Saturday, October 20, 2007

Januvia- 1st line now for DM

The Wall Street Journal (10/18, D6, Rubenstein) reports that the FDA approved Merck & Co.'s request to expand their diabetes drug Januvia (sitagliptin) "to be used as initial therapy along with a popular diabetes drug called metformin, as an add-on for patients who have tried a type of drug called a sulfonylurea, and as an add-on to a combination of both a sulfonylurea and metformin." However, "the company also added information to the drug's label about reports of serious allergic reactions among some who have taken it."

One of "the illnesses reported by Januvia users was a sometimes fatal skin ailment called Stevens-Johnson syndrome." But the company said that no conclusion could be drawn about whether the drug was the cause because "there wasn't enough data." Merck also noted that "some patients...suffered anaphylaxis, a severe whole-body allergic reaction that can cause a person to go into shock, and angioedema, a swelling of the skin that leads to welts."

HPV test more accurate than Pap smear


"Doctors are telling us tonight [that] a new test could replace the Pap smear for detecting cervical cancer."

"A test to detect human papillomavirus (HPV) -- which causes most cervical cancers -- was far better than the standard Pap smear at catching malignancies," according to two new studies published in today's issue of the New England Journal of Medicine. HealthDay continues, "Pap tests have been the standard screening test for cervical cancer for the past 60 years. More recently, the liquid-based or thin-smear Pap test was developed, and it was initially thought that this newer technology would offer significant advantages over the traditional Pap test." But studies have not shown that the newer Pap test is significantly better. Since "most cervical cancers are caused by HPV, the test to detect HPV infection is also an option for screening in addition to the Pap test." The studies published today sought to compare these tests.

Marie-Hélène Mayrand, M.D., of McGill University in Canada, and colleagues, "assigned 10,154 women, ages 30 to 69, to one of two groups -- a 'focus on Pap' group, which got a Pap smear followed by the viral test, and a 'focus on HPV' group, which got the HPV test first, followed by a Pap smear." The trial lasted from September 26, 2002 through February 3, 2005. They "found that the viral test...correctly identified cervical intraepithelial neoplasia (CIN) of grade two or three 94.6 percent of the time, compared to 55.4 percent for the Pap test." However, "the specificity of the viral test was 94.1 percent, compared to 96.8 percent for Pap testing." For the second study, conducted between May 1997 and November 2000, "Swedish researchers randomly assigned 12,527 women ages 32 to 38 to get a Pap test (and form a control group) or a Pap test combined with a test for...[HPV] using polymerase chain reaction." They found that "[a]t baseline,...the proportion of women in the two-test group who had CIN2, CIN3, or cancer was 51 percent higher than among the women who only got the Pap test." However, "at the subsequent screening, following treatment where appropriate, the rate in the two-test group was 42 percent lower than in the control group." The researchers attributed "[s]ome of the differences" to "over-diagnosis at baseline."

"The Pap test is used to screen for abnormal cellular changes that may lead to cervical cancer. Annual testing is recommended because the test often misses slow-growing precancerous lesions." Since "a lesion can take a decade or more to turn into cancer, annual Pap testing usually finds precancerous lesions in time." While "[t]he HPV test is considered a useful addition to Pap testing for women over 30 who may be at high risk for cervical cancer,...the Canadian study is the first North American trial to assess its value as a stand-alone test."

"The new test could replace the...Pap in a matter of years, experts say." Furthermore, women "won't need a screening test as often." The AP continues, "The HPV test has been available in the U.S. since 2000, and was first used for inconclusive Pap tests. Now women over 30 can get a HPV test -- but only along with a Pap -- and wait three years to be tested again if both tests are negative." Currently, scientists are attempting to determine "whether the HPV test can be used alone, and whether it can prolong the intervals between exams." Debbie Saslow, "director of breast and gynecologic cancer for the American Cancer Society, said [that] evidence from a number of studies supports using the HPV test in place of a Pap."

Meanwhile, the Wall Street Journal (10/18, D6, Tomsho) points out that cervical cancer is "[f]ar more common in developing countries," and "is the second most common cancer among women world-wide, with nearly 500,000 new cases and 290,000 fatalities a year." In the U.S., however, "screening has sharply reduced cervical cancer," and "there are about 11,000 new diagnoses and 3,700 deaths a year."

"One concern about the HPV test has been a higher rate of false positives due to its superior sensitivity, but [the Canadian] study found only a small difference between the two screening tools." Eduardo Franco, Dr.P.H., co-author of the study, "calls the increased rate [of] false positives, which could lead to unnecessary additional testing, a fair tradeoff for detecting far more cervical pre-cancers -- 94 percent vs. 55 percent -- and, probably, allowing women to screen less frequently." USA Today further notes that the FDA has approved one HPV test "only for use in women over 29 as a follow-up to inconclusive Pap smear results or as a 'co-test' done at the same time as a Pap smear." It is "made by Digene of Gaithersburg, Md." Currently, the FDA has not approved any "stand-alone primary screening test[s]."

Wednesday, October 17, 2007

Playing with iPhone

17-year-old George Hotz's much-publicized hacking of the iPhone involved ripping open his $600 device and diving in with a soldering iron--not a technique for the faint of heart. But new tools are emerging that promise to make unlocking the iPhone for use on mobile networks other than AT&T's as easy as downloading and running a simple piece of software.

The iPhone Dev Team, an international group of hackers collaborating online, said Tuesday it had cracked programs deeply embedded in the iPhone that restricted the device to communicating only on AT&T's (nyse: T - news - people ) wireless network. The team has posted free software and step-by-step instructions for manually unlocking the iPhone on its Web site. (The group has asked journalists not to link to the Web site.) Those who use it will be able to make voice calls on other networks without altering the iPhone's hardware.

The Dev Team, whose research was instrumental in Hotz's initial hacking of the iPhone's hardware, isn't the first to offer a software-only unlock. One company, iPhoneSIMfree, said last month it had developed a software-only modification it planned to sell only to iPhone vendors. The company, which seems to have no physical location off the Web, changed its plans and released the software to users Monday at a cost of $99 per unlocking.

The Dev Team, by contrast, is offering its findings pro bono, and developers are already using the information to build free, user-friendly unlocking programs. David Harrison, a 23-year-old hacker in Belfast, Northern Ireland, claims to be the first to package the procedure in an all-inclusive piece of software that can be downloaded for free.

Harrison says he unlocked his phone in about 20 minutes. He put his program online early Wednesday but plans to release a speedier version in the next day or two that, he said, will do the job in less than five minutes. "Even a 10-year-old will be able to figure this out," he said. Harrison said he was speaking to Forbes.com on an iPhone, using the Vodafone network.

Harrison and other iPhone hackers in the iPhone Dev Team community don't intend to profit from their programs, though the iPhone Dev Team does solicit donations on its Web site to fund its research. Harrison said he simply wants to enable iPhone users to make calls outside the U.S., where there is no access to AT&T's network.

Harrison's claim of creating the first one-click package for the unlocking software is controversial. The iPhone Dev Team has accused him of stealing their code to create the program, and many in the hacker community instead credit Erica Sadun, a blogger for the Unofficial Apple Weblog.

But regardless of who has created unlocking software first, a larger question may be whether it's legal. The Digital Millennium Copyright Act of 1999 prohibits users from circumventing technological locks that protect proprietary content. But in November 2006, Jennifer Granick, a cyber-law attorney at the Electronic Frontier Foundation, won an exemption that makes it legal for users to break such locks to enable use of their phones on competing wireless networks. And since the U.S. legislation is stricter than equivalent laws in other countries, it is unlikely to influence international distribution of such programs.

Regardless, Piper Jaffray financial analyst Gene Munster says he doubts the hacking will hamper the bump in business AT&T has gotten from the iPhone. He estimates that AT&T's revenue from the contract with Apple (nasdaq: AAPL - news - people ) at between $40 million and $60 million a month, and that iPhone sales have tripled since Apple's price slashing last week. Munster believes no more than 5% of iPhone users will hack their phones to use other networks.

Granick points out that users who hack their phones will still be bound to their AT&T contracts and will have to pay a fee to switch to a different carrier. "This is no tragedy for AT&T," she said. "They'll get what they're entitled to. They'll just have to enforce their contracts legally instead of technologically."

IPhone users may have to sacrifice a few features if they try to use another network. Only AT&T can offer the iPhone's visual voice-mail feature, which allows users to see who has left them messages and listen to them in any order. No hack will allow this service outside an AT&T contract until other networks develop similar technology.

Hackers have, nonetheless, figured out how to circumvent AT&T's text message technology. Instead of sending costly SMS messages via AT&T, some hackers have installed AOL Instant Messenger on their iPhones. MSN Messenger may be next, said Harrison.

"Before this is over, you'll be able to do everything on your iPhone you can do with a laptop," he predicted.

GERD

Persistent cough, chest pain may be symptoms of GERD,

"Severe chest pain and persistent cough" could be "serious manifestations of acid reflux," according to two studies presented at the 72nd American College of Gastroenterology annual scientific meeting in Philadelphia. One study, which included 31 patients who went to the emergency room "complaining of serious chest pain," showed that "[a]bnormal reflux of acid was [present] in 57 percent."

The other study of 701 of patients with gastroesophageal reflux disease (GERD) found that nearly 75 percent of patients with GERD "suffer nighttime symptoms not typically associated with the disease such as coughing, snoring, and chest pain." The findings "also showed that those who suffered uncommon symptoms two or more nights a week were much more likely to have trouble falling asleep and staying asleep than those who suffered the typical symptoms of heartburn and acid regurgitation."


GERD patients continue to experience reflux despite twice-daily dosing with a PPI,

"Most patients with [GERD] continue to have [non-acidic] reflux despite twice-daily dosing with a proton pump inhibitor (PPI)," according to a study presented at the meeting. "The study involved 167 patients who underwent [multichannel intraluminal impedance and pH (MII-pH)] studies while on twice-daily PPI therapy." The researchers discovered that "22% to 50% of patients had abnormal findings," which were defined as "48 reflux episodes." They also found that there was no significant difference among patients taking different PPIs.


Study links psychological distress with more severe symptoms of GERD.

"Apparent treatment-resistant [GERD] may reflect comorbid psychological distress that results in more severe symptoms," according to research reported at the gastroenterology meeting. Researchers "studied 101 patients who underwent esophagogastroduodenoscopy for evaluation of persistent heartburn. Testing revealed that 67 patients had nonerosive reflux disease and 34 had erosive esophagitis." After assessing "psychological status," the researchers noted that "39% of the patients had comorbid psychological distress."

Following eight weeks of therapy with PPIs, the researchers found that "[p]atients with and without psychological distress improve[d] to a similar degree, but those with psychological distress [had] more residual symptoms because they had more severe baseline symptoms."

American Dream vs Doom

Three years ago, Colorado truck driver Roger Rodriguez was in the market for a new mortgage loan. With radio and Internet ads trumpeting easy approvals, he picked up the phone.

That call set into motion Mr. Rodriguez's descent into the subprime mortgage mess. Over the next several months, his adjustable-rate loan passed through many hands. These included a local Denver broker, Livingston, N.J., finance company CIT Group Inc. and a Greenwich, Conn., unit of Royal Bank of Scotland Group PLC. Eventually, a piece of Mr. Rodriguez's loan landed in mutual funds run by a Tennessee investor named James C. Kelsoe Jr.


Little good has come to any party that touched the loan. Mr. Rodriguez, now 61 years old, has lost both his job and his home. All the middlemen, from the broker to CIT to RBS, have either shuttered their mortgage businesses or are struggling. Mr. Kelsoe, once a star mutual-fund manager, has hit a career low as defaults on subprime mortgages decreased the value of his investments.

The paper trail from Mr. Rodriguez to Mr. Kelsoe illustrates how the mortgage market meltdown scalded millions of homeowners and investors. It also foreshadows how the domino effect stands to continue.

Much of the mortgage lending of the past several years, as well as investments in mortgage-backed securities, was based on assumptions that left little room for error. As a result, even slight deviations from a perfect world -- in which people act prudently, unemployment stays low, lenders keep lending and house prices rise -- pose risks in the form of more defaults, foreclosures and other investment losses.

Behind the market turmoil of recent months: Lending standards were more lax than most people imagined, a fact that surfaced when house prices stalled.

The mortgage crisis is "a case study on the way that greed convinced everyone there wasn't risk," says Ivy Zelman, CEO of Zelman & Associates, an independent real-estate research firm.

Should house prices fall by 10% over the next two years -- an outcome analysts see as entirely possible -- losses stand to be staggering. Thomas Zimmerman, head of mortgage credit research at UBS in New York, estimates that in such a scenario losses due to defaults could wipe out as much as 16% of the nearly $600 billion in subprime-backed securities issued in 2006. In August, such losses were equivalent to less than 1% of the total.


The jobs market also plays a key role. If the unemployment rate ticks upward by a percentage point or more, Mr. Zimmerman believes losses due to defaults could easily exceed 20% -- enough to hit even some of the most highly rated securities.

Back in 2004, Mr. Rodriguez didn't realize he was meandering into trouble. Two decades earlier, he had moved from Powell, Wyo., to start a new life in Colorado after struggling as a sugar-beet farmer. He, his wife, Irene, and two grandchildren, now 4 and 12, took up residence in a modest development called Prospector's Point in the town of Westminster, where their home boasted unobstructed Rocky Mountain views. Mr. Rodriguez held a steady job driving a recycling truck for Waste Management Inc.

Sometime in the fall of 2004, Mr. Rodriguez decided he could use some money for debt consolidation. He turned to a company called EquityRelief.com, which promoted itself on the radio and the Internet with slogans such as "Debt relief is stress relief at EquityRelief.com."

The Denver company already had handled his $70,000 mortgage two years earlier, he says. Still suffering from marginal credit, he enlisted the mortgage broker once again.

UP THE LADDER


Follow the path of a mortgage loan step-by-step, from the homeowner to the investor.
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• Complete Coverage: Debt DilemmasWithin a matter of weeks, Mr. Rodriguez had secured a new mortgage, for $88,000, from finance company CIT Group. That was enough to settle his outstanding home loan, as well as cover auto debts and a few home repairs. His income -- about $4,000 a month before taxes -- enabled him to pay the $544.70 initial monthly note, plus living expenses and installments on his credit-card debts. But with hardly any savings, he had little wiggle room in case something went wrong. Beyond that, the monthly payment was scheduled to reset after two years, most likely to a higher level -- a common feature of so-called adjustable-rate mortgages, or ARMS.

Mr. Rodriguez's low credit score meant it would have been difficult for him to obtain a prime loan. He says he chose an ARM, with an introductory rate of 6.3%, because that's what the broker offered. "I just went along with it," he says. "They made it so easy." At the time, a prime, 30-year fixed-rate mortgage had an interest rate of 5.87%. But the introductory rate on Mr. Rodriguez's ARM would apply for just two years before resetting -- up to a maximum of 12.3%.

Bryon Veal, who ran the brokerage, says he typically warned customers to use adjustable-rate products only if they planned to be in a property for a short period of time. Mr. Veal also says his firm advised borrowers that rates would increase.

Around this time, hundreds of thousands of borrowers, and the lenders who served them, were beginning to make even more optimistic assumptions about their ability to handle subprime debt. Lenders frequently approved borrowers for loans based only on their credit score and often without verifying income and they effectively ignored the fact that monthly notes would later reset. The universal, hopeful assumption: With house prices rising, borrowers would be able to refinance before the rate increases hit.

Back in 2004, lenders in the subprime sphere had little reason to worry whether borrowers were getting in over their heads. That's because they often quickly resold some of the loans at a profit. Wall Street banks snapped them up, packaged them into securities and sold them on to investors. CIT was no exception. In 2004, the company, which offers loans for everything from heavy equipment to college tuition, was building its business of originating and selling home mortgages.

Within five months, CIT had sold Mr. Rodriguez's loan along with others to RBS Greenwich Capital, a unit of the Royal Bank of Scotland located in the tony financial hub of Greenwich. To obtain such loans, RBS had to outbid other investment banks active in the mortgage market, such as Lehman Brothers Holdings Inc., J.P. Morgan Chase & Co., Deutsche Bank AG and Bear Stearns Cos.


RBS was making an aggressive bet on the mortgage business, sharply boosting its capacity to buy and package loans. By 2005, it had risen to third place among investment banks by volume of U.S. residential mortgage-backed securitizations, according to Thomson Financial. That was up from sixth place in 2000.

RBS and CIT declined to say how much they profited at various points in the mortgage-securitization process. Generally speaking, as the loans progress through the chain, buyers and sellers skim a bit from each sale. Profits from the securities are usually determined by a complex set of factors, including cash flow -- which is affected by timely payments from borrowers like Mr. Rodriguez.

In February 2005, RBS packaged Mr. Rodriguez's loan -- along with 4,853 others -- into a trust called Soundview 2005-1. The trust slices the cash flows from the loans into notes with different levels of risk and return. Within five days, RBS's sales team had sold $778 million in Soundview 2005-1 notes to investors around the world.

One buyer was Mr. Kelsoe, a senior portfolio manager at the asset-management unit of Morgan Keegan & Co., a Memphis, Tenn., investment firm and unit of Regions Financial Corp. At the time, Mr. Kelsoe was riding the housing boom by investing heavily in mortgage-backed securities. At the end of 2005, his RMK Select High Income Fund showed a five-year average annual gain of nearly 14%, according to Morningstar Inc. That performance beat all U.S. high-yield funds as well as the Dow Jones Industrial Average. His success brought him a bit of celebrity. He appeared on CNBC, was quoted in The Wall Street Journal and gave investing lectures at universities.

"He talked about the importance of identifying and assessing risk," says Wilburn Lane, head of the business school at Lambuth University in Jackson, Tenn. Mr. Kelsoe spoke there in October 2006 to some 300 local businesspeople over a chicken-and-vegetables lunch. Mr. Lane, who says he was impressed with the 44-year-old's track record, later invested in one of the seven funds managed by Mr. Kelsoe.

Mr. Kelsoe's big returns, though, depended heavily on the good fortune of borrowers such as Mr. Rodriguez.

Through various of his funds, Mr. Kelsoe invested nearly $8 million in one of the Soundview 2005-1 trust's riskiest pieces. The B-3 tranche, as it was called, offered a return of at least 3.25 percentage points above the London interbank offered rate -- a key short-term rate at which banks lend to each other. But if borrowers like Mr. Rodriguez began to default on their loans, any losses exceeding 1.25% of the entire loan pool could eat into the value of the B-3 tranche.

In February 2006, at least one borrower in the Soundview 2005-1 trust had a big piece of bad luck. After pulling into a Waste Management repair facility in the Denver suburb of Commerce City, Mr. Rodriguez detached the trailer from his 18-wheel rig but forgot to set the brake on the tractor. The tractor rolled across a street and hit a parked pickup truck, causing about $2,000 in damage. Soon afterward, says Mr. Rodriguez, Waste Management fired him. "They considered that a critical rollaway," he said. Waste Management confirmed that Mr. Rodriguez no longer works for the company, but declined to provide details.

"Ten seconds can change your whole life around," Mr. Rodriguez says a friend remarked to him recently.

Mr. Rodriguez took on odd jobs, working on a paving crew and in a bakery. But his income fell to about $1,800 a month in 2006. To make matters worse, the monthly note on his mortgage reset to more than $700 in November. He fell behind on the higher payments.

On Feb. 15, 2007, a Denver law firm, acting on behalf of the Soundview trust, began foreclosure proceedings against Mr. Rodriguez and his wife. The firm cited "failure to pay monthly payments of principal and interest" on an outstanding balance of $85,976.48, Colorado real-estate documents show. Mr. Rodriguez filed for bankruptcy protection on July 23, a move that extended the time he could remain in his home by several months.

Other borrowers in the Soundview trust also began to default on their loans. By June 2007, defaults had afflicted 3.44% of the loan pool, more than triple the level of a year earlier, according to people familiar with the trust's finances. About four in 10 loans were at least 30 days in arrears -- all in a period during which the U.S. economy was growing at a healthy pace and unemployment was low.

Because Mr. Kelsoe's investment in the B-3 tranche was so sensitive to losses, its market price plunged. In fact, as trading in subprime-backed securities dried up amid a broader panic, Mr. Kelsoe, like other investors with subprime holdings, had difficulty figuring out what the investments were worth.

At the end of June, the latest information available, Mr. Kelsoe's funds reported an estimated market value of the Soundview investment that was 35% below what they had paid.

A Morgan Keegan spokeswoman said Mr. Kelsoe wasn't available to comment because he was focused on managing his funds.


At the end of August, Mr. Kelsoe's Select High Income Fund posted a loss of nearly 28% for the month -- dead last among its peers for the year and for five years as well, according to Morningstar. The fund also postponed filing an annual report until earlier this month. When the fund filed the report with regulators on Oct. 4, Mr. Kelsoe said in a note to shareholders that the bond markets' "ocean of liquidity has quickly become a desert."

In a letter to a Memphis newspaper, Charles Reaves, an attorney who had invested in one of Mr. Kelsoe's funds, wrote that Mr. Kelsoe was "hiding under his desk" and "should have the fortitude to face the public and explain...what he intends to do."

Things haven't gone much better for the mortgage units at CIT and RBS -- though they did profit handsomely during the good times. CIT, citing a "problematic outlook" for the business, in July announced plans to shut down its mortgage business and lay off about 550 employees. A CIT spokeswoman says its mortgage portfolio performed better than peers.

Morale at RBS Greenwich had suffered in recent weeks as employees braced for layoffs. RBS Greenwich recently eliminated 44 of its 1,760 jobs.

In the first half of the year, total income for the company's U.S. asset-backed securities business, which includes mortgage-backed securities, fell 23% to $614 million. An RBS spokeswoman said, "In common with all players, our operations have been scaled back to reflect the lower volumes of business across the industry."

Late this summer, Mr. Rodriguez sat on a courthouse bench after his bankruptcy hearing. "I'm under a lot of depression to tell you the truth," he said a day earlier, tears brimming in his eyes. A worried Mrs. Rodriguez said she feared her husband was suicidal.

Soon afterwards, the couple had vacated their home of 22 years and moved into a low-income apartment in northwest Denver.

Tuesday, October 16, 2007

Doing Business

It's one thing to learn how to crunch numbers for an investment bank, quite another to start the next Microsoft, Google or even a decent restaurant.

Small businesses account for a little over half the output of the U.S. economy. If trade and productivity are an economy's twin engines of growth, entrepreneurship is the rocket fuel. The big question: Where will the next generation of entrepreneurs come from?

For keepers of the Ivory Tower, the answer is Karan Goel. Just 23 years old, Goel is the CEO of PrepMe.com, an online test preparation company he founded with two friends after bagging an M.B.A. in entrepreneurship and finance from the University of Chicago. Goel says he could have started his company without the business degree, but he's glad he plunked down the $80,000. Now, just 18 months later, PrepMe.com boasts 13,000 customers at $300 to $1,000 per individual course.

In the last 10 to 15 years, business schools have massaged their curricula to attract and then train the next generation of Bill Gateses, Sergey Brins and Karan Goels. Along with core classes in accounting and marketing, students now tackle interdisciplinary exercises with macro themes like globalization and environmental sustainability. They even team with engineering schools to learn how to start and run companies, not just maneuver spreadsheets.

So-called entrepreneurship programs are hot too. The number of U.S. business-school faculty teaching entrepreneurship classes has exploded, to 349 in 2006 from 12 in 1997, according to the Association to Advance Collegiate Schools of Business. At the University of Pennsylvania's Wharton School, for example, the number of courses on entrepreneurship has grown threefold, to 30, in the last decade.

Whether the makeover will actually pump out more--or more successful--entrepreneurs, though, is unclear at best.

Academic directors from top-ranked business schools crow that their changes better equip students to develop ideas, evaluate risks and even shake off mistakes. More importantly, perhaps, they offer encouragement: Of last year's graduates from MIT's Sloan School of Management, 4.1% said they planned to start a business upon graduation, up from 1.4% in 2001.
Still, it's difficult to know what kind of effect business schools are having on U.S. entrepreneurship.

For starters, many schools have trouble tracking the numbers of alumni who go on to start their own businesses--if they track them at all. Most students (even those who study "entrepreneurship") work at larger companies for years before branching out on their own. The other problem: Graduates may stumble a handful of times before establishing a viable business, muddling the numbers further.

When it comes to starting companies, the stumbling--not the studying--is what counts, argues Henry Mintzberg, author of Managers Not MBAs: A Hard Look at the Soft Practice of Managing and Management Development. Bona fide entrepreneurs such as Bill Gates and Apple's (nasdaq: AAPL - news - people )Steve Jobs typically shun M.B.A. programs because they're too anxious to work on their own ideas, says Mintzberg. (Both Gates and Jobs dropped out of college to start their companies.)

Mintzberg may have a point, if the super-rich are any indication. Of the members of Forbes' 400 Wealthiest Americans, approximately two-thirds each year are self-made. How many of those carry M.B.A.s? In 2006, just 15%, down from 17% five years earlier.

Business Students

The spirit of Gordon Gekko is alive in the halls of academia.

The accomplished and the aspiring in business from all walks embark on a masters of business administration program with at least one commonality--an appetite for financial success. Among the more popular draws to the business world is Wall Street. When people think the markets, they see dollar signs; and increasingly MBA programs across the country are giving their students a taste of the reality.

Everyone wants to be a player like the fictitious financier and his Wall Street protégé Bud Fox. Here's where they're learning the ins and outs.

Kai Petainen, trading floor manager of the Tozzi Center at the Ross School of Business at the University of Michigan, calls it "action-based learning."

Petainen is the ideal guiding light for these prospective players. In 2005, he had three model portfolios among the top 100 portfolios tracked at amateur investing site Marketocracy. He also had the top two best-performing short funds. There's the craftsman, what of his tools?

The 5,800-square-foot Tozzi Electronic Business and Finance Center is a state-of-the-art facility that uses wireless technology to support this type of action. The school built the center five years ago bankrolled by a $3 million private donation.

The independent building includes a financial analysis and trading-floor classroom, a flexible and wireless electronic classroom and an E-lab seminar room. It is equipped with the latest live financial data feeds, such as Bloomberg, Barra and Factset, information services, research tools and trading tools.

"It's action-based learning so this is very much practical," Petainen said. "So, when they go out into the real world, they know how to use this stuff. I try to make it very inclusive for every student, so it's not just a portfolio management class in here."

"Alumni who go out to a firm come back and say, 'We didn't have anything like this. Our firm couldn't afford this.' "

Much of the lessons focus on analysis then presentation. Teachers and students alike weigh in on stock picks. At the end of each semester, equities are bought and sold.

"I'm not allowed to pick any myself," Petainen said, though he's undoubtedly qualified.

What better place to give students the experience of "doing" rather than just "watching" than in the financial capital of the world? At the City University of New York's Baruch College, business students have access to the Wasserman Trading Floor in the Subotnick Financial Services Center. The 7,200-square-foot facility is in the Newman Library and has all the bells and whistles one would need to get dirty in any Wall Street firm.

Put it this way, following the Sept. 11, 2001, terrorist attacks that left Manhattan's financial district in ruin, Baruch's virtual floor went live for oil, metals and agricultural-products trader Refco. One of the company's senior executives had said if he were building a trading floor at the time, he would've modeled it after Baruch's.

Richard Holowczak, the director, has been with the school since 1997 and was part of the project team that built the facility in 1999. He even hosts seminars on how to operate a major trading floor for other business schools throughout the country who are interested in implementing their own.

Holowczak emphasizes the importance of this program for business students regardless of their career pursuits.

"Whether you're going to go out and sell soap for a living or go out and work on Wall Street, you're going to be handling your own investments," he said. "It's basic financial literacy."
"It's great you can sit in a classroom and learn the basics of finance, but you need to make the leap over to the applied side."

And he hardly had to coax a zealous group of eight students into believing that.

Christian Lemp and the rest of the portfolio group at Baruch took a shot in the dark and wrote to Warren Buffett, the investment genius who ranked as the second richest man in the world, according to Forbes' latest list. The group's vice president Gil Bouhana and secretary Franklin Cho sent a letter with their stock research reports, hoping their educated picks would pique his interest.

Within minutes of receiving the package, Lemp says, Buffett's assistant responded via e-mail with an invitation to this past Berkshire Hathaway (nyse: BRKA - news - people ) shareholder meeting in Omaha, Neb., in April. The school funded the trip.

And the lively club sat in the row behind the only man richer than Buffett, Microsoft (nasdaq: MSFT - news - people ) founder Bill Gates. Lemp said there were some 30,000 people in attendance. He and fellow Baruch students arrived at 4 a.m. and had to wait in line for the doors to open at 7 a.m.

Lemp said it was "amazing," to just sit back and soak up the magnitude of such an event, even for an undergraduate. While he is still in the undergraduate program, Lemp fell in love with the art of investing and big business. He now works with Holowczak at the trading center apart from his studies.

"I'm going to focus on getting the experience first to see what I like and see what fits me," Lemp said. "Then I'll take it from there."
See Also:

Monday, October 15, 2007

Pfizer partners with Physicians'

Pfizer partners with physicians' online forum.

"A year-old online forum where 30,000 doctors swap medical observations has lined up a partnership with Pfizer Inc." However, this "alliance...runs counter to the site's founding ideal to give doctors a place to communicate without the pharmaceutical industry listening in." Pfizer and Sermo, Inc. will "work with...[Sermo's] participating doctors to agree on terms allowing Pfizer's hundreds of staff doctors to view postings and reply."

The Wall Street Journal (10/15, B4, Johnson) adds, "Facing financial pressures as some of its best-selling products lose patent protection, Pfizer is looking for more-efficient ways to reach the doctors who prescribe its medicines." "Under the arrangement, Pfizer-affiliated doctors will be able to talk candidly with the site's 31,000 members, potentially giving the company insights into prescribing patterns and a way to show doctors data on its drugs."

But, the Journal notes, "It is risky territory for Pfizer" because "[t]he drug industry's interactions with doctors are highly scrutinized by regulators and lawmakers for signs that they are offering financial incentives to drive sales or promoting their drugs for unapproved uses."

Consequently, Pfizer plans to discuss this venture with the FDA. "The site, Sermo.com, features more than 50 daily posts on physician practices. These range from advice on procedures, how to remove a saw blade from a man's thumb in one case, to opinions on therapies."

Blood test for Alzheimer's

Blood test may diagnose Alzheimer's, study suggests.

"There is important news to report tonight in the fight against Alzheimer's disease. Researchers are reporting major progress toward a simple blood test that could detect the disease earlier than ever before." According to findings published in the journal Nature Medicine, "doctors may be able to predict if mild memory loss is a warning sign of the disease."

Stanford University researchers "developed a test that was about 90 percent accurate in distinguishing the blood of people with Alzheimer's from the blood of those without the disease." Furthermore, the test "was about 80 percent accurate in predicting which patients" with mild cognitive impairment "would go on to develop Alzheimer's disease two to six years later."

While experts hailed the results as promising, they "cautioned that the work needed to be validated by others and in much larger studies, because there have been many disappointments in the past."

Tony Wyss-Coray, M.S., Ph.D., and colleagues, "tested blood from 259 patients with early-to-late-stage Alzheimer's, along with another group of people without the disease. They found levels of 18 protein messengers varied in patients compared with healthy people."

"The test initially will be used in research labs, where scientists are trying to learn more about the memory-wasting disease that is one of the most feared consequences of aging." The test will not be available commercially for at least two more years, during which time additional studies will occur.

Currently, about "4.5 million people in the United States" have Alzheimer's disease.

Levels of Lead in Lipsticks

FDA will investigate claim that some lipsticks contain potentially dangerous levels of lead. It would look into claims from an advocacy group that certain lipsticks contain potentially dangerous levels of lead." The agency is proceeding cautiously because "[s]imilar claims in the past have not been confirmed."

According to the Campaign for Safe Cosmetics, "a third of the 33 red lipsticks examined by an independent lab contained a level of lead exceeding 0.1 parts per million -- which is the FDA's limit for lead in candy."

Currently, the FDA "does not set a limit for lead in lipstick." The group aims "to pressure companies to remove toxic chemicals from their products, and replace them with safer alternatives."

"The lipstick samples were randomly collected in four cities -- Boston, Hartford, Conn., San Francisco, [and] Minneapolis -- and tested by Bodycote Testing Group in Santa Fe Springs, Calif."

Raltegravir (Isentress) for MDR- HIV

This drug looks more potent than virtually anything we have ever seen....

FDA approves Isentress to treat multi-drug-resistant HIV.

Isentress (raltegravir) is a twice-daily tablets as a treatment for patients who have strains of the HIV virus resistant to multiple antiretroviral drugs.Isentress is the first of a new class of antiretroviral drugs called integrase inhibitors, which work to prevent the virus from inserting its DNA into human DNA, thereby stunting its ability to replicate and infect new cells."

According to Merck, other HIV drugs "inhibit two other enzymes critical to the HIV replication process -- protease and reverse transcriptase." But Isentress "is the only approved treatment which inhibits the integrase enzyme." This approval was based on data from a 24-week study of about 700 patients with multi-drug-resistant HIV.

"More than 150,000 Americans taking HIV medicines have a hard-to-treat form of the virus and may benefit from the new drug," according to Merck. In studies, researchers found that Isentress "reduced the virus to less than could be detected after four months in 61 to 62 percent of patients who got the medicine in combination with other anti-HIV drugs." However, the virus load was reduced in only "33 to 36 percent" of patients who were receiving placebo "along with their most effective therapies." The FDA pointed out that "[a]dding Isentress to drugs already on the market can slow the advance of HIV." FDA advisers also noted that "[s]ide effects included rashes, diarrhea, nausea, and headaches." And while "more patients taking Isentress developed cancers, the drug didn't appear to pose an increased risk," they stated.

Meanwhile, the Wall Street Journal (10/13, Dooren) noted, "Isentress was approved as part of the FDA's accelerated-approval mechanism, which is aimed at getting life-saving treatments to market faster by allowing companies to submit less clinical data than usually required." As part of the accelerated approval process, Merck must continue studying Isentress after it goes on the market in order to gain full approval.

"The Merck drug has been closely watched since human testing began in 2005 because it was the first AIDS medicine to block...integrase, that is crucial in the process HIV uses to replicate."

The recommended dosage is a 400-mg tablet taken twice a day. It is estimated that Isentress will cost "$27 per day, or $9,850 per year," and may be available in pharmacies within the next two weeks. A comparable drug, Pfizer's Selzentry (maraviroc), "sells for at least $10,600 a year."

Martin Delaney, founder of San Francisco's Project Inform -- a leading AIDS drug advocacy organization -- and an activist in a group called the Fair Pricing Coalition, said that "Merck is not charging as much as he had feared." He added that Isentress "falls in the middle of the high end for AIDS drugs. For us, that is a victory."

University of California professor, Dr. Warner Greene, noted "This drug looks more potent than virtually anything we have ever seen." Dr. Greene also stated that "he believes...[Isentress] will prove safe because there are no known biological reasons why the drug might cause cancer." The Chronicle pointed out that Dr. Greene has said that "he has no economic ties to Merck."

Isentress and Selzentry "are considered breakthroughs for another reason: they are the first new classes of oral HIV medicines to reach the market in more than 10 years."

Sunday, October 14, 2007

Selling $23 Billion Company

Biogen Idec Inc., is said to be evaluating a possible sale of the company.

Biogen is a leading maker of multiple-sclerosis drugs and a sale would be one of the biggest in the biotechnology sector. Shares of the Cambridge, Mass., company traded at $69.43, up 3.4%, in 4 p.m. Nasdaq Stock Market composite trading Friday and after the company's announcement jumped to $81.60 in after-hours trading. That gives the company, which also has a prominent cancer drug, a market capitalization of about $23.5 billion.

The News: Biogen Idec, prodded by activist investor Carl Icahn, said it is evaluating a possible sale of the company and that it had received several expressions of interest from possible suitors.
The Stakes: Biogen is a leading maker of multiple-sclerosis drugs and a sale would be one of the biggest in the biotech sector. Mr. Icahn made an offer for the company last week at a potential price of at least $23 billion.

Mr. Icahn made an offer for the company at a potential price of at least $23 billion. The New York-based investor, who disclosed a 1% interest in Biogen in August, has been in talks with the company for the past three weeks, these people said, and has expanded his stake to about 4%.

Mr. Icahn said Biogen "would do better with a synergistic buyer" such as a large pharmaceutical company. These biotech companies have great pipelines. These compounds would be much better served, for every constituency, merged with a large pharma company," given many large drug companies are facing patent expirations on their products.

Among the companies analysts have mentioned as potential Biogen buyers are Sanofi Aventis SA and Pfizer Inc. Representatives for the companies couldn't be reached for comment.

In April, prodding from Mr. Icahn helped trigger the $15.6 billion purchase by AstraZeneca PLC of MedImmune Inc., a Gaithersburg, Md., biotech that makes antibodies and vaccines.

Biogen said its board was confident that its current strategy "is working and generating strong operating and financial performance." But it said the board had authorized management to "determine whether potential strategic interest on the part of major pharmaceutical companies might result in superior value in the present environment."

[Carl Icahn]

Biogen has recovered from a stunning 2005 recall of its second-generation MS drug, Tysabri, which was linked to a rare and often fatal brain infection. Last year, the company succeeded in convincing the Food and Drug Administration to allow the drug back on the market. The drug is used by 17,000 patients. Biogen has predicted it will reach 100,000 patients by 2010.

Biogen's leading MS drug is Avonex, which had $462 million in sales last quarter. The company has also recently had positive clinical results in trials designed to expand use of Rituxan, now marketed as a cancer drug, for lupus and MS.

All MS drugs are currently administered via injections or infusions. Biogen has an orally administered MS drug, called BG-12, that is in late-stage human trials. In tests with mice, the company has also reported progress in repairing the kind of nerve cells that MS attacks. Current MS treatments slow down the body's attack on nerve cells, but don't repair those already damaged.

Biogen has forecast 2007 earnings of about $600 million. Analysts are predicting about $3.1 billion in revenue. The company has said it expects its profit to double by 2010.

Biogen's has marketing partners, Genentech Inc. and Elan Corp., that are allowed, under change-of-control provisions, to force any acquirer to buy out their interest in the drugs they jointly sell. Genentech and Biogen share the profit on the sale of Rituxan, and Elan is a partner for Tysabri.

Mr. Icahn said Friday that Elan, which is based in Ireland, had called him to say it wouldn't stand in the way "if Biogen were sold in the near future."


Dillema of Brain and Neurons

Agony Of a Brain in an Struggles 2b Fair

At Children's Home in Uganda, the orphans had no idea that a woman inside a brain scanner 9,400 miles away was playing mind games with their food.

The children were the focus of a brain experiment under way at the California Institute of Technology to explore the neural anatomy of indecision. With the push of a button, the woman in the Caltech scanner could distribute meals at the orphanage more fairly, but only by taking food off the table, not by serving more portions.

While she pondered, the 12-ton fMRI scanner at the university's brain-imaging center traced the synaptic patterns of equity, remorse and reward in her brain. In these riptides of neural currents, the researchers sought clues to human variables missing from the mathematics of conventional economics.

NEUROECONOMICS AND DECISIONS
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What happens in your head when logic and rationality take a backseat? Share your thoughts with Robert Lee Hotz and other readers on the Science forum.

The quirky experiment exemplifies the new field of neuroeconomics. Behavioral economist Ming Hsu and his Caltech colleagues combined financial-decision theories and medical brain-imaging tools to analyze the brain as a living engine of economics, one fine-tuned by evolution through eons of foraging for scarce resources. These scientists studied hard choices, documenting how competing networks of neurons unconsciously shape the way we buy, sell, risk and trust.

During this test, the scientists wanted to see how synapses valued fairness against the desire to avoid harming others. The dilemma can arise when a limited resource is distributed unequally, and the only way to help one person comes at another's expense -- whether in profit sharing, setting affirmative-action policy, or rationing health care.

In the summer of 2006, when they organized the test, Dr. Hsu and his colleagues could imagine no more agonizing choice, within the constraints of medical ethics, than to ask people to take food away from orphans in a war-torn African country.

An online search led them to the Web site for the Canaan Children's Home, a one-story green building with a clinic next door, set amid the trees and chicken coops a half hour's drive from Jinja, Uganda. As of April, 100 children were living there, many of them orphaned by AIDS, said Frank P. Crane in Richmond, Va., chairman of the Uganda Missions Action Committee, which monitors the home's finances.

It was the winsome faces of those children -- whose photographs had been posted on the Web site to solicit charitable donations -- that caught Dr. Hsu's science eye. Here was the perfect experimental device for stirring the turmoil of indecision, the researchers agreed.

The team next contacted Tom Roberts, an attorney in Richmond, who created the Web site. He gave consent for the photos to be used. Because there would be no contact with the children and no actual consequences of the experiment to the orphanage, "I said help yourself," Mr. Roberts recalled.

Dr. Hsu wanted the pictures to heighten the realism of the experiment.

In the scanner, each volunteer could equalize how a fixed amount of donated meals was shared between orphans -- but only by taking away meals from those who had more than others and thereby reducing the total number of meals given to the orphanage. The allocation of meals was sometimes fair, sometimes not. "We manipulated the allocations and how much could be taken away," Dr. Hsu said.

To trigger the brain behavior, the 26 volunteers had to believe their decisions really would affect orphans being denied their seat at a groaning board of plenty where others feasted. So, the experimenters made them all study a 10-page brochure with pictures of 60 orphans.

In 36 rounds of testing, each subject had 10 seconds to choose the lesser of two evils: Allow some children to keep more than their fair share of meals or take away their food to eliminate inequity.

It was a measure of the economics of morality. Dr. Hsu made the inequities more or less severe by changing the number of meals donated to different groups of children. That provoked patterns of neural activation that revealed the brain's distaste for injustice and its willingness if the disparity was wide enough -- in one case, one child receiving five times more than another -- to punish the rich by putting them on short rations. To redress the extremes, people were willing to confiscate meals even when it hurt the orphanage as a whole, Dr. Hsu, now at the University of Illinois, reported recently at a meeting of the Society for Neuroeconomics in Nantasket, Mass.

As a test of economic theory against the benchmark of the brain, the Uganda experiment is one subtle brushstroke in an emerging self-portrait of the mind, generated by floods of new brain data. Indeed, neuroeconomics itself is still so new that cultural anthropologists from the Massachusetts Institute of Technology and New York University are documenting the folkways of this nascent network of scholars.

"The payout for this in economics may not come for 20 years," said University of Zurich economist Ernst Fehr. "Economics is a slow science."

Multi-Millionaires and Multi-Billionaires

Well, for some of us , the mission in our life is to be multimillionaires or billionaires. But it does not end there. Once we become one we will have another mission. Then we start writing our mission statement all over again. Is that still us?

Mission statements are moving from the boardroom to the family room.

A growing number of multimillionaires and billionaires, hoping to stave off costly feuds, are drawing up family mission statements -- lofty treatises filled with words like "legacy," "values" and "stewardship" that aim to carry rich families (and their fortunes) safely through the ages.

These statements, also known as "family constitutions," "strategic plans" or "family codes of conduct," can range in length from a single sentence to 10 pages. They give a clan's proclamations on everything from inheritance and philanthropy to religion, education and the purpose of wealth. Some even define what constitutes "the family" (i.e., in-laws sometimes don't count).

The goal of mission statements is to help keep the peace in affluent families. By agreeing on a basic set of principles, families hope to avoid lawsuits between relatives about money. They also hope to draw up moral guides for future generations, so that kids and grandkids will inherit values as well as wealth.

"The family mission statement is a chance for the family to think through what are their guiding principles and values that define them," says Stephen Goldbart, co-founder of the Money, Meaning and Choices Institute, a consulting firm in Kentfield, Calif., that helps write such documents. "It says 'What are we about? What is our purpose as a family and what drives us forward?'''

Mission statements are surging in popularity, along with the number of rich people who are passing down wealth in hopes of creating family dynasties. There are now 4.5 million U.S. households with investible assets of $1 million or more. Since so many of today's wealthy are entrepreneurs or executives, they're transferring their obsession with strategic visions and micromanagement to their families.

Money, Meaning and Choices say its mission statement business has more than doubled over the past five years and that it now works on at least one a week. Relative Solutions, a New Jersey-based advisory firm, says its mission-statement business has also surged. "Family mission statements have become very trendy," says Lee Hausner, a family-wealth psychologist and co-founder of IFF Advisors in Irvine, Calif., which also is doing a brisk trade in mission statements. The cost of hiring an adviser to create a statement can run from $15,000 to $100,000, advisers say.

Yet, some caution that getting family members to agree on a mission statement can create the very tensions they are supposed to diffuse. And some executives say the idea of applying a mission statement to their families is questionable. "It's ridiculous," says David D'Alessandro, the former chief executive of John Hancock. "How do you explain a mission statement to a teenager? Do you say 'Sign this or I cut you out of the will?' I find the whole thing remarkably pretentious."

Others find them valuable. When William W. George was CEO of Medtronic Inc. he relied on the medical-product company's mission statement to focus the troops and maintain standards. "The mission statement is the glue that keeps a company together," he says. So when he set up the George Family Foundation he created a mission statement that his kids and others could follow. Among its principles: "whole-life healing," with an emphasis on wellness, and supporting youth and education programs.

"The problem is, you have so many families who have gone from rags to riches and how do you pass values through a series of generations and not just the money," Mr. George says.

Some of the best statements are the shortest. Maria Elena Lagomasino, CEO of Genspring Family Offices, a wealth advisory firm in Palm Beach, Fla., cites a one-sentence statement written by a wealthy couple. It said, "We want our capital to allow our children and their children to be able to find their passion and pursue it with excellence." Their three daughters went on to Ivy League schools and successful careers, Ms. Lagomasino says.

"What they were saying with the mission statement was 'Don't worry about whether you can earn a living if that gets in the way of you being the best painter or teacher or poet.' It was about self-realization, not spending."

Glenn Kurlander, managing director of Citi Private Bank's family wealth advisory services, helped craft a six-page statement that quotes Sir Thomas Browne and Alexander Pope. It begins with a five-point plan for the family to, among other things, "value compassion, honesty, integrity, passion and engagement," and to be "secure in the knowledge that our financial capital cannot change our fundamental individual and family identity."

Family mission statements aren't entirely new. John D. Rockefeller Jr. had his motto inscribed on a stone tablet facing Rockefeller Center. It reads, in part, "I believe that every right implies a responsibility; every opportunity, an obligation; every possession, a duty."

Yet mission statements don't always keep a family together. In 1995, Robert and Jay Pritzker set forth the billionaire clan's credo in a memo to some members of the next generation, urging them to continue running the family's finances as a single entity to benefit all. "Our generation and our forebears were raised with the concept that we not spend more than we, as individuals, earned or contributed to the Family and society," they wrote.

Seven years later, Robert Pritzker's daughter sued family members seeking $5 billion.

Dream Jobs and the others

Health care, education and financial services--if you're looking for work in the coming decades, these are the fields to get into.

What to avoid? The usual suspects. According to the projections by the U.S. government, manufacturing jobs are expected to decline by more than 5% by 2014 as production moves overseas. Same goes for textile workers, such as sewing machine operators, who will see a 36% drop in employment. Technology will kill off more office positions, such as file clerks. They'll see a 36% drop in their ranks by 2014. Digital cameras will zap the manual photo processing industry by about 30%. And that guy who comes around to read your electric meter? Expect to see a lot less of him, too.

But these are the obvious victims as the U.S. moves from a goods-producing economy to a services-producing economy. More interesting are the jobs that are likely to experience slower than average growth (average being about 13%). This is where the surprises are.

In Pictures: The Worst Jobs For The 21st Century

Like computer programmers. Despite all the advances--and expected job growth--in the computer industry, expect the number of programmers to increase by about 2% between 2004-2014. Why? Outsourcing. Americans who want a career in this field should find a specialization, like cybersecurity.

Another endangered species: journalists. Despite the proliferation of media outlets, newspapers, where the bulk of U.S. reporters work, will cut costs and jobs as the Internet replaces print. While current events will always need to be covered (we hope), the number of reporting positions is expected to grow by just 5% in the coming decade, the Labor Department says. Most jobs will be in small (read: low-paying) markets.

Radio announcers will have a tough time, too. Station consolidation, advances in technology and a barren landscape for new radio stations will contribute to a 5% reduction in employment for announcers by the middle of the next decade. Even satellite radio doesn't seem immune from the changes. The two major companies, XM and Sirius--which now have plans to merge--have regularly operated in the red.

Anyone who regularly books their flights online can tell you why the travel agent business is in jeopardy. So here's a surprise: The Department of Labor only predicts a 6% drop in travel agent jobs by 2014. The demand for luxury and specialty travel, and increased spending on tourism, will buoy the industry somewhat. If you do plan to be a travel agent, best to find a niche field or specialize in specific-destination trips. Travel agents might also find success in organizing groups of foreign visitors to their home markets. But remember, the travel industry is highly connected to swings in economic conditions.

Worse off? Federal employees and their amazing benefits. Washington employs nearly 2 million people, not including the military, making it the country's largest employer. After Sept. 11, 2001, it expanded significantly due to homeland security needs. But those days may be coming to an end. By 2014, federal government jobs--excluding the Postal Service-- will only have increased by about 1.6% above 2004 levels due to the transfer of some jobs to state and local governments and the increased use of private contracting companies. Don't believe it? A report compiled by a House of Representatives panel earlier this year found that government spending on contracts rose by 103% between 2000 and 2005.

Should you be discouraged if a career you pinned your hopes on is not expected to grow? Not at all, says Anthony Spadafore, director of Pathfinders, a career counseling company in Alexandria, Va. He says that if people pursue their fields that play to their talents, they'll be able to compete for the top jobs where competition is fierce, even if the industry is diminishing.

"The idea of shrinking and hot fields, we think it's sort of a rudimentary way of looking at things," Spadafore says. "Believe it or not, there's still a need for bank tellers."


Dream Jobs

At a dinner party, you've got to go around the table and ask the obligatory questions: What's your name? What do you do?

Accountant--boring. Broker--typical. Professional videogame player--this guy has got to be kidding me. How cool! Why can't I do that?

Yes, there are those jobs out there in the workforce that many people would rather be doing, especially if it involves games, sports or lingerie models. Most of us would settle for anything that doesn't include gray walls and a cube.


However, nothing is what it seems. Take a professional gamer or videogame designer for example. While the compensation is outstanding considering the nature of the job, it's all-consuming, and there are no guaranteed checks every two weeks.

As a professional gamer, if you're not the best, you don't get paid. It's all about competition and endorsement deals. Typically, this profession (who would've ever expected it to be a real job?) is reserved for a younger demographic.

For one, it's the younger generation that grew up playing Nintendo (otcbb: NTDOY - news - people ), unlike their parents, who were just excited to get a color TV in their house as a kid. Excluding prize money from major events, a pro gamer could earn as much $70,000 to $100,000 a year. According to PayScale.com, a games designer earns an estimated $70,000, settling for a more consistent job than the guy who just plays them for a living.

Ready to quit your day job yet?

Picture this: It's hurricane season, and a cruise ship gets bombarded by a storm on the Atlantic Ocean. There are 1,200 crew members, who hail from 47 different countries, trying to corral and communicate with the 3,600 vacationers aboard this rocky vessel.

With every modern instrument and decades of experience at the captain's disposal, the ship braves the storm without incident. Sure, a dozen passengers complain, but about nothing of consequence.

Just another day at the office for Captain Salvatore Rassello.

"When you are a leader, the higher you are, the more wind you get," Rassello said, recalling the words of a mentor, and by which he now commands. "It's true. When it comes to a decision that involves the risk of human lives, then it's important for me to be right."

Rassello--who was born on the island of Procida off the shore of Naples, Italy--talked to Forbes.com via phone while midway through skippering a seven-day Caribbean Cruise.

He explained that being the captain of a ship is as much a science as it is a test in communication. Rassello, 52, has been a captain for Carnival Cruise Lines (nyse: CCL - news - people ) since 1996, moving up the ranks since joining the sea-faring staff in 1983. He had ventured all around the world at sea as a cargo-ship captain, but now serves as master of the 110,000-ton Carnival Glory out of Port Canaveral, Florida, one of 22 ships in the Carnival fleet.

As one might expect, the job pays well. Carnival wouldn't share specific salary information, but did explain that the captains operate on contracts that include four months at sea and two months off on a rotating basis.

Joe Cox, president of the Chamber of Shipping of America, a lobbying group for commercial shipping, said these cruise-liner captains could earn an estimated $250,000 a year. That, of course, varies by company and contract.

But he said that number isn't so unusual considering the amount of responsibility involved, including the constant safe passage of thousands of human beings. "These guys are not only well educated, but to get up there, they spent a considerable amount of time at sea," Cox said. "Think about it. They're the managers of a considerable asset for a company."

Then there's the guy who stares at models through a camera lens half the day and gets paid about $2,000. That's J. Edward Hall, a Chicago-based fashion and glamour photographer. Hall has been in the business 10 years, capturing still images of some of the most beautiful women on the planet on location throughout the world. Easy, right? Hardly.

Hall said it's an arduous and super-stressful process, and definitely a labor of love. A decade in, he's fully immersed in the business, with great connections and endless opportunities. It's not exactly a cake walk though. Every shoot is like planning a major motion picture, from location to stylist, equipment to permits.

He said if you don't love it, get out.

So you see, it's not that simple--not for a gamer, a photographer, a greeting card writer, a weatherman, a cruise-ship captain or for the road crew of a major rock band. These are the types of jobs that, as cool as they sound, have their drawbacks, too. Whether it's an issue of pay or having to sacrifice a personal life to succeed, it makes the desk job not seem so bad.

Just love what you do. Now get back to work.


Bulletproof Jobs

These days, jobs that offer total security are few and far between. Granted, no job is completely bulletproof. But there are some that come close (barring criminal activity or other gross misconduct, of course).

Although there's a lot of school and plenty of vetting to endure, perhaps nothing is more steady than becoming a federal judge. Sure, it's nearly as impossible as becoming president (that's a reasonably secure job too), but once candidates get approved by Congress, they receive lifetime appointments.

Out of thousands of federal judges, only seven have ever been convicted and removed from office. Reasons for removal from the bench range from perjury to tax evasion to mental illness. What constitutes an impeachable offense? In answer, President Gerald R. Ford once put it this way: Anything the Congress says is an impeachable offense.


If being nominated by the Congress seems too challenging, becoming a tenured educator might be a bit easier to achieve. Those in the field are quick to point out that getting tenured doesn't mean having a job for life. It means there must be "just cause" for removing the employee. The educator receives due process, similar to what American citizens expect when charged with violation of a law, according to the National Educators Association. They have the right to a fair hearing, and administrators have to prove their case.

Some unionized employees can have similar protections. While contracts differ from union to union, one thing remains the same. "Before companies can do a significant lay-off, they're obligated to discuss and bargain with the union and seek alternatives," says Tom Conway, vice president of the United Steel Workers Union.

In the Steel Workers Union, when a company says they're bringing employees in to work eight-hour days, five days per week, they're required to pay the staff even if they don't have enough work to give them. If a shortage of work becomes extreme, they can use the supplemental unemployment benefit that pays employees about 80% of their wages.

But as Conway points out, if there's a turndown in business during the length of the contract, the union and the company work together to figure out what other options are available. For example, downturns are a good time to get union members additional training and skill sets.

"We can't guarantee that the product you make will always be there, but we do guarantee that we can get in the room and discuss changing how to deal with it," says Conway.

Ever think of becoming a civil service employee? Those are the people employed by federal, state and local government agencies. Virtually every type of job imaginable exists within those guidelines. These are often considered more secure jobs since the process for removal is so intricate.

To fire someone for poor performance, the administration must prove that doing so will "promote the efficiency of the service." Talk about subjective. From there, the administration's action must be supported by a preponderance of evidence. Plus, the employee must be given 30 days written notice of poor performance and from there has between 30 and 90 days to improve his or her work. After all of that, if the employee is fired, he or she has the right to an appeal process.

Even religious vocations are no longer the totally unassailable career they may have once been. The traditional perception of the Roman Catholic priesthood was of being a job for life, no matter what. Today, that's certainly not the case. Sister MaryAnn Walsh, a spokeswoman for the Conference of Catholic Bishops, said, for example, it used to be that priests who had been proved to have sexually assaulted children were treated with therapy; today that is unacceptable. "When there is a credible accusation of pedophilia, a priest is removed from the ministry," she says. That means there's no room and board or any other type of caretaking.

Some jobs are secure simply because they're in such high demand. Nursing fits that category. They are at the top of the Department of Labor's 10 fastest-growing occupations. There are several reasons for the growth, including an aging population and chronic illness.

And nurses need not focus their job search only at a hospital or doctor's office. They're also hired to work as insurance investigators, quality-control representatives, in medical sales and in research and development.

But Cheryl Peterson, a senior policy analyst at the American Nurses Association, says that while there might be job security now, a change in the structure of the health care system might alter that.

"Back in the early '90s, there was a nursing shortage," says Peterson. "Then, in '92 or '93, the spiraling cost of health care and managed care caused lay-offs of nurses. We're having a shortage now because so many nurses are retiring, combined with the aging population. If the health care system that exists today stays this way, we will continue to have a shortage. Whether something comes along that disrupts that is always a possibility."

Outsourcing, of course, has affected the workforce. But there are jobs that can't be moved overseas. For instance, doctors, home health care workers, fire fighters, law enforcement officers and long-distance truck drivers all show up among jobs that can't be sent to India or Asia.

At least, not yet.

$100 Billion Master LEC to save USA & the World from the Crisis

The global credit crisis is now obvious esp in USA and Europe, Citigroup Inc. and other big banks are discussing a plan to pool together and financially back as much as $100 billion in shaky mortgage securities and other investments.

The new fund is designed to stave off what Citigroup and others see as a threat to the financial markets world-wide: the danger that dozens of huge bank-affiliated funds will be forced to unload billions of dollars in mortgage-backed securities and other assets, driving down their prices in a fire sale. That could force big write-offs by banks, brokerages and hedge funds that own similar investments and would have to mark them down to the new, lower market prices.

The ultimate fear: If banks need to write down more assets or are forced to take assets onto their books, that could set off a broader credit crunch and hurt the economy. It could make it tough for homeowners and businesses to get loans. Efforts so far by central banks to alleviate the credit crunch that has been roiling markets since the summer haven't fully calmed investors, leading to the extraordinary move to bring together the banks.

In recent weeks, investors have grown concerned about the size of bank-affiliated funds that have invested huge sums in securities tied to shaky U.S. subprime mortgages and other assets. Citigroup, the world's biggest bank by market value, has drawn special scrutiny because it is the largest player in this market.

Citigroup has nearly $100 billion in seven affiliated structured investment vehicles, or SIVs. Globally, SIVs had $400 billion in assets as of Aug. 28, according to Moody's.

Such vehicles are formally independent of the banks that create them. They issue their own short-term debt, usually at relatively low interest rates reflecting their high credit rating. The vehicles use the money to buy higher-yielding longer-term assets such as securities tied to mortgages or receivables from midsize businesses seeking to raise cash.

Many SIVs had trouble rolling over their short-term debt in August because of concerns about the quality of their assets. That contributed to the broader seizing up of credit markets.

The Financial Services Authority, the United Kingdom's markets regulator, has suggested that U.K. banks consider participating in the plan, a person familiar with the situation said. HSBC Holdings PLC, the largest U.K. bank, has an affiliate SIV called Cullinan Finance Ltd. with $35 billion in senior debt. An HSBC representative wasn't immediately available to comment.

If the banks agree, the plan could be announced as early as Monday, people familiar with the matter said. Citigroup announces third-quarter earnings Monday. The tentative name for the fund is Master-Liquidity Enhancement Conduit, or M-LEC.

The plan is encountering resistance from some big banks. They argue that Citigroup is asking others to help bail out its affiliates and an industry-wide bailout isn't needed. Citigroup bankers created the first SIV in the late 1980s in London.

The new fund represents a way for Citigroup and other banks to "outlast the current market conditions that are so dry right now," says Jaime Peters, an analyst at Morningstar Inc.

Traditional buyers of debt issued by SIVs include money-market mutual funds, municipalities and other risk-averse investors attracted by the high credit rating of the vehicles.

By providing a receptacle for assets backed by subprime mortgages and other creations of Wall Street, the SIVs contributed to the big expansion of credit in recent years whose aftereffects are now roiling the economy.

The Citigroup plan would create a "superconduit," a fund backed by some of the world's biggest banks that would issue short-term debt and serve as a buyer of assets currently held by SIVs affiliated with the participating banks.

According to the people familiar with the plan, these assets include securities tied to U.S. mortgages as well as debt pools called collateralized debt obligations.

Because the superconduit would be backed by the big banks themselves, it's expected this would reassure investors and make them more willing to buy its short-term debt, or commercial paper.

The Citigroup proposal recalls the 1998 bailout of huge hedge fund Long Term Capital Management, which was reeling from bad bets on currencies and other investments. Seven big banks and investment banks, prodded by the Fed, banded together and prevented LTCM from collapsing.

Two banks in the discussions with Citigroup, Bank of America Corp. and J.P. Morgan Chase & Co., would participate not because they have SIVs -- they don't -- but because they would earn fees for helping arrange the superconduit, according to people briefed on the discussions. The superconduit's debt would be fully backed by participating banks, they said.

One supporter of the effort is Treasury Secretary Henry Paulson, who decided to assemble the banks after conversations with businesspeople who expressed concern about SIVs and their impact on the economy, said a person familiar with the matter.

It's the second time in two months that U.S. authorities helped arrange for financial institutions to discuss steps to avert a credit crisis. In mid-August, at the request of the New York Fed, financial leaders met with Fed officials who explained the Fed's steps to open up the supply of cash to the nation's banks.

The new plan would be challenging to pull off. Bank-affiliated SIVs selling assets into the superconduit will have to agree on how to price those assets. Some SIVs may value the securities differently. There have been several meetings since the initial Sunday meeting, both at Treasury and in New York.

For Citigroup Chief Executive Charles Prince, solving the bank's SIV is the latest fire that he needs to put out. Mr. Prince, under pressure to raise the bank's lagging performance, recently said third-quarter earnings would fall 60% from year-earlier levels owing to the August meltdown in global credit markets. Some investors and analysts have called for Mr. Prince's ouster. (See related article.)

SIVs are purposely kept off the balance sheets of the banks to which they are affiliated. One reason for this is that banks want to keep down the amount of assets on their balance sheets to reduce the amount of capital that regulations require them to keep.

Because SIVs are off the balance sheet, it is difficult for investors to size up the financial risks they pose. Off-balance-sheet liabilities played a major role in the 2001 collapse of Enron Corp., and the makers of accounting rules have generally sought to get affiliated entities back on the balance sheets of the companies creating them.

Will US attack Iran ?

People say, "In War, Nobody Wins". Well who won the Iraq war, Saddam Hussein lost his life and George Bush lost US economy. In war people die just like that. Having no war is beneficial because it can save so many people who would have died in the war, is not this an interesting thought? So let's have no war at least to save those people who will be dying if there is war, it could be a huge number of people may be even the who are very close to our heart, can you imagine???

Possible US military strike on Iran is emerging as a dominant foreign policy theme in a 2008 White House race already haunted by the war in Iraq.

The campaign trail is hardly the place for diplomatic nuance and candidates are facing questions they might rather avoid, about how they might deal with the Islamic Republic should nuclear diplomacy fail.

The issue has opened a new line of attack for Democratic front-runner Hillary Clinton's rivals Barack Obama and John Edwards, who hope to cut her opinion poll lead by convincing voters she lacks judgment.

Republicans meanwhile spar over whether Congress would have to authorize any use of force against Iranian nuclear facilities, and one candidate, Senator John McCain, warns ominously such a choice may be closer than anyone thinks.

The campaign debate comes as world powers mull new sanctions on Iran, after it flouted UN Security Council calls to suspend a uranium enrichment program it insists is aimed not at weapons, but at generating energy.

Candidates must walk a fine line, appeasing core supporters, but wary of inflammatory missteps and boxing themselves in, should they reach the White House.

"It's tricky for a candidate from either party to be precise about what they might do," said Sean Kay, professor of politics and government at Ohio Wesleyan University.

"It's hard to know what the situation might be when they become president.

"Secondly, no president wants to be in a position where they have unilaterally disarmed themselves of a tool of foreign policy."

Senator Clinton's opponents are attempting to skewer her over her vote last month for a bill branding Iran's Revolutionary Guard as a terror group, which critics regard as a possible pretext for a US strike on Iran.

Obama, an Illinois senator, said Friday he didn't want to give President George W. Bush "any excuse, or any opening for war."

"As we learned with the authorization of the Iraq war -- when you give this president a blank check, you can't be surprised when he cashes it," he said, linking Clinton's decision with her 2002 vote to authorize the Iraq war.

Edwards, a former senator, also tied the two votes together even though he also voted to wage war in Iraq, though has since repudiated the decision.

"Senator Clinton and I learned two very different lessons from the Iraq war. I learned that if you give President Bush even an inch of authority, he will use it to sanction a war," Edwards said.

"Her vote opens the door for the president to attack Iran."

Clinton rejects the criticism.

"There was nothing in that resolution that gave President Bush or anyone any authority to go to war," she said Thursday in New Hampshire.

"We want leverage so if we can ever convince the Bush administration to actually negotiate, they've got some sticks to use at that table."

The Clinton campaign has also noted Obama did not vote on the Iran resolution.

Obama had his own fight over Iran this year, when Clinton branded him as "naive" and "irresponsible" after he said he would be ready to meet leaders of sworn US foes, including Iran, during his first year in office.

But campaigning in New Hampshire this week, Clinton said: "I would engage in negotiations with Iran with no conditions," prompting Obama to accuse her of changing her stance. Her campaign responded that she had meant meetings between the US government and Iran, not personal talks with the president.

Republican candidates meanwhile have vied to be seen as the most hawkish on foreign policy, accusing Iran of chasing nuclear weapons and orchestrating attacks on US soldiers in Iraq.

Both former New York mayor Rudolph Giuliani and McCain have warned Washington's final option may be a strike on Iranian nuclear facilities, if diplomacy fails.

"We will use a military option if we have to," Giuliani told Fox News in April.

"It would not be a good thing, but it would be much more dangerous and much worse if (Iranian President Mahmoud Ahmadinejad) had nuclear weapons."

Former Massachusetts governor Mitt Romney last week called Ahmadinejad a "buffoon" and a "rogue" and mounted a campaign to bar him from last month's UN General Assembly.

McCain raised eyebrows in a Republican debate last week, saying that he would consult Congress before mounting a hypothetical strike on Iran, which he said is "maybe, closer to reality than we are discussing tonight."

Earlier this year, a joking McCain outraged anti-war groups singing "bomb, bomb, bomb," Iran at a campaign event to the tune of the Beach Boys hit "Barbara Ann."

Filthy Rich US Colleges: Are they looting someone?

Colleges' Investments Net Good Returns, As Well As Questions About Why Costs Are Rising Too

Colleges and universities raked in money by the billions last year. But their investing success now has a price -- a movement in Congress to force the wealthiest schools to spend more of their money to keep down tuition.

In recent weeks, a string of colleges and universities have announced enviable investment results. Leading the way was Yale, which earned 28 percent over the year ending June 30, increasing the school's endowment to $22.5 billion overall.

Harvard, the world's wealthiest university with $34.9 billion, beat the market again with a 23 percent return. There also were good returns for smaller schools such as Bowdoin (24.4 percent) and William & Mary (19.2 percent).

But while those numbers were coming out, some members of the Senate Finance Committee in Washington were wondering aloud why the rise in endowments isn't stemming tuition increases. At a hearing last month, lawmakers batted around the idea of forcing at least some of the wealthier colleges to spend more savings on reducing costs.

"Senators, what would your constituents say if gasoline cost $9.15 a gallon?" Lynne Munson, an adjunct fellow at the Center for College Affordability and Productivity in Washington told the committee. "Or if the price of milk was over $15? That is how much those items would cost if their price had gone up at the same rate that tuition has since 1980."

In the mid-1990s, a billion-dollar endowment was a mark of the financial elite, a club with just 17 schools in its ranks. By last year, 62 colleges had hit the mark. Within a few years there will likely be 100.

Private foundations are required by law to spend at least 5 percent of their endowments each year on their missions, but public charities -- a category that includes colleges -- face no such requirement. Holding colleges to the same standard is an idea that clearly interests Iowa Republican Sen. Charles Grassley, the minority leader of the Senate Finance Committee and Capitol Hill's closest scrutinizer of non-profits.

"It'd be good to see the very elite institutions, with the richest endowments, take the lead and create a ripple effect throughout higher education to make college more affordable for everyone," he said in a statement. It's unclear right now, both Republicans and Democrats say, whether the proposal will make it out of the committee, which is considering several ideas related to taxes and higher education.

In fact, colleges spent on average 4.6 percent from their endowments last year, according to the latest figures from National Association of College and University Business Officers.

But if the billionaire colleges alone spent the full 5 percent, that would mean an extra $1.5 billion available annually for financial aid, calculates Michael Dannenberg, director of education policy at the New America Foundation, a Washington think-tank. He says such a requirement would be fair, given that colleges are allowed to invest tax-free. That perk has boosted many endowments by billions and carries an obligation to public service.

Higher education officials were angry they weren't allowed to speak out against the proposal at a hearing last month, but submitted their own testimony last week, arguing they spend plenty on public service and that endowments aren't simply savings accounts that can be tapped at any time for any reason.

Many endowment funds come with strings attached by donors on how they can be used.

Colleges also have to budget prudently, taking market swings into account, and they try to avoid big jumps in spending just because the market did well in a particular year. But by sticking to gradual adjustments, they can look stingy.

For instance, Yale is slated to get more than third of it's annual budget -- $843 million -- from its endowment this year. But because its investments did so well, that's only about 3.7 percent of the endowment.

But the underlying issue is that the proposal would represent a major encroachment by Washington into university affairs. Colleges oppose government involvement in anything from how they teach to the criteria they use in admissions. They would not take kindly to Congress directing them precisely how to spend their own money.

"We don't think as a general matter the federal government ought to be telling private philanthropic organizations, that have been around in some cases since before the federal government, how to spend their money," said Terry Hartle, senior vice president of the American Council on Education, the main group representing colleges and universities in Washington.

Still, Hartle acknowledges colleges will have to take seriously the complaints about colleges costs with which constituents are deluging lawmakers.

"There isn't a college or university president in the country that doesn't recognize that federal policy makers in both houses of Congress in both parties are very concerned about rapidly rising prices in higher education," he said.

Professionals: Victims of Depression

Personal Care,
Restaurant Industries,
Diaper Changers

Have Highest Rates of Depression

In US, people who tend to the elderly, change diapers and serve up food and drinks have the highest rates of depression.

Overall, 7 percent of full-time workers battled depression in the past year, according to a government report available Saturday.



Women were more likely than men to have had a major bout of depression, and younger workers had higher rates of depression than their older colleagues.

Almost 11 percent of personal care workers -- which includes child care and helping the elderly and severely disabled with their daily needs -- reported depression lasting two weeks or longer.

During such episodes there is loss of interest and pleasure, and at least four other symptoms surface, including problems with sleep, eating, energy, concentration and self-image.

Workers who prepare and serve food -- cooks, bartenders, waiters and waitresses -- had the second highest rate of depression among full-time employees at 10.3 percent.

In a tie for third were health care workers and social workers at 9.6 percent.

The lowest rate of depression, 4.3 percent, occurred in the job category that covers engineers, architects and surveyors.

Government officials tracked depression within 21 major occupational categories. They combined data from 2004 through 2006 to estimate episodes of depression within the past year. That information came from the National Survey on Drug Use and Health, which registers lifetime and past-year depression bouts.

Depression leads to $30 billion to $44 billion in lost productivity annually, said the report from the Substance Abuse and Mental Health Services Administration. The report was available Saturday on the agency's Web site at http://oas.samhsa.gov

The various job categories tracked could be quite broad, with employees grouped in the same category seemingly having little in common.

For example, one category included workers in the arts, media, entertainment and sports. In the personal care category, a worker caring for toddlers at a daycare center would have quite a different job from a nursing aide who helps an older person live at home rather than in a nursing home.

Just working full-time would appear to be beneficial in preventing depression. The overall rate of depression for full-time workers, 7 percent, compares with the 12.7 percent rate registered by those who are unemployed.

Saturday, October 13, 2007

Nobel Prize in chemistry

Gerhard Ertl of Germany won the 2007 Nobel Prize in chemistry on Wednesday for studies of chemical reactions on solid surfaces, which are key to understanding questions like why the ozone layer is thinning.

Ertl's research laid the foundation of modern surface chemistry, which has helped explain how fuel cells work, how catalytic converters clean up car exhaust and even why even why iron rusts, the Royal Swedish Academy of Sciences said.

Ertl, who won the prize on his 71st birthday, told reporters that it "is the best birthday present that you can give to somebody."

"I am speechless," Ertl told The Associated Press from his office in Berlin. "I was not counting on this."

The academy said Ertl provided a detailed description of how chemical reactions take place on surfaces and studied some of the most fundamental mysteries in that field.

Ertl showed how to obtain reliable results in this difficult area of research, and his findings applied in both academic studies and industrial development, the academy said.

"Surface chemistry can even explain the destruction of the ozone layer as vital steps in the reaction actually take place on the surfaces of small crystals of ice in the stratosphere," the award citation said.

On Tuesday, France's Albert Fert and German Peter Gruenberg won the physics award for discovering a phenomenon that lets computers and digital music players store reams of data on ever-shrinking hard disks.

The awards — each worth $1.5 million — will be handed out by Sweden's King Carl XVI Gustaf at a ceremony in Stockholm on Dec. 10.

World's Most Global Universities

People in Nepal are in constant threat of political chaos due to unstable governement , hence students here are always looking for an opportunity overseas and this is understandable. In the huge ocean of Universities around the world, it is very difficult to know where to go, here is a list which should help to some extent the prospective students.


In response to the same forces that have propelled the world economy toward global integration, universities have also become more self-consciously global: seeking students from around the world who represent the entire spec­ trum of cultures and values, sending their own students abroad to prepare them for global careers, offering courses of study that address the challenges of an inter­ connected world and collaborative research programs to advance science for the benefit of all humanity.

To capture these developments, NEWSWEEK devised a ranking of global universities that takes into account openness and diversity, as well as distinction in research.


We evaluated schools on some of the measures used in well-known rankings published by Shanghai Jiaotong University and the Times of London Higher Education Survey. Fifty percent of the score came from equal parts of three measures used by Shanghai Jiatong: the number of highly-cited researchers in various academic fields, the number of articles published in Nature and Science, and the number of articles listed in the ISI Social Sciences and Arts & Humanities indices. Another 40 percent of the score came from equal parts of four measures used by the Times: the percentage of international faculty, the percentage of international students, citations per faculty member (using ISI data), and the ratio of faculty to students. The final 10 percent came from library holdings (number of volumes).
Here is our ranking:

The top 23

1. Harvard University
2. Stanford University
3. Yale University
4. California Institute of Technology
5. University of California at Berkeley
6. University of Cambridge
7. Massachusetts Institute Technology

8. Oxford University
9. University of California at San Francisco
10. Columbia University
11. University of Michigan at Ann Arbor
12. University of California at Los Angeles
13. University of Pennsylvania
14. Duke University

15. Princeton Universitty
16. Tokyo University
17. Imperial College London
18. University of Toronto
19. Cornell University
20. University of Chicago
21. Swiss Federal Institute of Technology in Zurich
22. University of Washington at Seattle
23. University of California at San Diego


The 2nd 23

24. Johns Hopkins University
25. University College London
26. Swiss Federal Institute of Technology in Lausanne
27. University Texas at Austin
28. University of Wisconsin at Madison
29. Kyoto University
30. University of Minnesota Twin Cities
31. University of British Columbia

32. University of Geneva
33. Washington University in St. Louis
34. London School of Economics
35. Northwestern University
36. National University of Singapore
37. University of Pittsburgh
38. Australian National University
39. New York University

40. Pennsylvania State University
41. University of North Carolina at Chapel Hill
42. McGill University
43. Ecole Polytechnique
44. University of Basel
45. University of Maryland
46. University of Zurich

The 3rd 23

47. University of Edinburgh
48. University of Illinois at Urbana Champaign
49. University of Bristol
50. University of Sydney
51. University of Colorado at Boulder
52. Utrecht University
53. University of Melbourne

54. University of Southern California
55. University of Alberta
56. Brown University
57. Osaka University
58. University of Manchester
59. University of California at Santa Barbara
60. Hong Kong University of Science and Technology

61. Wageningen University 62. Michigan State University 63. University of Munich 64. University of New South Wales 65. Boston University 66. Vanderbilt University 67. University of Rochester 68. Tohoku University 69. University of Hong Kong


The 4th 23

70. University of Sheffield 71. Nanyang Technological University 72. University of Vienna 73. Monash University 74. University of Nottingham 75. Carnegie Mellon University 76. Lund University

77. Texas A&M University 78. University of Western Australia 79. Ecole Normale Super Paris 80. University of Virginia 81. Technical University of Munich 82. Hebrew University of Jerusalem 83. Leiden University

84. University of Waterloo 85. King's College London 86. Purdue University 87. University of Birmingham 88. Uppsala University 89. University of Amsterdam 90. University of Heidelberg

91. University of Queensland 92. University of Leuven 93. Emory University 94. Nagoya University 95. Case Western Reserve University 96. Chinese University of Hong Kong


And the Rest

97. University of Newcastle
98. Innsbruck University
99. University of Massachusetts at Amherst
100. Sussex University

As never before in their long history, universities have become instruments of national competition as well as instruments of peace. They are the locus of the scientific discoveries that move economies forward, and the primary means of educating the talent required to obtain and maintain competitive advantage. But at the same time, the opening of national borders to the flow of goods, services, information and especially people has made universities a powerful force for global integration, mutual understanding and geopolitical stability.


In response to the same forces that have propelled the world economy, universities have become more self-consciously global: seeking students from around the world who represent the entire spectrum of cultures and values, sending their own students abroad to prepare them for global careers, offering courses of study that address the challenges of an interconnected world and collaborative research programs to advance science for the benefit of all humanity.
Of the forces shaping higher education none is more sweeping than the movement across borders.

Over the past three decades the number of students leaving home each year to study abroad has grown at an annual rate of 3.9 percent, from 800,000 in 1975 to 2.5 million in 2004. Most travel from one developed nation to another, but the flow from developing to developed countries is growing rapidly. The reverse flow, from developed to developing countries, is on the rise, too.

Today foreign students earn 30 percent of the doctoral degrees awarded in the United States and 38 percent of those in the United Kingdom. And the number crossing borders for undergraduate study is growing as well, to 8 percent of the undergraduates at America's Ivy League institutions and 10 percent of all undergraduates in the U.K. In the United States, 20 percent of newly hired professors in science and engineering are foreign-born, and in China the vast majority of newly hired faculty at the top research universities received their graduate education abroad.

What are the consequences of these shifts among the highly educated? Consider this: on the night after the attacks on the World Trade Center, Jewish students at Yale (most of them American) came together with Muslim students (most of them foreign) to organize a vigil. Or this: every year the student-run Forum for American/Chinese Exchange at Stanford (FACES) organizes conferences in both China and at Stanford, bringing together students from both countries chosen to discuss Sino-U.S. relations with leading experts.

The leaders of student groups promoting international collaboration are in touch with each other daily via e-mail and Skype, technologies that not only facilitate cooperative projects but also increase the likelihood of creating lifelong personal ties. The bottom line: the flow of students across national borders(I¡½(Bstudents who are disproportionately likely to become leaders in their home countries(I¡½(Benables deeper mutual understanding, tolerance and global integration.


As part of this, universities are encouraging students to spend some of their undergraduate experience in another country. In Europe, more than 140,000 students participate in the Erasmus program each year, taking courses for credit in one of 2,200 participating institutions across the continent. And in the United States, institutions are mobilizing their alumni to help place students in summer internships abroad to prepare them for global careers.

Yale and Harvard have led the way, offering every undergraduate at least one international study or internship opportunity(I¡½(Band providing the financial resources to make it possible. Universities are also establishing more-ambitious foreign outposts to serve students primarily from the local market rather than the parent campus. And true educational joint ventures are gaining favor, such as the 20-year-old Johns Hopkins-Nanjing program in Chinese and American Studies, the Duke Goethe executive M.B.A. program and the MIT-Singapore alliance, which offers dual graduate degrees in a variety of engineering fields.


Globalization is also reshaping the way research is done. One new trend involves sourcing portions of a research program to another country. Yale professor and Howard Hughes Medical Institute investigator Tian Xu directs a research center focused on the genetics of human disease at his alma mater, Shanghai's Fudan University, in collaboration with faculty colleagues from both schools. The Shanghai center has 95 employees and graduate students working in a 4,300-square-meter laboratory facility. Yale faculty, postdocs and graduate students visit regularly and attend videoconference seminars with scientists from both campuses.


The arrangement benefits both countries; Xu's Yale lab is more productive, thanks to the lower costs of conducting research in China, and Chinese graduate students, postdocs and faculty get on-the-job training from a world-class scientist and his U.S. team.

Yale has a similar facility at Peking University in Beijing, where Prof. Xing-Wang Deng directs a program studying the biology of plant systems, aimed at improving crops. Like Xu, Deng is a graduate of the institution where he performs his research. But it is only a matter of time before China starts to set up similar facilities for outstanding foreign scientists who have no prior connection to the country.


Given NEWSWEEK's rankings, it's not surprising that nations seeking advancement are looking closely at America's research universities as a model. Since the beginning of the Industrial Revolution, technological change has been the principal source of economic growth and a rising standard of living. But in the past half century, technological progress has become dependent on scientific advances and their translation to practice(I¡½(Ba process that requires both public and private investment. After the second world war, the United States recognized that maintaining its leadership in defense technology required substantial public investment in university-based science. By the mid-1950s the United States had designated public support for university research for the basic sciences as well as for health, agriculture, defense and energy.

As a result of its strength in science, the United States has consistently led the world in the commercialization of major new technologies, from the mainframe computer and the integrated circuit of the 1960s to the Internet infrastructure and applications software of the 1990s.

The link between university-based science and industrial application is often indirect but sometimes highly visible: Silicon Valley was intentionally created by Stanford University, and Route 128 outside Boston has long housed companies spun off from MIT and Harvard. Around the world, governments have encouraged replication of this model, perhaps most successfully in Cambridge, England, where Microsoft and scores of other leading software and biotechnology companies have set up shop around the university.

An impressive array of technology companies already surrounds some of the major campuses in China(I¡½(Bnotably Peking and Tsinghua universities in Beijing, and Fudan and Shanghai Jiatong universities in Shanghai.

Universities are also adapting more American research practices. Until recently, for instance, Japan allocated research funding in block grants, which wound up in the hands of the country's most senior(I¡½(Bbut not necessarily most productive(I¡½(Bprofessors. But between 2000 and 2004, the country increased the volume of grants subject to competitive review by 57 percent, in an effort to direct funding to the more meritorious.


Even more-dramatic changes are taking place in China, where a number of leading universities, intent on attaining world-class status, have been carefully studying America's top institutions for new ideas. These include widening the search for new faculty well beyond their own graduates, establishing rigorous standards for awarding lifetime tenure and consulting with independent experts on personnel decisions. Several leading universities have ditched the traditional specialized undergraduate curriculum for a year or two of general education followed by free choice of a major field of study, as is common in the United States. Some are experimenting with using criteria other than national exams to admit students. And many elite universities are determined to abandon recitation in favor of classroom interaction that encourages students to think independently(I¡½(Ba hopeful sign for those eager to see a fully democratic China.


Indeed, China is intent on playing all its cards. By investing heavily in research, tripling university enrollments between 1998 and 2004, and encouraging top students to think independently, the country is self-consciously using its universities as a means to stimulate economic growth. At the same time, since Deng Xiaoping first permitted Chinese students to seek education in the West in 1978, no country has made a more deliberate effort to send its most talented students abroad for a top education(I¡½(Bespecially at the graduate level. Today, in contrast to 10 or 20 years ago when economic opportunity was limited at home, most Chinese students return after graduation(I¡½(Boften with an appreciation of the values of a free society and a greater understanding of the countries where they studied.


Europe, by contrast, has lost its competitive edge. According to "The Future of European Universities: Renaissance or Decay?" a devastating recent critique by Confederation of British Industry Director General Richard Lambert and Nick Butler, Chief of Strategic Planning at British Petroleum, European governments have systematically weakened their top universities, once the pride of the world. They have invested too little in research, spread limited resources across too many institutions, expanded enrollments without increasing faculty and refused to allow universities sufficient autonomy, the report says. To flourish, they need to concentrate more resources in the hands of the strongest universities and allow them to generate revenue by charging tuition fees like their U.S. counterparts(I¡½(Band awarding financial aid to those in greatest need.


For all its success, the United States remains deeply ambivalent about sustaining the research-university model. Most politicians recognize the link between investment in science and national economic strength, but support for research funding has been fitful and sporadic rather than steady. The budget of the National Institutes of Health doubled between 1998 and 2003, but has risen more slowly than inflation since then. Support for the physical sciences and engineering barely kept pace with inflation during that same period; legislation to double these expenditures in 10 years is currently pending. The attempt to make up lost ground is welcome, but the nation would be better served by steady, predictable increases in science funding at the rate of long-term GDP growth, which is on the order of inflation plus 3 percent per year.


American politicians have great difficulty recognizing that admitting more foreign students can greatly promote the national interest by increasing international understanding. Adjusted for inflation, public funding for international exchanges and foreign-language study is well below the levels of 40 years ago. In the wake of September 11, changes in the visa process caused a dramatic decline in the number of foreign students seeking admission to U.S. universities, and a corresponding surge in enrollments in Australia, Singapore and the U.K. Objections from American university and business leaders led to improvements in the process and a reversal of the decline, but the United States is still seen by many as unwelcoming to international students. An abortive attempt last year by the Commerce Department to extend the scope of export control regulations in university research labs reinforced this unfortunate signal.



Most Americans recognize that universities contribute to the nation's well-being through their scientific research, but many fear that foreign students threaten American competitiveness by taking their knowledge and skills back home. They fail to grasp that welcoming foreign students to the United States has two overriding positive effects: first, the very best of them stay in the States and(I¡½(Blike immigrants throughout history(I¡½(Bstrengthen the nation; and second, foreign students who study in the United States become ambassadors for many of its most cherished values when they return home. Or at least they understand them better. In America as elsewhere, few instruments of foreign policy are as effective in promoting peace and stability as welcoming international university students.
Levin is the president of Yale University.

The World is worth...How Much?


Global wealth increased 7.5% last year to $97.7 trillion, according to Boston Consulting Group. And of the 9.6 million households globally with more than $1 million in assets, 49% of them lived in North America.
Now brokerages, banks, fund companies, and money advisers are climbing over each other for the business. Managing money for extremely rich Americans--those with $10 million or more in assets to invest--has become a contact sport.

In Pictures: Where The Rich Bank Their Money
Of the big brokerages, Switzerland's UBS (nyse: UBS - news - people ) has the biggest share of the private client market, with $1.3 trillion under management, followed closely by Citigroup (nyse: C - news - people ) and Merrill Lynch (nyse: MER - news - people ), each with about $1.1 trillion under management.

But there are well-established niche U.S. private banks that have thrived for decades. Some names might be familiar, like Bank of New York Mellon (nyse: BK - news - people )--which bills itself as the first U.S. private bank, at 220 years old--with $162 billion of assets under management, or U.S. Trust, now owned by Bank of America (nyse: BAC - news - people ), with $220 billion.

Northern Trust (nasdaq: NTRS - news - people ) in Chicago, with $145 billion of wealthy-client assets, lays claim to 22% of the Forbes 400 as clients.

Then there are less well-known companies, mostly because they work hard at being low-key, including Harris Bank (nyse: HRS - news - people ) (a unit of BMO Financial), with $50 billion; New York's Bessemer Trust, with $51 billion; and Philadelphia's Glenmede Trust, with $21 billion.

Private bankers do everything from managing money and arranging estates to organizing exotic vacations and bailing clients' college kids out of trouble. Some banks, like Citigroup, offer "equestrian management" services for clients who own horses. JPMorgan Chase (nyse: JPM - news - people ), among others, offers art advisory services. These are pretty typical of what bankers refer to as "concierge services."

But don't let that "Mr. Drysdale" banker stereotype cloud reality: 30% of the work done managing a family's wealth is devoted to accounting, filing taxes and keeping records in compliance, according to Sara Hamilton, founder and chief executive of Family Office Exchange, a resource network based in Chicago.

Another 18% to 20% is devoted to investment management, and 12% to 15% to finance, tax and estate planning. Just 7% of the time is devoted to managing a wealthy client's "lifestyle demands."

Mostly private bank clients want access to their bankers, says Bill Fuhs, president of New York Private Bank & Trust, established two years ago as the new holding company for New York's $17 billion-asset Emigrant Bank. Chairman Howard Milstein, son of Forbes 400 billionaire Paul Milstein, founded the private bank with the goal of restoring some of the personal touch lost in recent years as banks got bigger and more impersonal.

"This is an old-line business that grows by long-term relationships," says Fuhs. The company focuses on individuals with $50 million in assets, though it won't turn down those with less. The bank has 175 clients--but won't disclose their total assets.

Family offices are popular among the super-wealthy, who can afford to hire their own staff of professional, full-time lawyers, accountants and investment planners. To make it worthwhile, though, a family running its own family office has to have at least $100 million just to afford the fee on assets they have to pay each year--around .5%--to keep things running, and that doesn't include the money management fees.

Families with less than $100 million can band together in "multifamily" offices that combine the resources and divide the costs. This is the function some of these banks and brokerages have been trying to fill.

Expect more of these multifamily offices to crop up in the future as an estimated 6,000 wealthy business owners get around to separating their family business from the management of their family money, says Hamilton of Family Office Exchange. That'll give the banks something to fight over.
In Pictures

Friday, October 12, 2007

Oil ; Stocks; and US Economy

From the Fed to the top business periodicals, analysts are trying to unravel the underlying explanation for an economy pushing past a Dow 14,000 with oil in the $80 per barrel range. Conventional energy-economic wisdom had it that the latter would kill the former.
Remember the Clinton/Gore energy tax proposed in 1993? It would have added a paltry few bucks, at most, to a barrel of oil that, at that time, cost about $20. The proposal hit a complete bipartisan wall, on the grounds of the economic fallout from increasing the price of oil.

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Understanding why 80 and 14,000 can occur contemporaneously would be valuable as a predictive tool for policy makers, and not irrelevant for both oil producers and investors. We might also anticipate the fallout if oil were to regain the so-far record peak price of 1980, $101 a barrel (inflation-adjusted). The explanations for the 80-14,000 phenomenon generally fall into three groups.

First is the Wal-Mart (nyse: WMT - news - people ) effect where increased household oil costs have been offset by reductions in other household spending. Annual average auto fuel costs have dropped to 4% of household income, from 6% in 1980. This is one part of a broad macro-economic trend toward primary fuel costs moving in to the "twilight" of our ever-changing, ever-larger, ever-less-commodity-dependent economy.

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Second comes the exchange rate factor. Since oil is traded in dollars, the slide in the dollar has certainly had an impact. Adjusting for the recent loss in the dollar's value, the real price of oil in the U.S. is under $70 a barrel.
The third proffer is always some variant on the fact that the U.S. is more energy efficient today. Every dollar of gross domestic product today requires 40% less energy to support, compared with 1980. Increased efficiency is part of the twilight-of-fuel effect noted above, and helps insulate the economy from energy costs.

All three of these factors are significant and go a long way to account for America's tolerance for high oil prices. But they don't fully explain the growth in the Dow and the economy in the face of $80 oil. There is an inchoate sense that a key explanation lies somewhere in the idea that our economy is somehow different. It is. Stated simply: The U.S. is more information-centric, and thus in relevant energy terms, more electrified, than in 1980.

As my kids phrase it, "back in the day" in 1980, it was a "different time." It was pre-Internet, pre-Apple (nasdaq: AAPL - news - people ), in fact pre- the entire digital era. Since then America has moved firmly beyond an oil-centric, steel-and-wheels economy, to one driven by electrons for silicon and (computer) servers. Transportation, where three-fourths of our oil is used, remains vital, but is not the primary driver of economic growth.

Economists term the structural change in our GDP as the rise of the "service" economy; an unrevealing label without unbundling. For some, service sector growth implies a shift to low-wage, low-leverage, pejoratively-labeled, hamburger-flipping-type businesses. But it's the flipping of logic gates that propels our information-centric services age.

The Federal Reserve credited information technology (IT) alone with generating one-fifth to two-thirds of GDP growth. It's not just the likes of Google (nasdaq: GOOG - news - people ), Intel (nasdaq: INTC - news - people ) and Microsoft (nasdaq: MSFT - news - people ) that fuel the new GDP, but how their products are employed everywhere from factory floor to airline and truck loading and routing.

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The impact of millions of decisions to embrace silicon-digital tools is clear in national energy trends because everything IT gets plugged in, not fired up like an engine. Electric demand has jumped 80% from 1980; nonelectric energy use has crept up under 10%. Consequently, more of today's GDP directly depends on kilowatt-hours than on burning oil and its hydrocarbon cousin, natural gas--a complete reversal of the pre-1980 era. This doesn't mean oil occupies any less pivotal a geopolitical role. It's still vital (so is agriculture). It is simply that oil is moving toward the twilight of our economy.
When you adjust for both inflation and this structural change in our energy economy, $150 is the number that is much closer to the cost per barrel it will take to have the same (negative) economic clout as the 1980 peak.

The implications? Do the math. Add global economic growth to the reality of precious few alternatives to oil (at any price), and factor in the head-room for still higher, nonpunitive oil prices. The result? Excellent outcomes for oil producers, both countries and companies from the likes of ExxonMobil (nyse: XOM - news - people ) and ConocoPhillips (nyse: COP - news - people ), to tar sands pioneer Suncor Energy (nyse: SU - news - people ).

Hard to believe it won't stay hot for the contract drilling companies too--from giants like Nabors Industries (nyse: NBR - news - people ) to the small ("small" is all quite relative in the oil patch) players like Bronco Drilling (nasdaq: BRNC - news - people ). It also bodes very well for those who advance the technologies to service the oil industry from the likes of Schlumberger (nyse: SLB - news - people ) to Oceaneering International (nyse: OII - news - people ).

The former is a global king in oil field services and the latter, still largely running below the radar screen, is a modern technology tour de force. Those are the guys with the 21st century deep underwater remote vehicles that make it possible to explore and operate in the abundant off-shore oil fields.

And for consumers? We'll get by, and then some. The economy isn't rocked by high prices, but keeps perking along just fine with the ever-deeper penetration of the digital economy. And high-priced oil provides exactly the incentives the market really wants. No, not reduced hydrocarbon consumption, but increased hydrocarbon production to keep cars, ships, aircraft and the economy rolling.

Written by Mark P. Mills, a physicist and a co-founding partner in Digital Power Capital , an energy tech venture fund. Mills is also the co-author of The Bottomless Well: The Twilight of Fuel, the Virtue of Waste, and Why We Will Never Run Out of Energy (Basic Books, 2005). Mills may hold positions in companies discussed in this column, and may provide technology assessment services for firms that have interests in the companies. He can be contacted at inquiries@digitalpower.com .