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The Journal of Campus Affairs at the University of Michigan www.michiganreview.com
VOLUME XXVII
Madoff with the Money: A Michigan View
January 20, 2009
ISSUE 8
King Holiday Celebrated
by nathan stano ‘11
Early last month Wall Street, already reeling from setback upon setback in financial markets, was hit yet again, this time with $50 billion of fraud committed by Bernard Madoff. Observers everywhere stopped, stupefied by the sheer size of this scam. The current investigation of the scam has highlighted the SEC’s failure to uncover it sooner. Business School Professor Dr. Nejat Seyhun recently discussed the scandal with the Review. Seyhun explained that Madoff lied to his investors about the performance of their investments, bringing in money from second and third party groups to pay returns to earlier investors. As a classic Ponzi scheme, these high “returns” drew in still more investors. When asked what has been done by the Security and Exchange Commission, SEC, and other investigatory agencies, about the scandal, Seyhun had a simple, if disturbing answer, “just about nothing.” Madoff was “caught” when his investors, fearing the economic downturn, tried to pull about $7 billion out of investments Madoff supposedly managed. Because of the ongoing scam here, Madoff lacked the money to cover such a pullout, and told his sons about the scam, seeing that the fraud would be discovered. Dr. Seyhun said he may have told his sons in order to create, “the impression his sons had no involvement,” though he acknowledged that the truth has yet to be seen. “The SEC missed everything,” was Dr. Seyhun’s simple summary of what went wrong. Despite the “we didn’t see this coming” attitude taken by investigators, there were specific complaints to the SEC about Madoff over the last ten years. In fact, a former investment officer, Harry Markopolos filed a nineteen page complaint about Madoff to the SEC entitled, in no uncertain terms “The World’s Largest Hedge Fund is a Fraud.” Dr. Seyhun made his opinion quite clear: “The SEC did not do its due diligence.” Madoff’s victims came from across the world, according to a list published by the Wall Street Journal, including former GMAC Chairman J. Ezra Merkin, who retired that position on January 9th. Many of Madoff’s victims came from financial centers like New York and Switzerland. When asked how common such financial fraud was, Dr. Seyhun stated, “deception and fraudulent activity happens all the time…if this was $10 million no one would have paid this much attention.” Some brokers are prone to making unauthorized transactions, which can often go unnoticed. Another part of this scandal that especially concerned those in the investment community was the shattering of trust they had in Madoff, a former NASDAQ governor. Dr Seyhun noted this problem, and added that it is compounded by the “revolving door” where “SEC people do not want to offend securities people because they will likely get jobs from them later,” stated Seyhun.
mail to
MADOFF Continued on PAGE 5
NAACP chairman Julian Bond speaks at Hill Auditorium January 19th.
PHOTO ADAM PASCARELLA / MRSTAFF
BY ADAM PASCARELLA ‘10
Starting in 1986, the University of Michigan has held one of the largest annual symposiums that remember Martin Luther King’s works and legacy. Speakers such as former Congressman and NAACP president Kweisi Mfume and Putlizer-Prize nominated actress Anna Deavere Smith have previously come to Ann Arbor to speak about the lessons they learned from King’s life. The 2009 symposium, however, was different because of two simple words: Barack Obama. With the Presidential inauguration one day after Martin Luther King Day, the excitement was tangible throughout the symposium. This year’s conference, entitled “A Dreamer, But Not The Only One,” looked at not only King’s legacy, but the legacy of those activists who marched for civil rights throughout the 1960s. Referencing President Obama’s campaign, speakers throughout the week stated that dreamers throughout American history had created change in the 21st century. “Martin Luther King had a dream that was rooted in the American dream. It was the dream of equal opportunity: that the color of your skin does not equal the content of your character. In 2008, 70 million dreamers voted for change when they selected Barack Obama in the last election,” said Lester Monts, Senior Vice Provost for Academic Affairs at U-M. The symposium commenced on January 15 with an opening lecture from Julie Chavez Rodriguez, the granddaughter of labor activist Cesar Chavez. Speak-
ing in the Michigan League, she spoke about her grandfather’s life and how he was able to work with King to create social justice around the country. She asserted that it was important for Americans to acknowledge both Chavez’s and King’s accomplishments and to use their strategies of nonviolence and self-sacrifice in order to create change in the world. “We need to take the legacies of King and my grandfather to build a new legacy that will propel current and future generations forward,” she said. Chavez Rodriguez went on to explain that as she witnessed her grandfather’s struggle for higher wages for migrant workers, she realized that she needed to sacrifice her own interests for the sake of others in need. “We have one life to live so we should use our lives to help others. I learned that sometimes it is important to give yourself to a cause that is bigger than one person,” she said. On January 19 at Hill Auditorium, Julian Bond, the current chairman of the National Association for the Advancement of Colored People (NAACP), delivered the keynote speech for the symposium. A co-founder of the Student Nonviolent Coordinating Committee (SNCC) during the 1960s, Bond spoke about his experiences during the Civil Rights Movement and the current racial dilemmas that challenge minority citizens even after the election of Barack Obama. Bond claimed that as a student at Morehouse Col MLK Continued on PAGE 7
Ross Grads Anticipate Job Future By Alissa Ng ‘10
The current economic outlook is bleak, but this is not completely true for graduate job prospects. With the surging national unemployment rate, which Gallup polls predict will increase beyond seven percent this year, professors and students have mixed feelings about the job market for graduates. When asked about the future of business graduates, Jan Svejnar, Professor of Business Economics and Public Policy predicts that the job market will be kinder
on those from the Ross Business School. “The recession makes all employers cut back on internships and new hires. However, our graduates are seen as being among the best in the world, so they will not be as affected as graduates from most other schools.” Professor Svejnar’s area of expertise lies in labor economics and behavior of multinational corporations; he was also a 2008 presidential candidate in the Czech Republic. BUSINESS Continued on PAGE 5
www.michiganreview.com
Serpent’s Tooth
01.20.2009 4.1.08
PAGE 2
THE MICHIGAN REVIEW www.michiganreview.com
Editorial Board Jane Coaston Editor-in-Chief Nathan Stano Executive Editor Adam Pascarella Managing Editor
. . . A Bite of News
The District of Columbia declared a “prostitution-free zone” surrounding several blocks of the city during the Inauguration. Signs denoting the “zone” and the potential of a $300 fine have gone up around the city. Oddly enough, the presidents of Alpha Delta Phi and Delta Kappa Epsilon have taken similar steps.
Eun Lee Graphic Design Editor Jonathan Slemrod Editor-at-Large Julianne Nowicki Eden Stiffman Nathan Torreano Assistant Editors Business Staff Karen Boore Publisher Jonathan Slemrod Anna Malecke Associate Publishers Michael O’Brien Editor Emeritus
In yet another publicity stunt, the animal rights organization PETA has declared that fish should be called “sea kittens” to make them seem cuter and more palatable. We’re waiting for similar campaigns on behalf of slugs (“mucus puppies”), spiders (“many-handed fur munchkins”) and divorce attorneys (“amicable settlement devisers”).
Protests regarding Israel’s action in the Gaza strip took over the corner of Main and Liberty earlier this week, with protestors from both camps taking to the streets in front of Starbucks and Ten Thousand Villages. After the pro-Palestinian groups threw hundreds of snowballs, the pro-Israel group reacted by crossing the street and catapulting coffee at their opponents.
During a press junket in Seoul, star of the new film Valkyrie Tom Cruise revealed a childhood hatred of Adolf Hitler. He said, “I always wanted to kill Hitler, I hated him”. Fortunately, Hitler himself had already taken on the challenge by shooting himself seventeen years prior to Cruise’s birth.
Staff Writers & Photographers
(in alphabetical order)
Anna Dickey, Austyn Foster, Valiant Lowitz, Evgeny Magidenko, Alissa Ng, Alexandria Sanborn, Shanda Shooter, Katie Singer, Eden Stiffman, Sreya Vempatti
Letters & Viewpoints The Michigan Review accepts and encourages letters to the editor and viewpoints. Letters to the editor should be under 300 words. Viewpoints can be arranged by contacting the editorial board. We reserve the right to edit for clarity and length. Send all correspondence to mrev@umich.edu.
After the crash of US Airways Flight 1549 was blamed on Canadian geese, the volunteer organization Bird Strike Committee USA (dedicated to “reducing the frequency and severity of the strikes” caused by birds) was quickly a top news source. The website for the organization reveals that over 400 people attended the 2008 meeting in Orlando, Florida, and an estimated 20 minutes was wasted by me reading this stupid page.
The top court in Peru has ruled that workers cannot be fired for showing up to work drunk or being intoxicated on the job. Until the Supreme Court takes this brave stand in the United States, we’ll just have to settle for being wasted in Political Science 389 Nations and Nationalism.
A Florida panhandle fishing boat captain has admitted to making pipe bombs and throwing them at dolphins to scare them away from his fishing lines. Really? Dolphins? Who the hell has anything against dolphins? Tuna? I’m offended and perturbed. MR
About Us The Michigan Review provides a broad range of in-depth coverage of campus affairs and serves as the literary voice of conservatism and libertarianism at the University of Michigan. The Review is published bi-weekly September thru April.
Donate/Subscribe The Michigan Review accepts no financial support from the University. Therefore, your support is critical and greatly appreciated. Donations above $40 are eligible for a 1-year (12 issues) subscription. Donations can be made on our website at www.michiganreview.com, or mailed to:
911 N. University, Suite One Ann Arbor, MI 48109 The Michigan Review is the independent, student-run journal of conservative and libertarian opinion at the University of Michigan. We neither solicit nor accept monetary donations from the University. Contributions to The Michigan Review are tax-deductible under section 501 (c)(3) of the Internal Revenue Service Code. The Michigan Review is not affiliated with any political party or any university political group. Unsigned editorials represent the opinion of the editorial board. Ergo, they are unequivocally correct and just. Signed articles, letters, and cartoons represent the opinions of the author, and not necessarily those of The Review. The Serpent’s Tooth shall represent the opinion of individual, anonymous contributors to The Review, and should not necessarily be taken as representative of The Review’s editorial stance. The opinions expressed in this publication do not necessarily reflect those of the advertisers or the University of Michigan. Copyright © 2007, The Michigan Review, Inc. All rights reserved. The Michigan Review is a member of the Collegiate Network.
Letter from the Editor Welcome to the first issue of the Michigan Review of Winter 2009. Though Ann Arbor is covered with its customary foot of snow and the temperature has barely made it out of the teens over the last few weeks, there’s no place I’d rather be. It appears to already be an exciting January, not in the least because of the inauguration of President Barack Obama in Washington, D.C. In this issue, Julianne Nowicki (’11) explores chief candidates for Obama’s cabinet and Anna Dickey (’12) examines the legacy of President Bush. Look to the back page of the issue for a Faceoff on Obama’s inauguration speech. The new President faces tough challenges as the economic crisis continues to paralyze the business world. Some of those most affected are business students. Alissa Ng (’10) has the story on how national trends are affecting students at the Ross School and what the University is doing to help. Martin Luther King Day on January 19 also offered events and speakers galore. Adam Pascarella (’10) has coverage and analysis of the day. But Ann Arbor is an interesting place to be at any time of the year. The recent events in Gaza have sparked protests across the Middle East and the world, including in Ann Arbor. Valiant Lowitz (’12) has an in-depth interview with an Israeli student and the co-chair of Students Allied for Freedom and Equality, the leading pro-Palestinian organization on campus. The University is
always a source of intriguing stories, and its recent excursions in development have been no exception. Alissa Ng (’10) examines the recent purchase of the Pfizer facilities on North Campus as well as other projects. This is my first issue as Editor-in-Chief, and I hope that you enjoy it. I also hope that you visit our website, www.michiganreview.com . There you can find more staff opinion pieces, film reviews, and hard news coverage. Julianne Nowicki (’11) has the story from the Inauguration in Washington and Christine Hwang (’10) and Zachary Divozzo (’10) offer their thoughts on the economic downturn. You can listen to podcasts and check out our blog as well. The upcoming months will offer unprecedented and unparalleled challenges, but rest assured. The Review will continue to offer a critical and contrarian perspective. In his first Inauguration speech, Ronald Reagan said, “I do not believe in a fate that will fall on us no matter what we do…So, with all the creative energy at our command, let us begin an era of national renewal. Let us renew our determination, our courage, and our strength. And let us renew our faith and our hope.” We at the Review agree. MR Best, Jane D. Coaston Editor-in-Chief
01.20.2009 4.1.08
Editor’s Notes:
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An Editorial Page for Those Who are Interested in How the Other Side Thinks
Moving on From “Change”
It is a relief that Israel and Hamas have agreed to a week-long ceasefire in the Gaza Strip. Hamas and other radical Islamic fighters have once again proven their unwillingness to broker a peace deal, instead resorting to cowardly firing rockets into civilian Israeli territories. When pushed against a wall, one must push back with force. The international community would be doing itself a disservice by chastising Israel’s right to self-defense. The death toll in the conflict has been remarkably one-sided, with more than 1,200 Palestinian casualties compared to only thirteen Israeli casualties. This is largely the result of Hamas stationing themselves in civilian neighborhoods, making the targeting of dangerous militants nearly impossible. The temporary cease-fire gives Israel the opportunity to remove their troops from the Gaza strip without further conflict. Israel, however, should not abide by the week-long timeline simply for the sake of doing so. A spokesperson for the Israeli Prime Minister recently said that Israel does not “take dictates from Hamas.” Nor should they – the rules of the game are different when dealing with a radical and violent group of militants that isn’t in the business of peace. Israel should not be confined to living in fear of consistent rocket attacks and is justified in their reaction. Nor should the Palestinian people bear the human toll of their own government that prefers violence over diplomacy. International negotiation must take precedent over military force. This reality, however, cannot be realized when one side refuses to play by the rules. This is not to say that Israel has responded in an entirely virtuous manner. Reports that Israeli blockades disrupted the flow of humanitarian aid are worrisome for citizens in the affected areas. Allowing food and medical supplies to reach Palestinians sends a strong message to the world that Israel makes the important distinction between people, and government. In essence, the ball is in Hamas’ court. They can accept Israel’s right to exist and immediately halt sending Qassam rockets over the border. Or, they can continue their gutless campaign of terror and subject themselves to more retaliation. Both sides must make peace their number one goal in the context of a two-state solution. On campus, protestors have been basking in their usual anti-Israel fervor. The Review reported on a downtown protest in which a vocal group held signs with anti-Semitic slurs such as “F*** Israel,” replacing the letter “s” with a Nazi swastika. Another said, “Boycott the Zionist State.” This kind of dialogue has long been a mainstay of leftist Ann Arbor political culture, and it gives a bad name to pro-Palestinian student groups such as Students Allied for Freedom and Equality (SAFE) that prefer reasonable and open debate. Hamas’ vicious actions against the Israeli people must stop immediately if there is to ever be a peaceful solution to the Middle East conflict. Until that day, the international community must rally around Israel’s right to exist and to defend its people against barbarism. MR
Editorials XU PHOTO JOSEPH
On January 20, hundreds of thousands of Americans in Washington, along with the entire world watched as Barack Obama was sworn in as the fortyfourth President of the United States. While it has been constantly proclaimed throughout the election season that the “era of change” is upon us, what kind of change being implemented seems to be overlooked. At the Michigan Review, we have historically stood for conservative and libertarian values, and even when facing the worst economic crisis since the Great Depression, we are unwilling to surrender our political and ideological values. If President Obama begins to develop policy according to his numerous campaign promises, we will be discouraged as to where our country is headed. It is not a secret that Obama will attempt to govern in a manner that is completely opposite from outgoing President George W. Bush. However, an Obama Presidency marked by a sharp swing to the left will not only expand the short-term domestic and foreign policy challenges that Americans have faced for the past eight years, but will create increasingly perilous dilemmas for our children and grandchildren. The first and most pressing issue that undoubtedly affects every American is the troubled economy. The latest statistics have not been pretty; according to the Department of Labor, 7.2 percent of Americans (11.1 million) are unemployed and real GDP decreased by 0.5 percent in the third quarter of 2008. A recession is clearly upon us. As he was campaigning for the Presidency, Obama vowed to cut taxes for “95 percent of Americans.” What is most troubling, however, is that most small businesses qualify as the 5 percent that will not be receiving a tax break. While drastically reducing the capital gains or corporate income tax would be a start towards reducing further unemployment, it is imperative that Obama continues to reduce taxes for all income brackets. “Spreading the wealth around” is not the answer for our economic problems. There comes a caveat with lowering taxes however: spending must simply be curtailed. So far, the trend of governmental bailouts is worrying and undoubtedly promotes risky behavior. Determining whether a corporation does or does not receive governmental assistance is inherently unfair and stifles the risk and reward system that is inherent in capitalism. The truth of the matter, however, is that we simply cannot afford to bailout corporations anymore. Obama is inheriting an estimated $1.5 trillion deficit upon taking office, and with Social Security and Medicare costs expected to skyrocket in the near future, a spending reduction is non-negotiable. With Obama pledging to spend at least $825 billion for a plan to improve infrastructure throughout America, he will simply need to renege on some of his campaign promises in order to at least attempt to keep spending under control. On the foreign policy front, Obama has consistently pledged to remove American troops from Iraq within 16 months while keeping a residual force in the country to conduct small counter-terrorism operations. We agree with Obama’s sentiment, but the withdrawal must be in a responsible and prudent manner. If violence suddenly spikes in response to U.S. forces withdrawing from major Iraqi cities, it is America’s responsibility to reassess the situation and contemplate alternative solutions to the problem. While the situation in Iraq seems to be improving, however, the conflict in Afghanistan seems to be increasingly dire. The two countries share immense differences; Iraq has an urbanized, literate population while Afghanistan remains mountainous with many tribes and warlords throughout the country. The Taliban have been gaining territory (especially through the affluent poppy trade), so it is vital for U.S. forces to have all of the tools necessary to defeat this dangerous enemy. Obama and members of his administration have been constantly calling for America to engage in more “soft power” by using diplomacy and negotiation to mitigate violence throughout the world. While avoiding hostilities is obviously a noble goal, Obama cannot be too idealistic. Simply put, when negotiating, there must be terms on the table and a clear objective in mind. Having direct talks with Iranian President Mahmoud Ahmadinejad just for the sake of talking is simply not in U.S. national security interests. It is truly remarkable to see the first African-American President after slavery was abolished over 140 years ago. However, we must not simply acquiesce to every statement or policy from the White House. The Review will undoubtedly continue to question and probe the government’s activities in order to determine the best possible outcome for our country. MR
Peace and Sanity in Gaza
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01.20.2009 4.1.08
Opinion
A Time for Choice
Free to Choose
Bringing Star Wars Back
Demand Fiscal Responsibility
BY ADAM PASCARELLA ‘10
by jonathan slemrod ‘10
On March 23, 1983, President Ronald Reagan spoke to the nation about the continuing nuclear threat from the Soviet Union. With mutually assured destruction as official U.S. policy, Reagan felt there was a better way to deter against a nuclear strike with minimal casualties. “There was a time when we depended on coastal forts and artillery batteries, because, with the weaponry of that day, any attack would have had to come by sea. Well, this is a different world, and our defenses must be based on recognition of adam the weaponry possessed by other nations in the pascarella nuclear age,” he said. The Strategic Defense Initiative (SDI) was born. The world today is more complex compared to the 1980s. Then, the lines were clearly drawn; in order to defend freedom, America and her allies united to eradicate Communism within the Soviet Union. After Boris Yeltsin persuaded the Russian army to reject a coup attempt from Communist hard-liners, President George H.W. Bush, claimed that a “New World Order” existed. Neoconservative scholar Francis Fukuyama declared that “the end of history” was near. The attacks on September 11, 2001, however, woke America from her slumber. Global terrorism and the rise of rogue states, like Iran and North Korea, threatened George W. Bush’s administration and will continue to challenge President Obama. It is almost the twenty-fifth anniversary of Reagan’s SDI speech, and his message is even more relevant today. If Obama does not continue the legacy started by Reagan and carried on by Bush, he will leave America and her allies vulnerable to missile attacks. When most Americans think of missile defense, they picture lasers shooting down missiles in what Senator Ted Kennedy described as “Star Wars schemes.” With the work of scientists in the U.S. military, however, extremely sophisticated technology has emerged. For instance, the terminal high altitude area defense (THAAD) system can eliminate missiles that are within one minute of reaching their target. The technology is so precise that it is compared to “hitting a bullet with a bullet.” THAAD has been successfully tested on many occasions, most notably in June 2008 when it destroyed a separating target ballistic missile in Hawaii. Another successful technology comprising a part of the national missile defense is the Aegis system. Based on US Navy ships, Aegis can intercept short and intermediate range missiles, and has the flexibility to travel wherever threats suddenly arise. So far, like THAAD, missile tests have been successful; Aegis has completed 14 intercepts out of 17 attempts. These are two examples of the emerging technologies within America’s national missile defense system. Senator Kennedy must be surprised at the progress throughout the past 25 years. The fact of the matter is that the recent successes have not come at a moment too soon. Most experts agree that America and her allies face their gravest threats from Iran and North Korea. One of Iran’s most renowned missiles, the Shahab-3, has a range of 900 to 1000 miles which makes it capable of striking Israel. Even though it is not clear that those missiles could be equipped with nuclear warheads, the Russians are helping Iran build a civilian nuclear power plant in Bushehr. Whether this nuclear technology will be secretly used in Iran’s military is yet to be seen. North Korea also threatens the well-being of America and the rest of the free world. Although it seemed that the six-party talks in early 2007 would put an end to North Korea’s nuclear activities, Kim Jong-Il continued producing nuclear materials at the Yongbyon nuclear facility. While there has been a warming of relations since October when America took North Korea off of the State Sponsor of Terror list, Kim remains a wild-card in nuclear proliferation. North Korea’s Taepo-Dong 2 missile can reach Alaska, and Kim has been known to sell his weapons to the highest bidder. Ultimately, these rogue states can change the world with the push of a button. A nuclear attack on a major city would not only kill thousands, but it would send an electromagnetic pulse that would completely disable computers, hospital equipment, and cellular phones throughout the country. Chaos would ensue. We cannot let ourselves be unprotected from this threat. Missile defense systems have been established in Poland and the Czech Republic which is a step in the right direction. While expensive, missile defense is an investment and would pay dividends if it successfully intercepts a ballistic missile. Simply put, if we do not have a missile defense system, there is only one thing we can do: duck. MR
John Boehner, the Republican leader in the House of Representatives, had an appropriate reaction to the $850 billion price tag of the stimulus package that President Obama has made his first priority: “Oh my God.” The package is intended to energize the economy through nearly $550 billion in new domestic spending and a swath of tax credits that will cost $300 billion. $850 billion is a staggering amount, but not enough for some in the political class. David Obey, an extremely powerful Democrat from Wisconsin and Chairman of the Appropriations Committee, is complaining that $850 billion “may jonathan undershoot the mark.” I wonder what “the mark” is for slemrod Obey. Is “the mark” the highest possible dollar amount that Congress will be able to approve with a new president eager for an early political victory? Or does Obey have a coherent and efficient strategy for energizing the economy? I’m inclined towards the former. When it comes to being stewards of our tax dollars, politicians like Obey fail miserably. Republicans are equally as guilty for repeatedly claiming “fiscal responsibility” while presiding over massive spending increases under Bush. At least Obey is honest about his intentions. In the few days that the 111th Congress has been in session, it has already pushed to expand the size and scope of government while the American people remain fixated on the inauguration. Last week, the Senate passed a 1,300 page bill that gives the government control over millions of acres of new land, restricting domestic energy supply and recreational use. The package is a collection of 160 individual bills that will cost $10 billion, but Senate Majority Leader Harry Reid from Nevada refused to allow the minority a chance to offer even one amendment. So much for the “world’s greatest deliberative body.” The House also voted to expand the State Children’s Health Insurance Program (SCHIP), which includes the first tax hike in the Obama administration. Regardless of the fact that raising taxes on cigarettes will disproportionately hurt the poor, Congress voted to increase taxes to $1.00-per-pack. An expansion of the SCHIP program will take more children off of private insurance plans and put them on the government dole.
President Obama may truly want to be prudent with tax dollars, but the political class in Washington is content with the status quo. Big spenders want the stimulus package to be as big as possible to please their friends on the other end of the spigot. The lesson that can be learned from the 111th Congress’ early behavior is that fiscal responsibility will likely be put on the backburner once again. President Obama may truly want to be prudent with tax dollars, but the political class in Washington is content with the status quo. Big spenders want the stimulus package to be as big as possible to please their friends on the other end of the spigot. They don’t allow debate on expensive measures because they know that the American people would be shocked. Instead of shoring up the cost of our ballooning entitlement programs, they vote to expand them. Political courage isn’t too popular these days in Washington. Here’s hoping Obama takes a different approach. He has repeatedly promised to go through the budget “line-by-line” to eliminate wasteful government programs, an admirable and ambitious goal. But he is in for a bumpy ride -- the David Obeys of the world don’t give up the power of the purse without a fight. The stimulus package will be the first glimpse into how Obama plans on handling taxpayer dollars. If he signs off on a wish list of wasteful projects early in his presidency, he will be encouraging Congress to load up every bill from now on with pork. If he takes the hard-line and demands a clean bill, maybe Congress will get the message that taxpayers have been sending them for years: be responsible. MR
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01.20.2009 4.1.08
U-M Gains Pfizer Property
Controversy Surrounds Senate Races in Minnesota and Illinois
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by jonathan slemrod ‘10
IMAGE HTTP://WWW.PFIZERANNARBOR.COM/
The University of Michigan, in a bid to expand its research facilities, is buying the 173.5-acre, 1.97 million square foot complex that once housed pharmaceutical company Pfizer Inc. The acquisition is projected to create at least 2,000 new jobs in the next decade. Costing MADOFF Continued from FRONT PAGE
Dr. Seyhun also had a number of policy recommendations that could potentially reduce the amount of fraud and prevent such scandals from occurring in the future. He suggested an online system where investors and regulators could track the actions of investors and be sure where transactions happen and whether they are legitimate or not. As it stands, the SEC, “[does not] have incentives to go after these people.” BUSINESS Continued from FRONT PAGE
A BBA senior who wishes to remain anonymous as she continues her job search commented on the school’s reputation. Says an international student from the business school, “The Business school’s reputation isn’t really helping me much right now. However, I’m an international student and if I decide to go back home and look for a job there, I hope that Ross’s reputation as a prestigious American institution will help me.” Another BBA senior who requested anonymity has completed the job search and is confident that, in the case of qualified students, finding a job will not be a problem, especially if they have graduated from a recognized college such as the Ross School, Wharton, Stern, or other top business schools. “The Ross School does a good job preparing us for the job market and all employers love Michigan grads, for obvious reasons. I
a cool $108 million, this momentous purchase is the University’s largest since 1950, when 300 acres of land were bought to develop North Campus. Glenna Schweitzer, Associate Vice Provost for Aca PFIZER Continued on PAGE 10
While Madoff’s clients were primarily large investors, Seyhun had the same prescription to avoid scams for investors large and small, “part of the reason these scams work is that we believe them, we want something for nothing.” It was because of his position that Madoff was able to exploit the trust, or naiveté of his investors. In the end, it seems that the old rule of caveat emptor holds true. MR think the economy is not too big a factor in the job market for qualified students as every company has room for the best.” He believes, “Even if the best firms are not hiring, smaller firms hire more because they can scoop up talent that would not normally fall to them.” The Office of Career Development (OCD) has had to work hard to support students this year. In an interview with Al Cotrone, Director of Career Development and Student Affairs at the Ross Business School, he said, “With the same number of graduating students pursuing fewer available jobs, [the OCD] have had to reapportion our efforts to support the students. As compared to a few years ago when virtually all job searches were conducted on campus, we’re dedicating more of our time to supporting students who are conducting BUSINESS Continued on PAGE 10
PHOTO AUSTYN FOSTER / MRSTAFF
SENATE Continued on PAGE 10
News & Continuations
BY ALISSA NG ‘10
Norm Coleman, an incumbent Republican Senator from Minnesota, is fighting for his political life as his hopes for his reelection linger on legal challenges to a razor-sharp recount that has put Democratic challenger Al Franken ahead by 225 votes out of 2.9 million cast. If Franken’s lead does remain intact, Democrats will hold fiftynine seats in the Senate, just one vote away from a filibuster-proof majority. Franken is best known for his time on Saturday Night Live as well as his immensely popular radio show on the liberal Air America Radio. Coleman is a moderate Republican who formerly served as the Democratic mayor of St. Paul. He was elected into the Senate in 2002. After the general election, Coleman led Franken by 215 votes, triggering an automatic hand recount under Minnesota state law, which was undertaken by the Minnesota State Canvassing Board. Each candidate challenged over three thousand ballots, many of which were incomprehensible or had unusual marks on them. In some instances, voters wrote “Coleman” or “Franken” by hand, ignoring the instructions on how to properly cast a vote. By the end of the recount, the Canvassing Board had reviewed 1,325 ballots, awarding 319 new votes to Coleman, and 758 to Franken. By the end of December, Franken had taken a lead of 49 votes. The next step for Franken was to try and obtain a Certificate of Election from the State of Minnesota, a document required for entry to the Senate. Both Republican Governor Tim Pawlenty and the Minnesota Secretary of State refused to issue the certificate, citing state law which deems that a certificate cannot be issued if an election is “pending.” The Coleman camp has filed a lawsuit to include nearly 2,000 previously disqualified absentee ballots, also known as the “fifth pile,” blocking Franken from being seated in Washington. The Franken camp has also attempted to seat their candidate by appealing directly to the Democratic leadership in the U.S. Senate, declaring Franken the winner and asking Senate Majority Leader Harry Reid (D-NV) to move towards seating him. Senate Republicans, however, have promised to filibuster any such move until Coleman’s lawsuit is resolved. Until that happens, the Senate will likely operate as a ninety-nine member body. In Illinois, controversy stormed around the replacement for President Barack Obama’s Senate seat after Governor Rod Blagojevich was arrested by Federal special agents in an alleged bid to sell Obama’s seat in a “pay-to-play” scandal. Blagojevich appointed Roland Burris, former Comptroller and Attorney General of Illinois, only to have the appointment refused by Illinois Secretary of State Jesse White. White’s refusal was a major roadblock for Burris, since the rules of the Senate require certification by both the governor and Secretary of State for someone to be seated. In other words, Burris could not be seated according to Senate rules, and several senior Senators such as Harry Reid agreed. “Under these circumstances, anyone appointed by Gov. Blagojevich cannot be an effective representative of the people of Illinois and, as we have said, will not be seated by the Democratic Caucus,” said Reid in late December. But on January 9, the Illinois Supreme Court ruled in Burris’ favor, claiming that he need not obtain a signature from the Secretary of State to be appointed. Burris was sworn in to the U.S. Senate six days later by Vice President Dick Cheney, replacing Barack Obama as the only African-American in the body. Democrats will likely emerge one seat stronger as the legal challenges in the Min
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Stacking the Deck: Obama’s Cabinet
01.20.2009
BY JULIANNE NOWICKI ‘11
The candidates for the Cabinet are in the process of confirmation hearings. The Review takes a look.
Inauguration 2009
Hillary Clinton
Timothy Geithner
Eric Holder
Hilda Solis
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While many people may debate her stances on healthcare and foreign policy, few people can debate her seemingly constant presence in U.S. politics. Hillary Clinton is perhaps the most politically experienced members of President Barack Obama’s cabinet. She has served as the Senator of New York, First Lady of the U.S., and will serve as Secretary of State. In her Senate Confirmation hearing, Clinton spoke on the need for the U.S. to find more, “partners and fewer adversaries.” She said, “now, in 2009, the clear lesson of the last twenty years is that we must both combat the threats and seize the opportunities of our interdependence. And to be effective in doing so we must build a world with more partners and fewer adversaries.” What this really means: more government spending. Specifically, expect to see increased State Department funding, and an increased non-militaristic approach in responding to international crises. She has made it clear, along with President Barack Obama, that she wants to see troops out of Iraq within 16 months. A potential conflict-of-interest may pose problems as she serves in her new position, in regards to husband Bill Clinton’s charitable work. The Clinton Foundation is active in the fight against HIV/AIDS and issues like global warming. Because the Foundation receives large donations from foreign countries, there are a plethora of potential conflicts of interest, most notably, the Middle East. In regards to her appointment, UM Political Science Professor James Morrow said in an email to the Review, “giving one of the biggest jobs in any administration to your biggest rival from the nomination process is an interesting political move. Her appointment also signals that the State Department is likely to have a much larger role in foreign policy than was the case under President Bush, which is something that many, including Secretary of Defense Gates, have been arguing for.” MR
TIMOTHY GEITHNER IS the 9th president of the Federal Reserve Bank of New York. In his past, Geithner worked for the International Affairs division within the U.S. Treasury Department in 1988. President Barack Obama has nominated Geithner to serve as the Secretary of Treasury, however there has been much criticism and controversy surrounding his nomination. Through Senate Confirmation hearings, evidence revealed Geithner failed to pay self-employment taxes for several years. The Associated Press released an article on January 14, 2009 stating Geithner failed to pay, “34,000 in taxes years ago.” Even if this failure to pay taxes was unintentional, Geithner should have had the financial know-how to avoid committing such an act. As Secretary of Treasury, Geithner would oversee the IRS, the very same institution he voluntarily avoided. Why should taxpayers take direction from someone who avoided the IRS, and did not pay his own taxes? Leaders are supposed to set the example - not be an exception to the rule, or in this case, the law. The irony is glaring. While Geithner has served on one of the nation’s lead economic teams, his failure to pay taxes is troublesome and problematic at best. President Obama has character-
ERIC HOLDER HAS served in numerous legal positions throughout his career, and has been appointed as Attorny General by President Barack Obama. He was appointed by President Ronald Reagan to serve as a Judge of the Superior Court of the District of Columbia in 1988. In addition, Holder served as U.S. Attorney for the the District of Columbia during the
HILDA SOLIS HAS been chosen to serve as the head of the Department of Labor. The mission of the Department of Labor is to, “promote the welfare of U.S. employees and retirees by improving their benefits.” In 1996, Solis led an initiative to raise the minimum wage
President Obama has characterized this failure to pay taxes as a “innocent mistake.” ized this failure to pay taxes as an “innocent mistake,” however many people see differently. There is no logical basis to call Geithner’s tax evasion an “innocent mistake,” and then criticize CEOs for doing the same thing. Many of President Obama’s cabinet picks are close friends, and Tim Geithner is no exception to the trend. MR
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During the Clinton years, he allowed Kenneth Starr to further investigate the scandal and allegations surrounding Monica Lewinsky. presidency of Bill Clinton. During the Clinton years, he allowed Kenneth Starr to further investigate the scandal and allegations surrounding Monica Lewinsky. During President Barack Obama’s campaign, Holder worked as a senior legal advisor. Judging from his past, it may be difficult to fully know what will come from Eric Holder in the next four years. During the presidency of Bill Clinton, Eric Holder participated in Clinton’s decision to pardon Marc Rich. In 1983, Marc Rich was indicted by the U.S. Attorney Rudy Giuliani for charges of tax evasion and illegal trading with Iran. After the indictment, Marc Rich flew to Switzerland and lived there for many years. The decision to pardon Marc Rich remains a hotly debated issue today. Criticism also surrounds Holder’s views regarding water boarding, which he has asserted constitutes “torture.” During the Obama Administration, it is likely Holder will advocate stopping the use of water boarding and close Guantanamo Bay. MR
Criticism surrounds her support for the Employee Free Choice Act. in California. Criticism surrounds her support for the Employee Free Choice Act. This Act will supposedly make it easier for workers to unionize, but would elmiminate the secret ballot in union elections by forcing workers to endorse ballots. Opponents argue that a system in which voting is made public in regards to unionization takes away the freedoms of employees, or epose them to union coersion. Opponents also argue the Act would take away an employee’s democratic right to vote, by making that vote public knowledge. MR
01.20.2009 4.1.08
A Look Back at Bush Years BY ANNA DICKEY ‘12
MLK Continued from FRONT PAGE
lege, he was inspired to fight for civil rights because of the obstacles that he faced in Georgia. “There was a massive system of racial preferences that was enforced by terror. The death of Emmett Till one month after the Brown decision terrified me since he was [so close to my age.] When nine men and women integrated Little Rock High School, however, it absolutely inspired me,” he said. After speaking about King’s vision and the work that he did to support the movement, Bond offered a harsh criticism of the Bush administration. His analogy comparing the last eight years to US Airways flight 1549 that safely landed in the Hudson River was particularly appreciated by the audience. “It was like Bush and Cheney were the geese that flew into the planes engines. Even though they threatened the safety on board, Barack Obama is like the pilot that safely landed the plane. He did not do it alone however; there was help from crewmembers, first responders, and the passengers,” he said.
US Mayors Plan for Big Spending Projects Under Obama BY EDEN STIFFMAN ‘12
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number of possibilities that kept the US out of danger. “It could be matter of luck, solid homeland security, or the [ill] treatment of foreign detainees may have discouraged terrorists from attacking...people on the street wouldn’t give Bush a lot of credit for [our safety].” The criticism Bush has faced will certainly resound in the coming years, especially as Obama takes charge of the nation with a trillion dollar national deficit. Bush’s action towards bettering the wreckage of New Orleans in the wake of Katrina was also abhorred with little disagreement. Bush also lost much support of the GOP, which may have reversed the Regan Revolution’s progress in the Republican Party’s influence within the US. The other side to the coin also shows that Bush’s No Child Left Behind bill left a legacy within the realm of education for underprivileged children. The sluggish economy, some Bush supporters reiterate, is inconvenient but bearable, as the US still has among the highest standards of living in the world. Anti-abortionists celebrate his successful push for the partial birth abortion ban. Iraq, however war torn, is a different place than it was previous to Bush’s actions. More consideration for the unknown, the outcome of future events, and a little less attention to the constant heralding of woe from Bush bashers should all be accounted for in a real evaluation of W. MR
One of the most widely attended events was a discussion by Larry Wilmore, the “Senior Black Correspondent” on The Daily Show. Speaking to a standing room only crowd in the Michigan Union, Wilmore discussed his career as a young stand-up comic and his thoughts about race in America while promoting his new book, I’d Rather We Got Casinos and Other Black Thoughts. Speaking about his experiences at the Daily Show, he explained that he was lucky to be able to be in the background of the 2008 election. “There has been an energy during the past election that I have never felt before. The Daily Show has given me a huge platform and it was nice to have a backseat to the events during the past two years.” The end of Wilmore’s discussion presented some fireworks as an audience member asked if Wilmore was a “black apologist” and a “happy negro.” After brushing aside the questioner’s accusations, Wilmore asked, “Does this campus have security? Leave.” The questioner was escorted out of the room. MR
On December 19, the U.S. Conference of Mayors released its third and most comprehensive list of infrastructure projects that are “ready to go,” meaning “ready to start quickly in 2009 and be completed by the end of 2010,” upon receiving funding as a part of Presidentelect Obama’s Stimulus package. On Saturday, January 3, Presidentelect Obama pledged in a radio address that we “will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s. We’ll invest your precious tax dollars...and we’ll set a simple rule – use it or lose it. If a state doesn’t act quickly to invest in roads and bridges in their communities, they’ll lose the money.” Obama also pledged to save or create 2.5 million American jobs by 2011. The document released by the Conference asserted that “as an organization representing mayors and cities that have their own local processes for determining which projects are needed for jobs and economic development, the Conference of Mayors has accepted each city’s project submittal. Hence, each mayor and city is responsible for the justification for putting their projects forward.” The mayors of 641 cities, from all regions of the country, have contributed to this list. 15,221 local infrastructure projects are included in what is being called the MainStreet Economic Recovery Plan, representing a federal investment of $96.6 Billion that would be capable of producing an estimated 1.2 Million jobs in 2009 and 2010. The funding will go directly to the cities through “federal funding streams” that are already in existence. Categories for the projects are divided into ten sectors: • Community Development Block Grant for Infrastructure • Energy Block Grant for Infrastructure and Green Jobs • Transit Equipment and Infrastructure • City Streets/Metro Roads Infrastructure • Airport Technology and Infrastructure • Amtrak Infrastructure, Water and Wastewater Infrastructure • School Modernization • Public Housing Modernization • Public Safety Jobs and Technology. The sector of city streets/metro roads will cost the most money, but is also expected to create the most jobs. The total amount of funding that Michigan mayors are requesting is $832,746,813. According to the list, it is predicted that the funding of these projects is create 3,766 jobs. 16 cities from Michigan have listed projects. Ann Arbor is not on the list. The largest project in Michigan is airport upgrades and acquisitions in Detroit, which requires $106,500,000 and would create 50 jobs. Another major project in Detroit is the reconstruction of a large section of Michigan highway-85, which will requires $57,250,000 and is expected to create 600 jobs. According to the document produced by the mayors at the conference, “Opponents of economic stimulus spending assert that, because infrastructure projects could take years to start and many more years to complete, investing in them would not have the short-term impact on the economy that is needed. We have documented in this report, however, that there are many thousands of infrastructure projects in cities that can get underway immediately and be completed quickly – within one or two years.” MR
Inauguration 2009
On January 15, 2009, the newly former President Bush made his farewell speech from the East Room of the White House. It is a safe assumption that many college students really did not give flying fig. What has now come to be a loathed eight-year term, by a man whose name is met with snarls and scoffs of belittlement, has officially ended. However, it seems that in the minds of the American people, Bush is already long gone, probably tottering around somewhere surrounded by longhorns. Naturally, the short “bye, ya’ll” of the lame duck president was drowned out by the extremely popular new guy. But history goes on. Inevitably, the past eight years will echo in the minds of our generation, and will undoubtedly undergo serious examination as new information trickles into public awareness. As the present steadily glides into retrospect, the possibility of a shift in Bush’s reputation also becomes apparent. Bush’s career, from start to finish, was shown by polls as a steep decrease in approval by the American people. His actions shortly after 9/11 harbored 92% approval ratings, where thereafter decreased steadily. His 51% approval around the time of the Bush-Gore election won him yet another term, but in congruence with the Iraq war approval, Bush’s supportive polls dropped steadily. He adjourned his presidency with about 30% approval. The Iraq War was certainly Bush’s largest vice in his image with American citizens. One could say that he did his best with the information given to him in terms of the degree of threat the Middle East imposed on the United States. Others may say the president bumbled his way into a war with undue aggression and naiveté, and should have assessed the war’s necessity with more scrutiny before killing thousands of Iraqis and Americans. “In actuality,” said UM professor John Chamberlin of the School of Public Policy, “it’s too far too early to make a real evaluation of his actions.” “It’s really hard to assess what’s the long run assessment going to be. In the short run, it’s likely to be a negative one… Right after any administration, it’s hard to [evaluate their actions]. There is a lot we simply do not know.” The public does know, however, that there has been no attack on US soil since 9/11. The credit for this reality is not something that will most likely be given to Bush by American citizens. Actions of the Executive branch aside, Chamberlin suggested that there are a
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Arts & Culture
PAGE 8
01.20.2009
Winter in Michigan: A Viewer’s Guide BY JANE COASTON ‘09
There is something sinister about the arrival of winter in Michigan. The days get greyer, the nights get longer, and before you know it, it has arrived. Long gone are the long summer days and cool fall evenings. In its place are tons of snow and a cold so biting that walking from the Modern Language Building to the library requires eight layers of clothing and a notarized will. Survive a winter in Ann Arbor and you’re truly a Michigan wolverine. Here are key factors that make a Michigan winter a remarkable phenomenon:
The Development of Coat Fashion: When I was in grade school, coats were as minimal as possible (unless, of course, they were Starter jackets, which were the pinnacle of cool). But now girls cross campus wearing coats that could double as sleeping bags. A month ago, I would have cheerfully insulted them. Now those coats seem like the best idea since Free Ice Cream Cone Day at Ben and Jerry’s. In contrast, seeing a person wearing shorts can inspire a burst of rage and condemnation not seen since the Army-McCarthy hearings. Here’s a tip: wear pants. Discouragement of Partying: It’s a lot easier to stay in when you risk losing fingers by walking to Ashley’s. No longer will we walk from Catherine to Washtenaw on the off chance that that one guy we met that one time will be there. It’s not that we stop partying (it would take a lot more than cold to do that. Perhaps a court order.) Drinking heavily becomes an imperative in order to stave off hypothermia. But we’re a little more likely to want to hang out in our living rooms than go to a highlighter party on South State. The closer a party is to your couch, the more likely you are to attend (and if you can party on your couch, you win!) Sure, it might sound a little boring. But it’s a small price to pay for making it home alive. Seasonal Affective Disorder: It sounds stupid, but we all have that friend who can barely leave the house in early January. True story: a friend of mine (who will remain anonymous) didn’t make it to class for two straight weeks in December because the snow sucked out her will to move. The complete lack of natural sunlight and the extreme cold made walking to class just too much to handle. She stayed in bed and watched movies instead. In a related story, this time of year is the true test of friendships. It’s easy to chill with people from across campus during the fall, but now is the time to finally make friends with those weird kids on your hall. Just admit it: there is no way in hell you’re walking from South Quad to Markley. The Survival Instinct: The temperature is just above zero. The wind is howling and snow is piling up at record levels. And yet thousands of Michigan students still make it to class. From Kerrytown and North Campus to Hill and Main, we tie on our boots, find a hat, and get our iPods ready for the journey. Though it may take twenty minutes of lying in bed building up the courage to take a shower, we still type our papers, hand in our presentations, and go to discussion. Why do we go? I’d like to say that it’s our commitment to academic excellence. Or our innate thirst for knowledge. But in actuality, I have no idea. As winter in Ann Arbor rears its ugly head, the going will get tough. But think of the good things about winter: watching sorority girls slip on the ice, finding a warm classroom in Angell Hall, Happy Hour at the Brown Jug. And remember, in six or seven months we’ll all be complaining about how hot it is. MR
The Revival of the W lverines Despite a Loss to Archrival Ohio State, Hope Abounds in Crisler Arena BY NATHAN TORREANO ‘12
Much dismay and disappointment permeated the atmosphere in Ann Arbor this past Friday evening, January 17. Diehard fans left Crisler Arena annoyed after an upset loss by the University of Michigan (13-5) men’s basketball team to archrival Ohio State University (13-3), 58-65. Freshman Lirjon Fisniku, one such frustrated fan, complained near the conclusion of the game, “We’re leaving them open in the paint. We can’t get any boards and we keep turning the ball over!” Ohio State led the entire first half, due to stout defense and a poor shooting performance from the Wolverines. However, the Wolverines fought back in the second half, leading 44-40 with 8 minutes remaining, only to allow Ohio State to embark on a 17-3 run. It appeared that the Buckeye’s advantage in size and height overwhelmed the smaller Wolverines team, who were outscored in the paint 18-32. Surprisingly, however, such disappointment after a Wolverines loss signals a blessing in disguise. After finishing last season 10-22 under John Beilein in his first year as head coach, most fans of the Maize and Blue had little reason to expect success from this year’s basketball program. Eyebrows initially raised on November 20 when Michigan shocked then fourth ranked UCLA by the narrow margin of 55-52. With three wins to commence the season, enthusiasm slowly began to stir in Ann Arbor. Following the UCLA upset, Michigan expectedly fell to powerhouse Duke. However, in a December 6 rematch, Michigan once again shocked the basketball gods in an improbable victory over Duke, 81-73, led by junior forward DeShawn Sims’ 28 points. After 12 games, Michigan had already matched their victory total (10) from the previous season. The Wolverines slid into a more “good but not great” skid the next six games, with three wins and three losses. The highlight of these past six games was an overtime victory over Indiana, the first Michigan victory in Bloomington in 14 years. The stretch also included a split in a two-game series with Illinois, and culminated in the recent loss to Ohio State. Following years of basketball mediocrity and the worst football season in Michigan history, hopes are high for the rest of this season. Heading into the matchup with Ohio State at 13-4, the Wolverines were ranked 24th in the USA Today/ESPN Division 1 men’s basketball poll. The previous seven seasons, they had
compiled a mediocre record of 118-106. The reasons for Michigan’s rapid progress are numerous. Scoring offense, scoring defense, and essentially every important statistical category, with the exception of blocked shots per game, have improved this season. Among 330 Division 1 teams, through their first 17 games, the Wolverines ranked 14th in threepoint field goals per game, ninth in free-throw percentage, seventh in assists to turnovers ratio, and seventh in least personal fouls per game. Led by sophomore guard Manny Harris, who averages 18.7 points per game and converts 86.6% of his free throws, and Sims, who averages 8.0 rebounds per game, and infused with new talent such as freshman guards Stu Douglass and Zack Novak, and Arizona transfer guard Laval LucasPerry, the Wolverines are once again competitive in the Big Ten Conference. Sophomore David Cardelli attributes much of this year’s success to Coach Beilein, “When Beilein first came, he introduced a different kind of offense that players were not accustomed to. After the transition, it is apparent this year that players are making more 3-point shots and passing around the perimeter more effectively. Also, the depth on this year’s team is much better.” Excitement for Wolverines basketball has not been this high since the early 1990’s. However, due to the infamous Ed Martin scandal, in which a team booster was found guilty of lending $616,000 to at least 4 different players, the outstanding accomplishments of Michigan’s basketball teams during the nineties became essentially obsolete in the eyes of the NCAA. Results from the ’92 and ’93 Final Four championship games, the ’96 and ’98 NCAA Tournament appearances, and the ’97 National Invitational Tournament, among other games, were vacated, and banners from these times were also stripped from Crisler Arena. Due to self-imposed sanctions in 2002, Michigan also endured years of ineligibility for the NCAA Tournament. Therefore, the last time the Wolverines “technically” appeared in the NCAA tournament was in 1989. Two decades later, the Wolverines are poised for a possible return. Cardelli noted, “After watching that Duke game, I know that if the Michigan players perform their best as a team, there is no reason they can not beat any team in the nation.” MR
Expelled Takes Us Back to School BY ALEXANDRIA SANBORN ‘11
Though the 1925 “Scopes Monkey Trial” declared that teaching Darwin’s theory of evolution in schools was unacceptable, the decision was not the final verdict. Since then, teaching evolution in schools has been a topic of discussion that resonates with today’s society. In fact, the debate has shifted from defending the right to teach evolution to the right to teach Intelligent De-
sign in schools. Expelled: No Intelligence Allowed, directed by Nathan Frankowski and hosted by Ben Stein, is a film that addresses Intelligent Design’s discussion in the scientific world. The filmmakers called on the testimony of various individuals who had lost their jobs for even mentioning Intelligent Design in their work as an alternative to evolution. Stein points out that these people are educated members of society, many of them holding advanced degrees in medicine and science, and they were merely exploring alternative possibilities for questions that cannot be explained by Darwin’s theory,
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EXPELLED Continued on PAGE 10
01.20.2009
Lecture Tries to Shed Light on Financial Crisis
Extra, Extra, Read All About it!
The Decline in the Newspaper Industry and the Rise of Blogs
The Gaza Crisis: Two Views
PAGE 9
BY VALIANT LOWITZ ‘12
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The current financial crisis has brought up many questions about how tuition, financial aid and UM’s budget will be affected. ‘The Financial Crisis and You,’ a lecture co-organized by the Michigan Economics Society and the LSA Student Government, served to answer some of those questions. The hour-long event was held on January 16 in the Rackham Amphitheatre and featured several important members of the U-M community. The speakers for the event were Professor Linda Tesar, Chair of the Economics Department, Professor Jim Adams, also from the Economics department, and Teresa Sullivan, the Provost and Vice President of Student Affairs at U-M. Professor Tesar stressed the continuing importance of the dollar, which she remarked was a “major reserve currency and a relatively safe asset.” She elaborated that the dollar, having been such a big part of the world economy until now, could not suddenly lose its value because of the crisis, and will continue to be at the forefront. She went on to say that the tight job market meant that it was an opportune time to invest in human capital, urging students to make themselves aware of the situation and try to learn more by taking economics classes. Professor Adams tried to bring the crisis into perspective by comparing it with previous crises the country has faced, notably the Great Depression and the Panic of 1907. He stressed learning from past experiences and from other countries’ experiences, saying “there are many other countries in crises too”. He gave the example of the EU auto bailout, saying it was important that the US learn from similar situations worldwide. Provost Teresa Sullivan gave a PowerPoint presentation about the school’s funds. One of the main sources of revenue for the school is state appropriation. She said that funding from the state towards the school has been steadily declining. Some of the reasons for this, she explained, were a decrease in property value, decrease in tax revenue of the state of Michigan, and unemployment in the double digits. Ms. Sullivan said that one of the main reasons tuition is increasing is because U-M is trying to compensate for the decline in funding from the state. She assured that U-M was in a better position than most schools to face the crisis, saying that the school has been preparing for a long time. The final segment of the event included questions from the audience. One student remarked that the school could accept more out of state students to get more tuition, stating that only 33% of the student body is from outside Michigan. Other students had questions about what they could do to weather this crisis. Advice from the panel included consideration of obligations after leaving the school, such as loans, and being more aware of scholarships and grants. Provost Sullivan stated that it is unclear as to how much tuition will increase next year. When asked how long it will take for the current auto bailout to finish, Professor Tesar said it was a lengthy process and will take quite some time. She also stated that the time it will take for financial companies to bounce back is uncertain, and when they finally do, they will represent a smaller portion of the industry. MR
ILLUSTRATION EUN LEE / MRSTAFF
BY KATIE SINGER ‘12
There is plenty of statistical evidence showing that the number of people getting their news from blogs and other online news sources is steadily increasing, while the number of those who continue to read the newspapers on a daily basis is declining. According to a survey conducted by The Pew Research Center for the People and the Press, 37% of the public obtained their news through online sources during 2008, compared to only 13% of the public in 1998. There has been an even more significant increase in the college age group of 18-29 year olds. The study showed that in 2008, 42% of this demographic was using online sources for their news, whereas ten years ago, only 18% were going online. Newspapers across the nation have been suffering from loss of revenue and lower subscriptions. Websites like Craigslist.org have taken ad revenue from newspapers, making it harder for them to make a profit or break-even financially. Some newspapers have been forced to shut down entirely, cut back on their staff, reduce the size of their paper, or limit their print editions to only a few days per week. One can even keep track of how many newspapers are shutting down through the website Newspaper Death Watch. Paul Gillin, the site’s creator, believes that “the tectonic shifts that are taking place in the media world, [are] changes that will ultimately destroy 95% of American major metropolitan newspapers,” and contribute to a “rebirth of journalism” that is centered online. Local newspapers have also noticed this trend. In the last few months, for example, the Ann Arbor News offered many of its employees buyouts in an attempt to consolidate. A representative of the Ann Arbor News commented that there has not been “a significant drop [in newspaper readership], but there is a decline every year.” They have also noticed a rise in website hits through the site MLive which posts many different news articles online. The economy has also played a role in the newspaper industry’s slow decline. The Ann Arbor News representative mentioned that it could be a factor because “books for managing money tell you to end subscriptions for newspapers and magazines, subscriptions are usually one of the first things to go.” While newspapers have been struggling to stay afloat, online news sources have been thriving. The Ann Arbor Chronicle, for instance, is an online-only daily news source that was launched in September of last year. Editor of The Ann Arbor Chronicle, Dave Askins, believes that the online news source is in demand because it “allows people to create a customized news feed.” By going online, people are able to target the type of news that they are interested in or that they would like to read about. While newspapers are shutting down or moving to online formats, he does not believe they are dying out completely. Both he and his wife, Mary Morgan, the publisher at The Ann Arbor Chronicle, believe that newspapers have all of the resources that they need to stay afloat. It’s just a matter of utilizing those resources. MR
News
BY SREYA VEMPATTI ‘12
Andrew Dalack is co-chair of S.A.F.E (Students Allied for Freedom and Equality), a campus organization that seeks to promote justice, human rights, liberation, and self-determination for the Palestinian people. Dimitry Medvedev is an Israeli Senior in the Ross School of Business.
What is your stance on Hamas? Do you believe that they are a legitimate political entity? Dalack: How S.A.F.E. feels about Hamas is irrelevant to the issue at hand. In 2006, Hamas gained a majority of the parliamentary seats within the Palestinian Authority via democratic elections. It is Israel’s responsibility to acknowledge the democratic voice of the Palestinians and allow Hamas the right to participate in Palestinian politics. Dimitry: Hamas has won a free and fair election in 2005 for the Palestinian parliament, but its violent coup against Fatah, that included parading Fatah members in their underwear on the streets of Gaza, shooting them in public, and throwing Fatah members out of high-rise buildings proves that Hamas is anything but a legitimate organization and that it abused the democratic processes in the Palestinian Autonomy to usurp control of the Palestinian government.
Do you feel that the firing of rockets at Israel represents a legitimate use of force? Dalack: The fact that Hamas is willing to fire ineffective, homemade rockets at a country with a sophisticated arsenal is testament to the desperation Palestinians face as a result of Israel’s illegal occupation and siege of Gaza. Dimitry: The firing of rockets at Israel is terrorist tactic designed to intimidate the Israeli people and the Israeli government into submitting to the demands of an Islamist terrorist organization. Though these rockets are in-advanced and relatively simply to construct, they have resulted in the death or severe maiming of dozens of Israelis and force tens of thousands of others to take cover in bomb-shelters on a nearly daily basis. What is your definition of peace, and what role do you think that religion has played in this conflict? Dalack: Peace and justice are inseparable entities that need each other in order to survive. Because Israel exerts a position of authority over the Palestinians, it carries a heavier burden in creating a just and sustainable peace. Religion plays a nominal role in the conflict between Israel and the Palestinians. The conflict is not one of competing religious interests, but rather one of competing national interests. Dimitry: Peace to me means an Israeli being able to visit a Palestinian town peacefully and a Palestinian being able to visit an Israeli town peacefully. Until this is achieved, there will not be peace no matter what political agreements are signed between the parties in the conflict. The messages of the Jewish, Christian, and Muslim religions offer peaceful guidelines to the end of the Israeli-Palestinian conflict and the Arab-Israeli conflict in general. However, when religion is manipulated by extremists to convey distorted, violent, and narrow-minded message of hate, it can spell the killing of countless innocents. To varying degrees, such messages of hate have been propagated by all parties of the Israeli-Palestinian and Arab-Israeli conflict. MR
“Diversity” in Michigan Application Faces Criticism BY ADAM PASCARELLA ‘10
The college admissions essay seems to be the part of a prospective student’s portfolio that creates the most anxiety. Message boards are devoted towards tackling the admissions essay and private tutors are hired to assist in crafting the perfect response that college admissions officers desire. Applicants to U-M, however, face a unique challenge in the admissions process. Because of the university’s commitment to sustaining diversity especially after the passage of a statewide affirmative action ban in 2006, applicants must complete an essay focused on
their ability to bring diversity to the U-M campus. Some critics have claimed that the university’s essay questions are highly politicized since diversity is such a vague term. They think that the university’s definition of diversity is simply a code for affirmative action. On January 13, Ann Kirkland, an assistant professor for women’s studies and political science, presented the politics behind the university’s “diversity” essay questions. Her research focused on two questions for applicants that enrolled at U-M in fall 2004, one year
after the Gratz v. Bollinger decision which compelled the university to eliminate its controversial points system. The first question asked what “[the applicant] as an individual would bring to the campus community” since “Michigan is committed to building… a widely diverse educational community.” The second question asked applicants “to describe an experience where cultural diversity – or lack thereof – made a difference to [the applicant].” Applicants were compelled to select one of these questions. DIVERSITY Continued on PAGE 10
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demic and Budgetary Affairs and Executive Director of the Office of Budget and Planning, said that the purchase was funded from a combination of Medical School and Health System resources as well as investment proceeds. “The Health System will experience only a modest impact as a result of the Pfizer purchase, and they have been setting aside funds as part of their capital planning all along.” This move has been heralded as a positive decision by various politicians and University staff, notably Gov. Jennifer Granholm and President Mary Sue Coleman. Schweitzer also quotes Dr. Robert Kelch, Executive Vice President for Medical Affairs on the perceived impact of this buy. “This new space presents an unprecedented opportunity to fulfill the needs [of faculty and staff] now and in the future… and to develop our region’s power as a magnet for highskill workers.” Schweitzer also calls it an essential investment in order to remain a “world-class health care institution.” Certainly, the Pfizer buy will create 10 percent extra research space that will resolve U-M’s space con-
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off-campus job searches this year.” He admits that while the job search has been more difficult this year, many do eventually succeed in getting jobs. “In previous recessions, the percentage of students holding a job offer at graduation has dipped, but even then, most students find positions within a few months [of] graduation.” According to Cotrone, “At this point, 76% of the undergraduates who have reported in indicate having received an offer. In January of 2008, 91% of the undergrads reporting to us had a job offer. Ultimately, 23% of the class of 2008 went into investment banking.” Says the international BBA student, “In SENATE Continued from PAGE 5
nesota Senate race come to an end. The race, along with the controversy surrounding the appointment of Roland Burris in Illinois, EXPELLED Continued from PAGE 8
not promoting religious propaganda. He also sought out the previous employers of these individuals to comment on why they were fired and received answers that evaded the question. Throughout the film, there are montages of scenes of the Berlin Wall that are meant to symbolize this censorship. In addition, through Stein’s interview with the Discovery Institute, the definition of Intelligent Design was clarified. It is not another name for Creationism, but rather, the study of patterns in nature that are best explained as a result of intelligence. In other words, the theory of Intelligent Design does not claim that creation was necessarily accomplished by God in the Old Testament, it only requires some sort of guidDIVERSITY Continued from PAGE 9
Kirkland claimed that the idea of diversity is highly contentious. While most think that a specific group is diverse simply because of skin color, she explained that there are other important definitions of the word. “There is a broader way to describe differences among people. Most people use ‘diversity’ to mean race, but they do not talk about disability or gender. Gender and even culture were mentioned by very few applicants,” she said. After analyzing 176 essays from the class of 2008, Kirkland determined that there were a variety of themes that applicants addressed while answering either of the questions concerning diversity.
straint problems and enhance U-M’s position as the nation’s fifth largest research university. U-M has always placed a large importance on science research, spending $876 million in this area during the 2008 financial year. In a phone interview with Ann Arbor City Council Member, Christopher Taylor, he was positive about the Pfizer buy in general, but acknowledged a tax drawback as well. “It is extremely beneficial for Ann Arbor with respect to the economy, as it will be active and utilized as opposed to lying vacant. I’m not an economist, but [the Pfizer buy] has the ability to provide services to the public. However, by taking a million-dollar property off the tax rolls, it reduces the city tax revenue.” The Pfizer purchase is only one of many projects undertaken by the University. Intensive construction can be seen throughout campus as U-M embarks on a $2.5 billion campaign to further expand and update research facilities, as well as to compete with elite research universities such as Harvard, Yale and Stanford. Schweitzer explains, “It should be noted that large capital projects take years of planning; in fact, much of the construction you are seeing around campus has been in development for five to ten years.” Not all of the University’s construction projects are gifts. The medical facility addition to the C.S. Mott Children’s and Women’s Hospital will cost $754 mil-
lion, and the current construction of the Kellogg Eye Center and Brehms Diabetes Center comes to $132 million. The largest price tag, at $226 million, is attached to the expansion of the “Big House” stadium that will make it the largest football stadium in the nation. These expensive projects will not be funded from the University’s general operating funds, but “almost entirely from our self-supporting auxiliary unit (Intercollegiate Athletics and the Health System) resources and gifts,” according to Schweitzer. “Debt has been issued for a portion of the project [Kellogg, Mott and Big House Stadium]. U-M’s AAA bond rating and investor confidence in the University’s ability to repay what it borrows is one factor that allows [us] to sell bonds that are paying an average effective interest rate of 3.4 percent in 2008, one of the lowest interest rates among its public higher education peers.” Project funds are not drawn from student tuition money. Schweitzer understands that the University, while remaining “financially sound”, will also face significant financial challenges. “We are keeping a close watch on further developments in the state and national economy and their impact on our revenue streams. We expect to meet the fiscal challenges of the next few years through careful prioritization of our plans and activities coupled with continued cost-containment efforts.” MR
this semester, I’ve noticed that many students are relying on OCD but also taking more initiative, i.e. by networking, using job websites and asking family and friends for help with the job search.” Another anonymous BBA student says that the OCD is good at what they do, but he would not consult them with regard to jobs. “They bring in the companies and set it all up, [but] I would never go to them for advice. The only way to learn and get better at networking is experience, [such as through] presentations, e-mails and interviews.” Also, he has not had to change his career plans despite the poor economy. “The internship search is the real job search because companies can review talent at a low cost.” He has already secured a job after completing an internship there in his junior year. However, he
also has friends who “have landed a handful of offers, and others who did not get any offers.” The first anonymous BBA student, however, says “One needs to keep all options open with the current state of the economy. As for the future graduates, sophomore Andrew Mansfield has less reason to be concerned about the economy, having two more years before he completes his undergraduate degree. “The OCD is known for doing an excellent job of finding their students jobs after graduation. By the time I graduate, however, I do think that companies will be hiring again and that I should have a decent chance of finding a job.” If he cannot find employment, he will consider law school as an alternative. MR
will go down in history as two of the most interesting and rare examples of the complexities Senate politics in American history. The outcome of both cases
will embolden Senate Democrats as they attempt to tackle President Obama’s ambitious agenda. MR
ing force for the phenomenon that is our universe. However, what Stein actually is trying to promote in this film is ambiguous. Though the film begins and ends on the premises that Intelligent Design is a concept that one should be free to explore because of rights guaranteed by the First Amendment, there were parts that strayed from this topic. These scenes seemed to aim further than just to show that Intelligent Design is a theory of merit that deserves to be acknowledged as a possible explanation for the creation of the universe. One of the more striking examples of this is the connection to Nazism. Stein points out that the ideas of the Holocaust, like killing the weak to ensure the survival of the stronger species, were drawn from the concept of natural selection. He acknowledges that Darwin did not directly promote such genocide and that this was Hitler’s interpretation of a theory, but still emphasizes
the connection nonetheless. He parallels this to issues in the United States that seem to be justified by principles of natural selection such as abortion and euthanasia. Stein also indicates that there could be an incompatibility between believing in Darwinism and believing in God. He interviews scientists who said they were Christians, but in pursuing their work in evolution, found themselves believing less and less in God, to the point of atheism. However, Stein does not question the entire scientific world and he fails to question how evolution might affect the faith of the average citizen. Many of Stein’s arguments attempt to prove that the pursuit of Intelligent Design as an alternative theory to evolution is merely a part of academic freedom and is a right fully guaranteed by the First Amendment. For this consistent theme, the film does have many redeemable qualities. MR
“One concept of diversity that I noticed was an idea I call ‘racial representationalism.’ Applicants would claim that since they were a member of a certain minority group, they would bring diversity to campus. Obviously white applicants did not write this way,” she said. Another response included the concept of “war movie diversity,” where applicants would list and describe their friends with different traits and experiences. Just as there is the stereotypical African-American, white Southerner, and Italian soldier in the typical war movie, so do applicants show that their personal identity contributes to diversity at U-M. Surprisingly, some low-income minority applicants and some high-income white applicants expressed some cynicism towards the diversity question. While
no one said that the diversity questions were a sham, the applicants seriously criticized the question’s underlying assumptions. “These applicants stated that diversity seems great, but there is some underlying tension between groups. They claim that the environment may look diverse, but it may be segregated,” Kirkland said. Kirkland’s research will be fully complete by the end of the semester. Even though her research is being funded by the National Center for Institutional Diversity (NCID), she hopes that her research will create discussion within NCID and the U-M admissions office. “Hopefully my results will be the start of a wellmeaning dialogue about diversity. I can’t think of another word that has undergone such a transformation,” she said. MR
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The Inaugural Address
01.20.2009 4.1.08
From Washington to Bush, the Inaugural Address has been an opportunity for the incoming President to reiterate his perspective and lay out his plan for the nation. Barack Obama’s speech was no exception. The Review examines his address from both sides.
A Liberal Perspective BY JANE COASTON ‘09
A Conservative Perspective BY ANNA DICKEY ‘12
Let’s face it: Barack Obama could have taken the Oath of Office, For those not submerged in the throws of ecstasy over Obama’s election, opened the Washington D.C. phone book to the P’s, starting readhis inaugural address will most likely not move mountains in their pre-existing ing, and I would have been satisfied. I voted for him (sorry, fellow dourness. Reviewers) and am a full-fledged supporter of his mission and goals For me, I grudgingly anticipated an eloquent, resonating speech from a for America. However, in an era of unprecedented challenges and an man who climbed the ladder of the popular vote much on the rungs of his pubInauguration with the largest security force in history, the Inaugural lic charisma and skills in oration, which is exactly what I saw. Obama soared Address was the least of my worries. But Barack Obama spoke with through his relatively short address to the nation with the smooth execution for grace, gravity, and elegance. He reassured the nation of his willingwhich is he is known. ness to lead but charged it with the task of reinvigorating its promWell, good for Obama. But his charm and speech becomes a bit tainted ise. Though not as lofty as Lincoln’s and not as hopeful as Kennedy’s, when I remember that I am in no accordance with his policies. Those who are Obama’s speech was profound, fulfilling, and optimistic. His speech will undoubtedly be moved and invigorated by his speech, understandably. will go down in history as the address Americans needed to hear from For many conservatives, it’s merely another reminder that for the next four their 44th President. years, we’ll be hearing much of the same invigorating promises enunciated Barack Obama faced high expectations for his Inaugural Address, and he then. It’s impossible not to feel extremely, almost violently cynical. lived up to the challenge. He began by reiterating the sobering difficulties that Within his address, he heralded the integrity and dignified history of our face the nation—the economic crisis, two wars abroad, and, in his words, “sapnation, per typical inaugural address. He exalted the “doers” and “fighters.” ping of confidence across our land; a nagging fear that America’s decline is And he proclaimed the bright future for America, as we “pick ourselves up inevitable, that the next generation must lower its sights.” Obama emphasized and dust ourselves off” into a better economic situation. With him as our presiresponsibility, prudence, and intelligence as true American virtues. “We redent, we are to ram our way into the future like a big peace loving multi-culmain a young nation, but in the words of Scripture, the time has come to set tural economically sound and technologically superior torpedo. aside childish things…In reaffirming the greatness of our nation, we underGreat. Awesome. But the thoughts of that torpedo, propelled by gluttonstand that greatness is never a given. It must be earned. Our journey has never ous amounts of our income, do not entice me at all to get excited about our been one of shortcuts or settling for less.” He paid special attention to veterans nation’s future. However he exclaims the assets of our nation with whatever and those who have served American throughout its history. His position as variance of oratorical fireworks, he can’t convince those opposed to what he the first black President of the United States made his mention of his father’s has proposed thus far that it’ll actually work. Kenyan village and the horrors of segregation particularly poignant. Watching Not every conservative would agree with me on this one, but his speech’s the surviving members of the Tuskegee Airmen react to Obama’s words was repeated promise of allowing every human being to live to his or her life’s an emotional experience, to say the least. And for the first time in Inaugural full potential was pure revulsion. The Freedom of Choice Act, as I would see history, the President made sure to mention “nonbelievers” as members of the it and anyone else who considers themselves pro-life would agree, is a viruAmerican patchwork. “We are shaped by every language and culture, drawn lent proclamation of the blatant and violently opposite notion. Not only does from every end of this Earth.” he want to compromise the religious obligations of Catholic hospitals, such as The most interesting and intriguing section of his speech, however, were St. Joseph Mercy, and force them to make the option of abortion available, he his words on foreign affairs and the need for American foreign policy to rewants to make the refusal do to so a firing offense. His staunch opposition to emphasize its alliances. “As the world grows smaller, our common humanity the Born Alive Act, ensuring that any baby born alive in the attempt of an aborshall reveal ittion is kept alive, also demarks his glorified self; and that statements of fulfilling the potential of all America must life. Again, I know many do not see it this Our challenges may be new. The instruments with which we meet them play its role way, but for those who agree that life bemay be new. But those values upon which our success depends - hard in ushering gins with conception would certainly agree in a new era that there is a contradiction here. work and honesty, courage and fair play, tolerance and curiosity, of peace.” As Perhaps the joy in this ceremonial loyalty and patriotism - these things are old. These things are true. a student of speech is not merely for Obama, but for They have been the quiet force of progress throughout our history. international the end of a presidency that was largely What is demanded then is a return to these truths. What is required affairs and a hated in the past term. This was illustrated journalist, I by Bush’s entrance into the public shortly of us now is a new era of responsibility - a recognition, on the part of applaud his before the commencement that was met every American, that we have duties to ourselves, our nation, and the willingness to with some boo-ing and unflattering exclaworld, duties that we do not grudgingly accept but rather seize gladly, demand “efmations. I say to them what many liberals firm in the knowledge that there is nothing so satisfying to the spirit, so fort and even say to me about Obama: even if you don’t greater cooplike your president, accept that he is or was, defining of our character, than giving our all to a difficult task. eration” from and respect him. If I am to abide by that, Barack Hussein Obama II, 44th President of the United States of America our allies and then I expect the same standards to be held friends abroad. for our newly former president, no matter He took spehow much they feel the nation has suffered cial care to speak to citizens of poor and wealthy nations alike: “To the people because of him. of poor nations, we pledge to work alongside you…And to those nations like It’s difficult to observe the jubilant hysteria, the crazed multitudes celebratours that enjoy relative plenty, we say we can no longer afford indifference to ing this man’s launch into the Executive branch of our government, when we the suffering outside our borders.” That’s the kind of message I want to hear have yet to see what he actually can accomplish. I realize this is by no means from my President. a new phenomenon when a president is elected. Kennedy was proclaimed as After the speech, I called my mother to hear her reaction. She was thrilled messianic as Obama is seen today. at the speech and said that the Address reminded her of a Stevie Ray Vaughn But as we’ve seen over and over again, one president is not enough to heal lyric: “Work with your brother!” This speech reminded Americans of the imthe nation of every woe. Nor is his inaugural address really going to accurately portance of our national unity and commitment to common ideals. Whether portray what the next four years will bring. MR black or white, liberal or conservative, it’s our time to work with one another and encourage our elected officials to live up to our ideals. MR
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