COURSE CONNECTOR

 ARTICLE SUMMARIES AND QUESTIONS

"How to Find a Job," pp. 48-56: It's no secret that the job market is brutal right now. Not only is the unemployment rate the highest it’s been in 25 years, but the situation is deteriorating fast. This is not your run-of-the-mill recessionary job market. If unemployment hits 10% next year, as some economists predict, the nation will have seen the fastest rise in joblessness since the 1930s. Still, hiring has not stalled entirely. According to the Bureau of Labor Statistics, while 2.5 million people were laid off in January, 4.4 million new workers were hired. What that means is there are jobs to be had, but the competition is fiercer than ever. Job seekers must employ a range of tactics to stand out from the pack and land a plum position. One is networking — shamelessly, if need be. Let as many people as possible know you’re on the prowl for work, especially former colleagues in your line of business, and join a professional association or spend some time volunteering to make new contacts. Second, polish up that resume, and tailor it specifically to each job opening for which you apply. Finally, be prepared to dazzle a company in an interview. Do plenty of research to show potential employers how you can make an immediate impact — a crucial requirement in these tough times.

Students take a closer look at the current job market and the strategies it takes to land a job in the midst of a troubled economy.

Discussion Questions:

1. Name some networking opportunities job seekers can take advantage of to increase their chances of finding a job. Which do you think you would be most likely to exploit if you were searching for a job? Explain.

2. Why is it so critical for job seekers to perfect their resume in the current market? What sorts of "metrics" does the article recommend job seekers include in their resume to expand on their experience?

3. What does the author of this article say is the worst thing job seekers can do for their careers at this time? Why?

"The Impostor," pp. 58-66: If there were an award given for sheer gall, perhaps no one would deserve to win it more than Marc Dreier. The glitzy Manhattan attorney is charged with federal wire and securities fraud and money-laundering charges that could merit the 58-year-old a prison term of 30 years to life. Move over, Bernie Madoff. And while Dreier's $700 million fraud is small potatoes compared to Madoff’s, it is the audacity with which it was carried out that makes it so remarkable. In 2004, Dreier began selling bogus debt obligations to nearly 40 investment funds, supposedly issued by a realty company owned by Sheldon Solow, for whom Dreier served as attorney. The problem was, Solow knew nothing about it. When interested portfolio managers attempted to contact Solow for more information, they were routed to accomplices of Dreier's, who impersonated Solow's agents. When Dreier fell behind on his debt obligations — and fund representatives demanded to speak with Solow in person — Dreier even arranged for a phony meeting to be held right in Solow's 57th Street offices, with a Dreier accomplice posing as Solow CEO Steven Cherniak. By the time Dreier's scam came to light last fall, some major damage was done — victims suffered $400 million in losses, and the staff of Dreier's legal firm was left with unpaid salary checks, unreimbursed expenses, lapsed insurance policies, and worst of all, tarnished reputations.

In this article, students read about attorney Marc Dreier's reckless and blatant scheme to bilk some of the nation’s most sophisticated asset managers of millions.

Discussion Questions:

1. What earlier legal entanglements did Marc Dreier have with real estate broker Ken Laub and builder Peter Kalikow? What do they suggest about Dreier’s professional ethics?

2. After Dreier began selling fraudulent notes, what became of his legal firm, Dreier, LLP? How did he use the firm to help juggle his various financial commitments?

3. What final, simple act did it take to topple Dreier's house of cards? What actions did Dreier take after his scheme came to the attention of the auditing firm? What do you think Dreier's legal fate will be? Explain.

"Chris Dodd's Loyalty Test," pp. 70-76: Christopher Dodd's name is all over the news lately, but that's not necessarily a good thing for the five-term senator from Connecticut. As chair of the Senate Banking Committee, he is deeply mired in the quest to salvage the American financial system. It is not an enviable part to play in the economic drama, however, as Dodd finds himself having to satisfy increasingly enraged constituencies on all sides. The attention Dodd has been getting has helped shine a brighter light on his personal financial dealings — two of which are being investigated by the Senate Ethics Committee — and his connections to the very institutions he is charged with regulating. He's also taken some flak for being distracted by his unsuccessful bid for the presidency just as the mortgage crisis was gathering, and he faces a tough campaign for reelection in 2010. But it's not all bad news for Dodd, who considers this moment in American history to be a pivotal opportunity for him to effect positive, long-term reform of the financial industry. He wants to empower a "systemic-risk regulator" to monitor the health of the financial system as a whole — something no institution currently does, surprisingly enough. It will be a tough mission, but if anyone has the political skill to pull it off, it's Dodd.

Students examine the challenges facing the Chairman of the Senate Banking Committee, Christopher Dodd, as he rewrites the rule book on financial regulation.

Discussion Questions:

1. According to the article, why is it a "cruel irony" that Sen. Christopher Dodd has become the scapegoat in the public outcry over executive bonuses issued at AIG from federal bailout funds? Do you think Dodd has been criticized unfairly? Why or why not?

2. Describe Dodd's questionable ties to AIG and other corporations in the finance, insurance, and real estate sector. Do you think these relationships help or hinder his ability to oversee these industries in his position as chief of the Senate Banking Committee? Explain.

3. What previous legislative act, which Dodd was instrumental in getting passed, helped contribute to the current economic crisis? What are the three parts of the legislative challenge Dodd now faces? Based on Dodd's record, on what safeguard will his regulatory reforms likely focus?

"Secrets of the TV Pitchmen," pp. 82-90: If you spend any time at all watching TV, chances are you've seen at least one direct-response ad. You know the kind — they usually feature someone talking loudly (okay, shouting) about all the benefits of some new-fangled gadget designed to make your life easier, and amazingly, for a limited time, you can get it for just $19.95! Two megastars of the direct-response ad circuit, Billy Mays and Anthony Sullivan, have become so popular, they're launching their own reality TV series on the Discovery Channel — aptly titled Pitchmen — to find the next great product to hawk. Whatever that product turns out to be, it's likely to make a fortune. Even as overall U.S. advertising spending fell 2.6% last year, according to Nielsen, spending on direct-response ads rose 9.2%. Why? It seems the direct-response industry does particularly well during poor economic times. The theory goes that during recessions, people not only tend to stay home and watch more television, but they also become more receptive to the type of do-it-yourself products featured in these spots. Throw in testimonials from happy customers, the notion of a "limited supply," and the pick-me-up thrill of a perceived bargain, and you’ve got sales. So expect to see plenty more of these ads . . . and don’t forget to call right away!

This article profiles Billy Mays and Anthony Sullivan, two masters of direct-response advertising, who are about to launch a reality show, Pitchmen, on Discovery Channel.

Discussion Questions:

1. When was the infomercial originally created? Why did the format struggle in the 1960s? What change ushered in a "golden age" of infomercials in the 1980s?

2. How do pitchmen like Billy Mays and Anthony Sullivan make money for their services? From where do most of the profits from products sold in short-form ads come?

3. What three qualities must a product have for Mays or Sullivan to agree to sell it? Once they find a product they believe in, what three-step process do Mays and Sullivan use to make sales?