There was a time when shares of Bell Telephone were an integral part of virtually every Canadian’s portfolio, the quintessential source of security for widows and orphans, so that the meteoric rise of the split-off Northern Electric and its rise through various name changes to Nortel, was a source of pride and vindication to Canadian investors, the more realistic of whom recognized the hollowness of the rising share prices and declining value, but to others whose memory of the former glory of its parent or out of loyalty to an old friend are forced to face the reality that Nortel’s reverse split of ten shares for one, augurs the virtual death knell or sale of a once proud Canadian icon.
Following a period of great optimism in the Canadian economy, the reality of weaker commodity prices, as well as the current decline in Ontario, especially in the automobile and steel industries, has led to a sober look at our failure to upgrade equipment and technology in industries where we compete on a global basis. Canada has only two companies in the Fortune global 500, far fewer than most other developed countries. Inflation appears to be under control in Canada, but not in the United States.
Are Canada's Management schools competitive?
While some may blame the apparent slowdown of the Canadian economy on less competent management, or perhaps, point to the poor financial management of Universities, or allege less competent business schools, the fact of the matter is that our senior managers are certainly on a par and exchangeable with those in the United States with a fairly high degree of mobility between the two countries. As for our schools of management, the teaching staff is largely drawn from industry. The random organization of the professorial staff may be considered an indicator of academic freedom.
The income trust legislation, while not totally unexpected, appears to have been written in haste. In addition to the fact that the loss of tax revenue to the government has probably been exaggerated, the new legislation will undoubtedly adversely affect investment in small Canadian energy companies. Some believe that lowering taxes on conventional companies and/or taxing the conversion of corporations to income trusts could have achieved the government's objectives.
Something appears to be amiss with our immigration practices. Not for the first time, Wednesday Nighters remind us that while we give preference to highly educated and trained immigrants, they find that they are not permitted to practice their skills in this country because of the difficulties encountered in becoming accredited here. All of us have met the civil engineer, doctor or nurse who arrived from another country to be barred from his or her profession. The shortage of accredited surgeons in Canada has led many patients to have their surgery done in India, apparently by qualified professionals. There's even an industry – medical tourism - Meanwhile, our governments and more particularly, our professional accreditation entities, do not appear to be eager to either accredit them or to ease their way into upgrading their skills to our standards.
On the other end of the scale, it is said that badly needed skilled labourers are not permitted to immigrate because of imperfections in our national point system. But once here, they too encounter problems with the trade unions. While government officials are quick to down play the situation, which as described does not appear plausible, it is clear to most - at least around the Wednesday Night table - that the Canadian immigration system is less than transparent, or fair.
The debate continues on the Liberal leadership race. One prediction is that if Michael Ignatieff doesn’t win on the first ballet, the winner will be either Bob Rae or Stéphane Dion; another that it will be between Ignatieff and Rae. Either result would undoubtedly be of comfort to the reigning Conservative Party. Part of the solution may lie with the recent organization of Apathy is Boring , an organization of young potential voters, aimed at interesting youth who are not enchanted with the present situation, to involve themselves, not only by voting but by becoming part of in the Canadian political process.
The Americans have made a bold statement of dissatisfaction with the current direction of the Bush Administration. While many of us in Canada applaud the change, the apparent inability of the U.S. to successfully fight an asymmetric war is cause of concern, considering Ortega’s victory in Venezuela [see: "The best strategy for the U.S. is to engage Nicaragua, not push it away " http://www.belleville.com/mld/belleville/news/editorial/16007166.htm] and the question of political succession in Cuba. Considering all the failures of the Bush regime, it is not a given that the Democrats will be in a position to do much better. The Presidential elections two years hence should prove very interesting.
With the Liberal Party leadership race on our mind, we sometimes try to predict the outcome of the concurrent mid-term elections in our neighbour to the south, where despite the evidence of a great deal of disaffection with the current Republican Congress this may possibly dissipate when the votes are cast, or expressed by refraining from voting. Will the Republicans' ability to raise campaign funds overcome the public's disenchantment with the Party, whether over the war in Iraq, or over morality issues like the Foley case? The days/months ahead will
certainly be of interest to all.
Bears versus CPR
Did we live in more gentle times or does our memory filter out the past? At one time, railway locomotives crossed the prairies with cow catchers attached to protect and save cattle that might have wandered onto the tracks. Today, trains carrying grain moving through western Canada spill grain along the tracks. This attracts bears, many of whom are killed,. The cost of repair to the trains is roughly equivalent to the annual tourist revenue in the national parks through which they run. In any event, it is the bears who pay the highest price. cbc
Global growth continues strong. Outlook for the markets is positive, but the tightening of interest rates will ultimately affect the stock market and the economy, with a gradual movement of share prices. The global economy is not headed for a recession, but there are risks. The U.S. economy is very dependent on central bank money as opposed to economy money. Bush’s policies may very well be undermining the stability of the U.S. economy. The most serious criticism of President Bush is his attempt to fight a war while simultaneously cutting taxes. If wars are not financed by taxes they tend to lead to inflation. Ascending Asia will ultimately put pressure on the U.S. dollar to fall. Another problem is China as any crisis there such as a crisis in the banking system, risks causing the Chinese boom to fall. A depression in North America is unlikely but a very long recession is possible. With rising interest rates, the real estate market in serious danger of collapse.
Note
Wednesday-Night creates charts and follows stocks, including timely related financial news items, in which Wednesday Nighters are interested and in order to demonstrate a service that could eventually be developed and marketed. Wednesday Nighters are invited to participate and help to test the service. see Wednesday-Night.com Flip charts
QUOTES of the EVENING from recent Wednesday Nights
It sounds to me like stagflation (stagnant growth and increasing inflation) … not as bad in Canada as it is in the U.S.
Companies have become global and have arranged themselves in ways to be most profitable. We haven’t managed to do that
When we talk about profitability of energy companies, rail and financial companies, in order to gauge the (real) health of Canadian economy, you have to look at the other 20% that make widgets
(The income trust legislation), a twenty-five billion dollar hammer for an eight million dollar nail
They could have cut the corporate tax, they could have put a graduated conversion tax. They put a sledgehammer to it
I’m confident that young Canadians are more entrepreneurial and have gained a lot of optimism about the future
If he (Bush) had announced that he was dumping Rumsfeld a week ago, he would have gotten a lot more votes than he did
Nancy Pelosi is not quite aware of what she is facing
The government has a $12 billion surplus and they want to raise taxes!!!
We have too few teachers and too many bureaucrats
It's like creating a small business – You are given $300,000 to organize the riding office, hire staff …
1288
“Ethics is values and not morality, leading to ethical behaviour. I think we have a greater moral obligation to saving existing lives, in Africa, for instance and let embryos save existing lives.”
“If you go into politics to do the right thing, it is a battle of principle. You have to compromise.”
“Politics today is like marketing … Look at Harper’s last campaign.”
“… governments are designed to present a monologue.”
“Ninety to ninety-five percent of politicians believe that they have to massage the truth because of the amazing skill of the media to get at the truth ... There is no trust when people say one thing before the election and change their mind six months later.”
“Popular politicians are those who tell it like it is, more so than those who promise goodies.”
“On television, you can’t possibly lie. You have to believe in what you are doing. The party system was okay until T.V.”
“The bureaucrats rule, set the agenda.”
“We mistrust the bureaucracy (but) they are (often) a lot smarter than the Minister.”
“Even if people are disenchanted with politicians, all it takes is one good guy to make people to believe again.”
“…not red states, not blue states .. mostly purple.”
“Each individual has the right to study what suits him, the right to fail and start over again.”
“The best chance of stabilizing world population is to ensure that the children will survive and take care of you. If you are going to lower the birthrate in Africa, put money into women’s education and equity for women.
“What drives altruism? ... makes you feel good.”
“I’m not sure that global warming is our biggest problem but population growth – soon going to need a second planet.”
Invasion (of North Korea), except by the Chinese, is not an option
It is the role of academics to challenge their students to think–often by reversing their positions - in order to bring out the best in their thinking. It is not the role of a political leader
When you are a leadership candidate and you lose your cool like Michael did, it’s not a good thing
It will be between Ignatieff and Rae but I have serious doubts about Michael’s maturity, not about his intelligence
I don’t trust emotional reactions from people who would be leaders
The only person that has a chance of becoming the leader is Stéphane Dion. Rae cannot take Ontario
I think we will waste a lot more money if we don't tackle the worst ecological threat we face – climate change
My last plan for climate change is in fact a plan for energy and climate change – it's on my Website It's about 60 pages long (sorry for that, but it's what we need to do).
Not GST cuts but cuts that enable you to do the right thing – for your wallet and for the planet
We need to have an environmental bank – a climate fund – that will reward all greenhouse gas reductions everywhere in our society
You can’t deal with a global problem (the environment) on a national level ... A Canadian Prime Minister should look for global solutions
According to Genesis, the world is there for our disposal. You cannot wait for the burden of proof that humans are not responsible
The Science is thin; environmental change versus changing the whole way we are living – thermal expansion of the water is what causes it to rise. If an atoll sinks does it cease to be a country?
All Europe is going green. If we continue as we are going, our cars and planes will not be marketable
(Q) How are you going to win this race?
(A) I think I will win because I have the best vision, the best action plan, the best experience … the best capacity to listen and to learn
I am a liberal Conservative and a conservative Liberal, so I fall through the cracks
I think that if Rae or Kennedy were to emerge as the winner there would be a dogfight on the Left, with Layton and May. Dion is credible
Emerging countries now represent 12% of world capitalization compared with Canada at 2%
Let's not forget that the best speech given at the 1968 Liberal Convention was delivered by
Monday Oct 2, 2006 Hungary's Nixon
They're off! Hungary's eight million-plus registered voters are at the polls. The elections are municipal; the implications national. In the country that in the 1980s used to be described as "the happiest barrack" of the Soviet camp, voters are deciding whether or not to punish their government of ex-communists for lying.
J.J. Greene [www.agr.gc.ca/bios/]
Voice radio was invented by Reginald Fessenden a Quebecker from Knowlton
HALIFAX: DELEGATES GATHER FOR INTERNATIONAL MICRO-CREDIT CONFERENCE
Delegates from 107 countries are gathering in Halifax, Nova Scotia, for a four-day conference on micro-credit loans that begins on Sunday. Among the scheduled delegates are Queen Sofia of Spain, and the leaders of Honduras, Pakistan and Sri Lanka. Canada's foreign affairs minister, Peter MacKay, and International Cooperation Minister, Josee Verner, are also scheduled to attend. Delegates will consider the success of the global micro-credit movement and try to set new goals for the next decade. Micro-credit loans have helped more than 113 million people around the world to set up small businesses. Loan recipients often have no assets or money to serve as collateral. More than 80 per cent of them are women. The Nobel Peace Prize this year was awarded to Muhammad Yunus of Bangladesh who founded the Grameen Bank in 1983 and began issuing micro-loans in his country. More than 3,100 micro-credit institutions exist now in the world. One goal of the Halifax conference is to ensure that loans reach 175 million people by 2015. The Canadian International Development Agency spends one per cent of its annual budget, or CDN$32 million, on micro-credit programs. Last month, CIDA announced an additional CDN$12 million for micro-credit programs in Afghanistan.
Video Clip
During the 2004 elections, Apathy is Boring received a ton of media coverage about our efforts to get youth voting. Check out a compilation of our TV appearances.
Democrats sweep U.S. Congress Democrats completed their sweep of the U.S. Congress by capturing control of the Senate, U.S. media reported Thursday, handing President George W. Bush a stunning defeat that alters the political landscape for years to come.
EXTENDICARE REIT(EXE.A)$23.65 – INITIATING: COMPANY REAFFIRMS ACQUISITIONS STRARTEGY. RATING: OUTPERFORM. TARGET: $19.00. RISK RATING: AVERAGE. INDUSTRY RATING: OVERWEIGHT.
On the call, management made it crystal clear that acquisition growth “is a critical component of the [EXE REIT] model” EXE REIT has already announced that it is close to acquiring a portfolio of 30 U.S. nursing homes. Our rough estimate is $0.06 to $0.09 accretion. EXE also confirmed that the acquisition has not been factored in to its $1.11 distribution. While the REIT has industry leading margins and Medicare census, it is not an operating momentum story. It is firstly an acquisitions driven growth story and secondly an organic growth story. Organic growth stems from development and expansion, such as the current LTC development opportunity in Ontario and the densification (campus of care) of some of its properties in the U.S. Equally important, EXE should be able to expand margins of acquired properties to the extent they are purchased at industry averages. Management advised on the call that it expects Crown Life to be monetized in the first half of 2007, with proceeds used to pay down U.S. dollar debt and accretion of $0.04. This is the most conservative approach. The $0.04 has been factored in its expected distribution of $1.11 ($1.20 less $0.13 for additional tax leakage offset by $0.04 for Crown Life). Our 12-month target for EXE REIT is $19.00 based on a 15% premium to our $16.50 NAV. Our guess is that the REIT starts trading between $15.50 and $16.50 on Friday, thus providing an attractive entry point for its new shareholder base.
Menu to mitworld.mit.edu/ on-demand videos of significant public events at MIT. in RealPlayer
Ex Thomas L. Friedman. While you were Seeping The World IS Flat Video length is 1:15:04.
Stephen S. Poloz VP EDC Economics Weekly Commentary Bubbles…and Beyond - November 8, 2006
For several years the U.S. housing sector has been a source of economic strength, creating construction jobs and consumer wealth, thereby boosting consumer spending. But too much of a good thing led to rampant speculation and a real estate bubble, and now that bubble has burst. Past issues | his WN page
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