The Origin of the Modern Day Suicide Bomber

The modern day suicide bomber owes his origin to the kamikaze pilots of World War II. A suicide bomber performs a terrorist attack by blowing himself up, by self or in a transport vehicle. The first occurrence of recorded Islamic terrorism by suicide bombing occurred in 1981, when Kurdish rebels targeted the Iraqi embassy in Beirut, Lebanon. However, it was the three bombings in 1983 that brought to international attention the lethality of the suicide bomber. The infamous 1983 suicide bombings were: Hezbollah’s bombing of the U.S. embassy in April 1983, attack on United States Marine and French barracks in October 1983. Nevertheless, it was the Liberation Tigers of Tamil Eelam (LTTE) in the Indian Subcontinent that brought a new dimension to suicide bombing. A dimensional tactic later adopted successfully by Islamic Jihad terrorists with deadly consequences.

LTTE - Ethnic Terrorists

The LTTE is a terrorist group based in Sri Lanka which has waged a brutal secessionist campaign against the Sri Lankan government since the 1970s with a view to create an independent “Tamil Eelam” state in the north and east of Sri Lanka. Unlike, Islamic terrorism, an instrument of religion; LTTE fights the island’s Sinhalese majority, an instrument of ethnicity. I label the LTTE as “Ethnic Terrorists.”

Ethnic terrorism doesnt prescribe to religious ideology as the foundation of its terrorist agenda but ethnicity. However, ethnicity should not be confused with race. An ethnic group is a group of people sharing a common heritage, religion, or cultural tradition; while race is exclusive of belief or choice to belong to a group, but rather it’ a group composed of similar genetically transmitted physical characteristics.

In the case of the LTTE, it took up arms to secede from the ethnic Sinhalese dominated Sri Lanka for the cause of a separate, independent state of Eelam composed of the ethnic Tamil population. Founded in 1975 by Velupillai Prabhakaran, LTTE membership included disenchanted Tamil youth, who were discontent with policies of successive Sinhalese governments in Colombo (Sri Lanka’ capital) towards addressing a variety of concerns of the nation’s Tamil community.

Herein, their violent actions have earned them proscription as a terrorist organization by 32 countries, including the United States.

Global Terrorism, Dawn of the New Suicide Bomber

The LTTE has regularly used suicide bombers as instruments of terror. Unlike, previous suicide bombers who used bomb laden vehicles to carry out terrorist attacks, the LTTE pioneered the use of concealed suicide bomb vests for suicide bombings. Hence, it is this innovative terror tactic which is now used by Islamic terrorists as an instrument of Islamic terrorism worldwide.

The LTTE employed its lethal suicide bomber division, the Black Tigers using bomb vests and female suicide bombers to assassinate Indian Prime Minister Rajiv Gandhi in 1991 and Sri Lankan President Ranasinghe Premadasa, in 1993. The Black Tigers unit is ruthless, the best trained, and most efficient suicide squad in the world.

Jane’s Information Group reports that during 1980 and 2000, LTTE had carried out a sum of 168 suicide attacks on civilians and military targets. These suicide attacks exceeded the combined sum of Hamas and Hezbollah suicide attacks carried out during the same period.

Top Ten Consumer Fraud and Consumer Scams

Yesterday, the Federal Trade Commission released a statistical survey of fraud in America, and the figures are astonishing. The FTC report survey shows that 30.2 million adults, approximately 13.5 percent of the adult population have been victims of fraud so far this year.

The main avenue for consumer fraud entailed deceptive weight-loss products, ensnaring about 4.8 million consumers. The consumers report two other methods involving fraudulent buyers club memberships and foreign lottery offers.

The lottery scamsters enticed victims into giving out their personal bank account information by telling them that they had won a foreign lottery. Of course, the bank account information was needed to “transfer the winnings.” In the case of consumer scam involving buyers clubs, victims were sold “memberships” they had not purchased.

The FTC consumer report shows consumer scams of several hues. The top ten consumer fraud on the FTC consumer reports*:

1. “Fraudulent Weight-Loss Products (4.8 million victims)
2. Foreign Lottery Scams (3.2 million victims)
3. Unauthorized Billing - Buyers Clubs (3.2 million victims)
4. Prize Promotions (2.7 million victims)
5. Work-at-Home Programs (2.4 million victims)
6. Credit Card Insurance (2.1 million victims)
7. Unauthorized Billing - Internet Services (1.8 million victims)
8. Advance-Fee Loans (1.7 million victims)
9. Credit Repair Scams (1.2 million victims)
10. Business Opportunities (.8 million victims)”

The consumer affairs in regards to fraud are mainly handled by the FTC Bureau of Consumer Protection. The bureau’ mission is to protect consumers against unfair, misleading, fraudulent or deceptive practices. The Bureau addresses consumer complaints, protects consumer rights, develops rules for consumer protections, conducts investigations, enforces consumer protection laws, sues people and businesses who violate the law, and educates businesses and consumers about their fundamental duties and rights.

The FTC is a consumer protection agency that not only offers consumer fraud protection but also shares and collects consumer fraud and identity theft information making them available to law enforcement agencies across the country.

The consumer report found fraud cut across age, race, and education demographics. Young consumers between 35 and 44 were thirty-two percent more likely to be ensnared than consumers between 65 and 74 years of age. African American were 22 percent of the victims, Hispanics 18 percent, and Whites 12 percent. Furthermore, college educated consumers were less likely to be defrauded than consumers without a college degree*.

The main avenues of fraudulent advertising as reported by consumers were:

• Print advertising, direct mail, includes catalogs, magazine and newspaper and advertising, and flyer’s and posters - 27%
• Internet, includes Web sites, e-mail, and auction sites - 22%
• Radio or television - 21%
• Telemarketing - 9%
• Others - 21%

If it sounds too good to be true, it probably is. You must be constantly vigilant against offers or promotions that provide quick fixes, easy money, instant remedies to various ills, and income without effort. Remember, anything in life worth doing is going to be difficult, requiring you to challenge yourself. I live by this creed, if you imbibe it as well, you are less likely to deceive yourself and be deceived by others in life.

*Source: Federal Trade Commission Consumer Fraud Survey 2007

Democracy Now: Fundamental Duties of a Citizen - Part 2

Nationhood is what its citizens are. The citizen is the component of nationhood. In global society there is erosion of civil human behavior, growing sharper every day. This gradual erosion has to be arrested and remedial measures taken as to improve the situation. In our homeland, the US Constitution is revered, its Bill of Rights sacred, and American democracy esteemed, but the fundamental duties of a citizen are neither taught nor revered. Fundamental Duties of citizens serve an important purpose. Specifically, no democratic republic can ever thrive unless citizens are active participants in the process of governance by embracing responsibilities and discharging citizenship duties.

As Americans we value individuality, but the most critical task facing us is to reconcile the claims of individuality and those of the civic society. To accomplish this, the individual citizen has to become cognizant of his social and citizenship duties, thus shaping societal members that are compassionate and solicitous of the inalienable rights of their fellow citizens.

Henceforth, comprehension of our citizenship duties is as important as comprehension of our rights. Man doesn’t live in a vacuum, isolated from fellow man. He exists for the good of others as well as the good of himself. The ability of man to differentiate between right and wrong separates him from other beings. This knowledge is inculcated in man by imbibing duties of a citizen, making man responsible to himself and to society in which he resides.

If every citizen executes his duties regardless of considerations of gender, race, ethnicity, sexuality, language, and creed, most of the melancholy in today’s society could be suppressed, if not eliminated, and entire society uplifted. The lifeblood of civilized life is the adherence and obedience to citizen duties and values.

We value the well-rounded individual, the development of personality of the citizen in all spheres, intellectual, physical, mental, and social, and slowly emerging, the spiritual. The development process of the American citizen must include teachings of fundamental duties, not by legal strictures, but as inherent and innate sense of citizenship duties which in composite with the well-rounded individual, our societal culture can become a panacea for all of our political, administrative, and social ills.

It is US duty, to awaken citizen duty through education which should not be merely an exercise of learning for learning sake; but to imbibe, subscribe to, prescribe citizen duties. In democratic governance, citizenship education is essential for every age group, for every profession, and for every station of life. The need of the hour for American citizens is to recognize the importance of fundamental duties of a citizen not only by precept but more so by practice. After all, fundamental duties are the foundations of national character and human dignity.

Democracy Now Part 3:Coming soon…

China and India Battle for Influence in Africa: Part 4

Chinese influence has steadily grown in Africa, displacing many Western interests. When Britain’s Foreign Secretary Jack Straw visited Africa; he drew parallels between past activities of the colonial British Empire on the continent and China’s present activities. This parallel didnt go unnoticed by the world, it simply reinforced within Africa and outside that China’s activities were those of a neocolonial power.

Instead of empowering Africans, China is exploiting them. Beijing is exploiting Africa’s natural riches and hampering its pursuit of human rights and democracy. The traditional colonial powers had been European actors dominating distant lands in Africa, Asia, and the Americas. Since the beginning of colonialism in the 15th century till the 20th century colonialism grew out of foreigners occupying far-away lands, dominating local political, governmental, and economic affairs and exploiting their resources through unfair trade practices or by sheer brutal force.

After World War II, de-colonization began in earnest and classic colonialism was replaced with a new colonialism. Neocolonialism contains all facets of traditional colonialism except for the physical occupation of foreign land. The new paradigm of a neocolonialist power is to exploit weaker states natural wealth, political framework, and economic resources under the guise of liberal capitalism.

Another successful method of influence over weak states by powerful actors is through military arm sales and/or joint military arms production. China’s arms exports are more than$1 billion a year, generally involving exchange of raw materials for weapons. It is difficult to ascertain the exact value of Chinese global arms exports, as Beijing doesnt report this data.

Beijing has increased military-military cooperation with the African Continent, making it the centerpiece of its arms exports expansion program. Between 1996 and 2003, China was second only to Russia in arm sales to Africa. Currently, Beijing ranks among the top conventional arms suppliers to African nations.

Some of the African nations China has established close military ties with are Sudan, Ethiopia, and Zimbabwe. A few years ago, China sold twelve jet fighters and over a 100 military vehicles worth approximately $240 million. In Sudan, the situation is of far greater concern. Chinese fighter planes, tanks, bombers, machine guns, helicopters, and rocket-propelled grenades supplied to Sudan’s National Islamic Front military junta have been used in the genocidal north-south civil war. Global human rights organizations have pointed out the use of Chinese arms by the Sudanese government in genocide campaigns in the Darfur region.

As Ethiopia and Eritrea tensions continue, China has provided arms to both nations. During the war between the two nations from 1998 to 2000, China bypassed a UN arms embargo and provided in excess of $1 billion in weapons to both states. In August 2005, Ethiopian Prime Minister Meles Zenawi agreed to forge a formal military relationship with China in exchange of military technologies, military training, and more.

In the frail national environments of African countries, Chinese influence complicates democratic consolidation and promotion of good governance. Compared to India which promotes democratic ideals; China can only foster inherent communist principles and corrupt business practices that permeate throughout China. In 2005, in run-up to Zimbabwe’ elections, China had sent to Zimbabwe electricity transformers, agricultural equipment, and crates full of T-shirts bearing the insignia of Robert Mugabe’s party; Mugabe’s oppressive regime has ruled Zimbabwe since 1980. Chinese businesses provided Mugabe’s government jamming devices to be used against his opposition’ radio stations.

Also, Beijing delivered Harare riot control gear just in case of public protest marches. In addition to Zimbabwe, China has been condemned for blocking Western efforts to punish and isolate the Sudanese regime. In 2004, Chinese UN ambassador defanged US draft resolutions to the United Nations calling for strong measures against ethnic cleansing in Darfur. China has no history or concept of democracy and the inherent rights of mankind, henceforth it doesnt care for abuses of various hues perpetrated by African regimes upon its citizens, as the Chinese regime is guilty of doing the same at home. It is highly unlikely that China can be counted upon to be a responsible actor in Africa based upon China’s global role thus far.

The responsible comity of nations cannot expect China, a communist, military-led oppressive regime to be a responsible actor in Africa or internationally; Beijing has no experience in good governance, value of human rights, democratic principles, respect for rule of law, property rights, environmental protection, corporate governance, consensus building, transparent democratic legal system, welfare of its citizens, food and health safety, nuclear non-proliferation, and more. Gaining valuable experience in these areas based upon a solid foundation of democratic principles is necessary before China can be counted upon to be a responsible actor with any degree of legitimacy at the world stage.

China will use its soft power and other means to sustain illegitimate and undemocratic African governments because it serves its economic interests; the only way it has been and can continue to do this is by being a neocolonialist power.

Part 5: Coming soon

Earth to Mars in One Week

Photon Laser Thruster

A new era in space frontier is upon us. If the photon thruster constructed with off-the-shelf components by Dr. Young Bae of the Bae Institute proves itself as a commercial, civilian, or military viable tool then truly, space is the limit.

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GDP: Gross Domestic Product Fails as an Indicator of Economic Welfare - Part 1

Conceivably there is no other headline that captures the essence of the Gross Domestic Product or GDP better than the Reuters headline after the catastrophes of hurricanes Katrina and Rita.

The disasters ravaged the citizens of our country, over 850,000 homes damaged, thousands of people becoming refugees, devastation of over 1.3 million acres of forests, avoidable deaths of 1,836 men, women, and children, and more unthinkable residual destruction.

Herein, the above catastrophes profoundly illustrate the fallacies of using GDP as an indicator of economic health and wellness. Pragmatic economists for decades have been shouting from the rooftops that the GDP is an inadequate reflection of the true economic welfare of America and Americans. American government officials and politicians always talk about economic progress; their solutions for sustainable and consistent growth of the economy come in various hues. However, there is one common theme, one commonality in their arguments; they always cite the Gross Domestic Product or GDP as the only measure of economic progress. Unfortunately, the GDP is not the universal indicator of growth as the above officials make it to be. The lackadaisical use of US GDP by politicians and government officials as the one size fits all benchmark of economic health and wellness is a disservice to the American public. Alas, the public is not provided the true picture of economic progress. Herein, I will endeavor to clarify GDP and offer some alternatives for benchmarking economic health and wellness.

The GDP is used to define the market value of services and goods produced within US borders irrespective of nationality during a period of time. This differs from Gross National Product or GNP which is the total value of all final services and goods produced by Americans irrespective of their location globally. Hence, GDP and GNP are almost similar and yet wholly dissimilar; GDP (or GDI - Gross Domestic Income) focuses within the region in which income is generated and GNP (or GNI - Gross National Income) measures accrual of income to a region. The GDP reflects the economic production within the US. The most common method of estimating production is the expenditure method.

This approach evaluates the amount that government and people expend on finished goods, investment for business in plants and equipment, and net exports of America. However, GDP counts only final services and goods while certain things are not counted towards GDP:

• sales between companies
• savings & financial investments
• level of utility the public gets from consumption and production
  • doesn’t measure the effects to the public or environment’s well-being as a direct result of a financial transaction

So, GDP counts many transactions as benefits to the current economy at the expense of future growth.

Henceforth, GDP is a national average which ignores the importance of the distribution of income or economic wealth. Here are some examples of what GDP doesn’t measure:

• Simply doesn’t distinguish between financial transactions that diminish the well-being of people or environment.
• Simply doesn’t distinguish costs from benefits, presupposes that every financial transaction profits people and environmental well-being.

A Look through the GDP Prism

• GDP: Income Includes Depletion of Natural Capital

GDP treats natural capital depletion as income, unlike in accounting where it is measured as depreciation of an asset. This is counter intuitive as this would mean there is an inverse relationship with regards to depletion of natural resources and GDP count; hence, as more natural resources are used up, the GDP will increase.

• GDP: Crime and Natural Disasters are Viewed as Economic Benefits

Crime is counted as a benefit to the economy from the GDP prism, since crime spurs consumption of security items, repair or replacement of property, and spending on crime prevention security services. Damage caused by the recent natural disaster Hurricane Katrina through the GDP prism injected billions of dollars into the economy and is seen as an economic benefit, completely ignoring the negative impact upon people and the environment.

• GDP: Ignores Income Distribution

The GDP doesn’t take into account the distribution of income, as all tides don’t lift all boats. During two decades of GDP increase by over 50 percent between 1973 to 1993, wages declined by 14 percent. Also, in 1980, the real income of the top 5 percent of the households rose by 20 percent. The GDP increase was presented as a benefit to all Americans, it benefited a select few.

• GDP: Overlooks the Disadvantages of Financing the Economy through Debt

America borrows money mainly from abroad to sustain the economy. The main avenue for economic sustainability is by procuring cash through debt, by sale of our US Treasuries. This activity contributes to the GDP; alas, the debt has to be repaid. Americans mainly go into debt for consumption not capital investment. Herein, this national and personal debt must ultimately be repaid; this downside of excessive debt is not reflected in the GDP.

• GDP: Disregards Non-financial Services

The GDP doesn’t include any services of non-financial transactions such as volunteer work, elderly parental care, child care and such are not measured. Remember only monetized services are measured for the GDP. Herein, as non-financial services are replaced with more monetized services, from the GDP prism it is seen as economic progress.

• GDP: Goes Up with Rise in Environmental Pollution

The Environmental Protection Agency’s multi-billion dollar Superfund Clean-up Program of waste and toxic sites will take over 3 decades to complete, during which time the economic activity generated and expenditure for the clean-up will be added to the GDP. The initial economic activity used to generate the waste was added to the GDP, the ensuing clean-up will again add to the GDP. Thus, polluting the environment is seen as an economic benefit through the prism of GDP.

Consequently, the GDP is used whimsically by government and political officials to portray an unrealistic view of the health and wellness of America and Americans. There are measures available that can reflect the true picture to the American public. After all, we and our children have a stake in the wellbeing of our nation in all spheres; thence, we desire and deserve information critical to the wellbeing of present and future generations of Americans.

Part 2: Coming soon

Credit Card Companies Target College Students - Part 1

As new and existing college students start school this semester, they will be greeted by more than professors. They will encounter an affable smile, a pleasant disposition of a friendly stranger bearing gifts. Yes, this warm and fuzzy stranger is willing to part with his $1 frisbee, $3 pen, a $5 shirt, or possibly an older version of the iPod for free, in return for your valuable private information and John Hancock at the bottom of the credit card application. Welcome to the new millennium, where schools allow purveyors of plastic money to roam free the corridors of higher learning looking for their latest vulnerable prey, the college student.

These credit card predators offer the above free allurements and enticements to hook students and eventually trap them in a cycle of debt. For schools to allow these card companies on campus to target students is at minimum stupefying and at worst complicity in the exploitation of naïve students. My previous articles about the student loan scandals and how many universities are part and parcel of the college loan debacle, reflects an atmosphere on campuses that taking advantage of students is okay.

Families send their children off to college to obtain knowledge, not credit card debt. Alas, that is what is occurring and it is getting worse. Students are starting their lives at school with new hopes and dreams, which turn into nightmares of unending consumer credit debt. Remember, on top of any college student loan that they may have, credit card debt is an added crushing weight.

For it is, majority of college and university students do not have the life experiences nor the financial sophistication to understand the complexities of credit cards, even many adults dont. Students dont understand interest rates, fees, and consumer rights associated with these instruments of debt.

So it is little wonder, that college students are racking up thousands of dollars in credit debt and ruining their credit rating. Consequently, bad credit will lead to bad credit scores on their credit reports, taking years for credit repair. So, along with counseling on their school subjects, students will need credit counseling as well. It is not surprising without any college, university, and governmental oversight, students and their families are left to their own devices to be vigilant against predatory marketing by credit card companies.

Part 2: Coming soon…

Democracy Now: Fundamental Duties of a Citizen - Part 1

A democratic society cannot function without guaranteeing fundamental rights of its citizens and its citizens cannot function democratically without discharging their fundamental duties in society. The American nationhood has been built upon the democratic temper. The US Constitution and the accompanying Bill of Rights have withstood the test of time; both serve as role models to the world.

Somehow we place disproportionate emphasis on our rights against our duties as citizens. For it is, rights and duties are the two sides of the same coin. Our inalienable rights are inherent and fundamental; the constitution simply safeguards and guarantees them. As rights are inalienable so are duties, for every right there is a reciprocal duty. The duty of a person is an inalienable part of his/her right.

A right emanates from a duty discharged well. The duty of one person is the right of another person, as is respect for a person’s liberty and not to impose constraints upon it. Government safeguarding of rights become a nonentity; if everyone performs his/her duty, everyone’s rights would be automatically safeguarded.

Mahatma Gandhi stated eloquently the responsibilities of all citizens:

“The true source of right is duty. If we all discharge our duties, rights will not be far to seek. If leaving duties unperformed we run after rights, they will escape us like will-o-the-wist, the more we pursue them, the farther they will fly.”

“I learned from my illiterate but wise mother that all rights to be deserved and preserved come from my duty well done. Thus the very right to live accrues to us when we do the duty of citizenship of the world. From this one fundamental statement, perhaps it is easy enough to define duties of man and women and correlate every right to some corresponding duty to be first performed. Every other right can be shown to be a usurpation hardly worth fighting for.”

So far, in my readings I have yet to come across so comprehensive yet so concise an elocution of duty of a citizen than Article 51A of the Constitution of India.

“It shall be the duty of every citizen of India“

(a) to abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem;
(b) to cherish and follow the noble ideals which inspired our national struggle for freedom;
(c) to uphold and protect the sovereignty, unity and integrity of India;
(d) to defend the country and render national service when called upon to do so;
(e) to promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to the dignity of women;
(f) to value and preserve the rich heritage of our composite culture;
(g) to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures;
(h) to develop the scientific temper, humanism and the spirit of inquiry and reform;
(i) to safeguard public property and to abjure violence;
(j) to strive towards excellence in all spheres of individual and collective activity, so that the nation constantly rises to higher levels of endeavor and achievement.”

Herein, the above duties are fundamental to the well-oiled functioning of society, continually endeavoring towards self-improvement. The duties of every Indian citizen are laid threadbare in their constitution, these citizenship values are not mere repository of Indians alone.

The civic and personal duties of Indians transcend the physical boundaries of India, they belong to all mankind. A nation may need only to replace the word “India” with their own to engender within their citizens the importance of duty. Let us see an example:

“It shall be the duty of every citizen of the United States of America“

(a) to abide by the Constitution and respect its ideals and institutions, the National Flag and the National Anthem;
(b) to cherish and follow the noble ideals which inspired our national struggle for freedom;
(c) to uphold and protect the sovereignty, unity and integrity of the United States of America;
(d) to defend the country and render national service when called upon to do so;
(e) to promote harmony and the spirit of common brotherhood amongst all the people of the United States of America transcending religious, linguistic and regional or sectional diversities; to renounce practices derogatory to the dignity of women;
(f) to value and preserve the rich heritage of our composite culture;
(g) to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures;
(h) to develop the scientific temper, humanism and the spirit of inquiry and reform;
(i) to safeguard public property and to abjure violence;
(j) to strive towards excellence in all spheres of individual and collective activity, so that the nation constantly rises to higher levels of endeavor and achievement.”

Democracy Now Part 2: Democracy Now: Fundamental Duties of a Citizen - Part 2

Presidential Election: Presidential Candidates 2008 - Election Coverage

The presidential election of 2008 has a gamut of newbies and known faces as presidential candidates. I see the current landscape littered with so much misinformation that I thought it my duty to distill the issues from non-issues and information from misinformation.

I hope to present to you a breakdown of the presidential candidates, their positions for the 2008 presidential election, and any other topic I believe to be important. So, while I write about other topics of interest for Gimmie the Scoop; I will do my very best to present election coverage till the end of the 2008 presidential election.

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Search Engine Optimization Vs. Pay-Per-Click Advertising

The last few years of the housing boom didnt require much marketing and lead generation effort because new home buyers, home refinancers, and home equity loan seekers were abundant. The income generated was immense within the industry and the future seemed perpetually bright.

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Presidential Election: Presidential Candidates 2008 - Election Coverage

The presidential election of 2008 has a gamut of newbies and known faces as presidential candidates. I see the current landscape littered with so much misinformation that I thought it my duty to distill the issues from non-issues and information from misinformation.

I hope to present to you a breakdown of the presidential candidates, their positions for the 2008 presidential election, and any other topic I believe to be important. So, while I write about other topics of interest for Gimmie the Scoop; I will do my very best to present election coverage till the end of the 2008 presidential election.

Read the rest of this entry »

Students Need To Examine Student Loans

As students and their families battle rising college and university tuition costs, a new front has opened up with the recent student loan scandal. The ensuing fall semester has many of them worried about the student loan process, can they trust it. Their confidence in the entire student loan process has been shaken to the core, especially their faith in the university financial aid officials.

Earlier this year, New York Attorney General Andrew Cuomo started an investigation into the student loan industry based on allegations raised by a full-page New York Times advertisement that questioned the ethical practices of schools and student loan lenders. No one could have foretold the national controversy the investigation would create, let alone the student loan industry and schools. For students a student loan, private student loan, or federal student loan is critical to their educational needs.

Getting a good college loan not only impacts sustenance of college education, also student finances after graduation. After graduation, the student loan becomes a personal loan, thence the original loan terms come into play. If the original terms of the student loan are unfair, it can be costly for many years to come, unless student loan consolidation or refinancing occurs.

Anyone who has applied for a student loan can understand how challenging it can be, even financial aid officials sometimes have a tough time with the complexity. With each passing day, new developments add to the process’s complexity of student lending. Initially, university financial aid officials formulated lists of preferred lenders which consisted of a half-dozen student loan lenders that agreed to provide students with favorable loan terms in return for a consistent slice of the schools’ loans.

The preferred lender list was supposed to help borrowers navigate through the confusing array of government programs, private loans, discounts, and such. Over time, things went horribly wrong, Congress failed to make adjustments in student aid and grants to maintain parity with rising tuitions costs. Alas, private financial companies filled the increasing disparity by offering various private student loans.

Currently, the student loan business stands at $85 billion. Ultimately, greed took over both sides of the student loan spectrum, the colleges and the lenders. The recent investigation has revealed, that lenders offered various bribes such as trips, meals, company stock, and other gifts in return for inclusion on the preferred lenders list. In many appalling instances, private lenders provided their own staffers to financial aid offices without they or the colleges disclosing to borrowers who they worked for. Financial aid advice is meant to be impartial, unbiased, and in the best interest of the student.

Also, schools wanted a piece of the student loan gravy train, so they partook in revenue-sharing agreements with student lenders in return for a piece of the loan. Of course, while college officials were enjoying their cozy relationships with the lenders, they were slowly relinquishing the ethical underpinnings of their relationships with students.

The evisceration of ethics, morals, and good judgment on part of schools in relation to student loans is truly breathtaking. One would hope private student loan lenders would exercise ethics and good citizenship but it is not taken for granted by the general public. But students and their families do not view colleges and universities, private or public through the same prism as private business; they take it for granted that schools and their officials maintain the highest integrity and ethical standards. They innately believe that the financial aid officials are looking out for their interest, in getting them the best and most competitive student loan.

Hence, students and their families never questioned the merits of the preferred lenders list or the accompanying recommendations of college financial aid officials. Unfortunately, greed manifested itself; colleges worked hand-in-glove with private lenders in exploiting students and their families.

So far, Andrew Cuomo has settled with the major offenders such as, Sallie Mae, Nelnet Inc., JP Morgan Chase, Citibank, and Bank of America and some colleges have already signed a code of conduct. He has recovered $19 million in settlements thus far, for student loan borrowers. This is just the beginning of a long overdue remedy and overhaul of the unethical practices in the student loan industry.

China and India Battle for Influence in Africa: Part 3

India’s traditional approach towards Africa has been one of friendship and fraternity.  India’s strategy towards Africa is rather unique; India concentrates on capacity-building, while China follows traditional resource-based investment. Resource-based investments from China are mainly dependent on domestic compulsion for overseas natural resources.

While capacity building involves providing developing nations competence and skills in various areas for upgrade such as, industrial, technological, economic, social welfare, education, infrastructure, and other. This approach can transform communities, societies, cultures, and environments from the ground up and lead to more sustainable development than imposition from top down.

The emphases on grassroots upliftment projects integrate Indian firms deeply into local African society and economy. By hiring and training locals at certain stages of the projects the Indian firms give Africans an equitable stake in the success of the project. Consequently, the local populaces’ involvement in projects has a deep-impact upon their self-esteem and psyche creating an innate sense of accomplishment and pride; thus India and Indians endear themselves at the individual level, unlike China.

India’s private investments are increasing in clout and differ from China’s state-managed model. Indian multinationals Tata, Cipla, Mahindra, and others have successfully implemented profitable projects in Africa.  Also, the increasing investments include African countries that don’t share India’s British-colonial past. Traditionally, India has pursued economic investments with African nations included in the British Commonwealth. However, India has made recent forays into West Africa.

Currently, India-West Africa nonoil trade exceeds $3 billion and is rising. The Indian investment in the West African nation of Cote d’Ivoire (Ivory Coast) is forecasted to expand to $1 billion by 2011. But British Commonwealth member Nigeria is India’s largest trading partner in Africa, accounting for more than $3 billion in bilateral trade.

Two years ago, Indian national oil giant ONGC and Mittal Steel joined hands to form a joint venture OMEL to invest $6 billion in infrastructure projects to set up railway lines, a power plant, and a refinery in Nigeria.  In return, OMEL will receive rights to oil blocks from Nigeria.

Some Indian investments have followed China into controversial territory such as, India’s 25 percent stake in Sudan’s major oil fields. The success of China in obtaining major oil and gas investments has impressed India. China in one instance thwarted India’s deal with Shell Oil for 50 percent share in an oil-exploration project in Angola by offering $2.3 billion in aid, compared to India’s $200 million aid offer. Hence, India may attempt to imitate China’s strategies to avoid being eclipsed in future deals.

On the other hand, following China’s lead may imperil African goodwill towards India.  India must persist on its course of capacity-building, skill, and technology transfer instead of possible mimicking of China’s strategy of exploitation.  Otherwise, like China, India may be seen by Africans as a neo-colonialist power.

Part 4: China and India Battle for Influence in Africa: Part 4

Top Ten Gadgets for Business & Consumers

1

Nokia E90

Nothing beats being productive and efficient at the same time. Are you a person like me who likes his cell phone and PDA to be separate? I have not had success in locating a device that does both things equally well. But I may be convinced to change my mind with the Nokia cellular phone E90.

I was always on the lookout for a phone that combined the best features of a PDA, cell phone, latest mobile technology such as Wi-Fi and Bluetooth, GPS, GSM, international cell phone, and more. I wanted a device that could take care of my business needs, in case I didnt have my laptop with me. Well, cellular phone maker Nokia has answered the prayers of demanding business people everywhere. The E90 boasts some of the coolest features in one cell phone: Here is a description of the E90 from Nokia’ website:

The Nokia E90 Communicator features 3G, HSDPA and WLAN for true Broadband connections and global coverage using quad band GSM 850/900/1800/1900 and WCDMA 2100. A QWERTY keypad, active matrix color display with 800 x 352 pixels x 16M colors, and features you typically rely on your PC for, gives the Nokia E90 Communicator “all in one”, laptop, PDA and phone functionality to accomplish any business task. The Nokia E90 Communicator also includes a built-in GPS receiver that works as a stand-alone positioning device using GPS satellites. Use the Nokia E90 Communicator to navigate and find your location using the built-in maps.

2

Clarion DriveEye

Taking inspiration from the popular police car chases shot by police vehicle cameras, Clarion comes out with a car camera for the general public. The DriveEye is a small digital camera that starts recording as soon as its G-force motion sensor detects sudden braking. It records upto 15 seconds of video once the brakes are applied.

It fits snuggly on your windshield out of the way of your line of vision for safe driving. Not just for the average public but a great tool for your business as well. If you have a business with several vehicles, the DriveEye will contribute to and promote careful driving by your employees.

3

iCache

Give yourself the ability to have all your credit cards on one card, leave all of them at home. iCache can make that possible. This device simplifies your business life, practically replaces your wallet. If your credit cards gets stolen, someone can use them for purchase; if someone takes your iCache they cant use it without your fingerprint. It uses biometric security to protect your credit card and personal information. The iCache digitally replicates your credit card magnetic strip signatures for all of your shopping needs. You can swipe iCache at your gym, make car rental reservations, buy theater tickets and more. I know I am going to get it for my travels. It is very cool device.

4

Nera WorldPro

Does your work take you to places where no man has gone before? Well Nera WorldPro will allow you to stay in touch with civilization and conduct business . According to Nera’ website, it is the world’s smallest and lightest broadband mobile satellite phone. It takes less than a minute to find a satellite signal. It can handle broadband and voice simultaneously, with data rates of up to 384 kbps. It weighs 2.2 lbs. and can handle Internet, email, videoconference, etc. So whether you are on your way to an expedition in the polar circle or conducting a business videoconference from your secluded island getaway; this device will keep you connected.

5

Kensington VOIP Phone

Next time you need to make a call using Skype , Gizmo Project , MSN, Google Talk, and Yahoo, instead of using an uncomfortable headset, use the wireless Kensington Vo200BT handheld. It is the size of a cell phone and fits snugly in your laptop’s PCMCIA slot. It will even recharge itself while in the slot.

So next time you are sitting at a cafe in France or the airport with a Wi-Fi hotspot, take it out and make a call. Its ultrachic thin flip-phone design will give three hours of talk time and 30 hours of standby time. It will let you know by blinking when you have 10 minutes of talk time left. Alas, it only works with Windows XP and it may not fit into the new generation of ExpressCard 34/54 card slots.

6

Sony Handycam HDR-CX6EK

Sony claims the honor of being the first for bringing to the consumer electronics market the “world’ smallest HD camcorder.” And what a beauty with brains it is. You can use its 10X optical zoom when you cant get a decent seat at the ball game. The 8GB Memory Stick Pro Duo can save up to 175 minutes of recording in long play mode. Features a Sony camera with a 6.1 Megapixel still image recording with a 2.7-inch LCD touch screen. It has incredible HD 1080 image picture quality with detail and vibrant colors. Unlike your Sony Ericsson cell phone hook your Sony handycam to your Sony Vaio for quick editing of photos and video.

7

StashCard

Dont have a pocket to place some spare coin , keys, or other slim valuables? Going to a business lunch meeting but dont want to carry your wallet with you? Well, get the StashCard. Ingenious. I think so. You can stash away your memory card, cash, key, credit card, and any other little valuable in the empty PC card slot of your laptop. There is one problem however, what if somebody steals your coveted laptop?

8

EPOS Digital Pen

Let your thoughts flow and not worry about losing your paper drafts because all of your thoughts are saved. According to the website, the EPOS enabled Digital Pen & USB Flash Drive is the next generation in USB Flash Drive products. As you write the pen records your trace movements into the USB flash drive. It is a revolutionary writing device, a combination of the traditional and cutting edge.

9

Staples Free Stapler

Staple without staples? Sounds too good to be true; well yes; if you have more than 5 sheets to staple. However, if you only need to staple 5 sheets or less, then staples are history. Become more eco-friendly and impress your co-workers. Comes in five colors: blue, black, red, chrome, and green.

10

Brush & Rinse Toothbrush

Hands not clean and no cup nearby but you need to rinse out all that toothpaste. Well one toothbrush (prototype) will help you rinse. This toothbrush can redirect water from your tap to your mouth without fuss and sloppiness. It’ creatively designed head accomplishes the daily rinsing ritual with ease. One drawback: what if there isn’t a faucet, a waterfall, or any running water nearby, I guess you’ll have to use the old hands-to-ur-mouth approach to rinse. If you want one before they hit the market, you will have to buy them in a pack of 27 for $1,750. Does that price include a toaster?

For KICKS

The transformer cell phone. Powered by nitrous oxide and next generation batteries

Enough said.

Top Ten Gadgets for Business & Consumers Part 2

Another Casualty in Mortgage Arena

It was just a matter of time before heads rolled at Bear Stearns Co. This was only to be expected after Bear Stearns High-Grade Structured Credit Enhanced Leveraged Fund, valued at about $638 million and the High-Grade Structured Credit Fund, worth about $925 million lost their value in July.

The casualty was co-President and co-Chief Operating Officer Warren Spector, he resigned last week. In an announcement, CEO James Cayne cited the performance of the two valueless funds as a main reason for the restructuring in management. Spector started his career as a trader at Bears Stearns in 1983 and was considered the likely successor to Cayne.

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Web 3.0: Will Europe Overtake the U.S.? Part 2

The ones who define the standard will create advantage in the marketplace for their companies. The Semantic Web will let the computer pool unstructured information across the internet. At present, the web content is readable by people not computers. In the world of Semantic Web, content will be located, shared, and aggregated by computers. Currently, these tasks are performed by people, but that will change once Semantic Web becomes the standard.

The concept for the Semantic Web was the brainchild of Tim Berners-Lee, also the creator of the World Wide Web. He founded the World Wide Web Consortium (W3C) in 1994 at the Massachusetts Institute of Technology, Laboratory for Computer Science [MIT/LCS] in association with CERN, with support from the European Commission, and DARPA. He envisions that all man’s knowledge will be available on-line. It will connect people in real time like never before. Also, it will allow people to connect unrelated data in innovative ways. There are huge benefits for every field from medical, military, to business.

Unlike the U.S., Europe has a tradition of pushing innovation from the top-down. However, the U.S. stimulates ingenuity, innovation, and creativity in the opposite direction from the bottom- up, where garage startups like Myspace, Digg, and others rule.

So far, the U.S. is ahead in developing nearly all of the Semantic Web products found in the marketplace. It is difficult to see Europe succeeding in its quest to outpace the U.S. for three reasons:

• Most of the research is funded by governments
• Most companies expect and rely on government funding
• After setting the foundations for Semantic Web, the devising of applications for the commercial marketplace are in government control

Herein, in order for Europe to win the race, it must change the way it prepares for the race.

Conclusion.

Student Loans: Students & Their Families Need Choice

In the last few months, the world of the student loan industry has gone through a 180 degree change. It all started with an investigation spearheaded by New York Attorney General Mario Cuomo into the nexus between universities and student loan lenders. Cuomo unearthed many unsettling issues that were not known to the general public.

The investigation uncovered the cozy relationship between colleges and lenders. Some student loan lenders had been offering special incentives to college financial-aid officials in return for placement on the colleges preferred lender lists. A lender’s placement on this preferred list guarantees that it will get special notice by the borrower.

Neither the students nor their parents were ever informed about the conflict of interest inherent in this type of nexus between the student loan lenders and colleges. The borrowers werent aware that possible competitive lower interest rate student loans, student loan debt consolidations, private student loans, federal student loans, and student financial aid options were offered online by popular student loan sites such as PremierStudentLoan.com.

PremierStudentLoan.com is a great place to get loan quotes, helpful tips & advice, research your loan options and get in touch with lenders that offer competitive low student loan rates.

Thankfully, Congress is looking into it this issue, parents and students are more aware, many colleges and lenders are cleaning up their act.

Looking back I cant believe that I might have lost out on an opportunity to get a lower interest rate and save thousands of dollars in interest just because the financial aid people were looking out for the lender’ interest and not mine. After all, that is their job duty, to work on behalf of students to get them the most competitive rates. I would like to get your thoughts on the matter. Share with me your experience about your college student loan process.

Mortgage Applications Drop Yet Again

The mortgage crisis seems to be persisting unabated. Now it looks like the volume of applications is still sliding. Last week showed the weakest level ever in five months with the Mortgage Banker Association’s (MBA) adjusted index of mortgage applications falling 0.3 percent in the week ending July 27 to 607.1. This is barely above the February 16 week reading of 606.6. I see it as just the tip of the iceberg for the mortgage industry.

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The Great Game Revisited: the Quest for Central Asian Oil

Rudyard Kipling first coined the phrase “Great Game” in famed novel Kim to depict the nineteenth century contest between Russia and Britain over Central Asia. The area acted as a buffer to the expansion of the Russian Empire into India. In the twentieth century Russia appropriated the region, only Afghanistan remained out of its sphere. The trophy for Russia was access to the warm water ports of the Gulf, Mediterranean, and the Indian Ocean. The objective of the British was to maintain Russian influence from extending south, to guard the sea routes to India, and to preserve British naval preeminence worldwide. The game was played out over 150 years ago between these two great empires. But empires fade and new ones ascend, but the old ambitions never fade away. However, this time there are several new players in the great game, each desiring control over the natural wealth of Central Asia.

Central Asia is composed of countries that were formerly part of the Soviet Empire: Turkmenistan, Kazakhstan, Uzbekistan, Tajikistan, and Kyrgyzstan. The Caucasian republics are composed of Georgia, Armenia, and Azerbaijan. Also, bordering the Caspian Sea are Azerbaijan, Kazakhstan, Russia, Iran, and Turkmenistan. The investors and the men who lead these former Soviet states are a combination of egos, huge ambition, and huge monies that make a highly potent mixture. Also, if another ingredient is added, the mixture becomes even more potent; the Caspian zone’s strategic importance. The Central Asian republics are a land bridge between Europe and Asia, Islam and Christianity, and a buffer between Russia and NATO.

But to add to this already potent mix: the Caspian oil and gas are worthless unless they can be shipped to market and that is an arduous task in a landlocked region. These republics have one form of natural wealth or another that attracts nations and multinational corporations. The Great Game’s greatest player and potential investor is the lone superpower, the United States. Herein, the US can leverage its might to access the region’s resources, gain strategic depth, and spread democracy to the republics. However, there are a few obstacles:

• Resurgent Russia under Putin’s leadership has attempted to reclaim an assertive role in the region; as it did recently with Ukraine to teach it a lesson for the Orange Revolution of 2004. Russia still sees this entire region within its sphere of influence; the slow NATO expansion eastwards has only made Russia re-double its efforts to maintain dominance in the region.

• Caspian basin and Central Asia region is landlocked, immensely difficult to access and bring oil to the market

• Energy hungry China’s attempt to checkmate American influence in the region through the Shanghai Cooperation Organization. China’s recent purchase of Kazakhstani oil assets illustrate its policy to diversify dependence on Middle Eastern oil; as well as challenge American oil diplomacy

• Region is politically unstable; Chechnya imbroglio, Afghanistan and Pakistan instability can spillover to the surrounding Central Asian republics, disputes between Central Asian and Caucasian republics

• Insuring the safety of the pipelines is of main concern; prevent terrorist attacks or taps on the pipelines

In order to overcome these issues, the US needs to seek cooperation of several nations in the region. After all, the oil will traverse the territories of more than one nation before it can reach market. Also, the region is in Russia’s neighborhood; any deals with the United States by these countries must in some manner get Russia’s informal approval or cut Russia into the deal. It is in the US interest to develop and utilize different pipeline routes to lessen the leverage of any one country.

The quest for oil and gas is the pivot upon which the world economy revolves. The playground is Central Asia; the game crowded by multiple players and their respective corporations. Herein, the United States must deftly use its diplomatic skills with nations that constitute the republics and their neighbors, especially Russia, China, and Iran. We must have a multi-pronged strategy if we are to ultimately win the Great Game.

China Submits on Food Safety

Since the international food and health scare caused by imported Chinese goods, China has submitted to the global outcry. On July 25, Premier Wen Jiabao stated that complete attention would be given to food safety and product quality. China is renowned for producing substandard products with little emphasis on quality. The Chinese authorities for years have been apathetic to domestic concerns about lack of food and health quality standards, many illnesses and deaths over the years could have been prevented if the Chinese government would have been vigilant. A few years ago, in an Eastern province 13 babies died and many became ill after being fed fake milk powder.

Due to the stronghold of the communist regime and omnipresent corruption, there is a lack of accountability towards the general public. However, that is not the case in the international arena, especially when the public of developed countries such as the U.S. are affected. Any intense scrutiny, recalls, and rejection of Chinese exports can have negative consequences for China’s economic bottom line, as well as puncture a carefully crafted image of domestic communal harmony. Herein, substandard products can have repercussions for international trade and relations.

The efficacy of existing regulation and enforcement procedures have proved futile. The current regulatory system and overlapping local and national agencies are ineffective in supervision of product, medicine, health, and food issues. The enforcement of laws is feeble. Also, China is deficient in a culture that values compliance of legal norms, instead of following laws; much energy is placed on sidestepping them.

As the limelight shines on Beijing for the 2008 Olympics, so does it on this important subject. China has announced a five-year plan to deal with legal, enforcement, structural and general quality standards with immediate measures to be taken soon. In spite of the food safety issues, China has assured athletes, coaches, and officials at the 2008 Beijing Olympics that only carefully monitored healthy food will be served. To its credit, China is now showing its public and the world that it is serious about tackling this problem.

China and India Battle for Influence in Africa: Part 2

To fuel China’s amazing economic growth, China has invested billions of dollars in various projects throughout Africa. As of 2006, bilateral trade had touched $55 billion. At an annual growth rate of between 30 and 40 percent in the past few years, Africa-China trade may top $100 billion by 2010. Asia (27%) aims to displace the European Union (32%) and the United States (29%) from third to first position as Africa’ premier trade partner.

China is keen to build upon its current position as key trade and military partner to the continent. China has secured drilling rights in Sudan, Angola, and Nigeria, and similar oil and gas exploration investments with Equatorial Guinea, Mauritania, Ethiopia, Chad, Republic of the Congo, Gabon, and Kenya.

According to the Chinese, in 2005, their companies invested $175 million in Africa for mainly oil exploration projects and infrastructure. CNOOC Ltd., the third-largest national oil company in the People’s Republic of China after CNPC and Sinopec has bought a 45 percent stake in an offshore oil field in Nigeria for $2.27 billion and imports 64 percent of Sudan’s oil.

Already China is in control of most of Sudan’s natural resources. It is investing heavily in infrastructure such as railways, roads, harbors that are needed for support of oil, gas, and mining projects in Africa. China has pledged to give about $20 billion in trade and infrastructure backing to Africa over the next three years and double development aid by 2009. China has already forgiven approximately $1.5 billion in debt to Africa and has promised to do the same in the future.

Africa currently accounts for some 25% of China’s oil imports. In order to ensure continuous impetus in securing these imports, China continues to concentrate on resource-based investment; while, India’s stratagem in Africa is quite different.

Part 3: China and India Battle for Influence in Africa: Part 3

Web 3.0: Will Europe Overtake the U.S.? Part 1

Traditional Europe has been trying to catch up to the U.S. in the internet technology arena for years. Somehow Americans have been able to innovate or leverage new web technologies to stay on the cutting edge, ahead of Europe. A good example of this is Finnish engineer Olli Martikainen. In 1982, at VTT research institute in Finland, Olli initiated development of a router which sent streams of data from one computer to another. But the Finnish financiers of the project didn’t see any relevance of the technology, thus the project ended in 1986. Nevertheless, someone did see potential in this technology, and Cisco propelled to great success with similar technology. Read the rest of this entry »

China and India Battle for Influence in Africa: Part 1

So far, China is winning the race of influence for Africa’s resources, outpacing India in the level of investments. However, India, Africa’s traditional friend is ready for the challenge. China’s recent interest in Africa is tied to its thirst for oil, the main reason for an aggressive push into the continent. China’s average 9 percent economic growth rate over the last 20 years has created an ever growing demand for energy.

The Asian giant’s primary energy consumption grew by 8.4 percent in 2006, compared with 2.4 percent growth rate of global consumption. The growth in primary energy consumption by China accounted for 15.6 percent of global consumption. China’s reliance on oil imports was firm at 47 percent in 2006. In addition to oil, China needs raw materials. Also, the country’ lack of natural oil reserves has made it more dependent on imported oil.

The dependency on oil is also the bane of China’s neighbor India, the other Asian giant. Even though India is domicile to more than 15% of the global population, it uses only about 2.3 million barrels of oil per day which is 3% of daily global oil production. Comparatively, China consumes 7.6% of the global oil supply, a population nearly 20% larger than India’s. Meanwhile, the U.S. with a population 30% less than that of India’, imbibes more than 20% of global oil.

It is forecasted that by 2025, India will more than double its current oil consumption to over 5 million bpd. At the moment India is immensely dependent on oil imports, about 70% of India’s oil is imported. In order for India to sustain the economic progress, the thirst for oil and gas will only grow. Hence, India with concerted focus has made forays into Africa for investment.

Unlike China, India’s sincere approach resonates at a visceral level with Africans. India endears itself amongst the populace at a local level by promoting upliftment projects, thus garnering goodwill traction when seeking investment.

Recently, India inaugurated a pan-African e-network project that will link people in Africa’s 53 countries. The e-network will let hospitals and schools throughout the continent link with premier institutions in India. The Indian initiative of tele-medicine and tele-education will bring benefits of healthcare and higher education to the African people.

India hopes that this project will build upon traditional Indian goodwill and influence in Africa. India has deep historical, cultural, and trade ties with Africa dating back several centuries, and its support for the Non-Aligned Movement (NAM) and decolonization are well respected.

Nevertheless, India’s influence has been eclipsed by China’s. Over the years China’s interest in Africa has flowered.

Part 2: China and India Battle for Influence in Africa: Part 2

Subprime Mortgages Injurious to Fannie Mae and Freddie Macs Health?

The mortgage industry is again in the throes of controversy, Freddie Mac and Fannie Mae, darlings of the mortgage markets may be facing financial discomfort in the future. So far, the two private-sector companies which are sponsored by the federal government have bought billions of dollars of subprime mortgage home loans this year.

However, they may not be resistant to the allergic sneeze of the housing market. Cumulatively the two companies own or guarantee 45% of all residential mortgages in the U.S. As big players they have assumed more risk by obtaining a substantial chunk of subprime home loans.

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Nokia: Building on the No.1 Spot

The world’ largest cell phone maker missed the boat on the slim handset wave but it is not worried. The Finnish cellular phone giant is finally launching a slim handset, the Nokia 6300. The Nokia 6300 builds upon the company’ tradition of feature rich competitive mobile phones.

Nokia and Sony Ericsson did not initiate any slim cell phones during 2006, as Motorola continued dominance of the slim phone market with the Moto Razr. Motorola the No. 2 cellular company in the world grabbed the slim phone initiative; Nokia missed the opportunity to capitalize this market share.

Nokia has struggled in recent years to gain market share in the U.S. But in other countries it is a huge player. At the end of 2006, Nokia had 35.1% global market share, compared to 20.6% for Motorola, 12.2% for Samsung, and 6.9% for LG.

Nokia has done phenomenally well in penetrating emerging markets, especially Asia and Africa. In China, Nokia is filling in the gap left by Motorola, who once had the stronger presence. Motorola has been languishing from the effects of deteriorating phone prices amidst tough competition in emerging markets and against Nokia.

Nokia’ potency lies in its large range of phones that cater to high, mid, and low end consumers. Also Nokia’ strengths are its distribution systems and product innovations, where it has winning formulas tailored to each country. A good example: for India, Nokia produced dustproof keypads, critical in dry and unpaved areas of the Indian Subcontinent.

Ingenious and in-depth country-specific research and development efforts have helped propel Nokia to $3.7 billion in Indian sales for 2006. Now the company stands as a market leader in India, the fastest-growing cell phone market in the world.

However, it is in the U.S. where Nokia is in the constant shadow of Motorola and others. Nokia lost the No.1 spot in 2004 to Motorola mainly due to the lack of design advances such as the clamshell phone. It again lost the opportunity with the popularity of slim phones such as the Motorola Razr. The company has not been successful in penetrating beyond the low margin, bottom end cell phone market in the U.S.

But that may be changing soon. Nokia is establishing a new design studio in Espoo, Finland. It seeks to win back the U.S. market share that it had dominated for seven years previous to 2004 by elevating importance of design in product development.

Nokia now sees form as a critical part of function in the global arena. The company has come to the conclusion that fashion-conscious consumers exist at every level of the income spectrum; whether the consumer lives in a village in China or in Beverly Hills, aesthetics are important. The Nokia heritage of product innovation combined with new jazzed up design is going to be a tough formula for competitors to beat.