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Merci de choisir un ou plusieurs textes plutôt que d'imprimer la totalité... Les arbres vous sont reconnaissants...

C'est une reprise de la semaine dernière avec quelques rajouts...

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Week 7, 2005
THE BEST SELLERS (recent popular articles -- aller savoir pourquoi, mais ceux-ci plaisent encore !):

Bb) CNN/Global Office: Monday morning bad for your health [Le lundi au boulot, c'est mauvais pour la santé.]
Bc) CNN/Global Office: Ancient and modern management [Alexandre le Grand, un modèle pour les PDG d'aujourd'hui ?]
1b) Los Angeles Times: Costs make employers see smokers as a drag [Des entreprises américaines commencent à exclure les fumeurs de leur personnel. VOIR ARTICLE 1 POUR LA SUITE.]
2b) International Herald Tribune: Writing clear English [Les entreprises américaines renvoient leurs salariés à l'école pour apprendre à écrire convenablement un anglais déformé par l'e-mail et les SMS.]

2c) Slate/Foreigners: Is France Getting Religion? [Constat d'une reprise de la religion dans les banlieues parisiennes.]

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THE REGULARS: Summary

A) Le texte plus abordable de la semaine/Scholastic News: One bracelet at a time [La mode des bracelets caritatifs, vue du bon côté. POUR UN REGARD PLUS SCEPTIQUE VOIR TEXTE 3.]
B) Executive Planet/Business Culture: Guide to business conversation in the US [Un petit guide pour bien converser avec vos contacts d'affaires AUTRICHIENS.]
C) Car Talk/The Puzzler: Fuel economy [Un casse-tête. Comment faire pour réduire la consommation en carburant du foyer ? On ne triche pas !]

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THIS WEEK'S TEXTS: Summary
1) Los Angeles Times: Where there's smoke, it wouldn't lead to firing [Un législateur du Michigan propose d'interdire les sanctions contre des salariés fumeurs. VOIR TEXTE 1b.]
2) The Onion: Racial Harmony Achieved By Casting of Black Actor as Teen Computer Whiz [HUMOUR : article satirique sur l'écart entre la discrimination positive symbolique et la réalité du racisme.]
3) Slate/Chatterbox: The Wristband Gap [Le foisonnement de bracelets caritatifs comme celui de Lance Armstrong génère des effets néfastes. VOIR AUSSI TEXTE "C" CI DESSUS.]
4) The Economist: London's Buses [La nouvelle politique des transports de Londres favorise les bus, mais à quel prix ?]
5) The Economist: The trouble with banks [Les banques, un mal nécessaire ? Comment gérer le risque du financement sans le savoir faire des banques ?]
6) Slate/Surfergirl: In the future, everyone will have health care for 15 minutes. [Une nouvelle émission de reality-TV aux USA promet de fournir des soins médicaux à des personnes méritantes... Vive la Sécu !]
7) Slate/Dear Prudence: The Mother Fusser [Prudence répond à vos questions sur la vie sentimentale et la vie tout court. Trois lettres cette semaine, l'une d'une femme dont la mère a fait une enquête de moralité sur son nouveau copain, une autre d'une femme qui vie avec un gars depuis des années alors qu'il est toujours marié à une autre, et la troisième d'une femme (eh oui) qui a une relation à longue distance avec un type qui refuse que l'un ou l'autre change d'état de résidence pour qu'ils soient plus proches.]

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Bb) CNN/Global Office: Monday morning bad for your health [Le lundi au boulot, c'est mauvais pour la santé.]
http://edition.cnn.com/2005/BUSINESS/02/03/monday.pressure/index.html
Monday morning bad for your health
Thursday, February 3, 2005 Posted: 1735 GMT (0135 HKT)

(CNN) -- Monday mornings could seriously damage your health, according to new research. A study carried out by Japan's Tokyo Women's Medical University and published in the American Journal of Hypertension showed that many workers suffer a significant increase in blood pressure as they return to the office after the weekend.

High blood pressure is associated with a greater risk of suffering a heart attack or a stroke, and the results could help to explain why there are more heart attacks on Mondays than at any other time of the week.

Research published several years ago in the British Medical Journal showed a 20 percent spike in heart attacks at the beginning of the week. In the latest study, 175 men and women were fitted with devices to measure fluctuations in their blood pressure over the course of a week. The results showed a surge among those getting ready for work on Monday morning. Volunteers who were not going to work didn't experience a comparable increase, suggesting a link between increased blood pressure and work-related stress.

"Most people are free of the mental and physical burdens of work on a Sunday and experience a more stressful change from weekend leisure activities to work activities on Mondays," said Dr Shuogo Murakami, who led the research.

High blood pressure could also be caused by the stress of commuting. British psychologist Dr David Lewis recently showed that commuters suffered higher levels of stress than fighter pilots during their journey to work, with many recording increased heart rates at levels more usually associated with vigorous exercise.

Belinda Linden, Head of Medical Information at the British Heart Foundation, said a morning peak in blood pressure and the fact that more heart attacks occurred on Monday than on any other day of the week were both recognized by researchers. But she added that "larger and better controlled studies" were needed to establish the cause of the trends. "This relatively small study looks at the weekly variations of blood pressure, and has found that Monday morning provides the highest peak," said Linden. "Although it is tempting to try and explain these findings, and to assume that the return to work is a factor, the constraints of this study mean we cannot be sure of the causes of this variation."

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Bc) CNN/Global Office: Ancient and modern management [Alexandre le Grand, un modèle pour les PDG d'aujourd'hui ?]
http://edition.cnn.com/2005/BUSINESS/01/18/alexander.guru/index.html
Ancient and modern management

Tuesday, January 18, 2005 Posted: 1620 GMT (0020 HKT)

(CNN) -- The short, spectacular life of Alexander the Great has always been Hollywood material. By the time of his death aged just 32 in 323BC the Macedonia-born Alexander had conquered the ancient world, extending his empire across one million square miles from Greece to India.

In his latest screen incarnation, Alexander, played by Colin Farrell in the eponymous Oliver Stone-directed epic, is portrayed as the greatest warrior in history.

But many business experts believe the lessons of Alexander's career have as much relevance for boardroom as battlefield strategists. According to Partha Bose, author of "Alexander the Great's Art of Strategy", modern executives can learn from Alexander's campaigns in three key areas. "It fundamentally boils down to three things: it is where you want to compete, when and how you want to enter or exit that market and how do you want to go about competing when you are in that market," says Bose. "Those are fundamentally the three key strategic issues and again when you take a look at Alexander the Great's history you find that he was pretty much the first ever general to systematically think through those three key issues. "Strategy is only as good as the organization's ability to execute it. Here again, there are lessons from ancient times."

One modern manager who has drawn inspiration from Alexander's campaigns is Federal Express founder and CEO Fred Smith. "Primary was his organizational skills," says Smith. "He organized his army in a way that had never been done. That organization allowed him to play to his strengths, minimize his weaknesses and prevail over opponents who were much larger."

In Oliver Stone's cinematic portrait, Alexander's greatest achievement comes at the Battle of Gaugamela where his 50,000-strong Macedonian army defeats the forces of the Persian king Darius, five times its size. Stone believes Alexander's tactical flexibility and willingness to delegate authority gave him a decisive military advantage. "He had great instincts in battle," Stone told CNN. "He was very fluid, always changing as the battle developed. He was quick to react. Alexander was a great believer in teamwork and he delegated authority beautifully. "The Persians could not move without central approval. It was all governed by Darius in the center. Alexander went for the head. He knew that if he killed Darius he would kill the snake."

Bose agrees that delegation and instinct were central to Alexander's thinking. "We see him trusting a nine-year-old shepherd boy, and getting this shepherd boy to lead the entire army over the Uxion mountains in Persia," he says. "There are many other situations where he would put his trust just like that in whoever it was he encountered. But a sign of great leadership is that great leaders know whom to trust and do put their faith in lots and lots of people."

But for all Alexander's improvisational abilities on the battlefield, his achievements were also a consequence of careful preparation and forward thinking. "We know that there was significant rehearsal and planning," says Stone. "They even had markers, they drew marbles of the enemy, they drew carved statues and they made battle plans like they do at West Point today."

In war, Alexander could be a brutal and cunning opponent. Yet his empire was founded on a respect for local cultures and a belief that peace and internal stability could only exist through prosperity. "All throughout his life you see Alexander going out of his way to embrace other cultures, and the cultures that he did invade saw that he wasn't trying to impose on them his way of doing things," says Bose. "What was happening was that the local culture and the Greek culture would melt together in ways that even the people who were conquered found quite interesting and innovative. The Nestles, the Unilevers or the Procter and Gambles of the world have been able to succeed across the globe because none of them imposed a system on the nations they were going into that came from their origins. They all worked out something that was in line with the local cultures and local tastes, and that is what globalization is all about. So there are really a lot of great leaders and part of their greatness lies in being able to adapt themselves to the local cultures."

Smith, who describes Alexander as "the first truly global thinker," says Federal Express have tried to emulate that approach when moving into new markets. "We have to deal with different cultures, attitudes, different people. Doing that is part of our company's success," he says. "I think Alexander was the first person who did that successfully. He didn't just capture and enslave them. He was enormously successful in putting together a truly global empire."

-- CNN's Robyn Curnow contributed to this report.

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1b) Los Angeles Times: Costs make employers see smokers as a drag [Des entreprises américaines commencent à exclure les fumeurs de leur personnel. VOIR ARTICLE 1 POUR LA SUITE.]

http://story.news.yahoo.com/news?tmpl=story&e=5&u=/latimests/20050128/
ts_latimes/costsmakeemployersseesmokersasadrag

Costs Make Employers See Smokers as a Drag
Fri Jan 28, 7:55 AM ET
By Daniel Costello Times Staff Writer

Employers have recently tried every carrot they can think of — including cash incentives and iPods — to persuade employees to quit smoking. Now some are trying the stick.

Pointing to rising health costs and the oversized proportion of insurance claims attributed to smokers, some employers in California and around the country are refusing to hire applicants who smoke and, sometimes, firing employees who refuse to quit.

"Employers are realizing the majority of health costs are spent on a small minority of workers," says Bill Whitmer, chief executive of the Health Enhancement Research Organization, an employer and healthcare coalition in Birmingham, Ala.

Federal and state laws bar employers from turning down applicants or firing workers based on race, religion or gender. Some states have enacted laws offering similar protections for smokers. But experts say workers in nearly half the states, including California, have few legal options if employers decide to prohibit them from smoking outside the workplace.

Employees in many states "work at the discretion of their employers and can be terminated for almost any reason as long as it's not illegal," says Stephen Sugarman, a law professor at UC Berkeley.

Last fall, Union Pacific Corp., an Omaha-based transportation company, stopped hiring smokers in seven states. Company executives said the move was made to help quell employee health costs, which have jumped more than 10% each of the last three years. Weyco Inc., an employee benefits firm with 200 employees in Okemos, Mich., began random drug tests for nicotine on Jan. 1, saying it would fire workers who failed the test or refused to quit smoking. (Four Weyco employees resigned rather than take the test, says the company's president, Howard Weyers.) The Riverside County Sheriff's Department plans soon to require applicants for deputy sheriff positions to sign a no-smoking agreement.

In most cases, employers are asking workers to report their smoking habits voluntarily or adding disclaimers such as "nonsmokers only" to job postings. Others are requiring workers to take breathalyzer tests that can catch traces of carbon monoxide in their lungs or submit to urine tests to detect nicotine.

A sheriff's office in Florida is asking job applicants who have a recent history of smoking to pass a polygraph test proving they no longer smoke outside of work.

Employees, workers' rights groups and some unions are decrying the smoking bans as an invasion of individual rights. "What you do in your own home after work or on the weekend is none of your bosses' business," says Lewis Maltby, president of the National Workrights Institute in Princeton, N.J., a spinoff of the American Civil Liberties Union (news - web sites). "The last time I checked, tobacco is a legal product." Maltby says his organization is trying to persuade some states to pass broader worker-protection laws.

Critics of the smoking bans say it's not clear that smokers are more costly than other workers, such as people who are obese. Though some studies have shown that smokers have higher absentee and lower productivity rates than nonsmokers, economists say the research is limited. It's possible, they say, that smokers don't dramatically increase health costs with chronic and expensive conditions like emphysema, heart disease and cancer until they're much older, when they may be employed elsewhere or retired. "It sounds right for employers to say, 'If we get rid of them, we'll save money.' But no one has the concrete data to prove that right now," says Tom Morrison, senior vice president of Segal Co., an employee benefits consulting firm in New York.

Although smoking rates continue to fall across the country — an estimated 23% of adults smoke today, down from 37% in 1970 — employers say they need to find new ways to rein in health costs. According to the Kaiser Family Foundation, a health policy group based in Menlo Park, Calif., health insurance premiums rose 11.2% last year, the fourth consecutive year of double-digit growth.

Some companies have begun charging smokers higher health insurance premiums and forcing others into employee wellness programs filled with smoking-cessation plans. Last month, Alabama announced plans to raise insurance rates on public employees throughout the state who smoke, and it is considering doing the same with obese workers. And, of course, many employers have banned smoking within the workplace for years.

In December, a national study by the Society for Human Resource Management found that nearly a third of U.S. employers polled had smoking-cessation programs; 5% prefer not to hire smokers and 1% refuse to hire smokers.

Weyers, of Weyco, says he instituted his new employee smoking policy after realizing that "if I don't do something to change employees' demand for healthcare, I'll never do anything about costs." Weyers estimates he now spends $750,000 a year on employee health premiums, and he worries he can't absorb many more cost increases. The company self-funds its insurance plan so any reduction in health costs would bring immediate savings.

Weyers says that though some employees complained about the smoking ban — and several left — most employees have slowly come to accept the new policy. The company estimates that about 10% of its workforce smoked and calculates that 28 employees and their spouses have quit since the new initiative was announced a year ago.

Critics are concerned that if more companies follow suit, it will lead to other employer intrusions on workers' lives. What is to stop companies from telling workers they can't ride motorcycles? Or eat junk food?

Legal protections of off-work activities vary considerably around the country, with the general rule giving employers the right to fire an employee for nearly any reason. Employees in Colorado are protected in most legal behaviors outside of work, whereas those in New York are protected when engaging in specific activities like recreation, politics and consumption of legal products. California has less protection around workers' off-the-job behavior, although they can participate in political organizations. California prohibits random employee drug testing other than for job applicants and workers in high-risk occupations such as trucking or medicine.

Maltby, of the Workrights Institute, says employees are facing a variety of challenges to their freedoms outside of work. A worker in Texas was fired in 2003 for having an affair off the job. This fall, a woman in Alabama lost her job for refusing to remove a John Kerry (news - web sites) bumper sticker from her car. (She was later hired by the Kerry campaign.)

Sugarman, of the University of California, says big employers may shy away from "paternalistic behavior," such as banning smoking outside of work, because it could make it more difficult to recruit and retain workers. Union Pacific says it will allow some exceptions to its policy. The company will hire a smoker if it cannot find another suitable applicant, a company spokeswoman says.

Michael Halpern, a physician and health researcher at Washington, D.C.-based consulting firm Exponent Inc., has studied smoking-related costs for employers. His research suggests that smokers may have higher rates of absenteeism because they are more likely to suffer from upper respiratory infections and other illnesses. Also, smokers may be more likely to have less healthful lifestyles, such as poor diets and infrequent physical activity. Still, he recommends employers stick with positive incentives to entice smokers to quit.

"My feeling is that the data is just too limited to support" drastic moves such as firing, he says

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2b) International Herald Tribune: Writing clear English [Les entreprises américaines renvoient leurs salariés à l'école pour apprendre à écrire convenablement un anglais déformé par l'e-mail et les SMS.]

http://www.iht.com/articles/2004/12/08/business/email.html

Challenge for office: Writing clear English
By Sam Dillon The New York Times
Thursday, December 9, 2004

Deficit found as e-mail replaces phone

BLOOMINGTON, Illinois Craig Hogan, a former university professor who heads an online school for business writing here, received an e-mail message recently from a prospective student. "i need help," said the message, which was devoid of punctuation. "i am writing a essay on writing i work for this company and my boss want me to help improve the workers writing skills can yall help me with some information thank you"

Hogan receives hundreds of e-mails monthly from managers and executives seeking to improve their writing or their workers' writing each month. He says the number has surged as e-mail has replaced the phone for much workplace communication. Millions of employees must write more frequently on the job than previously. And many are making a hash of it. "E-mail is a party to which English teachers have not been invited," Hogan said. "It has companies tearing their hair out."

A recent survey of 120 American corporations reached a similar conclusion. The study, by the National Commission on Writing, a panel established by the College Board, concluded that a third of employees in major U.S. companies wrote poorly and that businesses were spending as much as $3.1 billion annually on remedial training. The College Board is a U.S. organization that helps students going to college.

The problem with writing shows up not only in e-mail but also in reports and other texts, the commission said. "The more electronic and global we get, the less important the spoken word has become, and in e-mail clarity is critical," said Sean Phillips, recruitment director at Applera, a California company that makes equipment for life science research, where most employees have advanced degrees. "Considering how highly educated our people are, many can't write clearly in their day-to-day work."

"It's not that companies want to hire Tolstoy," said Susan Traiman, a director at the Business Roundtable, an association of leading chief executives whose corporations were surveyed in the study. "But they need people who can write clearly, and many employees and applicants fall short of that standard."

Millions of inscrutable e-mail messages are clogging corporate computers by setting off requests for clarification, and many of the requests, in turn, are also chaotically written, resulting in whole cycles of confusion.

For example, an e-mail from a systems analyst to her supervisor at a high-tech corporation in Palo Alto, California, said, "I updated the Status report for the four discrepancies Lennie forward us via e-mail (they in Barry file).. to make sure my logic was correct It seems we provide Murray with incorrect information ... However after verifying controls on JBL - JBL has the indicator as B ???? - I wanted to make sure with the recent changes - I processed today - before Murray make the changes again on the mainframe to 'C'." That message persuaded the analyst's employers that she needed remedial training.

Some $2.9 billion of the $3.1 billion the National Commission on Writing estimates that corporations spend each year on remedial training goes to help current employees, with the rest spent on new hires. An entire education industry has developed to offer remedial writing instruction to adults, with hundreds of public and private universities, for-profit schools and freelance teachers offering evening classes as well as workshops, video and online courses in business and technical writing.

Kathy Keenan, a former legal proofreader who teaches business writing at the University of California Extension in Santa Cruz said she sought to dissuade students from sending business messages in the crude shorthand they learned to tap out on their pagers as teenagers. "hI KATHY i am sending u the assignmnet again," one student wrote to her recently. "i had sent you the assignment earlier but i didnt get a respond. If u get this assgnment could u please respon. thanking u for ur cooperation."

Most of her students are midcareer professionals in high-tech industries, Keenan said.

Even chief executives need writing help, Roger Peterson, a freelance writer in Rocklin, California, who frequently coaches executives, said. "Many of these guys write in inflated language that desperately needs a laxative," Peterson said, and not a few are defensive. "They're in denial, and who's going to argue with the boss?"

But some realize their shortcomings and pay Peterson to help them improve. Don Morrison, a former auditor at Deloitte & Touche who has built a successful consulting business, is among them. "I was too wordy," Morrison said. "I liked long, convoluted passages rather than simple four-word sentences. And I had a predilection for underlining words and throwing in multiple exclamation points. "Finally Roger threatened to rip the exclamation key off my keyboard."

Exclamation points were an issue when Linda Landis Andrews, who teaches at the University of Illinois at Chicago, led a workshop in May for midcareer executives at an automotive corporation in the Midwest. Their exasperated supervisor had insisted that the men improve their writing.

"I get a memo from them and cannot figure out what they're trying to say," the supervisor wrote Andrews. When at her request the executives produced letters they had written to a supplier who had failed to deliver parts on time, she was horrified to see that tone-deaf writing had turned a minor business snarl into a corporate confrontation moving toward litigation. "They had allowed a hostile tone to creep into the letters," she said. "They didn't seem to understand that those letters were just toxic."

"People think that throwing multiple exclamation points into a business letter will make their point forcefully," Andrews said. "I tell them they're allowed two exclamation points in their whole life."

Hogan, who founded his online Business Writing Center a decade ago after years of teaching composition at Illinois State University, says that the use of multiple exclamation points and other nonstandard punctuation like the ":-)" symbol are fine for personal e-mail but that companies have erred by allowing experimental writing devices to flood into business writing. "E-mail has just erupted like a weed, and instead of considering what to say when they write, people now just let thoughts drool out onto the screen," Hogan said. "It has companies at their wits' end."

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2c) Slate/Foreigners: Is France Getting Religion? [Constat d'une reprise de la religion dans les banlieues parisiennes.]
http://slate.msn.com/id/2112962/
foreigners/Opinions about events beyond our borders.
Is France Getting Religion?/In the immigrant suburbs of Paris, secularism is on the wane.
By Elisabeth Eaves
Posted Tuesday, Feb. 1, 2005, at 8:55 AM PT

PARIS—If France is a fortress of secularism, you wouldn't know it from a Sunday morning visit to St. Denis. Jehovah's Witnesses set up camp each week near the frenetic outdoor market. Muslims wear headscarves and frequent the halal butchers. Back in November, posters advertising end-of-Ramadan celebrations vied for wall space with posters touting Christian preachers on tour. And presiding over this Parisian suburb, which was once known as a bastion of communism, is the Basilica of St. Denis. As the first Gothic cathedral ever built, it's a monument to divinely inspired creativity.

When I visited in January, the Jehovah's Witnesses had set out a board covered with signs in French and Arabic. Their question of the day, printed in Arabic, read, "Is the cross a Christian symbol?" A blond Frenchman was holding an animated Arabic-language discussion about God with two passersby. His colleague Georgette Daguerre told me, "We're like the apostles in the first century. We go to the market to talk to people about Jesus." It's a remarkable market: multilingual and multi-ethnic, selling everything from ladies underwear to lunch, with more than 300 stalls sprawled between a medieval architectural gem and the sharp concrete angles of a futuristic town center.

A 10-minute walk from the market is the Evangelical Assembly of the Pentecost. While the flocks drawn to the famous basilica these days are mainly tourists ogling the stained-glass rosettes, this Pentecostal church draws more than 400 worshippers every Sunday to premises that couldn't be more different. Stark white on the inside, the church occupies the ground floor of a plain brick apartment block

Pentecostalism, a wing of Protestant Christianity that emphasizes spirituality, is the fastest-growing faith in the world. Born in a Topeka, Kan., Bible college in 1901, it now numbers 520 million people worldwide, with the greatest numbers in Africa and South America.

Pentecostalism is growing in France, too, turning Protestantism, historically the embattled religion in a Catholic society, into a burgeoning faith. That still puts Protestants at only 2.2 percent of the over-18 population, according to a new study commissioned by the Protestant weekly Réforme—a little larger than the Jewish population but smaller than the Muslim community, which makes up between 5 percent and 10 percent of the French population.

Unlike most of the 64.3 percent of French citizens who still identify with Catholicism, the new Protestants are vigorous worshippers. Sébastien Fath, a sociologist who has written extensively on Protestantism in France, noted in a recent paper that while accelerated secularization has marked French society since the 1960s, evangelicals (who here are mostly Pentecostal) seem to have escaped the trend. "Whereas the Catholic Church has had to close seminaries, Evangelical Protestants … had to answer increased demand for training," he wrote.

With subsets of Protestantism and Islam its two growing religious forces, France mirrors the larger world. And the expansion in both cases is a direct result of the larger world coming to France.

Worshippers at the Evangelical Assembly of the Pentecost in St. Denis, a suburb of Paris
"The arrival of people of color is a major factor," said Christian Capron, pastor of the Evangelical Assembly of the Pentecost. He is a white Frenchman who grew up in a Pentecostal family and worked as a missionary in Eastern Europe before taking the helm at St. Denis in 1971. "Without them we wouldn't have the same growth." They come from French possessions in the Indian Ocean and the Caribbean, from Haiti, and in large numbers from Africa, Capron said. Most of his congregation is black. On my Sunday morning visit, I meet a woman from Gabon whose husband is from Madagascar. (The growth of evangelical Christianity in France has also been aided by American missionaries.)

One could get the impression, in the immigrant suburbs that ring Paris, that France's famous secularism is on the wane. One very popular politician seems to think so. Nicolas Sarkozy, chief of President Jacques Chirac's UMP party, has made a bid to bring religion and state a little closer together.

Last fall Sarkozy generated huge media attention with the publication of his book La Republique, les religions, l'esperance (The Republic, Religions, Hope), in which he talked about his own Catholic faith and called for a greater role for religion in public life.

He has also argued for amending France's law separating church and state, which turns 100 this year. The 1905 law bars any state funding of religious groups and is the cornerstone of French secularism. Amending it would allow for the financing of mosques. Unlike churches and synagogues, mosques weren't around to be funded before 1905, and so Islam has wound up relatively shortchanged in terms of real estate. The idea behind helping mosques is that doing so would bring Muslims more into the mainstream, thus countering extremism.

But France is not getting religion, at least not yet. So far, Sarkozy's foray into American-style public religiosity has gone over like a lead balloon. Whatever the French may do on their weekends, there has been no show of support for relaxing the state's strict secularism. The new ban on religious symbols in public schools is, on the whole, popular. And President Chirac has reiterated his support for the 1905 law numerous times.

Pastor Christian Capron at the Evangelical Assembly of the Pentecost in St. Denis
Moreover, both Capron, the pastor, and Fath, the sociologist, note that the French tend to see religions outside of the mainstream as "sects," and thus suspect. This extends to official policy: A parliamentary committee has indexed 173 sects to keep an eye on, among them Pentecostal churches.

So, the French state has drawn its line in the sand once again in a clash of civilizations that is not between West and East, or between Judeo-Christian culture and Islam, but between secularists and believers. The problem is, drawing a line in the sand against religion looks increasingly like drawing a line in the sand against immigrants. France has never done a particularly good job of integrating new arrivals, which is why the cultural trends in the halo of suburbs just outside Paris' périphérique can look so different from those in the Seventh Arrondissement, where museums and government ministries dot the Left Bank.

After the Sunday service, as the milling crowd outside the church resolves itself into carpools, a stranger named Noura comes up and kisses me on both cheeks. She says she found Jesus seven years ago after being brought up in an Arab Muslim home. "I was looking for God," she explains. "I was knocking on his door."

The drafters of the 1905 law were convinced that religion had no future. "They had just come out of a 19th century … that predicted the death of God. The republicans thought the churches were going to empty," said historian Emile Poulat, recently interviewed in the newsweekly Valeurs Actuelles. Indeed, some of the drafters thought that with state funding pulled, religion would collapse.

That collapse has yet to take place. Sarkozy, who has been praised for his fresh thinking on crime and the economy, may yet prove prescient on religion, too. As the global south heads north in a big way, it brings its faith. The state can bar religion from public life, but the crowd knocking on the door is only going to grow.

Elisabeth Eaves is the author of Bare, which was recently released in paperback.

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THE REGULARS

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A) Le texte plus abordable de la semaine/Scholastic News: One bracelet at a time [La mode des bracelets caritatifs, vue du bon côté. POUR UN REGARD PLUS SCEPTIQUE VOIR TEXTE 3.]

http://teacher.scholastic.com/scholasticnews/news/article_wed.asp
One Bracelet at a Time
Rachel Laskow

If you visit any school in America, you are bound to see students wearing yellow, rubber Livestrong bracelets, promoted by cyclist Lance Armstrong. But soon you might see a new color band: blue. It's all part of an effort being led by two middle-school students to cure diabetes.

Sydney Davis, 12, and Daniel Rosen, 13, of North Caldwell, New Jersey, both suffer from diabetes, a disease in which the body loses its ability to control the amount of glucose (a type of sugar) in blood. They saw the success of the Livestrong bracelets in raising money for cancer research, so they decided to do the same for diabetes. "I want to have a cure [for diabetes] sometime in my lifetime," Sydney said.

The blue (Sydney's favorite color) bands read "Cure Diabetes Today," and the response to them has been incredible. When Daniel showed up to school with 100 bracelets, he sold out of them after second period. In fact, Sydney and Daniel sold out of the 10,000 bracelets they ordered in just four weeks. "I was very surprised when we sold all of them. I thought we'd only sell a few," Daniel said.

The project started as a way to raise money for the Naomi Berrie Diabetes Center, where Sydney and Daniel are treated. The center does diabetes research in hope to someday find a cure. Sydney and Daniel have raised more than $30,000 so far and want to raise $100,000. "I am totally amazed by the outpouring of support," Sydney's mother, Leslie, said.

Daniel's father, Allen, believes the bracelets are so popular because everyone knows somebody who has diabetes. In America, about 18 million people suffer from the disease. But with the money being raised by Sydney and Daniel, a cure may be possible in the future. "It's been a win-win for everyone involved, a team effort," Allen said.

Before creating the blue bracelets, both Sydney and Daniel sported the yellow Livestrong bands. Daniel thinks the rubber bracelets are so popular with kids because the money goes to a good cause and they like how they look. "What's to lose?" he said.

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B) Executive Planet/Business Culture: Guide to business conversation in the US [Un petit guide pour bien converser avec vos contacts d'affaires AUTRICHIENS.]
http://www.executiveplanet.com/business-culture-in/139444377687.html
Conversation

General Guidelines

# Austrian formality in business discussions also carries over into personal conversations.
# Displaying knowledge of Austrian history and culture demonstrates an awareness of the uniqueness of Austria, which will be appreciated by Austrians, who will take against anyone who fails to recognise the clear distinction between them and the Germans. Do not refer to Austrians or their culture as German. The only thing that is truly German about Austria is the language and, even then, Austrian German is very different from standard or High German [Hochdeutsch] in vocabulary, idiom, and pronunciation. Indeed, even proficient German-speakers may struggle with the Austrian accent and regional dialects, especially if they are not already acquainted with Bavarian German.
# Do not make idle promises during conversation. Politeness does not mean dissimulation or hypocrisy. Austrians expect you to mean what you say, and say what you mean, and they will know when you do not.
# Nevertheless, Austrians wear their formality with a certain easy lightness and a major distinction between Austrian and German characters is that the former are much more tolerant of fooling around than their neighbours [there is a long tradition of pantomime and farce in Viennese theatre]. Austrians have a great sense of humour that is not always refined or subtle and they will accept your joking so long as you are self-deprecating at the same time. Teasing others, though, may be interpreted as putting them down, and that is certainly not appreciated. Unless you are confident of your command of German idiom and/or Austrian taste, it is perhaps best for a visitor to avoid making jokes that can be easily misconstrued in another culture. Humour has no place at a formal meeting or in the office at all when senior staff are present.
# As always it is courteous to have some knowledge, however basic, of your host's language. Any attempt to speak German will be appreciated, even if you can only manage simple greetings and phrases, but a minimum of 'restaurant' German may be essential outside the major cities.

Welcome Topics of Conversation
# Classical music [Haydn, Mozart, Schubert, Johann Strauss, Bruckner, Schönberg and Berg were all Austrian]
# Opera [especially Mozart and Richard Strauss, even though he was born in Munich]
# Austrian art and architecture
# Winter sports

Topics to Avoid
# Money
# Separation and divorce
# Religion
# Anti-Semitism
# Austria's role during World War II

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C) Car Talk/The Puzzler: Roman Drivers [Un casse-tête. Comment faire pour réduire la consommation en carburant du foyer ? On ne triche pas !]
http://www.cartalk.com/content/puzzler/transcripts/200505/index.html

You drive a gas-guzzling SUV [un 4x4 qui consomme beaucoup] that gets a whopping 10 miles per gallon [la consommation d'une voiture aux EU s'exprime en miles par gallon ; il n'est pas nécessaire de savoir les équivalences en métrique, mais il faut noter qu'il s'agit d'une unité de longueur divisée par une unité de volume]. Your sleek and efficient spouse drives a sleek and efficient hybrid that gets 100 miles per gallon.

Now, let's assume that both of you drive the same distance each year. Your spouse sees an ad for a new, super-duper hybrid that gets 200 miles per gallon. She is lobbying to trade in [échanger] her old, wasteful 100-mile per gallon hybrid for the new 200-mpg model; her thinking being that getting this new hybrid to replace the old one will really improve the average miles per gallon of your household.

On the horns of a dilemma, you seek out the one person you trust with questions automotive: your mechanic, Crusty!

"What can I do," you ask, "to improve our household's miles per gallon without buying this new hybrid?"

Crusty says, "Well, if we tune up your old SUV, and inflate the tires correctly, and remove that four inches of accumulated bird poop on the roof, I'm pretty sure we can get you all the way up to 11 miles per gallon." Your heart sinks.

What should you do? That's the question. Under which scenario would your household see the biggest improvement in miles per gallon: by getting the new hybrid, or by tuning up the old SUV? [Laquelle des deux solutions : acheter une nouvelle voiture hybride encore plus économe ou améliorer la consommation du vieux tacot ?]

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THIS
WEEK'S TEXTS

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1) Los Angeles Times: Where there's smoke, it wouldn't lead to firing [Un législateur du Michigan propose d'interdire les sanctions contre des salariés fumeurs. VOIR TEXTE 1b.]

http://www.latimes.com
THE NATION
Where There's Smoke, It Wouldn't Lead to Firing
Michigan firm bans all nicotine use by workers. A state lawmaker wants to snuff out such rules.
By P.J. Huffstutter
Times Staff Writer

February 8, 2005

CHICAGO — A Michigan state lawmaker said Monday that he planned to introduce a bill to bar companies from firing employees for smoking on their own time. The proposed "lifestyle legislation" comes in response to a policy at Weyco Inc., an employee benefits firm in Okemos, Mich., near Lansing. On Jan. 1, Weyco began randomly testing its 200 workers for nicotine use, saying it would fire those who tested positive and refused to quit smoking. Four Weyco employees have said they were let go under the policy. "Two of those employees are my constituents, and they came to me asking for help," said state Sen. Virg Bernero, a Democrat from Lansing who plans to introduce his bill in the next three weeks.

If passed, Michigan would become one of the few states with a law expressly stating that employers could not fire or refuse to hire people for engaging in legal activities on their own time. "I don't like smoking, but what this company is doing is just un-American," Bernero said. "These are things happening off duty…. If it's legal to fire someone for smoking at home, what's next? A company that fires employees for having a couple beers during the Super Bowl because the boss is a teetotaler? Firing someone because they wear clothes on the weekend that the boss doesn't like?"

In a statement released Monday, Weyco Chief Financial Officer Gary Climes said smoking was clearly a health hazard, and that Bernero's legislation would make it more difficult for employers to control health costs. "When you do something that is extremely harmful to both yourself and others, it's not a privacy issue — it's a matter of exercising some personal responsibility for your behavior," Climes said in the statement. "Michigan businesses, taxpayers and co-workers of smokers have the right to protect themselves from the horrendous damage caused by the self-destructive behavior of a small percentage of employees."

Company officials said the policy was put into place to encourage healthful behavior among workers, as well as to underscore its health-conscious corporate culture. Inside the company's headquarters is a framed, handwritten note from Thomas Edison to Henry Ford. Dated April 1914, it reads: "I employ no person who smokes."

Weyco President Howard Weyers said last month that he also had rolled out the policy to combat the rising costs of employee benefits: "If I don't do something to change employees' demand for healthcare, I'll never do anything about costs." Weyers estimated the company spent $750,000 a year on employee health insurance premiums and said he was concerned that it wouldn't be able to absorb additional increases.

But Anita Epolito — one of the four fired workers — said she had not been participating in Weyco's insurance plan. "I'm covered by my husband's insurance policy, and have been for years," said Epolito, 48, who worked as a receptionist and special events coordinator at Weyco for 14 years. Epolito said Weyers first told employees about the policy during a benefits meeting in November 2003. At the time, workers were told they couldn't have any nicotine products in their bodies, she said. "There were some people who were trying to quit, using the patch or the chewing gum. We were told that if you're going to quit, you have to stop — and stop using those products — by Jan. 1 [2005]."

Epolito said she approached Weyco executives shortly before the deadline and asked what she should do.

"They told me to sign the waiver saying I refused to be tested so I could be given my final check," Epolito said. "So that's what I did."

Michigan's Kalamazoo Valley Community College instituted a similar policy last month, saying it wouldn't hire smokers for full-time positions. School officials could not be reached for comment Monday.

Federal and state laws prevent employers from firing or refusing to hire workers because of race, religion or gender. Some states, such as Colorado, have enacted laws offering similar protections for smokers. Colorado lifestyle-discrimination statutes are considered to be among the broadest in the nation, legal experts said. Workers cannot be fired for taking part in legal activities, unless those actions affect their work. Bernero said his staff was using the Colorado law as a guide for the proposed Michigan legislation.

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2) The Onion: Racial Harmony Achieved By Casting of Black Actor as Teen Computer Whiz [HUMOUR : article satirique sur l'écart entre la discrimination positive symbolique et la réalité du racisme.]

http://www.theonion.com/news/index.php?issue=4102&n=1

Racial Harmony Achieved By Casting Of Black Actor As Teen Computer Whiz
BURBANK, CA—The long-standing economic, political and social divisions between blacks and whites in America at long last ended Monday with a TV producer's casting of a black actor in a bit part as a teen computer-whiz archetype.
Actor Darrell Goodwin, who was recently cast in a bit part as a teen computer whiz on a new NBC series, ending racism in the U.S.
Above: Actor Darrell Goodwin, who was recently cast in a bit part as a teen computer whiz on a new NBC series, ending racism in the U.S.

Though racial equality had, throughout U.S. history, been seen as little more than a distant dream, TV producer Fern Blochner—co-producer of such popular daytime teen "dramedies" as Crestwood Daze and Chillin' Out In Study Hall—made that dream a reality when it came time to cast her newest series, My Home Ate My Dogwork, airing Saturday mornings on NBC.

"You wouldn't normally think a black kid would be running a high-school computer lab, but we have one doing just that," Blochner said of her show, whose uplifting and dignified portrayal of black youths in America is being widely credited for the sudden flowering of racial justice and harmony across the nation. "Our casting decision boldly defies the societal stereotype that black people are not smart enough to run high-school computer labs."

Shortly after the airing of the premiere episode of My Home Ate My Dogwork—in which the computer-whiz character is clearly visible in the background in no fewer than three separate scenes—the barriers of poverty, crime, and lack of equal access to education that have kept America's blacks at a disadvantage came crashing down.

"I'll admit, I was a bit shocked when I found out I got the part," said Darrell Goodwin, the 17-year-old actor who plays the computer whiz. "I thought to myself, 'The computer lab... run by a black kid? How could this be?' Then I realized that the casting decision deliberately defied society's racist expectations, expectations that I myself had bought into by doubting myself."

Though Blochner and her associates said they had reservations about the controversial casting decision, particularly regarding how others in the traditionally white entertainment industry would react, they held fast to their conviction that the teen computer whiz should be black.

"We were worried that institutional, internalized racism on the part of industry executives might manifest itself in the form of opposition to our casting decision," Blochner said. "But we stood our ground, and, as a result, such closed-mindedness is now a thing of the past."

Blochner said she came up with the idea to make the computer-whiz character black while doing background research for the show.

"We wanted our show to be as accurate as possible, so we spent some time at New Trier High School in the affluent Chicago suburb of Winnetka to ensure authenticity," Blochner said. "But after a few days at the school, we noticed a disturbing and unfair aspect of the upscale high school's student demographic: There were no blacks."

"We were very concerned that the high school had no black students, and that none of the students at the school had ever known any blacks, and that there were no blacks living anywhere within the neighborhoods zoned for the school," Blochner continued. "We said to ourselves, 'This is unfair!' and were determined to change reality for the better. So we decided that in our fictional version of the school, we would put in a black kid, and we'd make it seem like he's smart, too."

Noted sociologist Edwin Hull explained how the producers of My Home Ate My Dogwork were able to bring about racial equality in the U.S.

"By boldly envisioning a world in which African Americans possess the socioeconomic wherewithal not only to attend a high school like New Trier, but actually to run the computer lab therein, this television program created a 'positive media portrayal' of African Americans," Hull said. "This proactive portrayal of a positive African-American role model boosted the collective self-esteem of the nation's African-American community, thus establishing racial harmony at last."

Hull noted that this strategy was similar to the one used by the 1998 Environmental Media Awards, at which episodes of Baywatch and The X-Files featuring pro-environment themes were credited with last year's spontaneous healing of the ozone layer and the return of several dozen long-extinct species to the global ecosystem.

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3) Slate/Chatterbox: The Wristband Gap [Le foisonnement de bracelets caritatifs comme celui de Lance Armstrong génère des effets néfastes. VOIR AUSSI TEXTE B CI DESSUS.]
http://slate.msn.com/id/2113014/
chatterbox Gossip, speculation, and scuttlebutt about politics.

The Wristband Gap, Part 2
Awareness bracelets and the tragedy of the commons.
By Timothy Noah
Posted Tuesday, Feb. 1, 2005, at 12:55 PM PT

Last month, I noted that while all the proceeds for the yellow "Livestrong" wristbands sold at Nike and Discovery Channel stores were being donated to cancer research, only one-third of the proceeds for the camouflage-green "Support Our Troops" wristbands sold at 7-Eleven were being donated to the USO. I have since learned that 7-Eleven isn't the only business taking a substantial cut of the proceeds from the sale of so-called "awareness bracelets." As the varieties of these bracelets have proliferated during recent months, the charitable impulse that is their ostensible reason for existence has steadily declined.

For instance, a tsunami-relief bracelet costs $2, only half of which goes toward relieving problems caused by the recent massive tidal wave in southern Asia. But that's still better than the 10-percent cut that tsunami victims receive when you buy your bracelet on something called AwarenessDepot.com, where you can also purchase "USA" bracelets, "Jesus Loves You" bracelets, and "God Bless the Dead" bracelets.

Some people would argue that the point of awareness bracelets isn't to raise money for charity so much as it is to raise, well, awareness. The wristbands invite onlookers to take a moment to think about cancer victims, or American troops in Iraq, or any one of a variety of other groups who need help or who perform difficult work for which the rest of us should be grateful. But over time, that goal has been subverted, too.

Perhaps you're familiar with "the tragedy of the commons," a social dilemma outlined by the late biologist Garrett Hardin in a famous 1968 essay of the same name. The dilemma is that when individuals pursue personal gain, the net result for society as a whole may be impoverishment. (Pollution is the most familiar example.) Such thinking has fallen out of fashion amid President Bush's talk of an "ownership society," but its logic is unassailable:

Picture a pasture open to all. It is to be expected that each herdsman will try to keep as many cattle as possible on the commons. … As a rational being, each herdsman seeks to maximize his gain. Explicitly or implicitly, more or less consciously, he asks, "What is the utility to me of adding one more animal to my herd?" This utility has one negative and one positive component.

1) The positive component is a function of the increment of one animal. Since the herdsman receives all the proceeds from the sale of the additional animal, the positive utility is nearly +1.

2) The negative component is a function of the additional overgrazing created by one more animal. Since, however, the effects of overgrazing are shared by all the herdsmen, the negative utility for any particular decision-making herdsman is only a fraction of -1.

Adding together the component partial utilities, the rational herdsman concludes that the only sensible course for him to pursue is to add another animal to his herd. And another; and another …

The same logic applies to awareness bracelets. In this instance, the "common" is the visible spectrum, and the "herdsmen" are the groups promoting various causes by selling awareness bracelets of various colors. The problem is that there are only so many colors, while the number of causes is nearly infinite. At this late hour, it's impossible to look at somebody's awareness bracelet and learn precisely what that person is trying to raise awareness about, because there are simply too many possibilities. Purple, for instance, now signifies support for Alzheimer patients, abused animals, battered women, epileptics, children in foster care, or people with irritable bowel syndrome, among other things. Teal invokes the fight against ovarian cancer, except when it invokes the fight against myasthenia gravis, drug addiction, or sexual assault. Gray can raise awareness about brain cancer, diabetes, disabled children, emphysema, lung cancer, multiple sclerosis, mental illness, or a couple of diseases I've never heard of; or it can raise awareness about asthma or allergies. ("Please join me in the fight to cure hay fever.")

With so much to be aware of, awareness bracelets have reverted to signifying nothing more than color itself. Idealism has devolved into fashion. That helps explain why my dear wife, who died of liver cancer two weeks ago, and whom I miss almost more than I can bear—and certainly more than any colored wristband could possibly express—held the awareness-bracelet movement in undisguised contempt.

Timothy Noah writes "Chatterbox" for Slate.

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4) The Economist: London's Buses [La nouvelle politique des transports de Londres favorise les bus, mais à quel prix ?]

http://www.economist.com/displaystory.cfm?story_id=3521057

London's buses: Fares, please
Dec 29th 2004
Can London's buses keep up their remarkable growth?

ONCE the Cinderellas of London's public transport, buses are now the showpiece. Since his election in 2000, London's mayor, Ken Livingstone, has poured up to £500m ($970m) a year into the capital's bus network. It isn't just money the buses have got more of, but road space as well: London now has 280km (175 miles) of bus lanes, up by a half since 2000. Mr Livingstone's generosity turned a gentle annual increase in bus passenger journeys, of around 3%, into annual growth of more than 8%. The daily average in 2000 was 4.13m; now it is over 5.5m. The buses are more frequent, more reliable and comfier.

Taxpayers might quibble, but Transport for London (TfL), the body that oversees the capital's buses, Tube and taxis, sees it as a stunning success. In their share of journeys made in greater London, buses have gained four percentage points from cars. That is unlike anything in the world, says Jay Walder, its finance chief. London's planners say that they have replaced a vicious circle, in which people shun poor public transport for their cars, thus creating worse congestion, slower buses and ever greater losses, with a virtuous one.

But can it continue? The growth is at least partly thanks to a stonking subsidy that allowed Mr Livingstone to slash fares. How much each extra passenger has cost is hotly debated. The overall subsidy now is 24p per journey, and TfL reckons gaining each extra one has cost 61p. But Tony Travers of the London School of Economics thinks the real figure is at least double that. At any rate, central government is unwilling to spend more money this way.

So the growth must now be in fares, not subsidies. To balance TfL's books, these will go up by around 12% in January; there will be a similar rise in the next two years, and fares are projected to go up at two percentage points above inflation until 2010.

That may threaten the growth in passenger numbers of which Mr Livingstone is so proud. After all, if low fares got people on to buses, high fares may drive them away. But TfL reckons fares are so low—53p, on average—that passengers are not very price-sensitive. Peter Hendy, TfL‘s head of surface transport, says a 5% rise in January 2004 barely dented growth.

Even if that's right, TfL faces other problems. First, meeting peak demand in central London requires so many buses that they slow each other down. Here the answer is better pricing. TfL is using its “Oyster card”, a whizzy electronic ticketing system, to create a new super-peak fare category to encourage people to travel earlier or later, when buses are emptier.

The second big weapon is technology. The electronics on London's buses are “the biggest and oldest such system in the world”, says Mr Hendy. Some bits, such as the gadgets that count wheel revolutions, date back to the 1960s. TfL is now planning to buy a new £100m system that will track the bus's location, communicate with the control centre and signal to traffic lights that a bus is approaching. That will speed buses' passage through junctions, help keep them at efficient intervals and let people know when the next one is coming. Going cashless, which is planned for 2006, will also increase speeds and cut costs.

Keeping intruders out of bus lanes would also help. TfL has given responsibility for policing bus lanes to a specialist unit and has improved CCTV coverage. Recorded obstructions have fallen from 9.1 per km in August 2003 to 4.8 per km a year later, and there is room for improvement.

All these may indeed help. But the fundamental problem is that buses are not a good way of moving lots of people long distances round a crowded city. What London really needs is a bigger, better underground railway system. Even if the billions being splurged on the Tube turn out to be well spent, it will be a decade before it can carry a lot more passengers. Until then, buses will struggle to fill the gap.

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5) The Economist: The trouble with banks [Les banques, un mal nécessaire ? Comment gérer le risque du financement sans le savoir faire des banques ?]
http://www.economist.com
The trouble with banks: Nobody loves them, everybody needs them
May 1st 2003

BANKS have proved themselves to be the most hazardous economic institutions known to man. Breakdowns in banking lie at the centre of most financial crises. And banks are unusually effective at spreading financial distress, once it starts, from one place to another. It it tempting to conclude that banks should simply be abolished. Unfortunately, that is unlikely to be possible. Banks seem to be necessary.

To see why, consider the job that any financial system has to do. It has to bring willing lenders and willing borrowers together. One way or another, this involves processing information. Two kinds of problem arise. First, the lender needs to know whether a would-be borrower is a good risk. To complicate matters, the keener the borrower—and the higher the interest rate he is willing to pay on the loan—the more likely he is to be a bad risk. This is called adverse selection: the most eager borrowers will be the least desirable, making lenders less willing to lend. The possibility of adverse selection inhibits productive lending and borrowing.

The other problem that financial systems encounter in processing information is moral hazard. Once a borrower has his loan, he may try to cheat. In investing the money, the most he can lose is the amount of the loan. But he may calculate that the greater the risk he takes with the money, the higher his chances of doing very well. Because his losses are capped, he is encouraged to take a bigger risk with his investment than he otherwise would.

Moral hazard becomes acute if the borrower expects to lose the value of his investment anyway. In that case he has nothing further to lose by taking a much bigger risk in the hope of turning his fortunes around. If this “gamble on redemption” works, he keeps all the proceeds after the loan is repaid, but the lender gets no extra return. If the gamble fails, the borrower is no worse off than if he had acted prudently. Moral hazard also takes more obvious forms: some borrowers will be tempted simply to steal the money, or waste it, or otherwise do things that make it less likely that the lender will be repaid. Lenders deal with moral hazard in the same way they deal with adverse selection—by lending less than if they had all the information they needed.

This is where banks come in. They are specialists in dealing with adverse selection and moral hazard, which is why their role in financial systems everywhere is so central. They develop expertise in knowing what questions to ask borrowers seeking loans; indeed, they will already know a good deal about them if the would-be borrowers are existing customers. This allows them to screen out many of the bad risks. Access to information also makes it possible to curb moral hazard. Banks can monitor what their borrowers are up to; they can set restrictions on what the money is to be used for, and enforce them by threatening to call in loans or withhold new ones.

Could all this not be done by financial markets, at arm's length? Up to a point, but banks do have the edge. They are more likely to know a lot about the borrower to begin with. Moreover, they keep all the benefits of effective appraisal and monitoring to themselves, so they are willing to bear the risk.

Compare this with a loan that takes the form of a bond purchase. Suppose that one investor has managed to gather the information needed to curb adverse selection and moral hazard, and on that basis buys a bond from the would-be borrower. Other lenders will be able to see this public transaction taking place, and will be able to buy bonds too, profiting from the first investor's outlay on appraisal and monitoring at no cost to themselves. Because of this open invitation to free-riding, a market-based investor will not want to spend much on appraisal and monitoring: unlike the bank lender, whose transactions are private, he cannot keep the benefits to himself. Everybody will try to take advantage of everybody else's efforts.

As a result, there will be too little appraisal and monitoring, and the problems of adverse selection and moral hazard will be much less well controlled. The cost of lending is driven up; financial activity, and output and incomes in the wider economy, will all be lower. This is why banks are necessary.

Make that “banks”

Banks may be necessary because of their core financial functions, but just how widely the business of banking ought to be spread is more debatable. Some economies' financial systems rely on bank finance far more than others. And the nature of banking is changing fast almost everywhere. A core of traditional banking—deposit-taking and straightforward commercial lending—may be indispensable, but how much of it does a successful economy need? In many countries, traditional banking represents a diminishing part of what modern banks do.

Economists have long theorised about the relative merits of bank-based finance and market-based finance. For years it was taken for granted that financial systems dominated by banks, such as Germany's and Japan's, were better at mobilising capital and channelling it to the best uses than systems such as the United States' and Britain's, which give financial markets a larger role. This was especially true, it was believed, of economies at an early stage of development, where the information-gathering advantages of banks were crucially important. Believers in market-based systems emphasised the advantages on the other side, including improvements in the governance of companies fostered by an active market in corporate control.

By the end of the 1990s these supposed advantages of bank-based systems seemed rather less compelling. Japan (especially) and Germany were achieving a less-than-stellar economic performance, in stark contrast to America's remarkable success during the decade. The current economic consensus, underpinned by new research, is not that one system is necessarily better than the other, but that either can work fine so long as certain conditions are met.

The critical factor turns out to be the efficiency of the domestic legal system

The critical factor turns out to be the efficiency of the domestic legal system. If that is working well, a financial system can deliver the necessary array of financial services regardless of whether it is based mainly on banks or mainly on markets. Moreover, the evidence confirms that financial development—measured by the breadth of financial services, again regardless of whether they are delivered by banks or markets—plainly promotes economic growth.

So the modern findings on financial structure, even though they have retreated from the earlier idea that bank-based systems work best, offer no reason to jump to the opposite conclusion. Get the legal fundamentals right, and banks are generally no better or worse than markets in allocating capital and promoting growth.

In any case, financial innovation is eroding the distinction. Over the past 20 years, deregulation, competition and technological progress have transformed banking worldwide. In a sense, banks have become increasingly market-based in the way they conduct their own business. The models are converging. Nowadays banks bundle assets (loans) into securities and trade them; increasingly, they earn income from fees as well as from interest. The once-sharp distinctions between commercial and investment banking, portfolio management and insurance are blurring. And the use of financial derivatives—in yet another new set of financial markets—is altering the way banks manage risk.

These trends are welcome in some respects and worrying in others. Banks can achieve a much finer degree of control over financial risk than before. In principle, this should improve the terms of the trade-off between risk and return across the entire economy, making it possible for an investor to achieve a given return at lower risk, or to earn a higher return for assuming the same risk as before.

But there are two snags. One is the sheer complexity of the positions that modern financial derivatives allow banks to create. Often, according to practitioners themselves, this outruns the ability of the institutions concerned to manage their risks. The other problem is much deeper. Sophisticated derivatives ought to help the economy find a better balance of risk and return, with the risks more accurately allocated to those who are willing and able to bear them. But what if banks are somehow predisposed to take on more risk than they should? Innovations that allow banks to gamble bigger sums would then appear in quite a different light.

This is exactly what modern financial instruments do allow. Leverage—increasing the likely gain or loss from an investment of a given size—is the salient feature of many derivatives. Buying an option to acquire shares in a company, for instance, is equivalent to buying a larger number of actual shares using borrowed money. Selling such an option can expose the seller to potentially unlimited losses. An increasingly bewildering array of complex derivatives make it possible to create enormous leverage. If banks for some reason tend to take on more risk than they should, financial innovation has unquestionably made this easier to arrange—and harder for supervisors, or even the bank's own managers, to monitor.

By trying to make banks safer, governments give banks the means and the motive to behave recklessly

Unfortunately, banks do have a reason to take on more risk than they should. The reason, paradoxically, is the safety net that governments put in place to prevent bank failures. By trying to make banks safer, governments give banks the means and the motive to behave recklessly.

Fond of a flutter

Banks are intrinsically fragile. They borrow from depositors with a promise to repay in full and on demand, and then mostly invest those deposits in longer-term loans. If depositors all suddenly decide to withdraw their money at once, as their contract with the bank entitles them to, the bank cannot meet the demand for funds. It will fail.

Depositors might be induced to withdraw their money by fear that the bank might be in trouble. Once this fear starts, it becomes self-fulfilling, because if there is any doubt about the bank's safety, depositors have every reason to withdraw their cash: they lose nothing by doing so. If one bank is perceived to be in danger, other banks are likely to come under suspicion too. Bank runs, once they start, tend to spread. Note that equity investors who fear a collapse in share prices face different incentives. As concern mounts, equity prices fall immediately, which makes it less attractive to sell. In a stockmarket, therefore, the price decline is somewhat self-limiting. Conversely, once a bank scare begins, there is no fall in price to deter further withdrawals. Deposits remain redeemable at par until the bank locks its doors.

At different points during the course of the 20th century, rich-country governments decided that banks were too vulnerable to this danger. They were also aware that bank failures could cause damage not just to depositors too slow to get their money out, but much more widely across the economy. Banks are needed, after all, not just for intermediation between lenders and borrowers but also to oil the wheels of everyday commerce. If the banking system collapses, the infrastructure for making and receiving payments collapses too, and the rest of the economy will follow close behind.

The solution, governments decided, was to assure depositors that banks were sound, by promising to step in themselves if need be. They promised to supply a safety net, by arranging for deposits to be insured and in other ways. If depositors could be persuaded that their savings were safe, there would be no danger of a bank run and banks would not fail—or would fail only rarely, and would not take the rest of the system down with them when they did. Confidence in the banks would be self-fulfilling, in just the same way as in the absence of a safety net lack of confidence is self-fulfilling. The cost of providing insurance would therefore be modest.

Recall that banks exist because they are an answer to the problem of moral hazard: they can monitor borrowers to make sure that the funds are not stolen or wasted. But who monitors the monitors? Banks are borrowers too: they borrow from depositors. What stops banks from wasting the money they borrow? Partly, the fact that depositors will not trust their money to an institution that they suspect will be reckless with it: they will place deposits only with banks that they judge to be safe.

Once depositors stop caring about the soundness of their banks, bad banking quickly crowds out good

Once governments arrange for deposits to be insured, however, there is no longer any reason for depositors to worry about the safety of their bank. They will get their money back anyway. So banks will be able to take bigger chances with the money they lend. They will be able to lend to bad risks, charging more in interest and therefore earning bigger profits. Higher lending rates will allow them to pay depositors more too, enabling them to bid for a bigger share of the market. So once depositors stop caring about the soundness of their banks, bad banking quickly crowds out good.

Enter the regulator

Governments have long understood this. Their solution is to monitor the banks themselves. The quid pro quo for deposit insurance—itself absolutely necessary, they say, to guard against runs—is careful supervision. Require the banks to keep a certain minimum proportion of their assets in reserve, monitor their lending policies, place restrictions on the businesses they can enter, and so forth. Having lifted the burden of bank supervision from depositors, there is only one possible course: nationalise it.

This all seems logical enough, but the success of the policy has been mixed at best. Banking and financial crises keep happening. And there is good specific evidence that deposit insurance contributes to financial instability, especially in developing countries. A recent study by Edward Kane of Boston College and Asli Demirguc-Kunt of the World Bank shows that where effective bank regulation is lacking (as it is in many developing countries), deposit insurance of the wrong kind does more harm than good. The wrong kind means, in particular, that it is too generous in its coverage; too well-funded, with reserves explicitly set aside for repayment of losses; and run by government officials rather than by the private sector.

This helps to explain why banks have been so deeply implicated in the financial crises of recent years, as the next section will explain. An exaggerated appetite for risk has been part of the problem. And as banks have become more sophisticated, even the best regulators have found it increasingly difficult to keep up.

So if depositors were responsible for supervision instead, would they do better? At first sight, professional, highly-trained regulators seem a more likely bet than ordinary depositors. The trouble is that regulators have allowed and even encouraged the banks to become more “efficient”—lending ever more, against the backing of a diminishing base of capital. Depositors acting on their own behalf would probably have resisted that trend and insisted on a more conservative and less “efficient” style of banking, which nonetheless had the considerable advantage of exposing their deposits to less risk.

Be that as it may, moral hazard, which banks were invented to tame, has now become one of the chief weaknesses in the international financial system. In reponse, governments and regulators have been trying to push more of the burden of supervision back to depositors and other parts of the private sector, without arousing fears of bank failure or otherwise destabilising the existing system. This is an extraordinarily difficult balancing act. The central role of banks in most, if not all, of the recent big financial crises in developing countries underlines just how difficult—and how important.

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6) Slate/Surfergirl: In the future, everyone will have health care for 15 minutes. [Une nouvelle émission de reality-TV aux USA promet de fournir des soins médicaux à des personnes méritantes... Vive la Sécu !]
http://slate.msn.com/id/2113279/
Surfergirl: A blog about TV and popular culture.

Extreme Makeover, Critical Condition Edition: In the future, everyone will have health care for 15 minutes.
By Dana Stevens
Posted Tuesday, Feb. 8, 2005, at 11:08 AM PT

Now that the administration's 2006 budget has been released, proposing a $45 billion cut in Medicaid spending over the next 10 years, financially disadvantaged Americans are going to have to get their health care somewhere, right? I mean, we can't just allow people to die because they're poor, right? Right?

OK, scratch that. But for the fortunate and telegenic few, there may yet be hope. The New York Times business section reported yesterday that a proposed new ABC reality show, Miracle Workers, will feature a team of doctors who "scour the country seeking people who urgently need medical care but do not have the wherewithal to obtain it." (That'll be some pretty easy scouring, given that approximately 45 million Americans—around one in every six people—are currently living without health insurance.)

ABC has already scored big in the ratings with the fix-it franchise of Extreme Makeover and Extreme Makeover: Home Edition. If Miracle Workers takes off, it'll be sort of like Extreme Makeover: Critical Condition Edition. But the heart-tugging logic of the Home Edition show, in which particularly "deserving" families—those with sick children, say, or those who have recently lost one or both parents—are awarded the gift of a newly constructed house, takes on a newly creepy cast when imagined in the context of health care. Will the team of physicians really have to weigh the relative need of various candidates for treatment? What does it mean to "deserve" medical help? What will be the criteria for appearing on the show: Curability? Sexiness? Number and cuteness of offspring? And what will happen to the also-rans along the way—do they get a case of aspirin as a consolation prize?

Miracle Workers probably isn't the most tasteless reality show ever imagined—the Brits still have us beat in that department, with upcoming series slated that reproduce the conditions of torture at Guantanamo or track the decomposition of a still-to-be-chosen volunteer corpse. But it's hard to imagine a more cynical concept than monetizing the glaring deficits of the American health care system through a weekly dose of feel-good sentimentality. At least if Miracle Workers offers the opportunities for product placement that Sears has found in Extreme Makeover: Home Edition, some pharmaceutical firms can look forward to a real-life marketing miracle.

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7) Slate/Dear Prudence: The Mother Fusser [Prudence répond à vos questions sur la vie sentimentale et la vie tout court. Trois lettres cette semaine, l'une d'une femme dont la mère a fait une enquête de moralité sur son nouveau copain, une autre d'une femme qui vie avec un gars depuis des années alors qu'il est toujours marié à une autre, et la troisième d'une femme (eh oui) qui a une relation à longue distance avec un type qui refuse que l'un ou l'autre change d'état de résidence pour qu'ils soient plus proches.]
http://www.slate.msn.com/id/2112478/
The Mother Fusser
When your friendship with Mom gets too close for comfort.
Posted Thursday, Feb. 10, 2005, at 5:23 AM PT

Hey Pru,
How do you handle a meddling mother? As the only child of a perfectionist mother, I have been presented with some unusual challenges. My mother and I have a fairly close relationship, and I would consider her one of my closest friends (though I don't tell her EVERYTHING). Here's my dilemma. I mentioned to her that I met a young man and we seemed to "click" really well. Through our conversations, I found out that he at one time worked in the same "agency" as my mother. After our talk, the following day she felt it necessary to call people she knew to "get the scoop about him." She called me several times that day to inform me that he was a playboy, womanizer, etc. She also called to tell me that he was married and had only been so for about a year. This was information I was already privy to and told her that he's currently going through a divorce. (He and his wife separated because she had an affair shortly after the marriage, and they no longer live together.) Is it wrong for me to be burning hot about what she did? I figure it this way: If he is all that the other WOMEN my mother spoke to say he is, I will see that in due time.

—Burning Hot in the South

Dear Burn,
As the only child of a somewhat perfectionist mother, herself, Prudie can tell you that your mom was exercising her maternal—if somewhat busybody—instincts to spare you a heartbreak. You really have to face the fact that if the verdict on this guy from more than a few people is that he is trouble, he is trouble. Granted, it is more indelible to learn one's own lessons, but your mother was trying to fast-forward your information so you could save some time, not to mention grief. Should you be intent on learning everything firsthand, then stop giving your mother personal information. It is Prudie's hunch that if you continue with this man, you will learn that your mother's "informants" were correct.

—Prudie, predictively

-*-*-*-

Dear Prudie,
I have been with the same man for about eight years now, and I love him very much. The problem is he keeps telling me he wants to spend the rest of his life with me and marry me. I should be happy, right? Wrong. After all this time, he is still married to his first wife. Their marriage has been over for a little more than a decade, but they've never bothered to get divorced. Moreover, when I mention it, he says he'll do it soon, and then nothing gets done. We have been living together for six years, and I'm fine with that. I don't even need to be married to the guy, but what bugs me is when he introduces me to someone, he calls me his wife. I've asked him to stop that because then people call me Mrs. X, and I don't like it one bit. I finally gave him an ultimatum, and now he says I don't love him. I don't know what to do. Please help.

—Not Mrs. X

Dear Not,
If you are sincere about not needing to be married and are fine with living together, lay down the law: You are to be introduced by your own name, and he should please refrain from pledging that "he'll do it soon." Tell him that whenever he feels like getting off the dime, you will be more than happy to discuss the new developments—and maybe a new name. In other words, you'll stop nagging him to formally end the marriage if he'll stop pretending you're his wife. P.S.: Being legally bound to someone with whom there is nothing going on—for a decade, yet—suggests that he may be going for a world record. Or … she won't let him go. Or … it's more economical this way. It's your call.

—Prudie, thoughtfully

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Dear Prudence,
Through one of the dating Web sites, I made the acquaintance of the most wonderful gentleman. After a few months of talking daily over the phone and chatting via the Internet, the friendship developed into a wonderful, intimate long-distance relationship. We took turns visiting each other monthly. For the past 13 months, there hasn't been a day that we weren't together or at least talking on the phone. One month ago I felt a distance that wasn't mileage. So in a carefully worded e-mail, I asked where he saw the relationship going. Well, he responded in what essentially amounted to a "Dear Jane" letter, though written is the kindest possible way, full of affection and caring thoughts, declaring his love, respect, and admiration for me, etc., but the bottom line was that he felt he wasn't sure he could leave New England and migrate to N.J. He wasn't sure he could adapt to the environment, and he was quite sure I wouldn't be able to adapt to life in New England. He continues to call frequently during the week, declaring his love for me, how much he misses me, etc. He has never been married, and I'm sensing that the issue is not really the distance as much as it is commitment phobia. Do you feel there is any reason for optimism that absence will make the heart grow fonder?

—Sleepless in N.J.

Dear Sleep,
This could go either way. It could be commitment phobia (or some other emotional stop sign), or it could actually be the geographical situation. You might try this approach: Offer to give New England a try. (Prudie loves it, by the way.) If he is resistant to such a trial period, suggest that the telephonic declarations of love end because it is now clear to you that he is not really interested in finding a way to be together. The answer for you is to get him into experimental mode or cut him loose, along with your losses.

—Prudie, experimentally

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