Yahoo and Microsoft

The Washington Post is running an article entitled, "Congress Concerned About Microsoft, Yahoo Deal." The article states, "The companies have been talking for months about a partnership after a failed attempt by Microsoft to acquire Sunnyvale, Calif.-based Yahoo last year. In the deal, Microsoft's search engine, Bing, would be the exclusive search tool for Yahoo's sites. The companies would also combine their advertising sales forces. Together they would have about 30 percent of the search advertising market, compared with Google's grasp of 60 percent of online search advertisements."

The article concludes, "Google won't say whether it will protest the partnership to regulators, saying only in a statement: 'There has traditionally been a lot of competition online, and our experience is that competition brings about great things for users. We're interested to learn more about the deal.'"

1. What questions would you ask in order to become more informed about possible anti-trust violations associated with the potential Yahoo - Microsoft partnership? How would you find the answers to these questions?

2. What do you think that Yahoo and Microsoft would have to do to overtake Google in search? Is it possible for this partnership to overtake Google? Why or why not? Do you think that the partnership wants to overtake Google? Explain!

3. Ten years ago very few people had heard of Google. What type of web application do you think might have the same impact as Google has had, ten years from now.

4. Which of the following companies would you most like to own: Microsoft; Yahoo; or, Google? Why?

Swim Suits?

The New York Times is running an article entitled, "Biedermann Stuns Phelps Amid Debate Over Suits." The article states, "Biedermann shattered Phelps’s world record with a clocking of 1 minute 42.00 seconds. Phelps, who owns four of the five all-time fastest swims in the event, finished in 1:43.22. Phelps had set the world record that Biedermann broke, a 1:42.96 that he recorded on his way to Olympic gold last summer in Beijing."

The article adds, "After the 400 freestyle, Biedermann acknowledged that his Arena X-Glide suit was an advantage. He said it makes him 'really fast; honestly, about two seconds in the race.' He added, 'I think the suits are destroying a little bit the sport. It’s just, put on a suit, and you’re really, really fast.'”

1. Why do you think that some suits are faster than others? Speculate!!

2. Do you think that swimmers should be allowed to wear bathing suits that enable them to swim faster? Why or why not? In what ways could such bathing suits help the sport of swimming? In what ways could they detract from the sport of swimming?

3. Do you think it is fair to compare certain bathing suits that enable swimmers to swim faster to steroids that enable athletes to perform better? What are the similarities? What are the differences?

4. Does it ever make sense to discuss/think about non-significant current events, such as this one, when other far more significant current events are occurring around us? Why or why not?

Traders Profit with Computers

The New York Times is running an article entitled, "Stock Traders Find Speed Pays, in Milliseconds." The article states, "Powerful computers, some housed right next to the machines that drive marketplaces like the New York Stock Exchange, enable high-frequency traders to transmit millions of orders at lightning speed and, their detractors contend, reap billions at everyone else’s expense."

The article addds, "The rise of high-frequency trading helps explain why activity on the nation’s stock exchanges has exploded. Average daily volume has soared by 164 percent since 2005, according to data from NYSE. Although precise figures are elusive, stock exchanges say that a handful of high-frequency traders now account for a more than half of all trades. To understand this high-speed world, consider what happened when slow-moving traders went up against high-frequency robots earlier this month, and ended up handing spoils to lightning-fast computers."

1. If the old adage is true that it takes money to make money is it fair that those who can afford faster computers can make more money on the stock market? Why or why not?

2. Could an argument be made that individuals who hire traders to trade for them stand a better chance of earning profits than those who trade for themselves, therefore people should not be allowed to hire traders to work for them. Why or why not?

3. Is it important for all individuals who want to trade stocks to have complete equality with one another? (What does complete equality even mean?) If it is impossible to attain complete equality, in what kinds of inequality would be acceptable?

4. Today people have an advantage if they use faster computers to trade. Think one hundred years into the future. What kind of technology will give people an advantage over others in the marketplace?

Obama Weighs in on Gates

The New York Times is running an article entitled, "Obama Wades into a Volatile Race Issue." The article states, "In response to a question at his prime-time news conference about the arrest of Henry Louis Gates Jr., the black Harvard professor, in his own home over the weekend, Mr. Obama declared that the Cambridge, Mass., police had 'acted stupidly.'”

The article further adds, "Mr. Obama’s response was his most animated performance of the hourlong news conference, and represented an extraordinary plunge by a president into a local law-enforcement dispute."

1.Why do you think that racism exists in the first place?

2. Do you think that there is still a problem of racism in the United States? Do you have evidence to back up your opinion? Is the fact that Barack Obama is President enough evidence? Explain!

3. Do you think that the President should have said anything about the Cambridge Police Department's handling of the Henry L. Gates situation? Why or why not?

4. Why do you think that President Obama mentions Latinos every time he mentions the problems that have plagued African Americans? In what ways is the U.S. experience of Latinos similar to the U.S. experience of African Americans? In what ways is the experience different?

5. If you could say one thing to the world in an effort to eliminate all forms of racism what would you say? Why do you think this would have a chance of eliminating racism?

Health Care Heats Up

The political debate over healthcare has heated up. The Washington Post is running an article entitled, "GOP Focuses Effort to Kill Health Bills." The article begins, "Emboldened by divided Democrats and polls that show rising public anxiety about President Obama's handling of health care and the economy, Republicans on Monday launched an aggressive effort to link the two, comparing the health-care bills moving through Congress to what they labeled as a failed economic stimulus bill."

1. Do you think that health care should be considered a natural human right? Why or why not? Is there a difference between denying somebody health care because they cannot afford to pay for it and intentionally hurting somebody? Why or why not?

2. Imagine that two people make the same amount of money but one person spends all of his money on trivial things and the other saves her money? If the first person gets sick and cannot afford to pay for health care should the second be required to help support the first? Why or why not? Should the second choose to help support the first? Explain!

3. Does it make political sense for President Obama to campaign against fellow Democrats who don't happen to support his health care initiatives? Why or why not? What is the real power of the Presidency?

4. Do you think that a government supported health care system would be as effective as a privately funded health care system? Why or why not? Is there anything that a government does better than an individual, or a private firm? Is there anything that a private firm does better than the government? Is there anything that they do equally well?

Loan Fixing

The New York Times is running an article entitled, "Subprime Brokers Resurface as Dubious Loan Fixers." Though Jack Soussana amassed a fortune selling a huge number of mortgages to homeowners during the real estate boom, his clients did not fare as well.

The article states, "He specialized in the exotic mortgages that have proved most prone to sliding into foreclosure, leaving many now scrambling to save their homes...Yet the dangers assailing Mr. Soussana’s clients have yielded fresh business for him: Late last year, he and his team — ensconced in the same office where they used to broker mortgages — began working for a loan modification company. For fees reaching $3,495, with most of the money collected upfront, they promised to negotiate with lenders to lower payments on the now-delinquent mortgages they and their counterparts had sprinkled liberally across Southern California."

1. What does it mean to be an educated consumer? What kinds of questions should you ask before paying money for a good or a service?

2. Why do so many people willingly purchase a good or a service without asking questions? Would you call it lazy, trusting, or something else?

3. What can we learn about the individuals who shifted their business orientation from selling mortgages to selling loan negotiation services? Is it acceptable to try and earn a fortune? Why or why not?

4. How would you describe the difference between a legitimate business opportunity and a scam? Does the difference at all depend on one's position vis-a-vis the business? Explain!!

Big Banks Report Profits

The Washington Post is running an article entitled, "Bank of America, Citigroup Report Large Second Quarter Profits." The article states, "The largest banks are profiting from the success of some lines of business, such as trading in financial products and helping companies raise money. But the basic business of banking, lending money to borrowers, remains deeply troubled."

The article adds, "Both companies continue to rely on a range of federal rescue programs to raise money from investors, a key factor in their strong results. They also remain subject to close scrutiny by federal regulators, who have taken an active hand in management decisions."

1. Do you think that the government was right to help failing banks by backing them financially? Why or why not? Should the government continue to help banks if banks are reporting profits? What damage could occur if government withdraws it's financial support?

2. Do you think you know enough about the government bailout of large financial institutions? Why or why not? What question would you ask in order to learn more about these bailouts?

3.If you had to pick the two top priorities for government funding, what would you select? Why? Can you think of anything that the government is currently supporting financially that would stop supporting if you could control the government? If so, what?

4. After banks remain profitable and no longer need government support, how much money do you think that they should have to pay back to the government? (Base this on either a percentage or a multiple of the government investment within the bank.)