Types of Financial Assets

Once a firms begins to expand, it needs to find sources of capital to finance its business plans.  Stocks and bonds are two prevalent kinds of financial assets that businesses can utilize to fund its operations.  In the field of finance, three broad types of financial assets exist- debt, equity, and derivatives. 
 

Debt securities promise your initial investment back plus interest payments along the way.  Sometimes, this stream of income is fixed, meaning the debt holder will receive a predetermined amount of interest each year (or month).  Other so-called floating-rate bonds promise payments that depend on current interest rates.  For instance, a bond might pay an interest rate that is fixed at 3 percentage points above the rate paid on U.S. treasury bills.  Debt securities are sold in two broad markets- the money market and the capital market.  Securities in the money market are short-term, highly liquid, and generally low-risk.  Bonds in the capital market range from very safe to relatively risky, and have terms greater than one year.  Common examples of capital market securities include U.S. Treasury bills, state and municipal bonds, and corporate bonds.
 

On the other hand, equity represents a share of ownership in the corporation.  Equity holders are not guaranteed any payments, but they can receive income if the stock price appreciates or the company declares a dividend.  The stock price will increase if the firm is successful and other investors have confidence that the firm will continue to perform well.  This is why equity tends to be more risky that debt--the value of the equity is dependent upon the success of the firm and its real assets. 
 

Finally, derivatives are securities providing payoffs that depend on the values of other assets such as bond or stock prices.  The derivative itself is simply a contract between two or more parties.  Its value is determined by the fluctuations in the underlying asset.  For example, a Brazilian investor purchasing shares of German company off the German stock exchange would be exposed to exchange-rate risk while holding that stock.  To hedge (guard) against this risk, the investor could purchase currency futures at specified exchange rate for the future stock sale.  The primary purpose of derivatives is to guard against risk or transfer it to another party.
 

While debt and equity are fairly straightforward, derivatives are not only difficult to understand, but frowned upon by the world’s best investor- Warren Buffett.  He does an excellent job of explaining what they are.
 

“Charlie and I are of one mind in how we feel about derivatives and the trading activities that go with them: We view them as time bombs, both for the parties that deal with them and the economic system...Essentially, these instruments (derivatives) call for money to change hands at some future date, with the amount to be determined by one or more reference items, such as interest rates, stock prices, or currency values.  If, for example, you are either long or short on an S&P 500 futures contract, you are a party to a very simple derivatives transaction- with your gain or loss derived from the movements in the index.  Derivatives contracts are of varying duration and their value is often tied to several variables.”

Cleverly Hidden Images In Corporate Logos

We are bombarded with corporate logos everyday, but there are very clever images hidden within some of these designs.  You’ve seen these famous logos on television, at the grocery store, and on trucks.  Look at these images closely and see if you notice subliminal messages.  Read the description of each logo for assistance.
 
FedEx
Look between the ‘E’ and the ‘x’, and you will see an arrow.

 
Tostitos
These tortilla chips are popular at Superbowl parties and backyard BBQs, but have you ever noticed the celebration scene concealed within the letters?  The second and third t’s are people sharing a single chip over a bowl of salsa. 

 
Tour De France
The Tour De France is the most popular and well-publicized cycling event of the year.  However, even bike-enthusiasts may not know the logo’s most interesting element.  The “R” is a cyclist, the yellow circle is the front wheel and the “O” is the back wheel.

 
Amazon.com
Amazon.com has the distinction of being the largest online retailer in the world.  The arrow underneath “Amazon” begins at A and ends at Z.  I believe this implies that Amazon offers everything from A to Z!

 
Big Ten’s Old Logo
Until Nebraska joined the Big Ten, the conference used this clever logo to embed an “11” on either side of the “T”.  The 11 represents 11 schools in the athletic conference.

 
Baskin Robbins
Famous for its 31 original flavors, Baskin Robbins found a subtle way to include this aspect of their business into their logo.  The right side of the “B” is a 3 and the left side of the “R” is a 1.

 
Pittsburgh Zoo & PPG Aquarium
You can see the tree immediately, but loose closer to see a gorilla on the left and a what appears to be a female lion on the left.  This is a brilliant way to incorporate nature into the logo of a zoo and aquarium. 

 
Milwaukee Brewers
This was the Brewer’s emblem from 1978 to 1993.  An art history student designed the baseball glove composed of an “m” and a “b” for a 1977 logo contest, and now, it’s one of the most famous designs in baseball.

 
Elefont
This logo appears to be a simple “e”, but you can also see part of an elephant’s trunk in the white space. 

 
Greenlabs
At first glance, this appears to be a boring, green tree, but if you study the top part of the tree where the branches and leaves would normally be, you will see a brain.  This represents the intellectual capabilities of the firm. 

Dispatch 8/29/11

It's approaching 11 P.M., and I'm seated in a couch at the Beta House.  The world has been a frenzied place in the past week with hurricanes and revolutions sweeping our fragile planet.  Last month, I wrote from Phoenix, Arizona when I was at the National Convention for Alpha Kappa Psi business fraternity.  Now, I'm holding informational meetings and making visits to sororities and fraternities on campus to recruit new members.  Life's been hectic, but I'm managing to keep my head above water somehow. 

I spoke with a recruiter from Deloitte, one of the Big 4 accounting firms, earlier today.  KPMG, Ernst and Young, and PWC have all rolled through Summerfield in the past week with their tables and free enticements.  I've had a chance to meet up with everyone at the business school after an oddly quiet summer.  Lately,  I've been thinking about the need for a business professional to understand all aspects of a business while specializing in a few.  This goes for almost anything in life.  Be a jack of all trades, master of some.  That's the main reason why I included the term, "Renaissance Man" in my blog's web address. 

I have made an extreme effort to eat healthy food in the past month or so.  Our bodies can only perform up to the level of nutrition we provide for them.  Each day, if we want our bodies and minds to function at an optimal level, they need the right nutrients.  This starts with plantfood- organic vegetables and fruits if possible.  Dairy, grains, fats, and oils should be minimized. 

That's all I have time to write as of right now.

Thanks for reading,

Joe

Foundations

~From Traits of Character by Henry F. Kletzing
Don’t risk a life structure upon a day’s foundation. –
 

The government building at Chicago, a large, massive structure and apparently well built, so that it might stand for a century, was recently torn down, not because the superstructure was not firm, but because the foundation at several places was found faulty. Thus, at a great expense, the old building is removed and a new structure is erected, all because the foundation was not safe. Men fail of their best efforts because they were unwilling to prepare well in days when preparation was the one duty.
 

The foundation for greatness must be laid in youth. Young men frequently make a serious mistake here. They are content with following the pleasures of youth instead of improving early opportunities for preparation for life’s great work. Wellington frequently said that Waterloo was fought and won while he was a schoolboy. It was what he learned then that prepared him for that great battle. Inattention to the foundation has mined many a structure. Inattention to the intellectual and moral development and preparation has ruined many a life.
 

See yon building rise. While men were engaged in laying the foundation there was nothing attractive about it. Dirt and stones and mortar are not sightly objects. It is only when the superstructure is rising that the attention of the passer-by is given to it. This is why not more attention is given to foundation work. Many a youth who has attracted attention by doing work successfully thinks that his foundation is sure, and looks only to the superstructure. Many a college graduate has dreamed of greatness while delivering his final oration as the applause of friends greets his ear: but too often he is never heard of afterward. Life consists of more real and earnest things than brilliant graduating orations.
 

Do not mistake the applause of others as success. Avoid the idol which many worship—the love of notoriety and applause. Look to the foundations.

Recent Current Events

The world has been a busy place in the past couple weeks--so busy in fact that I found it necessary to post a current events update. 

1.  Hurricane Irene makes landfall in North Carolina.  Approximately 65 million people will be in the direct path of Hurricane Irene over the next few days.  The storm is expected to arrive in the Washington area late Saturday and into Sunday morning before heading north to New York and New England.  For the first time in memory, citizens of New York were ordered to evacuate flood-prone areas in Brooklyn, Queens, Staten Island, and Lower Manhattan.  Experts have feared this kind of storm for decades largely because of rapid expansion of coastal resorts and housing developments on the East Coast. 

2. The Ministry of Culture of the People's Republic of China barred 100 songs from music download sites including Lady Gaga's "Judas" and Katy Perry's "Last Friday Night".  The ministry said the rule was meant to preserve China's "national cultural security". On a related note, the Japanese National Police Agency reveals that 90% of cyber attacks on its website on July 10 came from IP addresses in the People's Republic of China.

3. Scientists at Swinburne University of Technology in Melbourne announce their discovery of a planet made entirely of diamond--only the second time such a planetary mass has been discovered.  Co-investigator Willem van Straten said this pulsar rotates thousands of times per second.  It is likely that the planetary body is all that remains of a once massive star that has lost 99.9 percent of its original mass to leave it a shadow of its former self--just five times bigger than earth.

4. Libya's National Transitional Council announces plans to move its headquarters to Tripoli following the capture of the city from Muammar Gaddafi.

5. Berkshire Hathaway, the conglomerate headed by Warren Buffett, announced a plan to invest $5 billion in Bank of America.  After the deal was announced on August 25, bank stocks were bid up, but settled down in the afternoon as the market absorbed the information. 

6. The New York Yankees hit three grand slams in a single game, the first time such a feat has occurred, in a win over the Oakland Athletics.  In all, the Yankees pounded out 21 hits against A's pitchers.  Yankees backup catcher Jorge Posada played second base for the first time in his major league career.

7. Steve Jobs resigned as CEO of Apple, Inc.  Tim Cook took over the CEO position for the company. "I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know.  Unfortunately, that day has come." Job said in his resignation letter.  After a brief halt, Apple's shares slid 5.13% to $355.70 in after hours trading on Wednesday.

(Not) Black Friday- Enjoy Humor!

The last week has been chaotic beyond belief.  It takes a strong sense of inner peace to avoid feeling overwhelmed and stressed on a college campus.  I thought it would be wise to post a few humorous pictures I've encountered in the past week or so.  Enjoy!

Where To Find Free Textbooks

If you are a college student, you know that the cost of textbooks can put a dent in your bank account.  I’m experimenting with a project called open textbooks, which is a new way of accessing books that could potentially dismantle the college textbook market as it stands today.

Open textbooks are written by experts in academia and then published on the Internet so students can access them without paying a dime.  As a student, you can read the full version of the textbook for free, download a printable PDF, or purchase a hard copy for next to nothing.  From my understanding, open textbooks are legitimate sources of information because they are reviewed and edited by experts.  This is where the “open” part comes into play.  If a student notices a mistake or feels that something important was omitted, the publisher and author can be contacted to remedy the error.  Furthermore, groups and individuals can edit and improve the textbook as they see fit. 

Scott McNealy, founder of Curriki, an online website for free textbooks and other course material, said it well, “We are spending $8 billion to $15 billion per year on textbooks...It seems to me we could put that all online for free.”  I spend anywhere from $800-1200 per year on textbooks, and that number is probably a conservative one because I go bargain hunting to find the lowest prices around my college campus.  I am not alone when I say students could greatly benefit from free, accessible textbooks. 

Currently, there are several front runners in the open textbook world.  Flat World Knowledge offers peer-reviewed and edited textbooks written by experts.  Students can choose their preferred format of the textbook (online, print, audio, or PDF).  An interesting feature of this up and coming website is that educators can customize the text for their specific course.  When the teachers are done editing the text, a special URL is created specifically for the modified version of the textbook.  The books are free to read online, but if you prefer a hard copy, you can purchase one for $34.95, which is far cheaper than the average traditional cost per textbook of $175. 

BookBoon.com offers free textbooks that can be downloaded into PDF format so you can print and read offline.  The books include advertisements, but this is only to cover production costs. 

The Global Text Project contains a library of hundreds of open textbooks with open licenses.  It is hosted by the University of Georgia’s Terry School of Business, and most of the books are available for free as a PDF download. 

Other Open Textbook Projects
-MERLOT
-Connexions
-MIT Open Courseware
-The Orange Grove 
-Wikibooks
-Project Gutenburg

United Airlines Customer Service

As reported by the San Jose Mercury News:
 

During the final days at Denver's old Stapleton airport, a crowded United flight was cancelled. A single agent was rebooking a long line of inconvenienced travelers. Suddenly an angry passenger pushed his way to the desk. He slapped his ticket down on the counter and said, "I HAVE to be on this flight and it has to be first class."

 

The agent replied, "I'm sorry, sir. I'll be happy to try to help you, but I've got to help these folks first, and I'm sure we'll be able to work something out."

 

The passenger was unimpressed. He asked loudly, so that the passengers behind him could hear, "Do you have any idea who I am?" Without hesitating, the gate agent smiled and grabbed her public address microphone.
"May I have your attention please?" she began, her voice bellowing throughout the terminal. "We have a passenger here at the gate WHO DOES NOT KNOW WHO HE IS. If anyone can help him find his identity, please come to the gate."

 

With the folks behind him in line laughing hysterically, the man glared at the United agent, gritted his teeth and swore, "[Screw] you." Without flinching, she smiled and said, "I'm sorry, sir, but you'll have to stand in line for that, too."
The man retreated as the people in the terminal applauded loudly. Although the flight was cancelled and people were late, they were no longer angry at United.

Apple Releases Plans for Flying Saucer Headquarters in Silicon Valley

Although many business professionals prefer anything but Apple products, the tech behemoth that recently became the world’s largest company in terms of market capitalization has launched plans to build a space-ship like circular headquarters in Silicon Valley.  The building will be 2.8 million square feet, will feature a 1,000 seat auditorium, a fitness center, and 300,000 square feet of research facilities.  The landscaping will include native plants and apricot orchards, which are reminiscent of the agricultural heritage of Silicon Valley.  Apple estimates the new facilities will house over 12,000 employees, and clean energy sources will power the site, with local electricity grids to be used only in emergencies. 
 

Apple CEO and co-founder Steve Jobs originally received the ambitious vision for the flying saucer campus back in 1983.  Like any talented entrepreneur, he took action and approached the newly-elected mayor of San Jose, Tom McEnery, with a the plan for a shimmery glass structure surrounded by oaks and grasses.  Jobs even hired famous architect I.M. Pei, the same man who designed the Louvre Pyramid in Paris.  Although the plan fell through after Jobs was forced out of Apple, his vision never died.  
 

The city of Cupertino, California is the real beneficiary of Mr. Job’s dream.  “There is no chance we’re saying no,” Cupertino Mayor Gilbert Wong mused after a city council meeting where Steve Jobs was present.  What would your response be if Steve Jobs cam to your town and said he wanted to build a headquarters that looks like it belongs in outer space?   
 

“Apple has grown like a weed.  It’s clear that we need to build a new campus.  We’re just out of space.  That doesn’t mean that we don’t need the one we’ve got-we do need it- but we need another one to augment it,” Jobs argued at the meeting.  Apple purchased most of the land from Hewlett Packard, where Jobs worked one of his first summer jobs. 
 

To put into perspective the sheer size of the proposed headquarters, I did some research to see how the spaceship compares to the Pentagon.  A perfect circle that circumscribes the Pentagon has a diameter of 1,566 feet.  According to the architectural building presented below, the diameter of the future Apple spaceship will be 1,615 feet.  This means if the Apple spaceship covers more ground than the Pentagon. 
 

Below is a borrowed image from Mac Observer showing the relationships in size between the proposed Apple HQ, the Pentagon, top to bottom, a cruise ship, a U.S. nuclear aircraft carrier a U.S. Navy Blimp, a WW2 Battleship, the Empire State Building, and a super tanker.    

Inside Internships Profile #1- Phil Bastow

As college students return to school for another semester of coursework, some of them can now say they have worked internships in professional atmospheres.  In an effort to capture these valuable experiences and share them with other internship-seeking students, I am starting a post series on Joe’s Musings called Inside Internships.  My hope is that you will learn how students found and prepared for their internship as well as skills acquired on the job.  Now, perhaps you are thinking, “Why didn’t you wait until the spring to start this series?”  To that I say, the internship search begins the fall at career fairs and other recruiting events.  Our first college student is Phil Bastow, a junior studying in accounting and information systems at the University of Kansas.  He is passionate about learning, shooting guns, and playing guitar.  Over the summer, Phil completed an 11-week internship program at US AgBank, FCB (Farm Credit Bank).  As a part of the Farm Credit System, US AgBank, FCB is a lending institution that specializes in providing funds to eligible American agriculture borrowers in Arizona, California, Hawaii, Nevada, Utah, Idaho, Kansas, Colorado, Oklahoma, and New Mexico.  

1. There is an enormous amount of information available through Career Centers and internship search engines regarding internships.  How did you find your internship at US AgBank, FCB?

I actually did not have any contact with US AgBank or knowledge of their internship program until the Career Fair in September of 2010. I was familiar with the Farm Credit System, but did not know AgBank was being represented at the Fair. I approached the representative, Daryl Nikkel, and began to speak with him about the program and if there were any opportunities for me at the Bank. He asked for my resume and contact information and later sent me information about applying for the position. From there I was able to progress through all the necessary steps to obtain the job, for instance predictive behavior index, phone interview, personal interview, etc.


2. Although most internships offer a week of training, a wise student will prepare far in advance to ensure you are the most qualified candidate for the job.  How did you get ready for your internship and the interview process?  Looking back, would you prepare any differently?

I had never been interviewed for a job before because all of my previous employers knew me beforehand. Because of this, preparation was especially important for me. First, I researched background information on US AgBank. For example, what does the organization actually do, what are its different facets, what are some informative numbers and statistics to be familiar with, and so on. It was extremely important to use this information to compose well-informed, knowledgeable questions specific to the organization and department I was applying for. I investigated its internship program and prior students who were apart of it. Lastly, it was important for me to consult with other people that had experience in recruiting and hiring into professional environments. We discussed what types of questions might be asked of me in the interview process and possible things to cover in responding to them.
On the other hand, I did not prepare very much for my role as an intern at the Bank. I did ask my supervisor what I should be doing to prepare. He indicated there was nothing I needed to do and that they would train me when I began working. Nevertheless, I attempted to brush up on pertinent skills such as Excel and Access. Because my role at the bank dealt largely with Finance, it did not require much curriculum from my major (accounting), and therefore it was not necessary to practice and study those types of things.

3. After completing an internship, one common student observation is how formal the business world can be compared to college life.  What elements of a professional work environment had the biggest impact on you? 

The most difficult thing for me was to interact with the people around me as co-workers and supervisors rather than my "buddies" or even peers. I had not been exposed to professional relationships and interactions prior to my internship. It was important to always keep in mind there are appropriate ways to communicate with your co-workers. This of course is ranges anywhere from addressing them in the hallway to sending out an email. I felt that I handled it very well and was able to develop and practice these necessary skills.  

4. What was the best thing about your internship?

It is hard to say at this point. There were so many little things and opportunities I was able to take advantage of through this internship - its difficult to determine which will prove to be the most significant in time. I think simply being exposed to a professional business environment was paramount. As aforementioned, I was able to develop essential communication skills which will be a great advantage as I re-enter and operate in a similar environment in years to come.  

5. One of the core purposes of an on-site work experience is to equip you with the skills necessary to succeed in your career. What are three skills you acquired or refined through your internship?

In addition to what I discussed in Question 4, I refined database skills. I worked a great deal with Excel and Access to create dynamic worksheets for analyzing model sensitivity. I also learned about how the two software packages can work in conjunction. The third major thing refined was analytical skills. I am analytical by nature, but my role at the Bank gave me an opportunity to practice those abilities in a real-life situation. This proved much more difficult than it can be with school projects or homework.

6. Every internship is different because companies have vastly different missions, work environments, and leadership.  What are a couple advantages and disadvantages of doing an internship at a bank that offers loan products and financial services to agricultural businesses, farmers, and rural homeowners?

An advantage would be that I was able to see some of the ties between accounting and finance as well as what makes the two areas different. Also, accounting for loans is something covered frequently in the classroom but rarely understood well enough without real-life application. The only disadvantage I can think of is the lack of diversity in accounting experience.

7. Perhaps the most advantageous aspect of an internship lies in the fact that you can finally apply all you have been learning in the classroom. Can you give an example of a time when you were able to apply knowledge gained from coursework to on-the-job situations?

As I said before, my internship was largely in finance while I am studying accounting. Nevertheless, it still required some accounting knowledge. I was asked to research, record, and trend risk data as far back in history as I could. Annual Reports were used to do this. My knowledge of GAAP concepts and how to navigate an Annual Report came in quite useful as I interpreted and decoded some of this financial reporting information. 

8. Many students don’t know that you can acquire college credit for completing an internship, even if you landed a paid position.  Did you elect to receive college credit?  What are the requirements of the University of Kansas Business School to receive college credit for your internship?   

Yes I did. I am receiving credit in ACCT 599 - Accounting and Information Systems Internship Program. The requirement to enroll in the class was to write a one-page report describing your role during your internship. The director of the area then uses that to determine whether or not the student is eligible for credit. Once enrolled, the student must attend a class orientation and wrap-up session, keep a daily activity journal during the term of their internship, and write an 8-10 page report.

9. In one sentence, what advice would you give to students seeking to intern?

It begins with asking questions and knowing everything you can about interning as early as possible in order to know how to prepare yourself.

Google Fiber In Kansas City

Executives from the largest search engine in the world recently attended the Greater Kansas City Chamber of Commerce Innovation Conference.  Their purpose was to discuss the construction of Google Fiber, an internet service with speeds more than 100 times faster than what most Americans have access to today.  Kansas City has been chosen as the first test market for the new product, and it can expect an exclusive window well into the 2012 fiscal year.  If you don’t live in Kansas City, don’t worry.  Google announced it is, “looking closely at ways to bring ultra high-speed Internet to other cities across the country”  The most logical place to continue construction would be across the states of Kansas and Missouri.  This is great news for Kansas capital Topeka, which briefly changed its name to Google, Kansas to attract Google’s attention in hopes of hosting the initial Fiber test market.
 

Why Kansas City?  Nearly 1,100 towns and cities across the country expressed interest in the Google Fiber project.  Google felt that Kansas City, Kansas and Kansas City, Missouri were the best places to build efficiently, make an impact on the community, and develop partnerships with the local government, utility, and community organizations.  Apparently, the Kauffman Foundation, KCNext, the University of Kansas Medical Center, and KC Power and Light presented an attractive opportunity to Google executives.  Google has even promised free access for schools.  Google plans to begin construction in Kansas City by the end of 2011 and will offer service in the first quarter of 2012.  Kansas City, Missouri Mayor Sly James expressed his excitement in a bold statement--”As a result of this announcement, we have become the most attractive city on the planet to entrepreneurs.”
 

Google Fiber has never been introduced in a consumer market.  If you are a tech head, you might find it interesting that Google Fiber promises to deliver upload and download speeds of one gigabit per second.  Currently, most broadband internet connections have download speeds of approximately 8 megabits per second.  At 1,000 megabits per second, Google’s new product blows all other internet speeds out of the water.  As I understand it, the technology works by transmitting light over a fiber-optic cable.  You might not immediately see the need for ultra high speed internet, but Google claims it will deliver support for organizations vital to daily lives.  Apps will be created for schools, libraries, health centers, and senior centers.

Ethics Test

Also known as moral philosophy, the field of ethics addresses questions about good and evil, justice, virtues, and rights.  Ethics refers to well-founded standards of right and wrong that suggest what human beings ought to do.  
Although it can be easy to equate morality with feelings, being ethical is more than just following gut instincts.  In fact, feelings frequently deviate from what is ethical. 
 
In addition, ethics does not apply only to religious people, although many religions advocate high ethical standards.  Ethics applies to atheists, Christians, Buddhists, Muslims, and everyone else. 
 
Also, being ethical is not the same as following the law or doing what society accepts.  One need not look further than slavery before Civil War for an example of how a law can be unethical.  Nazi Germany is an example of an entire society that became ethically corrupt.   
 
Here’s a fun, but intriguing exercise to assess your ethical judgment.  Please note that this test contains misleading and exaggerated information, so use it with proper caution.  The purpose of this exercise is to teach people about ethics, the dangers of quick judgments and subjective criteria. 
 
Two ethical questions:
Question 1: If you knew a woman who was pregnant, who had eight children already, three who were deaf, two who were blind, one mentally retarded, and she had syphilis, would you recommend that she have an abortion?
Remember your honest answer and go to question 2.
 
Question 2: It is time to elect the world leader, and yours is the deciding vote. Here are the facts about the three leading candidates:
 
Candidate A: He associates with crooked politicians, and consults with astrologers. He's had two mistresses. He also chain smokes and drinks up to ten Martinis a day.
 
Candidate B: He was ejected from office twice, sleeps until noon, used opium in college and drinks a large amounts of whisky every evening.
 
Candidate C: He is a decorated war hero. He's a vegetarian, doesn't smoke, drinks an occasional beer and hasn't had any extra-marital affairs.
Which of these candidates would be your choice? Decide, then see the answer below.
 
Candidate A is Franklin D Roosevelt, Candidate B is Winston Churchill, and Candidate C is Adolph Hitler.
 
And by the way the answer to the abortion question... If you said yes, you just killed Beethoven.
 
Although the historical accuracy of this test can be questioned, the points made are still valid--we often make ethical judgments based on what society has told us.  In addition, we all tend to make snap decisions in assessing whether something is right or wrong without having complete information.

Beer and Ice Cream Diet

-The following is republished courtesy of the School of Physics at the University of Sydney. 

As we all know, it takes 1 calorie to heat 1 gram of water 1 degree centigrade. Translated into meaningful terms, this means that if you eat a very cold dessert (generally consisting of water in large part), the natural processes which raise the consumed dessert to body temperature during the digestive cycle literally sucks the calories out of the only available source, your body fat.

For example, a dessert served and eaten at near 0 degrees C (32.2 deg. F) will in a short time be raised to the normal body temperature of 37 degrees C (98.6 deg. F). For each gram of dessert eaten, that process takes approximately 37 calories as stated above. The average dessert portion is 6 oz, or 168 grams. Therefore, by operation of thermodynamic law, 6,216 calories (1 cal./gm/deg. x 37 deg. x 168 gms) are extracted from body fat as the dessert's temperature is normalized. Allowing for the 1,200 latent calories in the dessert, the net calorie loss is approximately 5,000 calories.

Obviously, the more cold dessert you eat,the better off you are and the faster you will lose weight, if that is your goal. This process works equally well when drinking very cold beer in frosted glasses. Each ounce of beer contains 16 latent calories, but extracts 1,036 calories (6,216 cal. per 6 oz. portion) in the temperature normalizing process. Thus the net calorie loss per ounce of beer is 1,020 calories. It doesn't take a rocket scientist to calculate that 12,240 calories (12 oz. x 1,020 cal./oz.) are extracted from the body in the process of drinking a can of beer.

Frozen desserts, e.g., ice cream, are even more beneficial, since it takes 83 cal./gm to melt them (i.e., raise them to 0 deg. C) and an additional 37 cal./gm to further raise them to body temperature. The results here are really remarkable, and it beats running hands down.

Unfortunately, for those who eat pizza as an excuse to drink beer, pizza (loaded with latent calories and served above body temperature) induces an opposite effect. But, thankfully, as the astute reader should have already reasoned, the obvious solution is to drink a lot of beer with pizza and follow up immediately with large bowls of ice cream.We could all be thin if we were to adhere religiously to a pizza, beer, and ice cream diet.

Happy eating!

How Wi-Fi Networks and Free Wi-Fi Can Be Risky

Do you have a smartphone?  Do you use wireless internet on that phone?  Wireless fidelity (Wi-Fi) is available on nearly every cell phone on the market today, but this convenient piece of technology brings with it potential risks and privacy concerns.  

According to CNet News, 3.5 billion devices will have Wi-Fi capabilities by 2014-that’s roughly half of the world’s population.  These devices include televisions, cell phones, and other computers that have a WiFi signal.  This is great as far as internet accessibility goes, but a well-informed consumer will know the risks as well as the benefits of such a risky venture.  

All WiFi devices emit a unique signal that can identify a particular device.  This signal is known as a MAC address.  If you have an I-Phone, you can scroll to the settings to locate yours.  Why is a MAC address relevant?  Google’s recent project Street View has discovered that its cars had “collected the unique identifiers of millions of WiFi enabled devices”  Google then made that data public, which enables access of this information to quite literally anyone with internet access.  If you know someone’s MAC address, you can then use Google to find out where they live, where they work, and other details about an individual.  

If you have played the popular I-Phone app Foursquare, then you know it uses your current location.  Likewise, Apple records the location of I-Phone and I-Pad users as they move around.  Just last week, a company called TruePosition, which makes software that can track your location in case the police need to locate you in an emergency, has reportedly sold its software to foreign governments.  What happens when governments start using this technology to spy on citizens?

I can see the potential benefits of companies tracking your location and collecting your data, but like anything else, this new technology can fall into the hands of people with evil motivations.  I encourage everyone to be more aware of ways in which your personal devices can be used to collect information about you.  Do your research and make a wise decision before making a purchase of a WiFi enabled gadget.

Another point to consider--how vulnerable is your personal information at public Wi-Fi spots?  These places are easy and convenient, but their openness allows anyone to sign on.  To secure a more safe browsing session, only use services that use “https” so your data traffic is more secure.   

Google Has Agreed To Buy Motorola Mobility For $12.5 Billion

The technology market saw an unprecedented buy-out recently as Google has announced it is acquiring Motorola Mobility, the cellphone manufacturer based in Libertyville, Illinois.  

Earlier this year, Motorola Inc. was split into two entities: Motorola Mobility, which received the faster growing cellphone and TV box businesses; and Motorola Solutions, which sells networks, accessories like walkie-talkies, and radios.

Compared to Motorola Mobility’s market capitalization (the total number of shares outstanding times the stock price), the sum of $12.5 billion is a massive 63% premium per share.  This means that Motorola shareholders will receive $40 per share in cash, which is 63% more than Motorola’s August 14 closing stock price of $24.30.  A premium is the difference between what a stock is worth and what price was paid for that stock.  The deal marks the Google’s biggest purchase in the 15 year history of the company.  I think the huge premium indicates Google was getting desperate to expand its patent portfolio after falling behind to Apple and Microsoft.  Furthermore, Google is finally crossing the Rubicon into the hardware market.    

In a blog post, Google co-founder and CEO Larry Page wrote that Google bought out Motorola for two reasons:

-Its strength in the smartphone market

-Being a “market leader in the home devices and video solutions business”

Now, Google has gained access to over 17,000 patents, including all of those associated with the Android-capable smartphone.  Previously, Google products were available on Android-powered smart phones, but if the deal goes through, Google will have the power to develop and modify both the smart phones and Android software.  However, Google has promised to continue offering Android as an open platform, meaning approved web developers will be permitted to improve the functionality of the software.  Larry Page has been looking for Google to make itself a legal shelter to Apple’s increasingly aggressive legal attacks, despite the fact that Android was the best-selling smartphone operating system in the second quarter of this year.  Despite the news of the buyout, Apple’s stock only dropped $2.93 per share on the market on Tuesday.  Apple briefly became the world’s most valuable company in terms of market cap last week, and it still remains at the number two spot.   

The acquisition will likely attract the attention of government regulators.  Google has already come under review by the U.S. Federal Trade Commission for the following reasons:

-Using deceptive tactics and violation of its own privacy promises to consumers

-Antitrust business practices in Europe and the United States

Although the transaction will take time to be approved by Motorola stockholders and regulators, Google expects it to close by the end of 2011 or early 2012.  

How To Support Joe's Musings By Purchasing Items Off Amazon.com

Here at Joe’s Musings, I do my best to offer you a variety of fresh, unique content.  One reader recently told me, “I don’t need the newspaper anymore.  I have Joe’s Musings to keep me informed.”  Believe me, it was the best compliment I have ever received in over a year of blogging.  With over 220 articles on business, philosophy, college advice, leadership, religion, and international affairs, my goal is to ensure you are informed and inspired. 

The vision I have for Joe’s Musings transcends just a casual, personal blog.  I want Joe’s Musings to be as common as your morning cup of coffee.  In addition to asking your loved ones, “How was your day?”, I’d be honored if families discussed the latest content on Joe’s Musings at their dinner table.  The only way to nurture and develop this vision is through you and your fellow readers.             

Because every article here is free, the funds needed to make Joe’s Musings profitable and sustainable must come from other sources.  Let me say, I have no intention of asking you for flat donations.  However, there are ways you can financially support Joe’s Musings that will not cost you a dime.  Sounds improbable, right?  With the advent of e-commerce (buying and selling products or services over the Internet), companies actively search for customers.  Through marketing practices, a business rewards affiliates for each customer brought about by the affiliate’s marketing efforts.

Enter Amazon.com, the world’s largest online retailer.  If you have made purchases through Amazon, you can testify to its reliability and trustworthiness.  Every shipped item will find its way to your doorstop one way or another.  Here is where you can help!  I am an Amazon.com affiliate, and every Amazon purchase you make through a link on Joe’s Musings generates earnings that can be reinvested.   

If you prefer step by step directions as I do, this might make more sense:

• Go to Joe’s Musings (you are already here if you are reading this)


• Click on any www.amazon.com link (there are two on the right side of this page)


• Purchase products you would have bought anyways  


• Feel good about supporting an up and coming blog    

On behalf of everyone who makes Joe’s Musings possible, I want to extend a thank you for your continued support.  Your generosity helps make our vision a reality.

Apple Just Keeps Rising

Even though Exxon Mobil regained the title as the world’s most valuable company last week, Apple briefly grabbed the number one spot.  The ranking is determined by stock market capitalization, or the total market value of all a company’s outstanding shares.  After trading on August 9th, Apple’s market cap closed at $347 billion.  The tech colossus might take over the top spot again soon.

In my opinion, the behemoth Apple will continue to grow as Smartphones become more popular.  Perhaps most significant is what this growth represents--the high-tech, digital world is becoming the giant of the global economy.  Just a mere 14 years ago, Apple sat on the brink of bankruptcy, with a record-low stock price and crippling financial losses.  Since then, Apple has made a strong resurgence, introducing MacBooks, iPods, iPhones, iTouches, iPads, the iTunes store, and Apple TV to the consumer technology market.  Indeed, Apple has found a niche as the world’s leading provider of consumer technology, leapfrogging business-oriented competitors Microsoft, IBM, and Hewlett-Packard.  Last month, the firm announced that its profits have more than doubled to $7.3 billion while revenues rose 82% to $28.6 billion.   

The growth Apple has experienced in the past 2 years is a testament to the expansive influence the tech market has had on the overall economy.  Apple sold more in the last quarter than it did in all of fiscal 2007.  It’s return on equity, which measures a firm’s amount of net income as a percentage of shareholder’s equity, is nearly twice what is was in 2006.  Some analysts believe it has the potential to be the first $1 trillion company in existence.  

Sure, oil and energy demands are more important than iPhones.  Transportation and all the other conveniences that natural gas and oil provide outweigh the fun, entertaining gadgets Apple keeps producing.  However, as globalization forces many individuals into sprawling urban environments, it’s conceivable that mobile devices could be viewed as more important than cars.      

One serious challenge that still looms for Apple is the health of Steve Jobs, who has been on a medical leave of absence since January.

Guest Post: Reflections On Study Abroad In Peru

Machu Picchu, Peru

Today, I am proud to publish a reflection piece that a friend of mine, Tracy, wrote after a 6 week study abroad trip to the country of Peru.  Her travels included visits to Cusco, Awana Kancha, Ollantaytambo, Machu Picchu, and Lima.  Although pursuing education and cultural enrichment in a foreign country can be intimidating and expensive, I’d imagine the experience is one that will remain indelibly in your memory forever.  Here’s an opportunity to learn from a student who has been through the study abroad experience and lived to write about it.         

At Kansas State University during the fall and spring semesters, there are Study Abroad fairs that take place to promote different study abroad companies; along with the wide variety of opportunities a student can take part in through K-State Study Abroad Office.  That is where I decided on what type of trip I’d like to go on.  I already knew that I wanted to travel to a Spanish speaking country, plus I knew my time frame included the months during June to July 2011.

Each college has a study abroad office, and before I went on my trip, I also attended special meetings about how to prepare myself, health precautions, and scholarship opportunities.  Something that is very important to go to is your college’s hospital or one in your hometown to check with what shots and/or types of pills you need to help keep you healthy while abroad.  For example, I was told to take typhoid medication before my trip, along with having medication to try and prevent motion sickness, traveler’s diarrhea, and altitude sickness.

Over 80% of Peru’s population is Catholic, and during my time in Lima, I was able to attend Catholic masses in Spanish.  The first mass I attended, it was eye opening to see that here in Peru, the organization of the mass was different than in a Catholic church in Kansas.  The Catholic Peruvians prayed at a different time, and to receive communion, there aren’t any ushers.  Peruvians lined up when they like to, unlike in the United States where it is much more in an orderly fashion. 

Peruvians speak very fast to one another, and for us Americans, it was nice when our host families attempted to speak a little slower so we could understand.  

Do I believe that my 6 weeks of studying abroad in Peru has changed my life? Yes, I do.  I am more knowledgeable about the Inca and Quechua culture that have shaped the country of Peru.  I have become able to understand Spanish better, along with my confidence when speaking Spanish has also increased. 

Since I started learning Spanish in middle school, I have loved learning about Hispanic cultures.  I am white/Caucasian with no ounce of Hispanic blood in me, but after studying Spanish for so long, and living in a Spanish speaking country for six weeks, I consider myself as part Hispanic. 

I am obtaining a minor in Spanish, and after the Fall 2011 semester, my Spanish classes will be finished for minor, yet I will keep trying to learn something new every day about the Spanish language and culture because I enjoy it.  My dream is to be able to use Spanish in my future career with a business that has relations abroad in countries like Peru.  

I’ve made great friendships during my study abroad trip, and I’m looking forward to sharing my experiences with all of my friends and family here in the United States, along with prospective students who might be planning on studying abroad.  After going on this study abroad trip to Peru, my passion has grown immensely about showing others how being bilingual, and learning a second language such as Spanish can change your life, like it has mine.