December 9, 2011 nº 1,123 - Vol. 9
The never-ending comedy that is Europe's sovereign-debt crisis has reached its Otter moment. That's when the world realizes the fundamental principle guiding every important government decision is this:
"I think that this situation absolutely requires a really futile and stupid gesture be done on somebody's part!"
The quote comes from the 1978 movie "Animal House"
In today's Law Firm Marketing, "I give to you -- and you give to me."
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EU-wide treaty change bid fails
Attempts to get all 27 EU states to back changes to the bloc's treaties to tackle the eurozone crisis have failed. Sarkozy said the 17 eurozone states and other EU members would work on a separate pact instead. Germany and France had been pushing for changes to the EU treaty, saying stricter fiscal rules should be made part of basic EU law. Merkel said the European Commission and the European Court of Justice would have more powers in future to enforce the rules, declaring: "We must make clear that we accept more co-ordination." But UK said an EU-wide deal "isn't in Britain's interests". Hungary also decided to remain outside the proposed treaty, while the Czech Republic and Sweden wanted first to consult with their parliaments. A decision to press ahead without changing EU treaties does have benefits for the eurozone bloc, because it is likely to be less time-consuming. Resolving the sovereign debt crisis is a process and this process will take years. Germany does not want to let the European Central Bank rescue governments by printing money or use its unlimited resources to fund the eurozone rescue fund, and it does not favour pooling the debts of all the eurozone member states together into so-called eurobonds. The European Central Bank differs from the Federal Reserve and the Bank of England in that they are not mandated to be the lenders of last resort - so they don't have to lend when the markets fail. The head of the ECB, Mario Draghi, hinted last week the bank might consider some kind of action if policymakers agreed on a "fiscal compact" for the euro area. There is also talk of the ECB contributing directly to the IMF, which in turn would lend to stricken member states or to the bailout fund.
The big threat: domino effect
The biggest threat for Europe, as debt rating keeps being downgraded, is the domino effect: how far could the eurozone's debt contagion spread. The sovereign debt crisis continues to unfold in Europe, with every country appearing to get sucked in. European leaders try to stop the contagion but attempts to solve the crisis keep stalling.
Which countries are most at risk and why?
- Greece (S&P: CC): Greece's huge debts, about 340bn euros ($478bn).
- Italy (S&P: A): Italy has the highest total debt in the eurozone, amid stagnant growth.
- Spain (S&P: AA): The housing boom turned to bust, leaving the country's banks loaded with bad debt and the highest unemployment rate in the eurozone.
- France (S&P: AAA): The country's banks bear a heavy exposure to Greek debt.
- Germany (S&P: AAA): Most of its neighbors are broke.
- UK (S&P: AAA): UK banks have a heavy exposure to Irish debt.
- Irish Republic (S&P: BBB+): The country's banking system collapsed.
- Portugal(S&P: BBB-): A shrinking economy straining its budget.
'Super-committee' on brink of US deficit failure
Talks in Washington aimed at cutting the US government's borrowing are on the verge of failure. A congressional "super-committee" was tasked in the summer with finding $1.2tn in savings to avoid automatic deep spending cuts. Meanwhile, the US national debt has just risen above $15tn. Without an agreement, the committee faces the prospect of being held responsible for automatic cuts totaling some $1tn to defense and domestic spending, due to come into effect in 2013. Disagreements have centered on whether tax increases should form part of the budget reduction measures, with Democrats in favor of such rises but Republicans opposed. If the committee fails, it is likely to have a major impact on financial markets, both at home and overseas. But any political failure is also likely to have a much broader effect on overall business and consumer confidence. If Americans are worried that Washington cannot work things out, they may rein in spending and damage the already weak US recovery.
Supreme Court hears arguments on biological patents
The US Supreme Court heard oral arguments Wednesday in two cases. In Mayo Collaborative Services v. Prometheus Laboratories, Inc., the court heard arguments on the ability to patent under 35 USC § 101 the body's biological reaction to different dosages of a certain type of drug. Prometheus Labs patented the tests doctors use for determining the appropriate dosage of drugs for treating Crohn's disease and other autoimmune diseases. Mayo Collaborative has argued that the tests look at "natural phenomenon" and that doctors violate the patents simply by mentally recognizing the correlation, regardless of what the doctors do with this knowledge. During the oral argument, petitioner Mayo Collaborative argued that the patent attempts to protect a "law of nature" instead of the "application of a law of nature," which restricts doctors' ability to make treatment judgments based on patients' reactions to drugs. Respondent Prometheus Labs argued that the courts have permitted similar patents in the past, that the current patent involves only a narrow range of drugs and that it will not prevent future improvements in the field.
ACLU asks Supreme Court to rule on gene patent case
The ACLU - American Civil Liberties Union and the PUBPAT - Public Patent Foundation on Wednesday asked the US Supreme Court to overturn a recent federal appeals court decision that upheld gene patents. The June decision by the US Court of Appeals for the Federal Circuit partially overturned a district court ruling and upheld the validity of gene patents that prevent non-patent holders from studying, testing or even looking at a particular gene. In a petition for writ of certiorari filed with the Supreme Court Wednesday, the ACLU claims: "The patenting of isolated DNA violates long-established Supreme Court precedent that prohibits the patenting of laws of nature, natural phenomena, products of nature, and abstract ideas. ... Patents on isolated DNA, whether small segments or whole genes, also violate the First Amendment because they block scientific inquiry into the patented DNA."
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1 - Death row inmate gets new trial because of tweeting juror - click here.
2 - Samsung loses bid to block Apple IPhone 4S sales in France - click here.
3 - Itau takes top Brazil Bank ranks from Citigroup, Rothschild - click here.
3 - Supreme Court upholds $48m award to farmers - click here.
4 - When lawyers become the accused - click here.
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China is sweetening its regulatory regime
China's antitrust regulators approved Nestle's $1.7 billion deal to buy candy maker Hsu Fu Chi International Ltd. It's a striking contrast to 2009, when a $2.4 billion bid by Coca-Cola to buy Huiyuan—one of China's largest juice makers-- was blocked, with Beijing claiming the deal would unfairly restrict competition. When Coke's bid came, the ink on China's new anti-monopoly law was not yet dry. That decision, viewed as a test for the new monopoly law, did China no favors. A nationalist tilt from Beijing made life more difficult for China's own firms when they attempted to make acquisitions overseas. Now, China's competition regime has evolved and the market is increasingly open to foreign business, at least in some sectors.
Workers strike at Shenzhen factory
Nearly 1,000 workers are striking for a fifth day in the southern Chinese city of Shenzhen, fearing a factory sell-off deal could hit their pay. Workers say benefits could be compromised if Japan's Hitachi Global Storage Technologies goes through with a proposed sale to a US firm.
"I give to you -- and you give to me"
When Cole Porter wrote this opening line to his song TRUE LOVE, he never imagined I'd use it to open today's Lawyer Marketing Alert.
The concept of giving and receiving is the principle we call reciprocation. The best discussion I have read is in Robert Cialdini's book INFLUENCE, first published in 1984 by William Morrow and Company.
Cialdini is a social psychologist and professor at Arizona State University. Back in the old days, in 1971, I had the good fortune of taking a social psychology class from Bob. Then, in 1985, right after his book came out, my wife, Stephanie, hired him to speak at a convention of nurses and diabetes educators.
Much of the following information comes from Bob's book, which I recommend as a classic on the subject of persuasion. His discussion of reciprocation and other principles is fascinating, partly because it contains the results of research studies that demonstrate the power of the principles.
In his book, Bob outlines six principles that persuade people at the sub-conscious level. Reciprocation is only one. In the marketing programs I create for lawyers, I build all six principles into our marketing message. In this way, our message persuades prospects at both the conscious and sub-conscious levels.
To quote Bob, the Rule of Reciprocation says: "People try to repay in kind what another person has provided us."
Here's the principle in action:
If I send you a birthday card, will you send one to me? Chances are good that you will.
If my wife and I invite you and your spouse to dinner, can we expect a similar invitation from you? Probably.
Here's the question: Why do we feel obligated -- sometimes deeply obligated -- to return the favor?
One reason is because we put negative labels on people who don't. We call them moochers, ingrates, or just plain greedy. So, to avoid being tagged with one of these labels, you and I go to great lengths to repay our debts, whether in cash, favors or gifts.
In fact, psychologists report that the rule of reciprocity is so strong that people return favors even if they don't like the other person -- just to relieve their tremendous feeling of obligation.
If you ask someone to do something and the other person says, "I'll call in a few favors," that person is telling you he has done favors for people from whom he now expects repayment.
Let's look at how reciprocation is used:
Free Samples That Aren't Free. In a grocery store, an attendant gives you a free sample of a new cheese. He/she explains that the company wants to see if shoppers like it. But the free sample's beauty -- (or power, depending on whether you're handing out cheese or eating it) -- is that the cheese is also a gift. As a result, the small cheese sample engages the reciprocity rule.
On the surface, the attendant appears to want to tell you about the new product. But underneath, he/she also stimulates your sense of obligation, which is inherent in the gift.
After customers receive a small taste of the cheese from the smiling attendant, many shoppers find it hard to simply walk away. So what do they do? They buy some of the cheese, even if they don’t like it. Why? To rid themselves of the sense of obligation.
You might say that they follow Newton's third law of motion: "For every action there is an equal and opposite reaction." (I knew someday I'd work that law into a conversation. But I never thought it would take me 37 years.)
Bottom Line: The customers eat the cheese, a gift they receive. The customers buy the cheese, a gift they give to the attendant and manufacturer.
One more example:
A person, company or group can trigger your sense of indebtedness by giving you a gift, even if you don't want it.
According to Cialdini, the Disabled American Veterans reports that its direct mail campaign requesting donations usually produces an 18% response. But when they include those personalized address labels in the envelope, the success rate nearly doubles to 35%. So even when the DAV gives us a gift that we might not want, we still respond to remove the burden of obligation.
One catch: Reciprocation does not work as well in a commercial setting. People feel less obligated to you when the reason behind your action is for a business purpose.
Here's how you can use the rule of reciprocation in your law firm:
1. Offer to send prospects free information by mail. Don't say that you hope they will do business with you because you sent the information. Instead, emphasize the you-to-me nature of your offer -- the fact that you're providing this information as a favor to help them and their family (or company) make good decisions. The more personal you make the offer -- and the more valuable the materials you send, the stronger their desire to return the favor.
2. Offer free information and advice through an article or ongoing column in the newspaper. The more you emphasize how much you want to help your readers, the more they will want to help you in return.
3. Offer free seminars so prospects can receive your information and advice in person. Don't say you're presenting a seminar as a community service. "Community" is so impersonal. Don't say you're presenting the seminar to get new business. Instead, emphasize that you're offering seminars so you can help people understand how to solve their problems. Or so you can help executives better manage their companies. The more person to person your offer, the more you benefit from their reciprocation.
4. Offer your free newsletter, either in print or by e-mail. Emphasize that you send it as a personal favor to friends and prospects on your mailing list. It's your gift to them -- and it's free. (Yes, I know all gifts are free. But this is marketing, so it pays to say both.)
5. Free web site. Point out that you have put information on your web site to help people who have legal problems. Whether you're targeting consumers or business clients, you're targeting people. And the more you emphasize your desire to help people -- as individuals -- the more reciprocation works for you.
6. Offer to add new people to your mailing list. Your message is: I offer you this information as a personal favor to you. In exchange, I hope you'll tell your friends so they'll join my mailing list, too.
You can see one way I use reciprocation by visiting my web site. On the opening page, below my picture, go to the message entitled "Hi! Welcome to My Web Site." In the third paragraph, I explain the favor I already did. Then in the fourth paragraph, I ask for a favor. To use Cialdini's term, mine is an uninvited favor because no on asked me to do it. I took the action myself.
Another way of getting someone to comply with your request is to turn the tables. I first heard Bob explain this when he spoke to my wife's group of nurses.
Bob gave this example: A nurse goes into a patient's hospital room and tries to persuade the patient to take his pills. To engage the rule of reciprocation, Bob suggested nurses say something like this: "I'm asking you to take those pills because I know, if I were in your shoes, you'd do the same for me." Even this hypothetical situation engages this powerful rule.
When you recommend that a prospect take action, you can use the same line: "I'm asking you to (take whatever action) because I know, if I were in your shoes, you'd do the same for me."
You can use the rule of reciprocation in negotiations, too. If you make a concession, you trigger a sense of obligation in the other party to also make a concession. I give to you -- and you give to me.
The rule of reciprocation works in so many settings. And you can trigger it in so many ways. I've hardly scratched the surface here. For a full discussion, order Bob's book or borrow it from your local library.
By the way, I hope you know that I provide this Lawyer Marketing Alert as a personal favor to you. It's my gift to you. And it's free.
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© Trey Ryder
FREE LAWYER MARKETING ALERT: If you'd like to receive Trey Ryder's weekly Lawyer Marketing Alert, send an e-mail to [email protected]. Write "Subscribe LMA" in the subject line and write your name and e-mail address in the body of the message.
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Western
Western Union, la principal compañía a la que se le permite hacer transferencias de dinero desde Estados Unidos hacia Cuba, informó a través de un comunicado que usará la vía electrónica para agilizar el servicio.
Negocios
Xinjiang Goldwind Science and Technology, la segunda mayor fabricante de equipos eólicos de China, obtuvo un contrato para suministrar 23 turbinas eólicas a un proyecto de parques eólicos en Ecuador.
Indemnización
El ejecutivo de Guatemala ofreció dar una compensación económica a los infectados con sífilis, gonorrea y chancros en experimentos médicos que realizó Estados Unidos entre 1946 y 1948 en este país. La Comisión Presidencial que investigó estos hechos y que encabezó el vicepresidente Rafael Espada se reunirá en próximos días con representantes de los médicos para determinar detalles de la compensación. (Presione aqui)
US Senate debates requiring televised broadcasts of Supreme Court proceedings
The US Senate Judiciary Committee returned Tuesday to the longstanding debate over whether to televise the proceedings of the US Supreme Court, including whether Congress, as an equal branch of government, has the authority to require the court to admit cameras.
Moody's downgrades 3 leading French banks
Credit rating agency Moody's has downgraded France's three big banks due to their difficulty borrowing money. The agency cut Credit Agricole and BNP Paribas from Aa2 to Aa3, and Societe Generale from Aa3 to A1. "Liquidity and funding conditions have deteriorated significantly" for each of the banks, Moody's said, adding that the problem was likely to worsen.
Obama backs morning-after ruling
Obama describes a decision to restrict access to the morning-after pill for girls aged under 17 as "common sense". The move overruled a Food and Drug Administration recommendation and has divided opinion in Washington. Health officials had worries about young girls having access to the drug. "When it comes to 12-year-olds or 13-year-olds the question is can we have confidence that they would potentially use Plan B properly?" he said. "Most parents would probably feel the same way," he added.
Putin accuses US over poll unrest
Putin accuses the United States of encouraging protests over the results of parliamentary elections. Putin said US Secretary of State Hillary Clinton "set the tone for some opposition activists". She "gave them a signal, they heard this signal and started active work", he said. Clinton maintained that her concerns were "well-founded". Election monitors have also been critical. Putin warned that those working for foreign governments to influence Russian politics would be held to account. The relationship seems to have been rebooted again and it has gone back to a much older, even Cold War, format.
Wikipedia probes PR firm's edits
Wikipedia has suspended at least 10 accounts linked to the public relations firm Bell Pottinger as it investigates allegations of content manipulation. It claims the lobbyists had "embarrassed their clients". Wikipedia looking at possible breaches of conflict of interest guidelines. Bell Pottinger admitted to editing entries, but said it had "never done anything illegal". This raises the highly critical issue of ethics. PR firms generally have ethical guidelines that would prevent this kind of conduct.
France parliament backs proposal to ban prostitution
The French parliament approved a proposal on Wednesday to ban prostitution. The non-binding resolution was backed by a show of hands and is expected to be followed by a bill. Prostitution is not currently outlawed in France although certain linked activities are. France's sex worker's trade union, STRASS, opposes the proposed bill, claiming that it would further repress sex workers by endangering their health, livelihood and safety. However, French-led men's initiative ZeroMacho approved of the attempt to criminalize prostitution. A vote on the bill is expected in the coming days.
Two die in Virginia Tech shooting
Two people have died in a shooting at Virginia Tech university, including a campus police army veteran. The incident came on the same day as Virginia Tech appealed against a $55,000 fine imposed by the US Education Department for not reacting quickly enough to the April 2007 massacre.
UK launches action plan to promote transgender equality
The UK Home Office Government Equalities Office on Thursday announced the UK's first ever government action plan promoting transgender equality. The plan stated that there was a 14 percent rise in transgender-related hate crime between 2009 and 2010 and that only two EU member states explicitly address transgender hate crimes in their hate crime legislation. The report proposed amending Section 146 and Schedule 21 of the Criminal Justice Act 2003 so that crimes motivated by hostility towards transgender individuals are considered hate crimes and that the minimum sentence for murders motivated by hostility towards transgender individuals be 30 years. This is double the current minimum sentence.
Malawi to review controversial anti-homosexuality law
Malawian Justice Minister Ephraim Chiume said Thursday that President Bingu wa Mutharika has ordered the Malawi Law Commission to review several controversial laws, including a law banning homosexual acts. Chiume stated that the review was in response to public criticism. Commentators suggest that the purpose of the review of the ban on homosexual acts is to attract US aid. On Tuesday US Secretary of State Hillary Clinton announced that the US would use foreign assistance, international diplomacy and political asylum to promote LGBT rights internationally.
Wal-Mart discloses corruption probe
Wal-Mart has begun an internal investigation into whether some of its workers violated the Foreign Corrupt Practices Act, the U.S. law that prohibits bribery overseas.
Blagojevich sentenced to 14 years in prison
Disgraced former Illinois Governor Rod Blagojevich has been sentenced to 14 years in prison for corruption. He was found guilty in June of 17 counts of graft, including trying to sell the US Senate seat once held by Obama. At the sentencing in Chicago, he said he was "unbelievably sorry" and had made "terrible mistakes".
Mexico authorities disrupt Gaddafi son attempt to enter country
Saadi Gaddafi, son of deceased former Libyan leader Muammar Gaddafi, was implicated Wednesday in a plot to flee to Mexico by the Secretary of the Interior. The announcement described the disruption by Mexican intelligence officials of an international criminal gang that had created false documents, purchased property and made other arrangements in preparations for Gaddafi's arrival. A government spokesperson said that the action, called Operation Houseguest, was, "to prevent the realization of a plan that would permit the illegal entry of Saadi Gaddafi, son of former Libyan ruler Mummar Gaddafi, as well as his family into the national territory, this from intelligence obtained on September 6." The people arrested included citizens of Mexico, Canada and Denmark.
Brazil lawmakers approve controversial amendments to forest code
The Brazilian Senate voted 59-7 Tuesday to approve amendments to the country's Forest Code. Supporters of the bill, including Brazil's National Agriculture and Livestock Federation, say that this change will assist in lowering the carbon emissions while continuing to require farmers and ranchers to preserve significant amount of forest. On the other hand, critics of the new bill, such as the World Wildlife Fund (WWF) argue, that the new bill will create extended amnesty for those who cut down the forest illegally and promote the continuance of such practice. The amended legislation will now return to the lower house, which approved an earlier version in May, and then to President Dilma Rousseff. It remains to be seen how these changes to Brazil's Forest Code will affect deforestation and the global climate.
Remains of 274 US troops 'dumped'
Incinerated remains of at least 274 US troops were reportedly disposed of at landfill over several years by America's largest military mortuary. Families, who had agreed for the remains to be disposed of respectfully, were unaware of the practice. Pentagon officials did not authorize the procedure, which was reported by whistleblowers.
Dirty secret in soap pricing
France's competition commission detailed an alleged scheme to fix prices on detergent, leading to $484 million in total fines levied against Procter & Gamble, Colgate and Henkel.
Bank of America settles investor claims of deception
Bank of America agrees to pay $315m to investors who say they were misled about mortgage backed securities sold by the firm.
U.S. Attorney General Holder grilled over gun sting
Eric Holder conceded at the hearing that the tactics of Fast and Furious - using weapons as bait to track down gun runners - were "wholly unacceptable" and "must never happen again."
Brussels summit rejects EU-wide treaty change
Al Jazeera, Doha, Qatar
Eilat bomb mastermind killed in Gaza strike: Israel
Asharq Al-Awsat, Pan-Arab daily, London, England
Israeli air strike kills two Hamas men in Gaza
Egyptian Gazette, English-language, Cairo, Egypt
IAF strikes Hamas base in Gaza, Palestinians report civilian casualties
Haaretz, Liberal daily, Tel Aviv, Israel
'Egypt working to restore Gaza, Israel calm'
JPost, Conservative, Jerusalem, Israel
UK stays out of euro crisis deal
BBC News, Centrist newscaster, London, England
Eurozone leaders: New deal without UK
CNN International, London, England
Dozens dead in India hospital fire
Daily Express, Conservative tabloid, London, England
Paramedic refuses to carry dying girl, 14, who collapsed on cross country run 'because medic had a bad back'
Daily Mail, Conservative daily, London, England
Sherlock Holmes: A Game of shadows: Jacqui Ainsley vamps it up in a revealing suit and slicked hair for premiere
Daily Mail, Conservative daily, London, England
Tymoshenko 're-arrested' in Ukraine prison cell
EuroNews, International news, Ecully Cedex, France
EUROZONE: Eurozone to forge ahead as UK blocks treaty change
France 24, Issy-les-Moulineaux, France
Gaza official: Israeli airstrike kills one civilian
Independent The, London, England
Moscow uncorked
Moscow News The, Independent, Moscow, Russia
The profiteers have failed our exam system
Telegraph The, Conservative daily, London, England
Is it curtains for the celebrity memoir?
Telegraph The, Celebrity news, London, England
Toyota halves profit forecast
Bangkok Post, Independent, Bangkok, Thailand
European Union weighs greater unity to save euro
China Post, English-language daily, Taipei, Taiwan
Korea Could Benefit from Immigration
Chosun Ilbo, Conservative daily, Seoul, South Korea
Zardari had stroke, facial paralysis: Report
Hindustan Times, New Delhi, India
Puri beach swallows 78 tourists in three years
India Times, Conservative daily, New Delhi, India
'Genji Monogatari: Sennen no Nazo (Tale of Genji - A Thousand Year Enigma)'
Japan Times, Independent centrist, Tokyo, Japan
Internet plea keeps 'in love' sheep, deer together
New Zealand Herald, Conservative daily, Auckland, New Zealand
5,300-year-old iceman mummy
People's Daily Online, English-language, Beijing, China
2nd child shot by mum in Texas welfare office dies
Straits Times, Pro-government, Singapore
Iran's TV shows intact US spy drone, Iran claims they hack into it
Taiwan News, English-language daily, Taipei, Taiwan
US economy expands 2% in September quarter
The Economic Times, Business, Mumbai, India
Mountie in harassment probe 'probably' should have lost job
Canadian Broadcasting Centre, Toronto, Ontario
Six decades later, Dutch apologize for Indonesian massacre
Globe and Mail The, Centrist daily, Toronto, Canada
RBI's Reference Rate for Dollar Today
International Business Times, Business news organization, New York, U.S
HONDURAS: Indigenous Cooperatives Cultivate Success
IPS Latin America, International cooperative of journalists, Rome, Italy
EU leaders falter on treaty change
Reuters, Business News, New York, U.S
U.S. Occupy camp in Boston lives on past deadline
Reuters, World News, New York, U.S
Cox: Here we go again, Ontario Teachers to sell stake in MLSE?
Toronto Star, Toronto, Ontario
DR Congo results delayed further
BBC News, Centrist newscaster, London, England
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