KENNESAW STATE UNIVERSITY THESENTINEL TU ESDAY, OCT. 26, 2010 VOL. 46 ISSUE 10 SINCE 1966 WWW.KSUSENTINEL.COM KENNESAW, GA CULTURE REVIEW IN MEMORIAM GOP: ‘BRB’ Chad Wilson Jam right Page 8 Page 7 Page 11 Kings, queens, parades: Homecoming 2010 and floats that were decorated Owl royalty: 2010 Anastasia Henke by campus organizations, along STAFF WRITER with marching students from Homecoming court School spirit engulfed the student groups. campus green on Oct. 22, as the King - Justin Davis The parade weaved its way Delta Tau Delta fraternity first annual “Owl Prowl” was around campus and ended in a held for KSU’s Homecoming. huge celebration on the green, Queen - Meredith Head The “Prowl” featured all where there were several activi- Phi Mu fraternity kinds of events for students, ties set up for students as well alumni, faulty and community Prince - Will Potts assorted local vendors such as Pi Kappa Alpha fraternity members alike to join in the Godiva, Smoothie King and festivities. Apple that were represented in Princess - Maria Pacheco Freshman biology major booths along the track. Alpha Omicron Pi fraternity Katherine Rigsby said she had KSU clubs and organizations a blast at the festival: “It was Duke - Moises Guerra also had booths and gave out Delta Tau Delta fraternity great to see all the students free food to passersby. The food unified at one event. Everyone was fall-related and carnival- Duchess - Jessica Hickman was having a lot of fun. The themed. Most people walked Delta Phi Epsilon sorority free stuff was awesome too.” around with caramel apples, hot The homecoming parade, Lord - Mike Parker dogs or cotton candy. Delta Tau Delta fraternity which began at 4 p.m. in Lot In addition, the United States Greg Ranallo | The Sentinel A, had a variety of vehicles See HOMECOMING Page 2 Lady - Goldie Wong King Justin Davis and Queen Meredith Head celebrate Delta Phi Epsilon sorority their new titles. A portrait of ruin How the economic recession began, and what experts are saying we have to do to get out of it James Swift CULTURE EDITOR A map from the CIA World Factbook displaying the GDP Real Growth Rates for 2009 According to Dr. Donald Sabbarese, professor of Economics, Finance & Quantitative allowed banks from around the world to invest in these instruments.” Analysis at KSU, there is no lone culprit behind the country’s ongoing economic woes. Sabbarese stated that institutes such as HUD, Fannie Mae and Freddie Mac expedited the “It’s a combination of government intervention in the housing market, greed on the part domestic recession by lowering credit standards for homeowners. of mortgage lenders and financial innovation and greed of investment banks that allowed for “I supported some parts of the TARP bailout,” Sabbarese said. “I believe the the marketing of these financial instruments all over the world,” said Sabbarese. “The cur- systemic effect of large financial institutions such as AIG entering bankruptcy would rent state of the economy is slow growth for the remainder of 2010. The headwinds from the have been catastrophic to the financial system.” However, Sabbarese said that he was weak housing and banking sectors and the weak labor market will continue to constrain the opposed to the bailouts of several companies, such as General Motors and Chrysler, growth rate for 2011.” and he believes that special bankruptcy courts should be established to handle prob- Sabbarese believes that credit problems, largely concentrated in the United States and lems with non-financial institutes. Europe, were the catalyst for the global economic downturn that began in late 2007. “[Euro- Sabbarese believes that the biggest contributors to the National Debt are foreign pol- pean and American banks and financial institutions] invested heavily in securitized debt that icy investments and entitlement programs such as Social Security and Medicaid, which was backed by so called ‘toxic mortgage debt’,” Sabbarese said. “Mortgage-backed securities See ECONOMY Page 2 2 • KENNESAW STATE SENTINEL NEWS Oct. 26, 2010 ECONOMY continued from Page 1 HOMECOMING continued from Page 1 he believes compounds the National of Economic Research released a to recognize the quarter when Real Debt by trillions of dollars. Sabbarese report that stated that the economic GDP becomes positive,” Sabbarese also says that the U.S. trade deficit has recession came to finality in June said. “Having said that, the rate of greatly hampered domestic growth for 2009. Like many analysts, Sabbarese is positive growth once the recovery the economy. quite wary of the institute’s claims. begins will determine the level of job “The U.S. has a large trade deficit “It all goes back to how they de- growth. Ultimately if businesses are with the rest of the world, because fine the start of a recovery. The NBER not convinced that their business is we are a consumer nation,” Sabbarese uses criteria of real GDP growth sustainable as well as the overall econ- said. “China and Japan have large and some other measures such as omy, they will remain cautious about trade surpluses with the U.S. which industrial production, employment hiring new workers. That’s where the has led to their investing and holding and real income. Normally they try economy is at this point in time.” huge amounts of dollar denominated assets, such as U.S. Treasury Securi- ties. In other words, they are funding What the economists are saying Greg Ranallo | The Sentinel our debt with the surplus dollars from Several heavies of the financial world weigh in on how they’d remedy the economy The Homecoming Court parades around the field during halftime the trade deficit.” at the soccer game versus Mercer University on Saturday. Sabbarese believes that there isn’t a “quick fix” on the horizon for the Ben Bernanke, Chairman of the United States Federal Reserve Army brought a portable rock climbing wall and ongoing recession. “To avoid inflation in the long run and to allow short-term interest rates ulti- students raced each other to the top. “The Federal Reserve’s two most mately to return to normal levels, the Fed’s balance sheet will eventually have to be The longest line, however, was for the inflatable important responsibilities are to main- brought back to a more sustainable level.” (12-01-08) obstacle course. “I kicked some major butt,” said tain the financial stability of the U.S. freshman nursing major Amber Kasinger. “I took banking system and to implement a Joseph Stiglitz, Nobel Prize winning professor at Columbia University it as an opportunity to show my boyfriend who monetary policy strategy to create and “We need to impose other regulations to improve the safety and soundness of was boss.” maintain an economic environment for our financial system, such as “speed bumps” to limit borrowing. Historically, rapid As the parade and carnival ended, the real show growth,” said Sabbarese. expansion of lending has been responsible for a large fraction of crises and this was just beginning. MUTEMATH, a Grammy- “Some argue that extending accom- crisis is no exception.” (12-17-08) nominated, New Orleans-based band, took the modative policy over a long period of stage in front of Kennesaw Hall a little after 6 time can be inflationary in the long- Nouriel Roubini, professor at NYU and Chairman of Roubini Global Economics p.m. The band drew a large crowd with their run, [while] other economists argue “The right way to resolve a problem of excessive debt relative to equity ground-shaking volume and lyrics. this policy is necessary to fight against capital is to reduce such debt and convert it into equity. Corporate debt The “Owl Prowl” was the first event of its kind the possibility of deflation and anemic and the financial sector’s unsecured liabilities should be converted into at KSU and served as the final school-spirited job growth,” Sabbarese said. “This is equity. Even household debt can be converted into equity by reducing the event before Saturday’s homecoming game and an obvious area of contention among principal value of mortgages and providing an equity upside to the mort- the crowning of king and queen. economists.” gage creditor in the form of a warrant.” (05-28-09) For more information about the MUTEMATH In September, the National Board concert, see Page 3 and online at KSUSentinel.com. Accounts just for you! EdgesM savings Account A great way to save5.00% and earn a high APy* rate! 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