

A sidebar in the "Tedium Trap" section is headed: "And This Is Interesting Because?" A chapter title in the "Anonymity Trap" section reads: "Pick Up the Damn Phone." A brief, ironic discussion of "The Secret Magic Miracle Cure Answer" leads into the final, summing-up chapter, which promises: "There is an amazing opportunity for you to rise above your peers, further your career, sell your ideas, and get what you want just by being yourself."

Hmmm. Can we talk about that last claim? If only it were so easy. If only speaking like a brilliant person, or giving a presentation like one, were as easy as this book wants us to believe. One problem is that to follow the book's advice you have to be a certain kind of person, someone a lot like the authors themselves -- breezy, confident, quick on your feet and more prone to swearing than anyone in this newspaper is allowed to be. It also helps to be enthusiastic about your subject.

But if you aren't naturally breezy, confident and enthusiastic, there doesn't seem to be much you can do about it. Referring to all of us, the authors observe: "On the weekend, we take off the corporate mask and speak in a real, compelling voice. And people listen." They suggest we follow such a course in the office as well. Is it possible, however, that the reason people listen to us on the weekend is that we're not talking about work?

Then, too, suppose you are breezy, confident, etc. Forgive me, but just having that personality style doesn't make you competent. The authors urge people to apologize when they fall short. Richard Clarke famously did, the authors note ("Your government failed you...and I failed you"), and so did Warren Buffett ("I was dead wrong"). We love these guys for such candor. But do we really want to hear heartfelt apologies from our boss, our colleagues, our assistants, our consultants, the IT department, the receptionist, the cleaning staff and the man who delivers lunch? Not me. I want them to have nothing much to apologize for because they do their jobs right.

Ultimately, "Why Business People Speak Like Idiots" has it backward. In my experience, the commonest problem with business language is that it tells you more about the speaker (or writer) than that person intended to share. People don't necessarily think things through or feel unconflicted enthusiasm for what they're working on. Not everyone has a personality with broad appeal. Not everyone knows what he's doing. A speaker's failure to convey his true essence is rarely the problem. More often the problem is the speaker's essence itself or else an uneasy relationship between that essence and the business at hand.

The problem with the "guff" at the start of this review, for instance, is that it's glib, fluffy and even dopey, no? ("To help address these issues, our security professionals deliver services to address the various elements of security...." Aw, c'mon!) As it happens, the example comes from the Web site of Deloitte Consulting, where two of the three authors still work.

Continued in article

March 2, 2005 message from Barbara Scofield [scofield@GSM.UDALLAS.EDU] 

I am in the midst of changing my teaching materials for Intermediate Accounting for share-based compensation for the new rules of SFAS 123R, and I need feedback on what FASB means by valuing stock appreciation rights at fair value. I don't see that the standard ever actually says that SARs have the same fair value as equivalent stock options (although I may have missed comments confirming or disconfirming this in the 250+ pages), but that is my conclusion at this time.

I'm having students download free options value calculators for this unit and have linked to http://www.trader-soft.com/download.html . Any evaluation of this calculator or suggestions for another source?

March 2, 2005 reply from Bob Jensen

Hi Barbara,

Valuation of SARs --- http://www.nceo.org/library/phantom_stock.html

So from the time the grant is made until the award is paid out, the company records the value of the percentage of the promised shares or increase in the value of the shares, pro-rated over the term of the award. In each year, the value is adjusted to reflect the additional pro-rata share of the award the employee has earned, plus or minus any adjustments to value arising from the rise of fall in share price. Unlike accounting for variable award stock options, where a charge is amortized only over a vesting period, with phantom stock and SARs, the charge builds up during the vesting period, then after vesting all additional stock price increases are taken as they occur. when the vesting is triggered by a performance event, such as a profit target. In this case, the company must estimate the expected amount earned based on progress towards the target. The accounting treatment is more complicated if the vesting occurs gradually. Now each tranche of vested awards is treated as a separate award. Appreciation is allocated to each award pro-rata to time over which it is earned.

 

*********************

Option Value Calculator Dangers

You probably can use an options value calculator in your course. However, keep in mind the following (with respect to the Black-Scholes model) that appears at http://www.trinity.edu/rjensen/theory/sfas123/jensen01.htm

But then the BS model doesn't work too well anyway since employees tend to value uncapped options much lower than BS model estimates (mostly out of fear that their options will tank). They will accordingly reduce their estimates of value even lower if the options have caps. I leave it up to you to explain to students why options with seven year expiration dates have lower value than traditional ten year dates, which in turn will result in higher corporate earnings per share if seven year expirations are used. Hint: It all has to do with that time value component of option value.

"Stock-Option Plans Get Revised to Meet New Rule," by Linlling Wei, The Wall Street Journal, December 30, 2004, Page C3 --- http://online.wsj.com/article/0,,SB110435344663812226,00.html?mod=todays_us_money_and_investing

Companies are giving their stock-option plans makeovers.

In preparation for an accounting mandate that they treat employee stock options as an expense, companies are slashing option grants, replacing garden-variety options with various forms of stock compensation or tweaking the features of standard options.

"Most companies are looking at 'what are the alternatives?' " said Judy Thorp, national partner in charge of the compensation and benefits practice at KPMG.

One move under consideration, pay specialists say, is to cap the potential gain an employee or an executive can get from cashing in options. Tech Data Corp., for instance, already has won shareholder approval to issue such "maximum-value" stock options. Applera Corp. recently asked shareholders to vote on a similar proposal. Officials at both companies weren't available for comment.

A cap can make options less costly to companies than traditional options. It also "eliminates a concern of some investors that the open-ended nature of a traditional option could result in windfall gains for employees or executives," said Carl Weinberg, a compensation expert in the human-resources practice at PricewaterhouseCoopers.

Stock options give recipients the right to buy their companies' shares at a fixed price within a certain period. They pay off only if the stock price rises, unlike stock grants that companies have long had to count as expenses. Employees, compensation experts say, tend to exercise their options well before the rights expire, which typically occurs 10 years after the grant date.

Stock options grew in popularity during the 1990s. About 14 million American workers -- or 13% of the work force in the private sector -- hold options, according to professors at Rutgers University and Harvard University.

Under the new Financial Accounting Standards Board rule, companies will have to deduct the value of stock options from profits, beginning in mid-2005. The options are valued when they are issued, and companies spread the cost out over the vesting period. Technology companies -- heavy issuers of options -- could continue to lobby Congress to derail the rule, but analysts see little chance of congressional intervention.

Some companies, including Exxon Mobil Corp. and insurer Progressive Corp., have stopped granting stock options altogether. Instead, they make grants of restricted stock, or shares that recipients can't sell for a set period. Because they provide a more certain payoff, companies usually can dole out fewer such shares. It is also easier for companies to value these shares.

Other companies, like SBC Communications Inc., are turning to stock grants that are paid out only when specific financial or operational targets are met. Shareholders favor such "performance shares" as a way to align compensation more closely with investors' interests. Microsoft Corp. has decided to give its top 600 managers shares tied to the company's performance.

Shareholders of Intel Corp., meanwhile, have approved a new option plan that, among other changes, requires employees to exercise options in seven years instead of 10. At aluminum company Alcoa Inc., new stock options will have a six-year lifespan instead of 10 years. Options with shorter lives have a lower value.

Bob Jensen

Part of a message received from a friend on March 1, 2005

Dear XXXXX

Thank you for your email, and for your consideration of our request to support PAA. The alumni association does receive a percentage of the total amount of charges submitted by our alumni who use the card. We are precluded by contractual arrangements from disclosing the percentages or amount but I can tell you that this is a significant revenue source for the alumni association.

The revenue from this program is used in a variety of ways to support the programs and services offered to our alumni and members. These funds help support our outreach efforts such as alumni clubs, student recruitment events, Purdue on the Road events. In addition these funds help support the Faculty Incentive Grant program to assist in faculty development, Diversity Grants to support diverse programming efforts and Legacy events that highlight Purdue students whose parents are graduates of Purdue as well.

In addition to the financial support is another way to market Purdue throughout the world. Every time someone pulls the card out of their wallet they are marketing Purdue for us.

I am more than happy to answer any further questions you might have and thank you for your email. It is very important for our alumni to be informed about our programs and I appreciate your thoughtful questions.

Best wishes,

Todd

YYYYY
Purdue University

Jensen Comment
One of my friends forwarded the above message.  It reflects what is commonplace now among alumni associations of colleges.  These associations promote a particular credit card company and receive revenue for this service on purchases of alumni and students.  I suspect it is not unethical as long as alumni and students are aware of all facts in the situation.  The letter above does not mention that alumni associations generally forward more than names and addresses to credit card companies and possibly other vendors.  I have some concerns when they forward social security numbers without express written consent for alumni.  I also have concerns when alumni are not aware of how or who is receiving confidential information from alumni associations.

I have written previously about this general practice at http://www.trinity.edu/rjensen/FraudReporting.htm#FICO 
I think the credit card companies want the social security numbers of all alumni and students so that FICO ratings can be investigated before inviting an alumnus or student to apply for a University of ZZZZZ  credit card.

Invasive Plant Atlas of New England http://invasives.eeb.uconn.edu/ipane/ 

March 16, 2005 message from Barry Rice [BRice@LOYOLA.EDU] 

I received this from a former student and would appreciate suggestions for answering him.

Thanks, 

Barry Rice 
AECM List Owner 

Hi Professor Rice... 
I took an accounting class of yours several years ago to get into the MSF program at Loyola. I work on the fixed income side of wealth management here at Mercantile. I have always struggled with accounting and one of my new duties is to track cash flows and market values for some accounts. Is there a mutual fund accounting text book (or something similar) that might be able to help me? The more specific to fixed income the better. Any assistance you could give me would be great. Thanks for your help...

March 16, 2005 reply from Bob Jensen

Hi Barry,

I don't know of any textbook that does a good job on mutual fund accounting.

This is a tough topic because it is so hard to get at some of the elements needed for accounting. For example expense ratios are easy to obtain but brokerage fees sometimes buried and hard to find. I recommend starting with the SEC's mutual fund cost calculator --- http://www.sec.gov/investor/tools/mfcc/mfcc-int.htm 

It is important to understand how mutual funds work. A pretty good overview is at http://biz.yahoo.com/funds/basics.html 

For the broader picture, go to http://dir.yahoo.com/business_and_economy/finance_and_investment/mutual_funds/ 

One of the best known software packages is Captool Professional Investor (free demo available) --- http://www.wallstreetsoftware.com/newindex.html 

Tax accounting overview --- http://registeredrep.com/mag/finance_tax_crazy/ 

A summary of various software systems is available at http://www.finance-links.net/s_mutual-fund-accounting-software.html 

Although this is not an accounting article per se, there is quite a lot of useful information related to basic accounting of mutual fund investments at http://www.worldbank.org/html/dec/Publications/Workpapers/wps2000series/wps2099/wps2099.pdf  
The snipped link is http://snipurl.com/WorldBankMF 

Trust accounting DVD --- http://www.picturecompany.com/Trusts/tableContents.htm 

Bill Cogdell's tidbits of investing advice --- http://www.midland.edu/cogdell/setb.html 

"Accounting Firms Hiring Thousands of '05 Grads," SmartPros, February 23, 2005 --- http://accounting.smartpros.com/x47148.xml 

Feb. 23, 2005 (SmartPros) — The job market for 2005 college graduates is predicted to be the best since 2000, according to Michigan State University's annual Recruiting Trends survey. The top employers include several accounting and consulting firms.

The survey respondents are ranked according to the projected number of hires from college recruiting for the Class of 2005. The top 20 employers, followed by their projected number of hires, are:

1 - Enterprise Rent-A-Car--7,000 
2 - PricewaterhouseCoopers--3,170
3 - Ernst & Young LLP--2,900 
4 - Lockheed Martin--2,863 
5 - KPMG--2,240 
6 - Sodexho, Inc.--2,050 
7 - Fairfax County Public Schools--1,600 
8 - Accenture--1,540 
9 - Northrop Grumman--1,266 
10 - United States Customs & Border Protection--1,200 
11 - Target--1,127 
12 - United States Air Force--1,095 
13 - Raytheon Company--1,000 
14 - Microsoft--970 
15 - JPMorgan Chase--810 
16 - Procter & Gamble--569 
17 - Liberty Mutual--545 
18 - Grant Thornton--500 
19 - Bank of America--413 
20 - United States Air Force Personnel Center/DPKR--400

According to the survey, economic sectors showing strength this year include: retail, wholesale, transportation (not including airlines), health services, entertainment and real estate.

February 28, 2005 reply from Jagdish Gangolly [JGangolly@UAMAIL.ALBANY.EDU] 

Bob,

One can describe the reason for Accenture's needs for accountants in ONE word: outsourcing.

The following is from www.accenture.com  webpage:

Outsourcing

Application Outsourcing 

Business Process Outsourcing Accenture Finance Solutions-Accenture HR Services-Accenture

 Learning-Accenture Procurement Solutions-Accenture Business Services for Utilities-Accenture eDemocracy Services-Navitaire-Accenture Insurance Services 

Infrastructure Outsourcing

Jagdish S. Gangolly, 
Associate Professor 
School of Business & NY State Center for Information Forensics & Assurance 
State University of New York at Albany BA 365C, 
1400 Washington Avenue, Albany, NY 12222 
email: j.gangolly@albany.edu 

March 1, 2005 messages from Bob Jensen and Chuck Johnson

I hope Professor Johnson doesn’t mind if I share this with you. I suspect this is partly conjecture on his part, but it is somewhat more than conjecture. His reasoning makes sense to me. Apparently Enterprise has a different business model than other car rental firms.

There may be some fast food chains with similar models.

Note that he also points out a possible error in defining what is an “accounting graduate.” This also makes sense to me, although Enterprise may have requirements for more accounting courses than the average business graduate. I might add that this could be the case for some of the other non-accounting firms in the list of the Top 20.

Bob Jensen

-----Original Message----- 
From: Kenneth Johnson [mailto:kjohnson@GeorgiaSouthern.edu]  
Sent: Tuesday, March 01, 2005 10:25 AM 
To: Jensen, Robert 
Subject: Re: Accounting Firms Hiring Thousands

Bob,

FYI, EnterpriesRent-a-Car's hiring of so many college graduates is driven by the firm's basic business model. Enterprise has thousands of small offices. When business volume at a particular location reaches a certain point a new office is created a few miles away. The way I understand it, each new hire does everything, from: taking reservations, serving customers, picking up and dropping off customers, and even washing cars. Their favorite hire is a graduate of modest academic achievement but with lots of extracurricular activities and good people skills. I learned all of this from a strategic management textbook I taught out of a few years ago; Enterprise was a side-bar mini-case.

BTW, the way I read it, the 7,000 figure cited in the 2000 Michigan State University's annual Recruiting Trends survey was total college graduates, not just accountants.

Thanks for the constant stream of interesting stuff.

Chuck Johnson

Bob Jensen's threads on accounting careers are at http://www.trinity.edu/rjensen/bookbob1.htm#careers  

Quotations of the Week
Archives of Tidits:  Tidbits Directory --- http://www.trinity.edu/rjensen/TidbitsDirectory.htm

Yet another hit on women
Why so few women chess masters? America's top female player ponders the question.
But Ms. Polgar is not someone who sees the two sexes as the same. "I think women are built differently and approach life very differently," she told me. And in a 2002 column for ChessCafe.com, she took on what might now be called the Lawrence Summers question. "If we talk about pure abilities and skills, I believe there should be no reason why women cannot play as well as men," Ms. Polgar wrote, but she went on to list various reasons that more female players have not reached chess's highest ranks -- among them their biological clocks, narrower opportunities to compete, cultural and gender bias, and the fact that "for years, women have set much lower standards" for themselves in chess than men. "If you do not put in the same work, you can't compete at the same level," she said then
Barbara D. Phillips, "Envoy From the Sport of Kings And Queens, Bishops, Knights," The Wall Street Journal, March 1, 2005; Page D9 --- http://online.wsj.com/article/0,,SB110964485701166720,00.html?mod=opinion&ojcontent=otep 

Gasp!  When those pharaoh ants come marching in
Researchers say if you see ants in the house, then they should be taken into consideration if anyone has breathing problems.  Many insects (including cockroaches) have been reported to contribute to respiratory problems. Now, the pharaoh ant joins the ranks of suspect insects.  The tiny, yellow pharaoh ant came from the tropics but can now be found just about everywhere, having been carried throughout the inhabited world, say the researchers. The ants live indoors for warmth.  "Pharaoh ants nest in secluded spots and favor temperatures between 80-86 degrees Fahrenheit," according to the University of Nebraska web site.  "These ants are frequent house invaders, often found around kitchen and bathroom faucets where they obtain water."  Researchers Cheol-Woo Kim, MD, PhD, and colleagues found that pharaoh ants were responsible for asthma in two middle-aged women . . . 
Miranda Hitti, "Ants Can Cause Asthma, Allergies," WebMDHealth, February 25, 2005 --- http://my.webmd.com/content/article/101/106095.htm?z=1728_00000_1000_tn_01 
Jensen Comment:  We owned a home in San Antonio for 20 years.  Every winter something triggered the march of the Pharaoh ants.  It only happened for a few days each winter, but they were almost microscopic and became so thick that they almost looked like running water on counters and sinks.  Ant traps in kitchen and bathroom electrical outlets helped somewhat, but I think it was mostly a matter of the ants marching to their own tunes that turned them on and off.. My wife was a vigorous Pharaoh fighter.  Fortunately, none of us noticed any breathing difficulties arising from the march of the Pharaohs.  

Audio interviews with familiar news anchors are online (who competed for an amazing 21 years)
Also highlights some funny bloopers.  And then there's Rev. Sharpton alleging that the Nation of Islam in the U.S. has nothing to do with Islam.
This week in the magazine, Ken Auletta profiles Dan Rather on the eve of his departure from the “CBS Evening News.” On October 2, 2004, Auletta moderated a panel discussion with Rather, Tom Brokaw, and Peter Jennings, in the Celeste Bartos Forum of the New York Public Library, as part of the sixth annual New Yorker Festival. Here, in three parts, is a recording of that conversation. 
"The Three Anchors," The New Yorker, February 28, 2005 --- http://www.newyorker.com/online/covers/index.ssf?050307onco_covers_gallery 

Listen to part one of the conversation.

Listen to part two of the conversation.

Listen to part three of the conversation.

This statistic surprised me:  Fear of the outside versus reality of the inside
Suicides outnumber homicides in the United States, and some 90 percent of people who kill themselves suffer from a diagnosable and preventable problem such as depression, a top mental health official said Monday.  Charles Curie, who heads the Substance Abuse and Mental Health Services Administration in the U.S. Department of Health and Human Services, said suicides in the United States run at about 80 a day or more than 29,000 a year, three for each two homicides.
"Suicides Outnumber Homicides," CBS News, March 1, 2005 --- http://www.cbsnews.com/stories/2005/03/01/health/main677132.shtml 

Say what?  "If you construct a career raging against the system, you can’t stop raging just because the system has accepted you."
“To live outside the law, you must be honest.” Thompson, like a lot of people in the sixties and seventies, interpreted Dylan’s famous apothegm to mean that in order to be honest you must live outside the law. By the time the fallacy in this reading became obvious, his persona, thanks in part to the Uncle Duke figure in Garry Trudeau’s comic strip, but largely because of his own efforts, was engraved in pop-culture stone. It’s an occupational hazard: if you construct a career raging against the system, you can’t stop raging just because the system has accepted you, or has ceased to care or to pay attention. The anger needs someplace to go. At its best, in the Nixon era, Thompson’s anger, in writing, was a beautiful thing, fearless and funny and, after all, not wrong about the shabbiness and hypocrisy of American officialdom. It belonged to a time when journalists believed that fearlessness and humor and honesty could make a difference; and it’s sad to be reminded that the time in which such a faith was possible has probably passed.
Louis Menand, "Believer," The New Yorker, February 28, 2005 --- http://www.newyorker.com/talk/content/index.ssf?050307ta_talk_menand 

Now it's almost certain there'll be a remake of the movie about the Hole in the Wall Gang 
(remember Butch and Sundance and their Hole in the Wall Gang )
Two Turkish prison inmates who drilled a nine centimetre (3.6 inch) aperture between their cells, enabling them to have sexual relations in prison that produced a child, received four-month sentences for damaging public property.
Weird News, February 28, 2005 --- http://weird-news.news.designerz.com/ 
Jensen Comment:  These two murderers were convicted of planting a bomb in a public market.  Prison guards should've been  more suspicious of how Kadriye Fikret Oget could her hat on her cell's cement wall.

From MIT:  Technology Review Index
Technology Review, of course, is all about the future, and the companies and people involved in the innovation that will get us there. It is in that spirit that we introduce the Technology Review Index, which includes the TR Large-Cap 100 and its sibling, the TR Small-Cap 50. Developed in conjunction with Standard and Poors, these global equity indices will serve as our own in-house gauge of the pulse of innovation at 150 of the worlds most important public companies.  Our two indices will track both the most powerful innovators and the up-and-comers in the 10 most innovative industries of the global economy. The performance of these indices will be updated daily on our online platform at www.technologyreview.com/TRIndex .
Duff McDonald, 'Introducing the Technology Review Index," MIT's Technology Review, March 2005 --- http://www2.technologyreview.com/articles/05/02/trindex/tri_mcdonald021105.asp 

There are no facts, but only interpretations.
Friedrich Wilhelm Nietzsche 

Sarbanes Oxley Blues
What the business world now calls SOX is a law passed that forces auditing firms to provide better audits at a substantially increased cost to their clients.  We now have a new song that is not exactly a celebration of SOX.

From: Mike Kennelley [mailto:MKennell@jbu.edu]
Sent: Tuesday, March 01, 2005 8:24 AM
To: escribne@nmsu.edu
Subject: Sarbanes-Oxley Blues

If you haven't heard this one, turn on those speakers and enjoy . . . 

http://www.headwatersmb.com/content/audio_02.html

Pull your SOX up boss (remember Marlon Brando in Teahouse of the August Moon)
More than 500 public companies have reported deficiencies with their internal accounting controls under a controversial new federal rule -- a figure sure to feed the continuing debate about the cost and usefulness of recent efforts to strengthen corporate governance.  To backers, the volume of disclosures demonstrates that the new rule, part of the 2002 Sarbanes-Oxley corporate-accountability law, is pushing a lot of U.S. companies into line. But business groups complain that it's costing them a lot of money and effort to turn up deficiencies that in most cases are inconsequential.
Deborah Solomon, "Accounting Rule Exposes Problems But Draws Complaints About Costs," The Wall Street Journal,  March 2, 2005; Page A1 --- http://online.wsj.com/article/0,,SB110971840422767575,00.html?mod=home_whats_news_us 
Bob Jensen's threads on reforms are at http://www.trinity.edu/rjensen/FraudProposedReforms.htm 

UNC student badly beaten:  Hate crime
Police say an attack on a gay student who was beaten by a gang of six or seven men was a hate crime, but no witnesses have come forward to help investigators. The victim suffered broken bones but wasn't hospitalized, police said. His attackers, described as six or seven white males around the age of 20, have not been identified. The student was walking alone around 2 a.m. Friday near the intersection of Franklin and Columbia streets when he was taunted by the group of ...
"Police: UNC student's beating a hate crime," News-Record, March 1, 2005 --- http://www.news-record.com/news/now/uncbeating_030105.htm 

Big Spenders Managing Our 50 States
The longer a Republican stays in office the more likely he will be a big spender.  The rankings cover all of a governor's time in office. George Pataki's B would drop to a C without his first term, when he slashed New York taxes. He has since increased spending so much that a huge tax increase passed over his veto. If Bill Owens were judged just by his recent attempts to alter Colorado's tax limitation law, he would not be considered A material. Florida's Jeb Bush, who earned an A two years ago, has slipped to a B after endorsing more bloated budgets. Finally, we'll note the bipartisan nature of Cato's F students: Republican Bob Taft of Ohio and Democrat Edward Rendell of Pennsylvania.
"Grading the Governors," The Wall Street Journal,  March 1, 2005; Page A18 --- http://online.wsj.com/article/0,,SB110964266317966659,00.html?mod=opinion&ojcontent=otep 
Jensen Comment:  This article ranks and grades all 50 governors.  Rick Perry from Texas comes in at Rank 12 with a B grade.  The two F grades are assigned to Ed Rendell (Pennsylvania) and Bob Taft (Ohio).  The Girlie Boy from La La Land heads the list with an A grade.

And this is where the "Big Spenders" get a lot of your money (but not in New Hampshire --- hip hip hooray)
The 2004 Sales Tax Rate Report released by Vertex Inc., shows the average sales tax rate in 2004 reached a record high of 8.587 percent, up from 8.5336 percent in 2003. This increase completes a four- year upward trend in the average sales tax rate that began in 1999 when the average rate was 8.231 percent. "Local jurisdictions continue to function with less federal and state funding and look to sales tax rate increases as one method to help fill the gap for local program financing," says Diana DiBello, Director of Tax at Vertex. "The high number of tax decreases are tied mainly to election year politics but were not enough to lower the overall effective tax rate."
"Average Combined Sales Tax Rate Reaches Record Level," AccountingWeb, February 24, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=100573 

But those of us in New Hampshire aren't "tickled" by this report
A study conducted by Tickle Inc., an online career assessment testing company, has found workers in the Northeast fall far below other regions in many key areas of job satisfaction. Survey results show overall job happiness is strongly tied to a healthy work-life balance and strong company leadership. New England falls far below the national average in both categories, while the Midwest and South lead the country in both areas. Tickle's study also found that women maintain a healthier work-life balance than men and are therefore more satisfied in their jobs.
"Study Reveals Midwest and South Offer Best Work-Life Balance," AccountingWeb, February 28, 2005 --- http://www.accountingweb.com/cgi-bin/item.cgi?id=100562 
Jensen Comment

Hurricane winds recycling the snow:
Those in New Hampshire aren't especially "tickled" by the Mt. Washington weather review for March 1
(sure glad I'm teaching in Texas at the moment)
Snow came in later then expected, with the first flake falling just after one this morning. I didn't actually observe the first flake, for it brought many wind blown friends. Temperatures have been varying all night, ranging from two to twelve degrees. Winds from the East are driving snow through every crack of the building, though I think that is the only point of accumulation. At last observation, I didn't see any of this snow actually sitting on the observation deck, as hurricane force winds have escorted it off the summit, though I'm not worried. We'll reacquaint ourselves soon enough, once the winds shift back to our prevailing west to northwest direction, blowing the snow from one end of the mountain, back to the other.
March 1, 2005 summit report --- http://www.mountwashington.org/weather/index.php 

Entitlements Endings to the Western World
The U.K., like the rest of the developed world, has a pension-funding crisis. A pay-as-you-go system that was easy and cheap to finance when there were lots of workers and fewer retirees than now -- with shorter life expectancies -- is groaning under the strain as fewer workers support more retirees for longer.  Luckily for Britain, it has a couple of things going for it that its neighbors on the Continent can only wish for. The most important is extensive private, funded pension systems that still support many British workers in retirement. For these workers, contributions made to a defined-benefits pension system over the years have been invested on their behalf, and when they retire they will draw, in theory, a fixed sum based on their salary before retirement.  We say "in theory" because the British defined-benefit funds have come under considerable strain themselves of late. Post-bubble lethargy in the stock market is partly to blame, but a major culprit is one of Chancellor of the Exchequer Gordon Brown's stealth tax hikes since Labour took office in 1997. In his first budget in 1997, the chancellor eliminated a 20% tax credit that pension funds enjoyed on dividends paid to the funds.
"Wrong-Way Tories," The Wall Street Journal, March 1, 2005 --- http://online.wsj.com/article/0,,SB110962946093366264,00.html?mod=opinion&ojcontent=otep 
Bob Jensen's unfinished essay on the "Pending Collapse of the United States" --- http://www.trinity.edu/rjensen/entitlements.htm

Days of AK-47s:  Are revolutions a permanent way of life in Africa?
It is a surprise when some states collapse. But the gradual unwinding of Nigeria is happening in a very public manner. The collapse of this giant -- the continent's most populous state, whose 137 million citizens account for approximately 20% of all people south of the Sahara -- may soon be the most pressing issue in Africa.  President Olusegun Obasanjo was first elected in 1999 as Nigeria transitioned to multiparty democracy after the disastrous five-year rule of Gen. Sani Abacha. He won another term in 2003 in elections that had numerous irregularities and remain a source of bitterness. Mr. Obasanjo has also had to confront Nigeria's disastrous economic decline and its extraordinary corruption. Although he retains a good reputation in the West -- in part due to U.S. and European fears that highlighting Nigeria's many problems will only undermine a leader with good intentions -- he has often been indecisive in the face of threats to the very fabric of the country.
Jeffrey Herbst, "The Ticking Time Bomb That's Nigeria," The Wall Street Journal, March 1, 2005 --- http://online.wsj.com/article/0,,SB110963165703166333,00.html?mod=opinion&ojcontent=otep 

How to keep people poor for a longer period of time
The annual budget speech in India has typically been more than an accounting statement. It is seen as the government's all-encompassing reform program for the year. Ideally then, this year's budget speech should have stressed the need to reduce the inordinately large role of government in the country's economic sphere. It could have included measures such as liberalizing limits on foreign direct investment, increasing the pace of privatization and deregulating the labor market.  However, given India's political climate, there was never much prospect of such a free-market agenda. The Congress-led coalition government is reliant on communist parties to remain in power. And last year's surprise national election results have, for some strange reason, weakened the faith of India's political class in good economics.
Ruchir Sharma, "Keeping Out Bad Ideas in India," The Wall Street Journal, March 1, 2005 --- http://online.wsj.com/article/0,,SB110963215352066349,00.html?mod=opinion&ojcontent=otep 

Remember that you heard this first from the LA Daily News on February 27, 2005
Marriage Is About More Than Sexuality
Los Angeles Daily News, Feb. 27

Oestrogen and progesterone:  Small sample, big result
Looking at 62 women - half taking the combined pill, oestrogen and progesterone - researchers found that those on the pill had twice the incidence of depressive symptoms as those not taking it. None of the women had a history of depression.  Levels of depression were assessed by each woman and an interviewer at two-month intervals. The women on the pill had a depression rating of 17.6, compared with 9.8 in the others.  "To our surprise, on re-interview we found that women who were on the pill had higher levels of depression than women who were not on the pill, and it was significantly higher," said the director of The Alfred Psychiatry Research Centre, Jayashri Kulkarni. She said a larger study would investigate the effects of the type of pill, duration of use and dosage levels.
Amanda Dunn, "Depression emerges as the pill's downside," Sydney Morning Herald, March 1, 2005 --- http://www.smh.com.au/text/articles/2005/02/28/1109546799438.html 

Why Business People Speak Like Idiots
Here's the kind of guff that we've all had about enough of (and if you've already had more than enough, feel free to skip ahead): "Technological innovation, globalization, complex regulation and increased accountability at the senior management and board level have all combined to significantly change the landscape of risk management today. To help address these issues, our security professionals deliver services to address the various elements of security and trust associated with communicating, transacting and accessing in this environment."
Why Business People Speak Like Idiots (Free Press, 175 pages, $22) aims to put prose like that -- especially the spoken version of it -- out of its misery. Good idea.
Barbara Wallraff, "Assessing the Parameters Of Issue-Driven Discourse," The Wall Street Journal, March 1, 2005, Page D9 --- http://online.wsj.com/article/0,,SB110964096311766617,00.html?mod=opinion&ojcontent=otep 

Newt Gingrich (a professor turned politician)  thinks it's time to get rid of tenure
I'm  glad he didn't have tenure while in Congress?
According to a report on The National Review's Web site, Gingrich on Friday said that the Ward Churchill controversy shows that "you don't need tenure in this country anyway." Gingrich said that there are "75 whacked-out foundations that would hire him for life." More broadly, Gingrich reportedly told an audience at the American Enterprise Institute: "We ought to say to campuses, it's over. We should say to state legislatures, why are you making us pay for this? Boards of regents are artificial constructs of state law. Tenure is an artificial social construct. Tenure did not exist before the 20th century, and we had free speech before then. You could introduce a bill that says, proof that you're anti-American is grounds for dismissal." There are lots of arguments about tenure, of course, and plenty of critics of the tenure system are not seeking to squelch controversial ideas. Some younger scholars see tenure protecting professorial deadwood in jobs they covet. Princeton's president, Shirley Tilghman, once published an article (which she disavowed after getting her current job) suggesting that the tenure system hurt female academics because of the overlap in scholars' lives between the period for winning tenure and having children. But Gingrich's statement that free speech existed prior to tenure is worth examining.
Scott Jaschik, "Ward & Newt & Tenure," Inside Higer Ed, February 28, 2005 --- http://www.insidehighered.com/insider/ward_newt_tenure 

And if you want to learn more about the future (in his dreams) President of the United States, the place to begin is as follows:
Winning the Future: A 21st Century Contract for America, by Newt Gingrich (Regnery Publishing, 320 pp., $27.95)

Student selection and pricing structure of higher education
One confusing thing about the higher education industry is the conflict between social goals and economic choices. The trend toward universal access to higher education has led to the notion that everyone should be able to find a route into higher education that matches interest, preference, ability and economic circumstance. This in turn has focused attention on the student selection and pricing structure of higher education, a topic of infinite interest, controversy, and confusion.
John V. Lombardi, "Reality Check Who Gets In, What It Costs," Inside Higher Ed, February 28, 2005 --- http://www.insidehighered.com/views/reality_check__2 

Might be better to let the bag sag
Already wondering about how to fit into that bathing suit? Thinking about an extreme diet? Think again.
Barry Wolcott, MD, "Extreme Weight Loss," WebMDHealth --- http://my.webmd.com/content/article/89/100184.htm?z=1728_00000_1000_td_01 

There is also a bipolar disorder questionnaire at http://my.webmd.com/webmd_today/home/default 

BrainGate
Nagle, 25, is the first patient in a controversial clinical trial that seeks to prove brain-computer interfaces can return function to people paralyzed by injury or disease. His BCI is the most sophisticated ever tested on a human being, the culmination of two decades of research in neural recording and decoding. A Foxborough, Massachusetts-based company called Cyberkinetics built the system, named BrainGate.
Richard Martin, "Mind Control," Wired Magazine, March 2005 --- http://www.wired.com/wired/archive/13.03/brain.html?tw=wn_tophead_5 

Primary care versus specialty care
Quad/Graphics has organized health care by using primary-care physicians for navigating and negotiating both illness and the health-care system for their employees ("Radical Surgery: One Cure for High Health Costs," WSJ, page one, Feb. 11). This contrasts to our present dominant health-care system driven by a physician-payment system that uses Current Procedural Terminology codes for episodic encounters.  Paying for episodic encounters makes sense for specialty care but not for continuity of care where intimate knowledge of patients is the primary goal as an essential of care. Our health-care system needs a physician-payment system that integrates both functions. The results as reported strongly suggest that Quad/Graphics has put in place a workable and prototypic model. If this holds true, the task becomes how to generalize this to others: the young, the old, the unemployed, the uninsured and the underinsured.
John C. Peirce, M.D., M.A., M.S., "Physicians Who Negotiate Illness and Health System," The Wall Street Journal,  February 28, 2005; Page A17 --- http://online.wsj.com/article/0,,SB110955954467465621,00.html?mod=todays_us_opinion 
Jensen Comment:  You can read about Current Procedural Terminology at http://www.ama-assn.org/ama/pub/category/3113.html 

AIDS antiviral therapies
As a group, AIDS antiviral therapies have extended lives of individual patients by as much as 15 years, for a collective two million years of life saved in the U.S. since such drugs came into use in the late 1980s, said Rochelle Walensky of Harvard Medical School. She said her study with co-workers at Harvard, Massachusetts General Hospital, Yale, Cornell and Boston University represents "an underestimate" of the drugs' benefit.  Despite more than 20 drugs on the market and many more in the pipeline, far too few patients are now able to access needed treatment, U.S. health statisticians said Friday.
Marilyn Chase, "AIDS Scientists Cite Modest Gains," The Wall Street Journal, February 28, 2005, Page B4 --- http://online.wsj.com/article/0,,SB110955131006765463,00.html?mod=todays_us_marketplace 

Also see "New Therapies Boost AIDS Arsenal," Wired News, February 26, 2005 --- http://www.wired.com/news/medtech/0,1286,66731,00.html?tw=wn_tophead_6 

Having an 800 pound gorilla living next door can be unsettling
That Southeast Asians -- above all the Vietnamese and the Indonesians -- would regard China's rise with a weary eye is to be expected. Vietnam has historically feared domination by its former overseer. Indonesia has always suspected that China would use the large and successful ethnic Chinese community as a fifth column. Singapore is leery, too.  But in the past few months China has managed to alienate its Northeastern neighbors as well. Even South Korea -- where the fascination with things Chinese was growing apace with economic dependency -- has been put off by a series of mishandled events. Chinese security goons raided and broke up a press conference in Beijing by a group of South Korean parliamentarians last month. Later, brushing aside a plea from Seoul, China sent back to North Korea a poor, 72-year-old South Korean POW from the 1950-53 war who had managed to escape after decades in the gulag.  And, of course, China's claim that a chunk of North Korea is historically Chinese has not gone down well at all. Some South Korean intellectuals are beginning to ponder how salutary China's rise is for the long-term health of the Korean nation.
Michael gonzalez, "Fear and Loathing in East Asia," The Wall Street Journal,  February 28, 2005; Page A17 --- http://online.wsj.com/article/0,,SB110954572850965312,00.html?mod=todays_us_opinion 

Praise the Lord
Former U.S. Federal Reserve Chairman Paul Volcker, who heads a body overseeing international accounting-standards setters, rejected calls by the European Union for a greater say in how these rules are crafted.  Speaking in Brussels before a group that advises the European Commission on accounting issues, Mr. Volcker said representation on the International Accounting Standards Board, the body that crafts the rules, shouldn't be based on "national, political or sectoral interests."
David Reilly, "Volcker Rejects EU Plan for IASB," The Wall Street Journal, Page February 28, Page C3 --- http://online.wsj.com/article/0,,SB110954949853865424,00.html?mod=home%5Fwhats%5Fnews%5Fus 

The law, in its majestic equality, forbids the rich as well as the poor to sleep under bridges.
Anatole France

Think Bloomingdales:  A victory for New York City
Bowing to intense pressure from neighborhood and labor groups, a real estate developer has just given up plans to include a Wal-Mart store in a mall in Queens, thereby blocking Wal-Mart's plan to open its first store in New York City. In the eyes of Wal-Mart's detractors, the Arkansas-based chain embodies the worst kind of economic exploitation: it pays its 1.2 million American workers an average of only $9.68 an hour, doesn't provide most of them with health insurance, keeps out unions, has a checkered history on labor law and turns main streets into ghost towns by sucking business away...
Robert B. Reich, "Don't Blame Wal-Mart," The New York Times, February 28, 2005
Jensen Comment:  Vermont has also banned Wal-Mart, which is one of the reasons why the roadways are clogged with stuffed green-license-plate cars and trucks returning home from New Hampshire.  Why don't Vermonters stay home and shop in their own villages' stores?

What happened to "stretch suits" now that I need them?
The man of the house is spending more money on his wardrobe. This spring, men will be able to pick from broadened selections of red, black and brown candy-striped shirts, and many stores will offer the new stretch suits.
Flashback, The Wall Street Journal, February 28, 1963
Jensen comment:  No mention is made that beads and sandals were also popular in 1963

A bit of history:  Who were our allies in the WW II era?
France was not an ally, for the Vichy government of France aligned with its German occupiers. Germany was not an ally, for it was an enemy, and Hitler intended to set up a Thousand Year Reich in Europe. Japan was not an ally, for it was intent on owning and controlling all of Asia. Japan and Germany had long-term ideas of invading Canada and Mexico, and then the United States over the north and south borders, after they had settled control of Asia and Europe.  America's allies then were England, Ireland, Scotland, Canada, Australia, and Russia, and that was about it. There were no other countries of any size or military significance with the will and ability to contribute much of anything to the effort to defeat Hitler's Germany and Japan, and prevent the global dominance of Nazism. And we had to send millions of tons of arms, munitions, and war supplies to Russia, England, and the Canadians, Aussies, Irish, and Scots, because none of them could produce all they needed for themselves.
Forwarded by Dick Haar, February 28, 2005
Jensen:  During the ensuing Cold War era and for the Gulf War, we had a few more allies, some of whom were former enemies.

And he awoke to a mess
I have this uncle, Rip Van Garver, who just woke up after sleeping for 30 years. Some people think he slept so long because he was exhausted from working so hard as a political activist during the '60s and early '70s. Personally, I just think he found a comfy pillow. Regardless, here's the transcript of our first conversation: Me: Uncle Rip, how are you feeling? Rip: I'm okay. But I really need to brush my teeth. What year is it? Me: 2005. Rip: Wow. I've got a library book I better return pronto. So, nobody blew up the world. I...
Lloyd Garver, "Caught Napping? Jewish World Review, February 28, 2005 --- http://www.jewishworldreview.com/0205/garver1.asp 

This does not mean that eating it will make you live longer
Ancient Chinese craftsmen used a secret ingredient to keep their structures standing through the centuries: sticky rice.  The legend that rice porridge was used in mortar to make robust ramparts is believed to have been verified by archaeological research in the north-western province of Shaanxi, the state news agency Xinhua reported.  During maintenance work on the city wall of the provincial capital, Xi'an, workers found plaster remnants on ancient bricks were hard to remove.  A chemical test showed the mortar reacted the same as glutinous rice.
"Stick around," Sydney Morning Herald, March 1, 2005 --- http://www.smh.com.au/text/articles/2005/02/28/1109546800854.html 

"Morally Bankrupt," The New Republic, February 25, 2005 --- http://snipurl.com/TNRbankruptcy 

We are beginning to wonder if the debate over Social Security privatization is a mere GOP diversionary tactic: Get Democrats to commit all their resources to a knockdown drag-out over retirement benefits, then quickly ram through a host of items off the business lobby's wish list. Exhibit A is the Bankruptcy Abuse Prevention and Consumer Protection Act--the latest name for a bill that Congress has been rejecting since the late '90s--which the Judiciary Committee approved last week and looks set for passage in the coming weeks.

Bankruptcy laws are supposed to balance the interests of creditors with debtors as well as balance society's interest in encouraging people to take risks (such as taking out a loan to start a business) with its interest in ensuring that the risks they take are not foolish ones (such as borrowing money to play the ponies). U.S. bankruptcy laws have generally done a good job of striking this balance and have thus contributed to an economy that is among the most entrepreneurial in the world. What's more, they have codified a progressive and long-standing American value: the belief in second chances.

By these measures, the bankruptcy bill is a catastrophe. Under the current system, bankruptcy courts have broad discretion to decide who can file for Chapter 7, which allows debtors to erase their obligations after forfeiting a state-determined percentage of their remaining assets, and Chapter 13, which requires strict repayment according to court-ordered schedules. Judges base their decisions as much on why the debt was accrued as on income; this way people who come into debt through no fault of their own can get a fresh start, while a judge can decide that a careless gambler must pay what he owes. But the new bill would replace judicial discretion with a means test on household income--those above a certain level would be forced to file for Chapter 13 bankruptcy--dismantling the system's ability to discriminate among worthy and unworthy debtors.

Continued in the article

Loss of a Great Economist to a Fire
The world lost a great economist last week, when David F. Bradford succumbed to injuries suffered in a fire. David was the father of modern consumption tax philosophy, and the most important contributor of the last few decades to serious thinking about fundamental tax reform.  When people think of replacing the income tax with a consumption tax that can achieve whatever level of progressivity one prefers, they think of two main models. The first, sometimes called a consumed income tax, structurally resembles our present system for taxing individuals, except that people get unlimited savings accounts, like IRAs, contributions to which may be deducted while withdrawals are taxed. During his time at the Treasury Department in the 1970s, David developed what is still by far the best prototype for such a system: the so-called "Blueprints" cash flow tax that he discussed in detail in his landmark study, "Blueprints for Tax Reform."  The other main prototype, involving a business-level as well as an individual-level tax, has as its best-known exemplar the Hall-Rabushka flat tax (after the economists Robert Hall and Alvin Rabushka), which I believe David helped inspire. He then used the flat tax as a starting point for developing what he called the "X-tax," a better-designed version that could be more progressive than the flat tax, if desired, and that did a better job of handling problems such as transition from the existing income tax and rate changes between taxable years.
Daniel Shaviro, "David Bradford," The Wall Street Journal, March 1, 2005, Page A18 --- http://online.wsj.com/article/0,,SB110964406044966694,00.html?mod=opinion&ojcontent=otep 

Part of a message received from a friend on March 1, 2005
This is a letter that friend received from a top administrator at Purdue University.  I assume PAA stands for the Purdue Alumni Association.

Dear XXXXX,

Thank you for your email, and for your consideration of our request to support PAA. The alumni association does receive a percentage of the total amount of charges submitted by our alumni who use the card. We are precluded by contractual arrangements from disclosing the percentages or amount but I can tell you that this is a significant revenue source for the alumni association.

The revenue from this program is used in a variety of ways to support the programs and services offered to our alumni and members. These funds help support our outreach efforts such as alumni clubs, student recruitment events, Purdue on the Road events. In addition these funds help support the Faculty Incentive Grant program to assist in faculty development, Diversity Grants to support diverse programming efforts and Legacy events that highlight Purdue students whose parents are graduates of Purdue as well.

In addition to the financial support is another way to market Purdue throughout the world. Every time someone pulls the card out of their wallet they are marketing Purdue for us.

I am more than happy to answer any further questions you might have and thank you for your email. It is very important for our alumni to be informed about our programs and I appreciate your thoughtful questions.

Best wishes,

YYYYY
Purdue University
 

Jensen Comment
One of my friends forwarded the above message.  It reflects what is commonplace now among alumni associations of colleges.  These associations promote a particular credit card company and receive revenue for this service on purchases of alumni and students.  I suspect it is not unethical as long as alumni and students are aware of all facts in the situation.  The letter above does not mention that alumni associations generally forward more than names and addresses to credit card companies and possibly other vendors.  I have some concerns when they forward social security numbers without express written consent for alumni.  I also have concerns when alumni are not aware of how or who is receiving confidential information from alumni associations.

I have written previously about this general practice at http://www.trinity.edu/rjensen/FraudReporting.htm#FICO 
I think the credit card companies want the home addresses and social security numbers of all alumni and students so that FICO ratings can be investigated before inviting an alumnus or student to apply for a University of ZZZZZ  credit card.

An investment in knowledge always pays the best interest.
Benjamin Franklin as quoted by Mark Shapiro at http://irascibleprofessor.com/comments-03-03-05.htm 

Barry Cushing passed away on March 1, 2004.
It is a great sadness to me, because Barry was once one of my doctoral students. I am grateful for our last evening together in Orlando last August. Barry led an exemplary life as an accounting educator/researcher and as a human being. This is a great loss.
His Web page is at http://home.business.utah.edu/~actbec/ 

I love it and use it all the time.  If some module has it wrong, users can easily fix it up themselves.
Jimmy Wales wanted to build a free encyclopedia on the internet. So he raised an army of amateurs and created the self-organizing, self-repairing, hyper-addictive library of the future called Wikipedia --- http://www.wikipedia.org/ 
Daniel H. Pink, "The Book Stops Here," Wired Magazine, March 2005 --- http://www.wired.com/wired/archive/13.03/wiki.html?tw=wn_tophead_4 
Jensen Comment:  When I tried adding my own modules., Jimmy wrote back (seriously) that he liked the material didn't have enough hard drive to put up my long modules.  He thought I was just too verbose.  Can you believe that?  (Don't answer, please.)
Now I'm even more grateful for the generosity of Information Technology Services (ITS) at Trinity University and my good friends with big servers in the Computer Science Department.  Please get well and hurry back Gerald Pitts.
(I operate out of more than one server here at Trinity.  And please, no jokes about hogs from Iowa.)

No, surely not in my case
In the early '90s, psychiatrists and clinicians were beginning to hear of a new medical term, "internet addiction." At first, this was met with a lot of skepticism and denial, however, it became evident that the more people logged on to cyberspace, the more they got hooked.  The 10 Symptoms You Need To Watch Out For:
AskMen.com --- http://www.askmen.com/fashion/body_and_mind/16_better_living.html  

This report from the Pew Internet & American Life Project, authored by Lee Rainie and John Horrigan, takes a critical look at how the Web has mainstreamed into our lives, which is certainly the case in my life.
Internet: The Mainstreaming of Online Life ---  http://www.pewinternet.org/pdfs/Internet_Status_2005.pdf

Beware of your tax preparer:  Just say no to loans based upon anticipated tax refunds
A refund-anticipation loan is a bank loan, short-term borrowing based on the amount you expect from your federal tax refund. It is also a popular marketing tool for the big tax-preparation companies, appealing especially to people living from paycheck to paycheck.  In some limited circumstances, refund-anticipation loans can be beneficial. But for most people, "they're completely unnecessary, an extremely expensive drain on expected refund money," said Jean Ann Fox, director of consumer protection at the Consumer Federation of America.  "It's money out of the pockets of the working poor," Fox said.  The federation and the National Consumer Law Center have been leading the campaign against refund-anticipation loans for several years, with some success. Fees have dropped and disclosures have improved.  But that doesn't change the fact that these so-called instant refunds, with interest rates to make usurers blush, are an expensive way to get use of your own money for a few extra days.
Kevin G. Demarrais, "Quick cash back comes at a cost:   Have a bit of patience, and enjoy your whole tax refund," Houston Chronicle, February 27, 2005 --- http://www.chron.com/CDA/umstory.mpl/business/3058554 
Bob Jensen's threads on consumer frauds are at http://www.trinity.edu/rjensen/FraudReporting.htm 

Just another settlement day at Merrill Lynch
Bucking a spate of previous rulings favorable to the securities industry, arbitrators ordered Merrill Lynch & Co. to pay a Florida couple more than $1 million for failing to disclose that its analysts had conflicts of interest in recommending stocks.
Jed Horowitz, "Merrill Ordered to Pay 2 Clients Over Analyst Conflicts on Stocks," The Wall Street Journal,  March 1, 2005; Page C3 --- http://online.wsj.com/article/0,,SB110962110354266151,00.html?mod=todays_us_money_and_investing 
Jensen Comment:  Merrill Lynch has one of the worst fraud records on Wall Street.  Eliot Spitzer once claimed he had enough smoking guns to bring down Merrill Lynch if he chose to do so.  You can read more by searching for "Merrill" at http://www.trinity.edu/rjensen/fraudrotten.htm 

FTC Annual Fraud Report
The FTC of the US has released its Annual Fraud Report, in which, among other things, it reports an increase in identity theft, amounting to losses of as much as $548 million in the US alone.
FTC: Identity theft, online scams rose in '04 - Computerworld
Gerald Trite's Business Blog, February 17, 2005 --- http://www.zorba.ca/blog.html 

Bob Jensen's fraud updates are at http://www.trinity.edu/rjensen/FraudUpdates.htm

FTC helpers if suspect someone else has become you --- http://www.ftc.gov/bcp/conline/pubs/credit/idtsummary.pdf 

FTC helpers in getting your credit report and FICO score --- http://www.ftc.gov/bcp/conline/edcams/credit/index.html 

FTC consumer warnings --- http://www.ftc.gov/ftc/consumer.htm 

Does employee blogging activity pose a threat to enterprise security? According to Alyn Hockey, director of research at Clearswift, it does, and on two fronts.  "Blogging has definitely emerged as a potential security threat," Hockey says. "Especially when practiced by disgruntled or malicious employees. But simple carelessness is also a factor. They don't necessarily have to have bad intentions to do some damage to a company's brand and reputation."
John K. Waters, "Blogging: New threat to enterprise security?" ADT Newsletter, March 3, 2005 --- http://newsletters.101com.com/sdg/n.asp?pc=HWEB03&nl=23,38,44,36 
Bob Jensen's threads on blogging are at http://www.trinity.edu/~rjensen/245glosf.htm#Weblog 

Blame it on us baby boomers!
Alan's implying that I'm going to be collecting more than you working stiffs can afford.  
Common now, you can work harder than you've been working:  Push that barge and lift that bail
"I fear that we may have already committed more physical resources to the baby-boom generation in its retirement years than our economy has the capacity to deliver. If existing promises need to be changed, those changes should be made sooner rather than later. We owe future retirees as much time as possible to adjust their plans for work, saving, and retirement spending. They need to ensure that their personal resources, along with what they expect to receive from the government, will be sufficient to meet their retirement goals.
Testimony of Chairman Alan Greenspan Economic outlook and current fiscal issues Before the Committee on the Budget, U.S. House of Representatives March 2, 2005

My unfinished essay on the "Pending Collapse of the United States" --- http://www.trinity.edu/rjensen/entitlements.htm

Once again, blame it on us baby boomers!
Bodiford experienced what many Americans may soon face: a shortage of physicians that makes it hard to find convenient, quality health care. The shortage will worsen as 79 million baby boomers reach retirement age and demand more medical care unless the nation starts producing more doctors, according to several new studies.  The country needs to train 3,000 to 10,000 more physicians a year — up from the current 25,000 — to meet the growing medical needs of an aging, wealthy nation, the studies say. Because it takes 10 years to train a doctor, the nation will have a shortage of 85,000 to 200,000 doctors in 2020 unless action is taken soon.  The predictions of a doctor shortage represent an abrupt about-face for the medical profession. For the past quarter-century, the American Medical Association and other industry groups have predicted a glut of doctors and worked to limit the number of new physicians. In 1994, the Journal of the American Medical Association predicted a surplus of 165,000 doctors by 2000.
"Medical miscalculation creates doctor shortage," USA Today, March 3, 2005 --- http://www.usatoday.com/printedition/news/20050303/1a_cover03.art.htm 

Note to AARP:  Australians seem to like their form of private account social security
Clare says the people least likely to shift are those in industry or public defined benefit funds, where many receive above the super guarantee from their employers plus other benefits.  People who are happy with their fund and elect to keep it when they change jobs will be among the main drivers of choice. That is, they will exercise choice by rejecting their new employer's default fund. With about 20 per cent of the workforce changing jobs each year, this is a significant group.
"A switch in time," Sydney Morning Herald, March 2, 2005 --- http://www.smh.com.au/text/articles/2005/03/01/1109546861995.html 

Robin Square Tape
Comedian Robin Williams said it all when he walked on stage with a piece of white tape over his mouth.  Williams was to have performed a song lampooning conservative critic James Dobson, whose group had criticised cartoon character SpongeBob SquarePants for appearing in a video it branded "pro-homosexual." . . . Marc Shaiman, who wrote Williams' original routine, said he decided to withdraw the material after ABC raised objections that would have led to him re-writing 11 of 36 lines. ABC declined to comment.
"Censorship at Oscars irks many," Aljazeera, March 1. 2005 --- http://english.aljazeera.net/NR/exeres/AA763FF7-03FC-40F4-AD8C-53A449F3CE5C.htm 

Phoenix, Oregon Citizen Square Tapes
In wake of Maryland Gov. Robert Ehrlich's ban on state employees speaking to two Baltimore Sun staffers and an Ohio mayor's prohibition on city employees speaking to the local Business Journal, a small town Oregon mayor has announced that all media contact with town officials or employees must be made through her office.
"Another Government Official Bans Contact with Press," Editor and Publisher, March 2, 2005 --- http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1000825822 

We would hate to have Senator Byrd be remembered as a champion of minority rights movement
At 9:51 on the morning of June 10, 1964, Senator Robert C. Byrd completed an address that he had begun fourteen hours and thirteen minutes earlier. The subject was the pending Civil Rights Act of 1964, a measure that occupied the Senate for fifty-seven working days, including six Saturdays. A day earlier, Democratic Whip Hubert Humphrey, the bill's manager, concluded he had the sixty-seven votes required at that time to end the debate. . . . Never in history had the Senate been able to muster enough votes to cut off a filibuster on a civil rights bill. And only once in the thirty-seven years since 1927 had it agreed to cloture for any measure.
"Civil Rights Filibuster Ended," U.S. Senate, June 10, 1964 --- http://www.senate.gov/artandhistory/history/minute/Civil_Rights_Filibuster_Ended.htm 

There's that N-word again
A pair of Jewish groups accused Sen. Robert Byrd on Wednesday of making an outrageous and reprehensible comparison between Adolf Hitler's Nazis and a Senate GOP plan to block Democrats from filibustering. A GOP senator called for Byrd to retract his remarks. Byrd spokesman Tom Gavin denied that Byrd, D-W.Va., had compared Republicans to Hitler. He said that instead, the reference to Nazis in a Senate speech on Tuesday was meant to underscore that the past should not be ignored....
Alan Fram, "GOP Jewish Group Critizes Byrd's Remarks," MyWay, March 2, 2005 --- http://apnews.myway.com/article/20050303/D88J6OG00.html 

The Anti-Defamation League (ADL) expressed outrage at the remarks of West Virginia Senator Robert Byrd, who suggested that some Republican tactics on judicial nominations were similar to Adolf Hitler's use of power in Nazi Germany. In remarks from the Senate floor yesterday, Sen. Byrd compared a Senate rule cutting off debate on nominations to Hitler's use of constitutional means to push legislation through the German Reichstag at the start of the Nazi era. Abraham H. Foxman, ADL National Director, issued the following statement: "It is hideous, outrageous and offensive for Senator Byrd to...
"Senator's Hitler Comparison on Judicial Nominees 'Offensive and Insensitive'," Anti-Defamation League, March 2, 2005 --- http://www.adl.org/PresRele/HolNa_52/4660_52.htm 

Jensen Advice:  
"Dear Senator Byrd, Refrain from the N-word.  Please call Republican Senators Little Eichmans!"

Like it or not, military bashing has a downside
CNN saw its prime-time ratings drop sharply in February, falling further behind Fox News. CNN's ratings dipped 16 percent overall and 21 percent in prime time during February, according to Nielsen Media Research, as some of the cable news channel's biggest stars lost viewers. Fox News was the only one among the four cable news networks to post ratings gains during the month. Fox News is owned by News Corp., which is The Post's parent company. In 2002, Fox News surpassed CNN in the ratings and has been the leader ever since. Fox saw its ratings...
"CNN Sinking in Fox Hole," New York Post, March 3, 2005 --- http://www.nypost.com/business/22209.htm 
Also see http://www.variety.com/VR1117918742.html 

Paint the red states blue:  John's going to learn from Republicans
Democratic vice presidential candidate and former senator John Edwards will be among visiting fellows at Harvard University's Institute of Politics this spring, the school announced yesterday. Edwards, 51, of North Carolina ran for the Democratic nomination for president before being chosen as U.S. Sen. John Kerry's running mate last year. He will join U.S. Rep. Jim Kolbe (R-Ariz.) and Michael Deaver, international vice chairman of Edelman Worldwide and former deputy chief of staff to President Ronald Reagan. Typically, visiting fellows meet with various student groups to discuss topical issues and their experiences in public and...
"Ex-Kerry running mate to join Harvard as fellow," Boston Herald, March 3, 2005 --- http://news.bostonherald.com/localRegional/view.bg?articleid=71250 

A not so pleased Walt Mossberg
So, I've been looking for a simple, reasonably priced product that includes all the hardware and software needed to do these tasks, and can be easily operated by mere mortals. I thought I'd found it when I came across a seemingly simple $49 gadget from ADS Technologies called Instant Music -- a small white box specifically built to turn LPs and tape cassettes into digital files.
Walter Mossbert, "Digitizing Your LPs and Tapes:  ADS Gadget Falls Short In Converting Old Music; The Jim Croce Test," The Wall Street Journal,  March 2, 2005; Page D8 --- http://online.wsj.com/article/0,,SB110971919612167604,00.html?mod=todays_us_personal_journal 

Would  beleaguered Vermont taxpayers also vote for raising taxes to fund their own Vermont Guard?
Fifty-two communities in Vermont are, in effect, determining their own foreign policy today — voting on a referendum that would urge state leaders to stop sending the state's National Guard (search) troops to war. The resolution would also ask President Bush to immediately withdraw U.S. troops from Iraq. The issue was raised across the state at Vermont's annual Town Meeting Day (search), where residents usually gather to vote on local issues. But the Washington Times reports that the referendum is part of a growing anti-war sentiment across the state including in Brattleboro, Vermont, where officials removed the phrase "freedom is...
Brit Hume, Fox News, March 2, 2005 --- http://www.foxnews.com/story/0,2933,149189,00.html 

Holy Scary!  The manual on how to end civilized civilizations 
Doesn't Bin Laden get it?  He's also educating his enemies if and when he or his cohorts cease power.  
Nobody can be secure from this type of terrorism among fanatics on any side of a dispute.
In the year since the September 11 attacks, few more chilling documents have emerged than "Military Studies in the Jihad Against the Tyrants," a how-to terrorism manual that investigators believe has been used by followers of Osama bin Laden.  The 180-page volume, seized from the Manchester, England home of a bin Laden disciple, offers jihad members guidance on subjects such as assassination, forging documents, and preparing poisons in its 18 chapters. The terrorism manual was placed into evidence last year by prosecutors during the federal trial of four men accused of involvement in the 1998 bombing of U.S. embassies in Kenya and Tanzania (the below English translation was also placed in evidence). All four defendants were convicted and sentenced to life in prison.
"Bin Laden's Terrorism Bible," The Smoking Gun --- http://www.thesmokinggun.com/archive/jihadmanual.html 

While TSG has previously published small excerpts from this terror bible, we now present the entire document, a remarkable window into bin Laden's network of cold-blooded fanatics.

Title, Opening Pages, And Introduction (11 pages)

First Lesson: General Introduction (4 pages)

Second Lesson: Necessary Qualifications And Characteristics For The Organization's Member (7 pages)

Third Lesson: Counterfeit Currency And Forged Documents (3 pages)

Fourth Lesson: Organization Military Bases "Apartments-Hiding Places" (4 pages)

Fifth Lesson: Means of Communication And Transportation (15 pages)

Sixth Lesson: Training (3 pages)

Seventh Lesson: Weapons: Measures Related To Buying And Transporting Them (5 pages)

Eighth Lesson: Member Safety (5 pages)

Ninth Lesson: Security Plan (12 pages)

Tenth Lesson: Special Tactical Operations (7 pages)

Eleventh Lesson: Espionage (1) Information-Gathering Using Open Methods (10 pages)

Twelfth Lesson: Espionage (2) Information-Gathering Using Covert Methods (15 pages)

Thirteenth Lesson: Secret Writing And Ciphers And Codes (17 pages)

Fourteenth Lesson: Kidnapping And Assassinations Using Rifles And Pistols (23 pages)

Fifteenth Lesson: Explosives (13 pages)

Sixteenth Lesson: Assassinations Using Poisons And Cold Steel (8 pages)

Seventeenth Lesson: Interrogation And Investigation (15 pages)

Eighteenth Lesson: Prisons And Detention Centers (2 pages)

Another scary sign of the times
Juvenile offenders were infrequent arrivals to Texas' death row until the 1990s, when escalating juvenile violence and a new breed of young killer prompted a severe reaction from the criminal justice system. Only four Texas juvenile offenders were executed for crimes committed in the 1970s. Ditto for the 1980s, though one inmate from that decade remains on death row. The turbulent 1990s saw a different story. An explosion of juvenile crime, including a huge increase in juvenile homicides, brought the gloves off. Most juvenile offenders currently on Texas' death row — 25 of 28 — committed their crimes in that...
Mike Tolson, Houston Chronicle, March 2, 2005 --- http://www.freerepublic.com/focus/f-news/1354194/posts 

The gangs of New York are getting younger and younger. Concerned prosecutors across the city are warning that the city's violent street toughs are recruiting a new generation of baby-faced followers. The rise of teen gangs was highlighted this month by the shooting death of Bronx football star Fernando Correa, who had refused to join a local gang. But across the city, children younger than 10 are being forced to choose sides, prosecutors and law enforcement sources told the Daily News. "It's been building. There are rumblings in the elementary schools," said a law enforcement source. "Everybody says they're wanna-bes....
Elizabeth Hayes, "Nine-year-olds forced into gangs:  Elementary schools now in the clutches as toughs extend recruiting," New York Daily News, March 2, 2005 --- http://www.nydailynews.com/front/story/284825p-243953c.html 

Engine Out Over the North Pole
A British Airways 747 that flew from Los Angeles to England after one of its four engines failed during takeoff has set off a controversy over the risk of flying 10 hours with a dead engine.  Passengers heard the pops, and people on the ground saw sparks flying out from beneath the wing. A British Airways 747 had an engine fail during takeoff in Los Angeles 10 days ago.  But instead of returning to the airport to land, Flight 268 continued on across the U.S, up near the North Pole, across the Atlantic -- all the way to England.  The flight, with 351 passengers on board, didn't quite make it to London, its scheduled destination. It eventually made an emergency landing in Manchester, England, setting off a controversy over the risk of flying 10 hours with a dead engine hanging under the wing.
"Crossing the Atlantic With a Dead Engine," The Wall Street Journal, March 1, 2005, Page D1 --- http://online.wsj.com/article/0,,SB110963519929666421,00.html?mod=todays_us_personal_journal 

Perish the Thought:  I think foundations should be diverting more money away from universities and into schools like this.  It's time to get more serious about the future of many young people who can fill the biggest labor voids in America.
Students have flocked for years to the College of Lake County in Grayslake to tinker with refrigerators, learn how to repair cars and hone their accounting skills.  But now, thanks to a new $36.4 million state-of-the-art technology building, they're doing it with some of the latest technology available, including high-tech equipment that can scan car computers.  "We're teaching them the systems they're going to need when they go out and work," said Lourdene Huhra, dean of the business division. "Our equipment is as good as the equipment they'll use on the job."  The building opened in mid-January and is designed to provide a central location for programs offered by the college's business and engineering, math and physical science divisions.
"College rolls out high-tech facility," Chicago Tribune, February 27, 2005 --- http://snipurl.com/TribFeb27 

Would you please repeat what you just said
Ear-wax-removal kits claim to soften excessive ear wax if you place three to five drops of the carbamide peroxide solution in your ear twice daily for as many as four days. But listen up: That ear-wax-removal kit you can buy over-the-counter could cause more problems than it solves. . . I don't believe in self-irrigation," says Stephen Epstein, an ear specialist who runs the Ear Center in Wheaton, Md. The removal kits require a consumer to perform a "relatively blind procedure," since a person can't see exactly what he's doing, he says. Moreover, he says, if an infection ensues, you might end up needing two or three visits to the doctor and a course of antibiotics. Dr. Epstein says he sees three to five people a month who have tried the kits with poor results. Sometimes, the solutions irritate the ear canal, causing itching or inflammation. At worst, the wax could run deeper into the ear, leaving residue on the eardrum.
Gintautas Dumcius, "Removing Wax From Your Ears," The Wall Street Journal, March 1, 2005; Page D6 --- http://online.wsj.com/article/0,,SB110963135300766318,00.html?mod=todays_us_personal_journal 
Jensen Comment:  The article goes on to report that not all experts agree with Stephen Epstein.

After the adverse publicity, I wonder if his speaking fees have increased or decreased?
Administrators (University of Wisconsin --- Whitewater) wrestled with the decision to host Churchill, as Hamilton and several other schools canceled appearances. It was decided to go forward as planned only when it was determined that the event could be held safely, and after an exchange of letters with Churchill in which he said he expected to be paid his $4,000 honorarium even if the event was shelved, and that he would use some of the money to come and speak on another occasion to those who wanted to hear him.
"Wisconsin university prepares for Churchill," Rocky Mountain News, March 1, 2005 ---  http://rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_3584230,00.html  
Bob Jensen's threads on Ward Churchill are at http://www.trinity.edu/rjensen/hypocrisyChurchill.htm 

I've been invited to speak at hundreds of universities, but no university has ever paid me as much as $4,000. (Sigh!)  Just as of late, as fate would have it, I'm beginning to envision  little eichmans in the accounting profession.  I also know a couple of auditors who resemble Rudolf Hess.

It would help if you put it on your passport
. . . we identify as “totalitarian radicals,” “anti-American radicals,” “leftists,” “moderate leftists” and “affective leftists.”  (The latter includes mostly entertainment figures whose politics are emotionally rather than intellectually based in a way I will get to below.) We have arranged the grid this way, even though we think it feeds certain illusions, to accommodate those who expressed anguish over the grid in its original format where there were no such...
"Defining the Left," y David Horowitz, FrontPageMagazine.com, March 2, 2005 --- http://www.frontpagemagazine.com/Articles/Printable.asp?ID=17190 

Treading softly but surely on pros in college sports:  Many more basket weaving diplomas expected
College sports programs tiptoed Monday into an uncertain new world of academic accountability, as the National Collegiate Athletic Association unveiled a complex system for monitoring the classroom progress of Division I athletes and gave the public its first glimpse at how individual colleges fared under the new standards.  The system could eventually punish institutions that fail to keep their athletes moving toward a degree. But no penalties are attached to this first year's reports, and the NCAA has modified the system in recent weeks in ways that delay or soften the potential blows against sports programs.
Doug Lederman, "New Way to Keep Score," Inside Higher Ed, March 1, 2005 --- http://www.insidehighered.com/insider/new_way_to_keep_score 

Not treading so softly on college athletics:  Sometimes you can't even pay to have an article published
As a student in a new investigative journalism course at Rutgers University last fall, Fraidy Reiss dove headlong into the assignment to write two articles exploring subjects at the university. Her first piece, about Rutgers's system for evaluating teachers, was the lead story in the student-run Daily Targum one day last October.  For her second article, Reiss explored a set of programs and services available only to Rutgers athletes, including special sections of a communications course, financed by an alumnus, and a bevy of tutors and monitors to help athletes with their work and make sure they go to class, among others.  The instructor in the investigative journalism course worked with her on the article, as did student editors at The Targum, which helps sponsor the class. The article garnered an A+ grade in the course, and Targum editors spent weeks trying to help her shape the piece for publication, and paid $250 to cover the costs of an open records request she filed for reports on athletes' grades.  But this month, the newspaper's editors told Reiss that they would not run the article, saying it was too one-sidedly critical of the sports program. Frustrated, Reiss decided (with the help of an alumnus critical of the Scarlet Knight sports program) to try to publish the article as an advertisement in The Daily Targum. But last week, the newspaper rejected the ad, too.
Doug Ledgerman, "Hitting Too Close to Home," Inside Higher Ed, March 2, 2005 --- http://www.insidehighered.com/insider/hitting_too_close_to_home 
Jensen Comment:  The Targum and university officials are  probably adding fuel to the fire.  By rejecting both the article and the advertisement, the rejection publicity itself will motivate every student to read the article.  Furthermore, folks around the world will be eagerly awaiting when this article when and if it appears on the Web.  

Say what?  Another victim of television and Viagra
Britain's big pub companies are trying to reinvent the traditional British pub, best known for its fireplace, bad food and warm beer. The reason: Britons are drinking less beer these days, and even less at the pub.  To further entice post-office customers, the Case offers a $1 discount on coffee or tea if they linger in the pub. To beef up the offer, Mr. Senior last year spent about $3,200 on a professional coffee machine. "I told him he was mad to spend that," Mrs. Senior says. Yet, coffee sales have since jumped to about $380 a week from about $100 previously, she says. "We've got to sell everything we can," Mr. Senior says. "If you want an ice cream or a hot chocolate, we've got to be able to supply it. There are very few places left where you can sell beer full stop."
Jensen Comment:  The pubs are becoming after-hours post offices and mini-marts.  I think I preferred the old-style dark and quiet pubs with charcoal burning fireplaces, cockney accents, and bad food.

Mum's the Word:  I bet they still whisper to their mistresses and friends on Wall Street
Fewer U.S. companies are offering earnings guidance to investors and analysts, a survey found. Just 55% of firms offered guidance last year, down from 72% in 2003.  Those Providing Forecasts Fell Last Year to 55% From 72%; Drawback for Smaller Investors?
Gregory Zuckerman, "CEOs Turn Mum About Projecting Earnings," The Wall Street Journal, March 1, 2005 --- http://online.wsj.com/article/0,,SB110964376210666684,00.html?mod=todays_us_money_and_investing 

Mum's not the word in Blog land
Some eight million Americans now publish blogs and 32 million people read them, according to the Pew Internet & American Life Project. What began as a form of public diary-keeping has become an important supplement to a business's online strategy: Blogs can connect with consumers on a personal level -- and keep them visiting a company's Web site regularly.
Riva Richmond, "Blogs Keep Internet Customers Coming Back," The Wall Street Journal, March 1, 2005; Page B8 --- http://online.wsj.com/article/0,,SB110963746474866537,00.html?mod=todays_us_marketplace 
Bob Jensen's threads on Weblogs and blogs are at http://www.trinity.edu/~rjensen/245glosf.htm#Weblog 

Optic nerve hypoplasia
Opthalmologists are baffled by the rising prevalence of a rare condition called optic nerve hypoplasia, which can cause visual impairment or total blindness in babies.  "It used to be so rare that people would trade slides of the few known cases," says Michael Brodsky, a pediatric neuro-ophthalmologist at University of Arkansas for Medical Sciences in Little Rock. Since the 1970s, however, diagnoses of optic nerve hypoplasia have escalated. Dr. Borchert says he alone has seen at least 500 victims, and he estimates there are thousands of cases nationwide. Hard numbers on children who are blind or visually impaired are difficult to obtain. But, says Dr. Brodsky, "these cases are now filling up our clinics."
Kevin Helliker, "Pediatric Puzzle: A Sharp Increase In Infant Vision Problem Baffles Doctors," The Wall Street Journal, March 1, 2005; Page D1 --- http://online.wsj.com/article/0,,SB110963006386166280,00.html?mod=todays_us_personal_journal 

Just think of the interest that's piling up at $2,877 per hour each 24 hours of each of seven days of every week
U.S. authorities announced one of the largest individual criminal tax cases ever, accusing a Washington telecommunications businessman of failing to pay about $210 million in taxes.  A federal grand jury in Washington returned a 12-count indictment last Wednesday under seal that charged Walter Anderson, 51 years old, with a plan to evade federal and District of Columbia taxes.  Mr. Anderson was arrested Saturday at Washington Dulles International Airport after he stepped off a flight from London.  The indictment alleges Mr. Anderson earned nearly $450 million through investments and offshore operations that he established to make it appear as if he wasn't personally earning the money, the Justice Department said.
"Man Is Accused Of $210 Million Tax Evasion," The Wall Street Journal, March 1, 2005, Page D2 --- http://online.wsj.com/article/0,,SB110963908825166585,00.html?mod=todays_us_personal_journal 

What has life expectancy risen to in the United States?
Life expectancy in the U.S. climbed to a record in 2003, as deaths from heart disease and cancer declined.  According to information from the Centers for Disease Control and Prevention, average life expectancy rose to 77.6 years in 2003 from 77.3 years in 2002.
Jennifer Corbett Dooren, "Americans' Life Expectancy Rose to Record High in 2003," The Wall Street Journal, March 1, 2005; Page D8 --- http://online.wsj.com/article/0,,SB110963558261366439,00.html?mod=todays_us_personal_journal 
Jensen Comment:  Medicare has significantly extended the life expectancy of a citizen in the U.S. while it significantly lowers the expected life of the United States itself.
Bob Jensen's unfinished essay on entitlements is at http://www.trinity.edu/rjensen/entitlements.htm 

War Shortages
General Motors Corp. will offer to repurchase new cars bought by dealers from its five divisions. This is to reduce the "wild" trading that might result if dealers had to reduce stocks involuntarily and prevent cars from falling into "bootlegger" hands.
The Wall Street Journal, March 3, 1942 

The Vioxx fallout hits multiple sclerosis patients.
Tysabri had received accelerated approval from the FDA just three months ago because clinical trials had shown it to be twice as effective as alternative therapies in preventing flare-ups of MS, which is a degenerative and eventually fatal disease. Tysabri is also easier to take than alternative treatments, and tolerated by a subset of MS patients who can't take the others at all.  But for the indefinite future everyone will have to do without because two of the thousands of patients who've received Tysabri developed a rare neurological disorder. Those two patients happened to also be on another immuno-suppressive MS treatment called Avonex. There is no reason to believe that Tysabri has caused this disorder when used alone.  There's plenty of blame to go around here, starting with the trial lawyers and their climate of fear. Congressmen who demagogue about non-existent FDA safety "lapses" aren't much better. But we're also disappointed with CEOs who imagine they're doing patients and shareholders a favor with such rash decisions. In retrospect, Merck CEO Ray Gilmartin only strengthened the hand of the lawyers by withdrawing Vioxx when the FDA would have been content with relabeling.
"Drug Twilight Zone," The Wall Street Journal,  March 2, 2005; Page A16 --- http://online.wsj.com/article/0,,SB110972765984167851,00.html?mod=opinion&ojcontent=otep 

New oxymoron:  Hungarian wedding
"Most Hungarian Adults Single for the First Time in History, Report," Weird News, March 1, 3005 --- http://snipurl.com/HungarianWeddings 

Hungarians should seek out marriage proposal consulting that seems to lead to more nuptials in the U.S.
This is just the sort of anxiety that sends men hot-footing off to companies such as the Massachusetts website 2propose.com, run by Paul Alden, a former wedding photographer.  Like its rivals, such as anexclusiveengagement.com or anamazingproposal.com, the site offers a range of services, from 100 proposal concepts for $US9.99 ($12.70) to a more expensive tailored service in which proposal co-ordinators sort out a specific plan and arrange it all.  Ideas in the basic package include painting "Marry me" on bowls at a bowling alley, hiring out the Magic Kingdom Rose Garden at Disneyland and getting yourself delivered to your beloved's door inside a box.  Some of the 3000 people who register on the site each month opt for something far more elaborate, says Alden. He mentions a man who arranged for a fake television crew to ambush him and his girlfriend as they took a carriage around Central Park and then "film" him going down on one knee.  Another client remembered his girlfriend being upset at not being able to land near a beautiful waterfall in Hawaii as they flew over in a helicopter on holiday. Alden's company tracked down the only pilot licensed to land at the spot. He brought them down, produced a picnic and, when they got back to the airport, the couple were taken by limo to a restaurant where they were serenaded by a violinist. Total cost: about $US3750, not including the air fares to Hawaii.
"Popping the question goes professional," Sydney Morning Herald, March 3, 2005 --- http://www.smh.com.au/text/articles/2005/03/02/1109700540627.html 

Let's hope that single parents in Hungary don't go by way of those in the U.K.
The reasons for this moral decline are as clear as the aforementioned statistics are bleak. As James Bartholomew argues in his recent book "The Welfare State We're In" (Politico's, 2004), the blame rests squarely on the growth of the welfare state, which has removed personal responsibility in large areas of people's lives and substituted dependency on the state and the rule of the bureaucrat. The state is complicit in the breakdown of the family; consider Mr. Bartholomew's example of how the state has promoted single-parent families by taxing married couples -- and abolishing the marriage allowance -- while giving increasing amounts of money to single parents.  No wonder, then, that from 1972 to 1992 the proportion of children living with a lone parent tripled to 21% from 7%. The link with rising crime is reflected in one shaming statistic: One-third of the people in U.K. prisons spent time in an orphanage at some time in their childhood. One prison governor, on being asked how many of the inmates had formerly been taken into foster care, replied: "Nearly all of them."  Indeed, the collapse of the traditional nuclear family has hit the poorest classes quite disproportionately, with nearly a quarter of girls whose fathers were unskilled workers becoming teenage mothers, mostly outside marriage. Divorces have risen sevenfold since 1960, and these also have been much more common among the poor.
Russell Lewis, "Unruly Britannia," The Wall Street Journal (Europe), March 3, 2005 --- http://online.wsj.com/article/0,,SB110980295622868708,00.html?mod=opinion&ojcontent=otep 

What giant search engine turned ten years old?  It's almost reached puberty.
Which web powerhouse was started by two Stanford geeks as a simple search page with a silly name and became the biggest thing on the internet? Nope, not Google. Try again. The invisible giant turns 10.  Still, the adulation must rankle the folks at a certain company (Google) just down the road in Silicon Valley - another search engine founded by two precocious Stanford grads with a cute name, colorful logo, and simple homepage. The indignity is all the greater when you consider Yahoo!'s numbers: 165 million registered users, 345 million unique visitors a month, $49 billion market cap, and a 62 per­cent increase in revenue last quarter, bringing 2004 total revenue to $3.6 billion. Yahoo! makes more money and has more patents, services, and users than Google; it even has its own yodel. Given its recent blowout financial results and the expected continued explosion of online advertising, Yahoo! may very well be the most valuable business on the Web. And yet, as Jerry Yang and David Filo's startup celebrates its 10th anniversary March 2, Yahoo! is the biggest consumer Internet company you may almost never think about.
"The UnGoogle (Yes, Yahoo!)," Wired Magazine, March 2005 --- http://www.wired.com/wired/archive/13.03/yahoo.html?tw=wn_tophead_4 

Hero cat finds a home in Bangor --- now it has to learn English
A little Iraqi has a new home in Maine. H.P. the cat was adopted by National Guard troopers serving with the 152nd Field Artillery Battalion. Spc. Jesse Cote said the cat was starving and toothless when they found it. But the GI's were able to nurse H.P. back to health. The cat ate and slept with the soldiers and even helped them. Cote said H.P. would be the first to react to mortar fire and was their warning of incoming.
"Iraqi Cat Who Helped U.S. Troops Finds American Home," ClickOnDetroit, March 1, 2005 --- http://www.clickondetroit.com/family/4241748/detail.html 

One woman's solution to long-term care
The 82-year-old Marin County woman cannot walk and says she has no place to go, so she has remained planted in a hospital bed at Kaiser Permanente San Rafael Medical Center for the past year.  Despite every effort by Kaiser officials to get her out, Nome has refused to leave or pay the $3,090 a day that the hospital charges to put her up. She said she will continue squatting at Kaiser until a place is found in Marin where she can live and get the treatment she requires.  "When you pay Kaiser insurance month after month for 50 years like I have, you expect to be treated like a good patient and a human being," Nome said the other day from her hospital bed. "If I had known that Kaiser would take me for only a couple of days and then would expect my family to take care of me, I would have paid my family what I paid for insurance."
Peter Fimrite, "OVERSTAYING HER WELCOME Disgruntled patient hasn't budged from hospital for a year," The San Francisco Chronicle, March 1, 2005 --- http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/03/01/MNG76BII1M1.DTL 

One home invasion intruder put away for life
Chelsea (Alabama, Shelby County) man shoots armed intruder to death after being tied The Associated Press An armed, masked intruder was shot to death by a Chelsea man who managed to free himself after he was tied up and his wife held at gunpoint during a robbery in their home, Shelby County authorities said. Sheriff Chris Curry said a female accomplice was arrested while attempting to flee the scene. Sheriff's officers did not immediately release the name of the man who killed the intruder during the home invasion about 2 a.m. Sunday. The suspected burglar...
Birmingham Times, February 28, 2005 --- http://www.freerepublic.com/focus/f-news/1353390/posts 

This might replace one-sheet teaching evaluations
What you say or do when teaching, you may be on Candid Camera or student Web sites
Brick Township school officials might ban cell phones after a student's phone cam videotaped a teacher's outburst. Students said the teacher began yelling when students failed to show respect to the national anthem. The tape was posted on several independent Web sites.
"Teacher's Outburst Caught On Camera Student Shoots Teacher On Cell Phone Camera," NBC, March 2, 2005 --- http://www.nbc10.com/news/4245196/detail.html 

The Heavier Side
Dark Hero of the Information Age: In Search of Norbert Wiener, the Father of Cybernetics, by Flo Conway and Jim Siegelman. Basic Books, 423 pages, $27.50.  
It is hardly the greatest scientific mystery of the 20th century, but it is a riddle just the same: why did Norbert Wiener - gray eminence of gray matter, inventor of cybernetics, founding theorist of the information age - abandon his closest young colleagues just as they were about to embark on an exciting new collaboration on the workings of the brain?
Cornelia Dean, "A Brilliant Mind and an Anguished Life," The New York Times, March 1, 2005 --- http://www.nytimes.com/2005/03/01/science/01book.html? 
Jensen Comment:  

Jensen Comment:  Now the Lighter Side
Norbert Wiener (1894-1964), US mathematician. The archetype of the genius and absent-minded professor.

http://dalido.narod.ru/NW/NW-quote5.html 

http://snipurl.com/WeinerTime

http://people.cornellcollege.edu/ltabak/publications/articles/wiener.html 

http://www-groups.dcs.st-and.ac.uk/~history/Mathematicians/Wiener_Norbert.html 

http://www.xs4all.nl/~jcdverha/scijokes/Wiener.html 

http://www.anvari.org/shortjoke/Science_Humor/199.html 

http://www.anecdotage.com/index.php?aid=9224 

http://www.angelfire.com/co/1x137/cybros.html 

The list actually seems endless

Female assistant professors earn on average 91 percent of what their male counterparts earn.
Scott Jaschick quoting a report by Yale graduate students, "Larry Summers Isn't Alone," Inside Higher Ed, March 1, 2005 --- http://www.insidehighered.com/insider/larry_summers_isn_t_alone 
Jensen Comment:  I didn't investigate the 91 percent claim, but I suspect this is just one more way of using statistics to mislead.  Graduate students of Yale should be above such an unethical tactic.  My guess is the following:  Salaries and benefits of new hires of females are probably as high or higher than salaries and benefits of male hires in all respective disciplines.  I really doubt that there is gender discrimination within any discipline.  Even within the highest paying disciplines, such as computer science, I suspect that all women hired in Ivy League schools are getting no less than their male counterparts at the assistant professor level.  

The discrepancy in pay arises between disciplines, not between men versus women.  Some disciplines have a much higher supply of applicants making it possible (although many do not view as politically correct) to land top assistant professors at lower salaries.  In other disciplines such as computer science, the number of male and female applicants is so small and so competitive that higher offers must be made to land a top candidate, female or male.  In the discipline of accountancy, my guess is that there is a much higher proportion of female PhD graduates than in computer science.  These females are getting assistant professor offers equivalent to their male counterparts, and those offers are higher than in most other disciplines because there are so few male and female accountancy doctoral students across the world.  

I would be shocked of there is serious  gender discrimination at the hiring level in major universities.  Reasons why there are so many doctoral graduates in some disciplines and such a shortage in others are very complex.  I suspect many find accounting and computer science more boring even if the pay is better.  I do know of several professors of accounting who got doctoral degrees in other areas (e.g., one in German Literature and several in Economics) who admitted to me that, after discovering both the hiring opportunities and salary differentials, they earned a second doctoral degree in accountancy.  Of course there are some other accounting professors who for one reason or another are now teaching in other disciplines.

I might add that within the "broad" profession of accountancy the same type of gender pay differentials arise.  But the difference lies within the type of accountancy (such as clerical versus ERP auditing) rather than gender bias per se.  A top ERP auditor is going to get a better offer than a clerk whether that auditor is male or female.

March 1, 2005 reply from Richard C. Sansing [Richard.C.Sansing@DARTMOUTH.EDU] 

A competing hypothesis that is similar to yours in spirit is that if more experienced faculty earn more and the percentage of female hires is increasing over time, the same 91% figure could be true even though after controlling for both discipline and experience, men and women have the same level of earnings.

The study, which is at:

http://www.yaleunions.org/geso/reports/Ivy.pdf 

reports an unconditional mean of 91%, which controls for neither discipline nor experience. However, it reports similar disparities when controlling for rank (full, associate, assistant), so I suspect that controlling for experience wouldn't change the analysis much.

As for your comment, "Graduate students of Yale should be above such an unethical tactic.", I strive to avoid attributing to malice anything that ineptitude can also explain.

Richard C. Sansing 
Associate Professor of Business Administration 
Tuck School of Business at Dartmouth 100 Tuck Hall 
email: Richard.C.Sansing@dartmouth.edu 

"Accounting Firms Hiring Thousands of '05 Grads," SmartPros, February 23, 2005 --- http://accounting.smartpros.com/x47148.xml 

Feb. 23, 2005 (SmartPros) — The job market for 2005 college graduates is predicted to be the best since 2000, according to Michigan State University's annual Recruiting Trends survey. The top employers include several accounting and consulting firms.

The survey respondents are ranked according to the projected number of hires from college recruiting for the Class of 2005. The top 20 employers, followed by their projected number of hires, are:

1 - Enterprise Rent-A-Car--7,000 
2 - PricewaterhouseCoopers--3,170
3 - Ernst & Young LLP--2,900 
4 - Lockheed Martin--2,863 
5 - KPMG--2,240 
6 - Sodexho, Inc.--2,050 
7 - Fairfax County Public Schools--1,600 
8 - Accenture--1,540 
9 - Northrop Grumman--1,266 
10 - United States Customs & Border Protection--1,200 
11 - Target--1,127 
12 - United States Air Force--1,095 
13 - Raytheon Company--1,000 
14 - Microsoft--970 
15 - JPMorgan Chase--810 
16 - Procter & Gamble--569 
17 - Liberty Mutual--545 
18 - Grant Thornton--500 
19 - Bank of America--413 
20 - United States Air Force Personnel Center/DPKR--400

According to the survey, economic sectors showing strength this year include: retail, wholesale, transportation (not including airlines), health services, entertainment and real estate.

February 28, 2005 reply from Jagdish Gangolly [JGangolly@UAMAIL.ALBANY.EDU] 

Bob,

One can describe the reason for Accenture's needs for accountants in ONE word: outsourcing.

The following is from www.accenture.com  webpage:

Outsourcing

Application Outsourcing 

Business Process Outsourcing Accenture Finance Solutions-Accenture HR Services-Accenture

 Learning-Accenture Procurement Solutions-Accenture Business Services for Utilities-Accenture eDemocracy Services-Navitaire-Accenture Insurance Services 

Infrastructure Outsourcing

Jagdish S. Gangolly, 
Associate Professor 
School of Business & NY State Center for Information Forensics & Assurance 
State University of New York at Albany BA 365C, 
1400 Washington Avenue, Albany, NY 12222 
email: j.gangolly@albany.edu 

March 1, 2005 messages from Bob Jensen and Chuck Johnson

I hope Professor Johnson doesn’t mind if I share this with you. I suspect this is partly conjecture on his part, but it is somewhat more than conjecture. His reasoning makes sense to me. Apparently Enterprise has a different business model than other car rental firms.

There may be some fast food chains with similar models.

Bob Jensen

-----Original Message----- 
From: Kenneth Johnson [mailto:kjohnson@GeorgiaSouthern.edu]  
Sent: Tuesday, March 01, 2005 10:25 AM 
To: Jensen, Robert 
Subject: Re: Accounting Firms Hiring Thousands

Bob,

FYI, EnterpriesRent-a-Car's hiring of so many college graduates is driven by the firm's basic business model. Enterprise has thousands of small offices. When business volume at a particular location reaches a certain point a new office is created a few miles away. The way I understand it, each new hire does everything, from: taking reservations, serving customers, picking up and dropping off customers, and even washing cars. Their favorite hire is a graduate of modest academic achievement but with lots of extracurricular activities and good people skills. I learned all of this from a strategic management textbook I taught out of a few years ago; Enterprise was a side-bar mini-case.

BTW, the way I read it, the 7,000 figure cited in the 2000 Michigan State University's annual Recruiting Trends survey was total college graduates, not just accountants.

Thanks for the constant stream of interesting stuff.

Chuck Johnson

Bob Jensen's threads on accounting careers are at http://www.trinity.edu/rjensen/bookbob1.htm#careers  

We only have the happiness we have given.
Édouard Pailleron
Jensen Comment:  Misery is another thing entirely.

Proposal for Teaching Only and Imported Universities
Proposals by the federal Education Minister, Brendan Nelson, to create greater diversity, specialisation and competition within the university sector are radical, even revolutionary. Given the present unsatisfactory situation, this is no bad thing. Dr Nelson's suggestions - heresies, say some - would redefine and broaden the term "university". Universities could be either teaching-only or research-intensive institutions, the way would be cleared for more private and small universities, including some specialising in a single discipline or vocation (for example law or medicine or hospitality), and overseas universities would be encouraged to establish Australian campuses. This would require the Commonwealth and the states to agree to big changes in the present protocols that oblige universities to offer at least three disciplines and to undertake both teaching and research.
"Dr Nelson's daring new prescription," Sydney Morning Herald, March 7, 2005 --- http://www.smh.com.au/text/articles/2005/03/06/1110044262150.html 

The real embarrassment will be when it fits
Stanford University:  Transplanting human brain cells into mice
It will look like any ordinary mouse, but for US scientists a tiny animal threatens to ignite a profound ethical dilemma.  In one of the most controversial scientific projects conceived, a group of university researchers in California's Silicon Valley is preparing to create a mouse whose brain will be composed entirely of human cells.  Researchers at Stanford University have already succeeded in breeding mice with brains that are 1 per cent human cells. In the next stage they plan to use stem cells from aborted human foetuses to create an animal whose brain cells are 100 per cent human.  Professor Irving Weissman, who heads the university's Institute of Cancer/Stem Cell Biology, believes the mice could produce a breakthrough in understanding how stem cells might lead to a cure for diseases such as Parkinson's and Alzheimer's.  The group is waiting for a key US Government sponsored report, due this month, that will decide how much science can blur the distinction between man and beast.
"Mouse will have brain of human," Sydney Morning Herald, March 7, 2005 --- http://www.smh.com.au/text/articles/2005/03/06/1110044258297.html 

Canadian researchers add new meaning to "giving the finger."
The length of a man’s fingers can reveal how physically aggressive he is, according to new research.  The shorter the index finger is compared to the ring finger, the more boisterous he will be, University of Alberta researchers said.  But the same was not true for verbal aggression or hostile behaviours, they told the journal Biological Psychology after studying 300 people’s fingers. The trend is thought to be linked to testosterone exposure in the womb.  There is known to be a direct correlation between finger lengths and the amount of the male hormone testosterone that a baby is exposed to in the womb. In women, the two fingers are usually almost equal in length, as measured from the crease nearest the palm to the fingertip. In men, the ring finger tends to be longer than the index.  Other studies looking at finger length have suggested that, in men, a long ring finger and symmetrical hands are an indication of fertility, and women with a longer index finger are more likely to be fertile.  One study found boys with shorter ring fingers tended to be at greatest risk of a heart attack in early adulthood, which was linked to testosterone levels.
"Short index finger shows men are as hard as nails," Scotsman, March 4, 2005 --- http://news.scotsman.com/scitech.cfm?id=239982005 

I thought March was a brilliant poet, especially his narrative verse in The Wild Party (which I longingly referred to over four decades when the urge to be a narrative poet whispered at me.  March always reminded me that I did not have the talent for narrative verse, and I humbly returned to writing about accountancy).
I suspect most of my literary friends will scoff at March's works, and for them I inserted the above module.
If you were looking for a young man with a great literary life in front of him in 1928, you'd have been hard-pressed to find a better candidate than 29-year-old Joseph Moncure March. His narrative in verse The Wild Party, a tale of Manhattan hedonism and the tragic hipsters who indulge in it, had been published that spring in a limited edition, achieving an immediate following and brisk sales. (A musical adaptation will open this month at the Fitzgerald Theater). The book even got banned briefly in Boston, bringing March something every writer craves—a prominent but not damaging censorship battle.
Tim Cavanaugh, "After the Party," Rake Magazine, March 2005 --- http://www.rakemag.com/coals/detail.asp?catID=58&itemID=20510 
Jensen Comment:  Cavanaugh says March had a "half-brilliant career," which I guess is not all that unique in either literary or scientific circles.  By the way, I don't think you can download a free copy of The Wild Party online.  The fact that it was briefly banned in Boston in 1928 shows how times have changed in society.

New Treatment for Type 2 Diabetes (Previously known as “noninsulin-dependent diabetes mellitus” (NIDDM))
A popular treatment for sleep apnea may also help people with type 2 diabetes, according to a study published in the Feb. 28 issue of the Archives of Internal Medicine. Researchers found that treating sleep apnea with continuous positive airway pressure (CPAP) not only helped the 25 participants sleep better, but also significantly reduced their blood sugar (or glucose) levels when administered for at least four hours a day. Lower glucose levels can help reduce a diabetic's risk of developing late-stage complications including cardiovascular and kidney disease.
"A Sleep Treatment's Dual Benefits," MSNBC, March 3, 2005 --- http://www.msnbc.msn.com/id/7077622/site/newsweek/ 
Jensen Comment:  Type 2 diabetes is becoming an epidemic among adults.  It is important to test for it regularly and aggressively follow physician diet, exercise, and drug plans.  Otherwise it can lead to blindness, sexual malfunction, loss of limbs, and death.

Tips to Help You Sleep from MSNBC on March 3 --- http://www.msnbc.msn.com/id/7077618/site/newsweek/ 

Peruvian novelist Mario Vargas Llosa:  Beyond Capitalism
The other night, upon accepting the 2005 Irving Kristol Award from the American Enterprise Institute, a bastion of inside-the-Beltway conservatism, the Peruvian novelist Mario Vargas Llosa gave a speech extolling liberalism. Not, he hastened to explain, the contemporary American version, but liberalism in its older sense, an outlook predicated on "tolerance and respect for others," the basic elements of which are "political democracy, the market economy, and the defense of individual interests over those of the state."  This liberalism, which requires private property, free markets, and the rule of law, has little in common with the statist mutation that goes by that name in the U.S. One of classical liberalism's central insights, Vargas Llosa noted, is that "freedom is a single, unified concept. Political and economic liberties are as inseparable as the two sides of a medal." By contrast, self-styled liberals in the U.S. tend to view economic liberty with indifference, if not hostility, leaving its defense to conservatives.
Jacob Sullum "Free to B&B," ReasonOnLine, March 4, 2005 --- http://www.reason.com/sullum/030405.shtml 

"Confessions of a Liberal," by Mario Vargas Llosa, American Enterprise Institute for Public Policy Research, March 3, 2005 --- http://www.aei.org/news/newsID.22053,filter.all/news_detail.asp 

Because liberalism is not an ideology, that is, a dogmatic lay religion, but rather an open, evolving doctrine that yields to reality instead of trying to force reality to do the yielding, there are diverse tendencies and profound discrepancies among liberals. With regard to religion, gay marriage, abortion and such, liberals like me, who are agnostics as well as supporters of the separation between church and state and defenders of the decriminalization of abortion and gay marriage, are sometimes harshly criticized by other liberals who have opposite views on these issues. These discrepancies are healthy and useful because they do not violate the basic precepts of liberalism, which are political democracy, the market economy and the defense of individual interests over those of the state.

For example, there are liberals who believe that economics is the field through which all problems are resolved and that the free market is the panacea for everything from poverty to unemployment, marginalization and social exclusion. These liberals, true living algorithms, have sometimes generated more damage to the cause of freedom than did the Marxists, the first champions of the absurd thesis that the economy is the driving force of the history of nations and the basis of civilization. It simply is not true. Ideas and culture are what differentiate civilization from barbarism, not the economy. The economy by itself, without the support of ideas and culture, may produce optimal results on paper, but it does not give purpose to the lives of people; it does not offer individuals reasons to resist adversity and stand united with compassion or allow them to live in an environment permeated in humanity. It is culture, a body of shared ideas, beliefs and customs--among which religion may be included of course--that gives warmth and life to democracy and permits the market economy, with its competitive, cold mathematics of awarding success and punishing failure, to avoid degenerating into a Darwinian battle in which, as Isaiah Berlin put it, “liberty for wolves is death to the lambs.” The free market is the best mechanism in existence for producing riches and, if well complemented with other institutions and uses of democratic culture, launches the material progress of a nation to the spectacular heights with which we are familiar. But it is also a relentless instrument, which, without the spiritual and intellectual component that culture represents, can reduce life to a ferocious, selfish struggle in which only the fittest survive.

. . . 

Then it will not be necessary to talk about freedom because it will be the air that we breathe and because we will all truly be free. Ludwig von Mises’ ideal of a universal culture infused with respect for the law and human rights will have become a reality.

Continued in the article

The writings of Francis Fukuyama closely parallel the above message by Mario Vargas Llosa
The distant origins of the present volume lie in an article entitled “The End of History?” which I wrote for the journal The National Interest in the summer of 1989. In it, I argued that a remarkable consensus concerning the legitimacy of liberal democracy as a system of government had emerged throughout the world over the past few years, as it conquered rival ideologies like hereditary monarchy, fascism, and most recently communism. More than that, however, I argued that liberal democracy may constitute the “end point of mankind’s ideological evolution” and the “final form of human government,” and as such constituted the “end of history.” That is, while earlier forms of government were characterised by grave defects and irrationalities that led to their eventual collapse, liberal democracy was arguably free from such fundamental internal contradictions. This was not to say that today’s stable democracies, like the United States, France, or Switzerland, were not without injustice or serious social problems. But these problems were ones of incomplete implementation of the twin principles of liberty and equality on which modern democracy is founded, rather than of flaws in the principles themselves. While some present-day countries might fail to achieve stable liberal democracy, and others might lapse back into other, more primitive forms of rule like theocracy or military dictatorship, the ideal of liberal democracy could not be improved on.
Francis Fukuyama, The End of History and the Last Man, 1992 --- http://www.marxists.org/reference/subject/philosophy/works/us/fukuyama.htm 
Jensen Comment:  I recently saw mention made a lecture by Fukuyama at the University of Chicago that had the title something to the the effect "Fifteen Years After the End of History."  I used Fukuyama's original "End of History" book years ago in a First Year Seminar.

Slavery Lives On
A ceremony during which at least 7000 men, women and children in Niger in West Africa were to be freed from slavery has been cancelled at the last minute by the Government.  The BBC News website quoted a spokesman for the Government's human rights commission as saying Saturday's planned ceremony had been cancelled because slavery did not exist in Niger. The Government had been a co-sponsor of the event.  In a country where at least 43,000 people are thought to be slaves, the practice was made illegal only last May. A new law made owning slaves punishable by up to 30 years in prison.
"Thousands of slaves see their chance of freedom slip away," Sydney Morning Herald, March 7, 2005 --- http://www.smh.com.au/text/articles/2005/03/06/1110044260807.html 
Jensen Comment:  It will be interesting to see if and when this law is ever enforced.

United Nations (read that United Nepotism)
The Biggest Scam in History
The U.N. Oil-for-Food scandal is the biggest scam in the history of humanitarian aid. And it's Kofi Annan's fault. 
Claudia Rosett, "Blame Game, The New Republic, February 16, 2005 --- https://ssl.tnr.com/p/docsub.mhtml?i=20050221&s=rosett022105

What a complicated web we weave:  Proud Canada Company Linked to U.N. Oil for Food Scandal
But the Fox News story wasn’t prompted by an announcement from Power of some billion-dollar takeover or the appointment of a new senior executive. It was something altogether different: the revelation that the man handpicked by the UN secretary general last April to probe the UN’s scandalized Oil-for-Food program, Paul Volcker, had not disclosed to the UN that he was a paid adviser to Power Corp., a story which had originally been broken by a small, independent Toronto newspaper, the Canada Free Press. Why did the highest-rated cable channel in the U.S. care? Because the more that Americans came to know about Oil-for-Food, which has been called the largest corruption scandal in history, the more the name of this little-known Montreal firm kept popping up. And the more links that seemed to emerge between Power Corp. and individuals or organizations involved in the Oil-for-Food scandal, the more Fox News and other news outlets sniffing around this story began to ask questions about who, exactly, this Power Corp. is. And, they wanted to know, what, if anything, did Power have to do with a scandal in which companies around the world took bribes to help a murderous dictator scam billions of dollars in humanitarian aid out of the UN while his people suffered and starved?
Kevin Steel, "How Montreal's Power Corp. found itself caught up in the biggest fiasco in UN history," Canada Free Press, March 5, 2005 --- http://www.canadafreepress.com/2005/cover030505.htm 
Bob Jensen's fraud updates are at http://www.trinity.edu/rjensen/FraudUpdates.htm 

Moral Hazard:  Should the media pay criminals for interviews?
The BBC's board of governors have rebuffed a call by culture secretary Tessa Jowell to investigate the corporation's controversial decision to pay £4,500 for an interview with the convicted burglar shot by Tony Martin. Ms Jowell said she understood the "disquiet and unease" caused by the reported payment, which has been attacked by politicians from all sides and described by the lord chancellor, Lord Falconer, as "disgusting".
John Plunkett, "BBC governors won't investigate burglar payment row," Guardian, March 7, 2005 --- http://media.guardian.co.uk/site/story/0,14173,1432251,00.html 

Separate but equal?
Black boys may have to be taught in separate classes from their white peers to help them do better at school, according to the race relations watchdog.  "If the only way to break through the wall of attitude that surrounds black boys is to teach them separately for some subjects, then we should be ready for that," he said. "A tough new strategy would compel black fathers to be responsible fathers.  "If they can't be bothered to turn up for parents' evening, should they expect automatic access to their sons?"
"Call for separate classes for black boys," Guardian, March 7, 2005 --- http://education.guardian.co.uk/racism/story/0,10795,1432149,00.html 

Purge of conservatives at Colorado University?
Mitchell taught at the Hallett Diversity Program for 24 straight semesters. That is, until he made the colossal error of actually presenting a (gasp!) diverse opinion, quoting respected conservative black intellectual Thomas Sowell in a discussion about affirmative action.  Sitting 5 feet from a pink triangle that read "Hate-Free Zone," the progressive head of the department berated Mitchell, calling him a racist.  "That would have come as a surprise to my black children," explains Mitchell, who has nine kids, as of last count, two of them adopted African-Americans.  People say liberals run the university. I wish they did," Mitchell says. "Most liberals understand the need for intellectual diversity. It's the radical left that kills you."  So Churchill may play the part, but Mitchell is the true dissenter at CU.  Why did he stay this long?  "I stay to create enthusiasm and love for history," Mitchell says. " And I am successful at that. I love the classroom, and I love my students."  Once, president Hoffman promised increased intellectual diversity at CU - not a purge of conservatives.  Another promise broken.
David Harsanyi, "A CU prof deserving of sympathy," Denver Post, March 7, 2005 --- http://www.denverpost.com/Stories/0,1413,36~31908~2748616,00.html 

Also see "Heretics in the Academy?:  On campuses across the country, conservative professors face a sea of hostility and ideological bias," by Jennifer Jacobson, The Chronicle of Higher Education, pp. A8-A11.

Fighting a conservative virus in the Cal student body
Fighting for the right to be right Political affiliation jeopardizes conservative student's office The intolerant atmosphere that conservatives at Cal face has, once again, been blatantly demonstrated by our elected officials. Judicial Council nominee Amaris White appeared before the ASUC Senate last Wednesday, for her confirmation hearing. After the Senators voted in favor of White’s appointment, they found out about her conservative affiliation. This prompted senators who had confirmed her to seek a reversal in their decision. As elected officials, it is the ASUC's responsibility to represent the student body and as such must allow Amaris White to serve on...
Amaury Gallais and Andrew R. Quinio. "Fighting for the right to be right Political affiliation jeopardizes conservative student's office," California Patriot, March 5, 2005 --- http://www.freerepublic.com/focus/f-news/browse 

This would never happen at Cal
Conservative students at the University of Texas at Austin planned to pass out cookies and cake Wednesday to celebrate Texas Independence Day. But rumors that they were planning another activity -- a "hunt" for illegal aliens -- led hundreds of students to protest.  In January, the University of North Texas chapter of the Young Conservatives of Texas held just such an event. Some students wore orange shirts that said "Illegal Immigrant" on one side and "Catch Me If U Can" on the other. Other students chased them and those who "caught" an immigrant won prizes. The state chapter of the Young Conservatives of Texas posted photos of the event on its Web site.
Scott Jaschik, "The Latest in Conservative Political Theater," Inside Higher Ed, March 4, 2005 --- http://www.insidehighered.com/insider/the_latest_in_conservative_political_theater 
Jensen Comment:  Sounds more like a vigilante group than a student group.  The Young Conservatives of Texas Web site is at http://www.yct.org/ 

March 3, 2005  message from Tristin McHugh

Sent: Thursday, March 03, 2005 6:29 PM 
To: Jensen, Robert 
Subject: protest songs of the sixties

Dear Dr. Richard Jensen:

Hello my name is Tristin McHugh an eighth grader at Diablo View Middle School Clayton, California. In my Core class I'm doing a big research project on protest songs of the sixties, and what led up to it. If you could please send me some information on this subject that would be great.

The Vietnam War and songs really interest me, so if you can send me stuff, that's awesome, but if you can't, that's OK, too.

Thank you for your time and efforts.

Sincerely, 
Tristin McHugh

March 4, 2005 reply from Bob Jensen

Here are a few to look at (not all are from the 1960s):

http://www.brownielocks.com/sixtieswarsongs.html  
The music is great to listen to in some of these, especially Written on the Wind

http://www.lib.virginia.edu/small/exhibits/music/protest.html

http://www.brownielocks.com/sixtieswarsongs.html 

You might be interested in my essay at http://www.trinity.edu/rjensen/hypocrisyEvilEmpire.htm

Hope this helps,
Bob Jensen

A great site for young people:  In 1928 it was for farm children.  Now it's for all children of the world.
FFA is a positive example of what works in education.  The National FFA Organization is a dynamic youth organization that changes lives and prepares students for premier leadership, personal growth and career success  Today, almost half-a-million student members are engaged in a wide range of agricultural education activities, leading to more than 300 professional career opportunities. Student success remains the primary mission of FFA.
The National FFA Organization --- http://www.ffa.org/ 

A great site for old people (while it lasts for free online)
Business Week's Free Video on Aging --- http://businessweek.feedroom.com/iframeset.jsp?ord=656106 
Scientists are exploring ways to extend life and slow aging 
Catherine Arnst, "Forever Young," Business Week, March 4, 2005

There are other video modules on current news headlines at http://businessweek.feedroom.com/iframeset.jsp?ord=271262 

I keep telling you that you should listen to Norwegians
An economics textbook by James D. Gwartney and Richard L. Stroup cites the interesting case of drunk driving in Norway, "the country that has the toughest drunk-driving laws in the Western world. Drinking a single can of beer before driving can put a first offender in jail for a minimum sentence of three weeks. These drivers lose their licenses for up to two years and often get stiff fines as well. Repeat offenders are treated even more harshly. These laws are far more Draconian than those of the United States. And the results?  "1. One out of three Norwegians arrives at parties in a taxi, while nearly all Americans drive their own cars. 2. One out of 10 Norwegian party-goers spends the night at the host's home; Americans seldom do. 3. In Norway, 78% of drivers totally avoid drinking at parties, compared to only 17% of American drivers."
K. Ravi Nair (an economics professor), "Sober Norway, Land Of the Safe Driver," The Wall Street Journal, March 2, 2005 -- http://online.wsj.com/article/0,,SB110972852841667887,00.html?mod=todays_us_opinion 
Jensen Comment:  And here's the best ploy of the Norseman male on the date:  "Is it all right if I stay over?  Otherwise I might have to spend three weeks in jail and lose my driving license."  

Which brings me to my favorite Ole and Lena yoke:

Ole was talking with his brother Sven, who lived next door, when Sven said, "Ya know Ole, you and Lena should really get some new curtains." 

"Vhy's dat?" Ole asked. 

"Vel last night I saw you and Lena, vel ... doing you know .. in bed." 

Ole thought for awhile, then said, "Ha-ha Sven, da yoke's on you! I vasn't even home last night!  I been in Stavanger."

For Sven, Ole, and Lena stories, try the following:
       http://www.newnorth.net/~bmorren/olelena.html  (with music)

Q: Is it true that if credit-card disputes go longer than 60 days, they must be resolved in favor of the card holder?
A: Card issuers must adhere to certain procedures when resolving disputes or the card holder automatically wins, but an exact 60-day time limit isn't one of them. Under the Fair Credit Billing Act, the creditor must acknowledge a card holder's letter pointing out a billing error within 30 days and either fix the bill or tell the customer why the bill is correct within two billing cycles and not longer than 90 days. During this period, the issuer also cannot release damaging information about the card holder to another creditor or credit bureaus. If the issuer fails to follow the rules, it loses the right to collect the disputed amount, and related finance charges, up to $50, even if the bill was correct.
Currie Smith," Credit-Card Disputes, The Wall Street Journal, March 3, 2005; Page D1--- http://online.wsj.com/article/0,,SB110981567203569105,00.html?mod=todays_us_personal_journal 
Jensen Comment:  For more information on the Fair Credit Billing Act go to http://www.ftc.gov/os/statutes/fcb/fcb.pdf 

How to Fix The Tort System
Does this mean there's no case against the tort system? Not at all. Just that the strongest evidence of plaintiffs' lawyer misconduct doesn't rest on broad economic data. Rather, the real crisis lies in the proliferation of specific types of bogus cases -- ones in which nobody has been injured, no malfeasance has occurred, or regulators have already taken care of the problem. Despite their claims of being selfless safety advocates, plaintiffs' attorneys in 2005 are analogous to chief executives in 1999: Most of the players are making an honest living. But an unacceptably high percentage of them are stretching the rules.  BusinessWeek's four-part solution to the problem is based on a set of pragmatic principles, with some parallels to those being used to clean up Corporate America. Like CEOs, lawyers should, first of all, be paid for performance. They shouldn't be allowed to take home multimillion-dollar paychecks if clients get pennies. Second, they shouldn't be able to cash in when they're merely piling on to government crackdowns. Third: When attorneys break the rules, the punishment should sting. These days, lawyers who file frivolous suits barely get their wrists slapped. These simple reforms would eliminate the most abusive cases while preserving the rights of victims. In the rare cases where they did not go far enough, such as asbestos, a far more radical change -- exiting the courts altogether -- may work better.
"How to Fix The Tort System," Business Week (Four-Part Series), March 14, 2005 --- http://www.businessweek.com/magazine/content/05_11/b3924601.htm?campaign_id=nws_insdr_mar4&link_position=link1 

low percentage of people who truly benefit from class actions
The single most scandalous thing about the American tort system is the low percentage of people who truly benefit from class actions. It's no mystery why this happens. Defendants want to keep redemption rates low -- and many plaintiffs' lawyers don't care. Their fees are set when deals are signed and pegged to a high theoretical number of claimants. And judges are way too busy to bird-dog settled disputes. This distorted set of incentives produces unintelligible award notices buried deep in newspapers, burdensome forms to fill out, and short claim periods.  Solution: Reverse the economics of class-action settlements. Plaintiffs' lawyers should be paid after victims collect their money -- not before. This would have two benefits. First, it would make lawyers more aggressive about getting the word out to class members. Second, and more important, it would filter out a high percentage of the system's silliest claims. One of the main reasons people don't bother to collect class-action benefits is that they don't perceive any injury in the first place.
"Pay for Performance," Business Week (Four-Part Series), March 14, 2005 --- 
 http://images.businessweek.com/ss/05/03/reform/index_01.htm 

Why not ask me?  I've got theories on everything
"We are nowhere close to an accurate, purely physical theory of everything," Penrose told Nature earlier this year.  Indeed, Penrose's newly published 1,099-page treatise -- The Road to Reality: A Complete Guide to the Laws of the Universe -- expends little ink ruminating over what is not known. Rather, The Road to Reality is as rigorous and exhaustive a map to the "theory of nearly everything" as a reader could hope to find today.
Mark Anderson, "Penrose: The Answer's Not 42," Wired News, March 2, 2005 --- http://www.wired.com/news/culture/0,1284,66751,00.html?tw=wn_tophead_2 

Bob and Jennie:  We've got almost all the symptoms
In the early '90s, psychiatrists and clinicians were beginning to hear of a new medical term, "internet addiction." At first, this was met with a lot of skepticism and denial, however, it became evident that the more people logged on to cyberspace, the more they got hooked.The 10 Symptoms You Need To Watch Out For:
AskMen.com --- http://www.askmen.com/fashion/body_and_mind/16_better_living.html

What professions perhaps have the most inside (economic) track to legislators in the U.S.?
The center found that the number of legislators and their spouses employed in education--including elementary and secondary schools, colleges, and educational associations--was exceeded only by the number of legislators and their spouses employed in the legal system.  In higher education, about 7 percent of legislators or their spouses were affiliated in some way with an institution or organization.  The study found that one-third of lawmakers who had a personal stake in higher education also sat on their legislature's education committee.  Leah Rush, the center's director of state projects, says lawmakers often cite state ethics laws in saying that the public is protected from conflicts of interest.  But this report "takes the window dressing off of these ethics laws," she says.
Joseph Gidjuis, "Sudy Questions Economic Ties Between Colleges and State Lawmakers," The Chronicle of Higher Education, October 8, 2005,  Page A26.

This university's piggie-lobbyist went to market, this ...
The investment seems to be paying off. In the NIH budget article, for instance, the reporters noted that Congress actually doubled the NIH's funding between 1999 and 2003. Similarly, according to the College Board's Trends in Student Aid 2004, total inflation-adjusted federal student aid—which ultimately ends up in the pockets of colleges and universities—more than doubled between the 1993-94 and 2003-04 academic years, totaling more than $81 billion in 2003-04.  The most direct payoff, however, has been in higher education "pork"—projects earmarked for specific schools rather than awarded through competitive grants—which, according to the Chronicle, rose from $296 million in 1996 to over $2 billion in 2003. How do colleges and universities get such projects? "Members of Congress...choose recipients...based on their own judgments, often after lobbying by the colleges seeking the money," according to the newspaper.
"Pork U., "Higher ed's scramble for federal cash," ReasonOnLine, March 1, 2005 --- http://www.reason.com/hod/nm030105.shtml 
Jensen Comment:  Read what Ohio University economist Richard Vedder has to say in Going Broke By Degree: Why College Costs Too Much

Only the winners decide what were war crimes.
Gary Wills

Japanese reactionaries are using the "abduction issue"?
A spokesman for the Committee for the Peaceful Reunification of the Fatherland in a statement Saturday scathingly denounced the moves of the Japanese reactionaries to institute the "Day of Tok Islet" and the remarks of the Japanese ambassador to south Korea that Tok islet belongs to Japan as a very dangerous behavior fully revealing their brigandish nature and shameless ambition for territorial expansion and a heinous move to seize part of the inalienable territory of Korea. He said: The Japanese reactionaries have become so brazenfaced as to make a claim to Tok Islet, while insisting that it belongs to Japan. This is a rash act which can be committed only by the political gangsters and rogues who are utterly indifferent to history and international law. We can never allow the Japanese reactionaries to insult the Korean nation and grab part of the inalienable land of Korea. All Koreans should wage a more resolute struggle to shatter Japan's moves to grab the islet and force it to apologize and compensate for its past crimes. Japan would be well advised to properly understand the ever mounting anti-Japanese sentiment of the Korean nation and its bitter hatred, stop acting rashly and discontinue at once its brigandish moves to grab the islet.
"Japan's Ambition for Territorial Expansion Assailed," North Korea News, March 5, 2005 --- http://www.kcna.co.jp/item/2005/200503/news03/07.htm#8 

The ACLU wants crosses removed from all government property, but firmly draws a line on cemeteries and, I assume, museums.  If exceptions are to me made who should decide where to draw the line --- http://www.aclu.org/info/info.cfm?ID=14684&c=248#3_8 
In the grand scheme of things, I think this is one of those things that is out of perspective given all the problems of the world.

Remove religious monuments from public property:  Is it the name of religion or history?
When the epic was done, DeMille went into publicity overdrive. He funded the Fraternal Order of Eagles' promotion of Ten Commandments displays. One of the monuments landed on the grounds of the Texas capitol where -- fast forward -- a homeless lawyer happened upon it and took his protest all the way to the US Supreme Court.  The tale of the Texas monument was one of two Ten Commandment cases heard Wednesday. The other was about the framed copies of the biblical Decalogue placed in some Kentucky courthouses. The Supremes will have to decide whether putting the commandments in public spaces amounts to a state endorsement of religion, or whether it is merely an acknowledgment of their historic influence on the law.  In the words of Justice Antonin Scalia, ''I bet that 90 percent of the American people believe in the Ten Commandments, and 85 percent couldn't tell you what they all are."  The whole Ten Commandments furor is fueled by religious conservatives and then handed to lawyers who offer a secular defense. In this case, Texas Attorney General Greg Abbott defended the 6-foot stone bearing the words ''I am the Lord thy God" by saying it was just one presence in a ''museum-like" setting filled with homages to other ''historical influences." Kentucky's Matthew Staver defended the displays that were meant to illustrate ''America's Christian heritage" by saying they were merely a part of an historic tableau.  The historic cover story for a religious message tells you just what sort of a mess we are in. As Douglas Laycock of the University of Texas Law School says, ''The court has said that the government cannot endorse religion, and the government keeps doing it anyway. Then religious groups are forced to defend it in court by saying it isn't religion at all -- it's about the foundations of American law or it's an historical landmark."
Ellen Goodman, "Monuments to God or history?" Boston Globe, March 6, 2005 --- http://www.boston.com/news/globe/editorial_opinion/oped/articles/2005/03/06/monuments_to_god_or_history/ 

Keeping church and state separate in public schools may not be easy
Muslims want to ensure their children grow up with values Six Islamic groups, accounting for 70% of Germany's Muslims, plan to unite under one umbrella to push for having Islam taught in public schools. The groups want to ensure that Islam can be taught in German in public schools to better integrate children and prevent misinterpretations. It is vital to resolve this problem and ensure that Islam is enrolled in school curriculums, said Nadeem Elyas, president of the central council of Muslims, one of the groups. "If we don't, the next...
"German Muslims want Islam in class," Aljazeera, March 2, 2005 --- http://english.aljazeera.net/NR/exeres/719395FB-338E-4C18-8B03-2B70789FDBA3.htm 

U.S. Population Explosion
The 1970 U.S. Census placed America's population at about 200 million people. Shortly thereafter, the bipartisan Rockefeller Commission issued a report that concluded that there would be no public benefit to further U.S. population growth. In the ensuing 35 years, U.S. population has swelled by 50 percent and we stand on the brink of surpassing 300 million people. How did this astounding population explosion occur? A new study published by the Federation for...
"Immigration Drives Rapid U.S. Population Growth," FairUS, March 1, 2005 --- http://www.fairus.org/media/media.cfm?id=2638&c=34 

Bad science frightening the poor:  Better to let them continue to be hungry and maybe starve?
Activists are again trying to frighten poor people in developing countries by claiming the U.S. is poisoning them with genetically modified food. Never mind that 280 million Americans have been eating biotech-enhanced crops for nearly a decade with zero evidence that it has caused anyone so much as a sniffle or a bellyache.
Ronald Bailey, "Attack of the Killer Crops? Activists still trying to scare poor farmers with bad science," ReasonOnLine, March 2, 2005 --- http://www.reason.com/rb/rb030205.shtml 

Brazil Passes Law Allowing Crops With Modified Genes
After months of delays and heated debate, legislators passed a biotechnology law late Wednesday night by a vote of 352 to 60. The bill had pitted farmers and scientists against environmental and religious groups. Besides lifting a longstanding ban on the sale and planting of gene-altered seeds, the legislation also clears the way for research involving human embryonic stem cells that have been frozen for at least three years
Todd Benson, "Brazil Passes Law Allowing Crops With Modified Genes," The New York Times, March 4, 2005 --- http://www.nytimes.com/2005/03/04/business/worldbusiness/04gene.html 
Jensen Comment:  I also hope Brazil launches a major stem cell research initiative since the U.S. is dragging its Republican feet.

An entirely new definition of bankruptcy:  What you don't know about a pending bill might hurt you
"Most of the credit cards that end up in bankruptcy proceedings have already made a profit for the companies that issued them," said Robert R. Weed, a Virginia bankruptcy lawyer and onetime aide to former Republican House Speaker Newt Gingrich.  "That's because people are paying so many fees that they've already paid more than was originally borrowed," he said.  In addition, some experts say, the changes proposed in the Senate bill would fundamentally alter long-standing American legal policy on debt. Under bankruptcy laws as they have existed for more than a century, creditors can seize almost all of a bankrupt debtor's assets, but they cannot lay claim to future earnings.  The proposed law, by preventing many debtors from seeking bankruptcy protection, would compel financially insolvent borrowers to continue trying to pay off the old debts almost indefinitely . . . Debate about the bill continued Thursday, with the Republican-controlled Senate refusing to limit consumer interest rates to 30%. The vote was a bipartisan 74 to 24 to kill a proposed amendment by Sen. Mark Dayton (news, bio, voting record) (D-Minn.). Senate passage of the bill is expected next week.
Peter G. Gosselin, "Credit Card Firms Won as Users Lost," The Los Angeles Times, March 4, 2005 --- http://snipurl.com/LAtimesMarch4 
Bob Jensen Comment:  I think bankruptcy has been abused by rip off artists and the law needs to be changed.  This pending bill, which most likely will pass, however got high jacked by the rip off artists called credit card companies.

Surprise! Surprise!  Fat butts are always more protected in Washington DC.
The bankruptcy legislation being debated by the Senate is intended to make it harder for people to walk away from their credit card and other debts. But legal specialists say the proposed law leaves open an increasingly popular loophole that lets wealthy people protect substantial assets from creditors even after filing for bankruptcy.  The loophole involves the use of so-called asset protection trusts. For years, wealthy people looking to keep their money out of the reach of domestic creditors have set up these trusts offshore. But since 1997, lawmakers in five states - Alaska, Delaware, Nevada, Rhode Island and Utah - have passed legislation exempting assets held domestically in such trusts from the federal bankruptcy code. People who want to establish trusts do not have to reside the five states; they need only set their trust up through an institution in one of them.
Gretchen Morenson, "Proposed Law on Bankruptcy Has Loophole," The New York Times, March 2, 2005 --- http://www.nytimes.com/2005/03/02/business/02bankrupt.html 

Bob Jensen's threads on credit card company dirty secrets are at http://www.trinity.edu/rjensen/FraudReporting.htm#FICO 

This isn't corny:  Poets v. U. of Iowa Press
The University of Iowa is known for its Writers' Workshop, so it's no surprise that the University of Iowa Press builds on that literary reputation with annual prizes for poetry and short fiction.  In recent weeks, an anonymous Web site has begun a campaign against the press, arguing that it favors entries with connections to the university. The Web site, Poetry, calls itself "the poetry watchdog" and boasts of its role "exposing the fraudulent 'contests,' tracking the sycophants, naming names."  The Web site is urging poets to send letters to consumer advocates, state officials and the university's president, and to lawyers who might help with a class action lawsuit (based on Foetry's view that participants are duped into paying the $20 entry fee, unaware that they may have little chance of winning if they don't have Iowa ties).  At the Iowa Press, officials are astonished to find themselves under attack by an army of poets and poetry fans -- most of them anonymous.
Scott Jaschik, "Poets v. U. of Iowa Press," Inside Higher Ed, March 4, 2005 --- http://insidehighered.com/insider/poets_v_u_of_iowa_press 

Dark clouds move in over Auburn's sensational football season
But when black educators at Auburn and black legislators in Montgomery didn't like the answers they received to questions about those who lost their jobs, matters deteriorated. Alabama's black legislative caucus has called for black athletes to boycott the university, with a leader of the boycott effort calling Auburn "one of the most racist universities in the world."  And the Rev. Al Sharpton is now getting involved, saying that he will mobilize his supporters to back the boycott of a university with "a history of blatant discriminatory practices."  All of this activity is taking place as the university released a long-awaited report on efforts to promote diversity. And that report follows a letter from black faculty and students leaders demanding that the president do more to recruit and retain minority students and faculty members. The general feeling among many black scholars is that Auburn is terrified of the boycott, suggesting that some of the university's leaders are more concerned about black people who can hold a ball than those who hold doctorates.
Scott Jaschik, "Race, Sports and Professors," Inside Higher Ed, March 3, 2005 --- http://www.insidehighered.com/insider/race_sports_and_professors 

Raising the bar for a free education
In an effort to outdo its rivals, Yale University said yesterday that it would no longer require parents earning less than $45,000 a year to pay anything toward their children's educations.  Harvard announced a similar program last year, freeing parents who earn $40,000 or less from paying anything, and the change helped raise its applications to record levels. Several of Yale's other competitors, including Princeton, have taken a slightly different approach by no longer requiring loans for low-income students, and they also believe the move helped increase applications.
Greg Winter, "Yale Cuts Expenses for Poor in a Move to Beat," The New York Times, March 4, 2005 ---  http://www.nytimes.com/2005/03/04/education/04yale.html 

Also see http://www.insidehighered.com/insider/yale_plays_catch_up_on_financial_aid 

But this does not solve our larger problem:  What about the ones who don't go on to school?
Job Sprawl and the Spatial Mismatch between Blacks and Jobs ---  http://www.brookings.edu/metro/pubs/20050214_jobsprawl.pdf 

New technologies for the deaf and blind
The isolated world of deaf-blind impaired people is slowly being cracked open by new devices, from hockey pucks that rattle to beds that shake sleepers awake. And an age-old technique - the eyes and ears of others who intervene to help them communicate - is also being used to greater effect. "Just so many opportunities have opened because of intervention," says Sayer, who lives in Winnipeg. Many people like her need interveners "to be able to go out, even leave their homes - to do our shopping," she said
Eric Shackleton, "Isolated world of deaf-blind being cracked open by new technologies," Canadian Press, March 3, 2005 --- http://www.canada.com/technology/news/story.html?id=d1bc4012-08f4-4a3f-aca3-04401dbb07d7 

Mysterious mental abilities
"Mirror neurons promise to do for neuroscience what DNA did for biology," neurobiologist V.S. Ramachandran of the University of California, San Diego, has written, explaining "a host of mental abilities that have remained mysterious."
Sharon Begley, "How Mirror Neurons Help Us to Empathize, Really Feel Others' Pain," The Wall Street Journal, March 4, 2004, Page B1 --- http://online.wsj.com/article/0,,SB110989327130070064,00.html?mod=todays_us_marketplace 

When you really need to think, sniff the roses
New research suggests people with synesthesia may be better problem solvers. Tasting sounds and smelling colors could be good for cognition.  Neuroscientists think the condition occurs because certain regions of the brain "cross-activate" at the same time. So the tone perception center, for example, may be linked with the taste perception center. And studying synesthetes is giving clues to the working of the brain, one of the most complex structures in the universe.  "Synesthesia shows how many variations in normal brain function are possible," said Michaela Esslen, of the department of neuropsychology at the University of Zurich, Switzerland.
Rowan Hooper, "Rainbow Coalition of the Brain," Wired News, March 4, 2005 --- http://www.wired.com/news/medtech/0,1286,66770,00.html?tw=wn_tophead_5 

Brain Tissue Bank
A brain tissue bank that will allow researchers to study sudden deaths from a variety of causes is to open in Edinburgh.  During a two-year project starting on Wednesday, a group of researchers are to collect healthy and diseased tissue samples that will help them study drug abuse, epilepsy, severe asthma, cot death and suicide and other conditions.
"UK home to first brain bank," Aljazeera, March 2, 2005 --- http://english.aljazeera.net/NR/exeres/ADEEA091-EFB7-4093-844D-7620460E05FB.htm 
Jensen Comment:  There may be a technical problem with defining a "healthy" brain when you consider alcohol usage, aging differentials (male vs. female), etc.  However, researchers will apparently identify "healthy" by some definition in contrast to "severe" abnormalities.

Please don't put Nancy Soderberg's brain tissue under the "healthy" category of the Brain Bank
There's always hope that this might not work.  
(with reference to positive change in the Middle East while the Republicans are still in power.)
Comedy Central's "The Daily Show" featuring Jon Stewart" March 1, 2005
This clip might eventually be available at http://www.comedycentral.com/tv_shows/thedailyshowwithjonstewart/videos_corr.jhtml?p=stewart 
Jensen's Comment:  This is a Comedy Central show, but if you watch the segment you have to believe she's serious.  Even Jon Stewart buried his head in his hands and tried to hide.

Clinton aide Nancy Soderberg is the author of The Superpower Myth: The Use and Misuse of American Might http://www.wiley.com/WileyCDA/WileyTitle/productCd-0471656836.html " (foreword by Bill Clinton, blurb by Madeleine Albright)