Sometimes They Get It Right

The nature, ideology or beliefs of the people who govern matter less than the actions of those people; and, logically, if such people get it wrong the majority of the time, they sometimes get it right.

John Flaherty's refusal to extend the stimulus deadline exhibits a case of getting it right. Yes, the government dragged its feet getting the stimulus out the door. Anyone but the credulous would suspect that to have been deliberate.

That aside, if the large number of polls are to be believed (sometimes they get it right too), most Canadians other than those working in the construction industry, would have preferred no stimulus - and no bailouts, the worst form of 'stimulus' -, rather than incur a federal deficit.

These Canadians, the majority, would have preferred that the corporations and industries that over-extended themselves in the (correct) belief that governments would cover their asses, should have been allowed to perish if such was their natural course.

The majority of Canadians would have preferred that people who consumed and spent like there was no tomorrow, all the while aware of circumstances strongly suggesting they should make changes, not be rewarded for their gluttony and intentional denial through emergency government programs.

The majority of Canadians think that no person, bank, corporation or industry will correct his/her/its behaviour toward survival if Big Daddy is always there for his/her/its rescue.

Enough is enough. End the stimulus.

Also end the bailouts.

Oops, too late on the bailouts.

Witness yesterday's vote in the House of Commons on the flawed F-35 contract. The gullible will suppose that the motion passed in aid of supporting Quebec's economy. Others will nod knowingly that the true reason for all those Yes votes yesterday was to save the necks of certain Conservative and Bloc politicians.

Recommend this post

Can You See My Grin?

Today, I went to my post box and discovered a card from a special friend. My smile lightened my step as I went forward to my little shack in the woods. Once I got home and opened the envelope to find a treat from one who could least afford it, I was elated. It is amazing to feel so uplifted! Such a small thing, others would say, but I know how much it means to receive this unexpected present. The least I can do is say THANK YOU!

Recommend this post

GM Share Comes Without Power Steering

Here is how The Current opened its show today:

It's Monday, June 1st.

At the going rate, the bail-out of General Motors will cost Canadians about 1.4 million dollars for every GM job.

Currently, that price does not include power steering.

Nor is it likely to in the future.

Recommend this post

Government as Shareholder Counter to Public Interest

I have never supported corporate bailouts. I do not support politicos who hail market capitalism during the good times and harrumph, posture, and then hail corporate socialism during the bad times.

Now it is reported that Ottawa will become a shareholder of GM. While there are those who might argue that reaping profits (if there ever are any) could be advantageous to taxpayers in such circumstances, I disagree.

How does owning a stake in GM - an industry, not just a corporation, whose financial bottom line depends on a nation-wide infrastructure and a lifestyle based on private, individually-owned vehicles - encourage the federal government to invest in public transportation? Doesn't investing in the one contradict investing in the other?

What about environmental regulations which would challenge Ottawa's profit margin?

I anticipate all kinds of ethical dilemmas on this slippery slope. Unless, of course, the government should exercise foresight (which I've yet to witness) and insist - with its 16 (to reduce to 11.7) percent clout and single Board member - that GM put as much of its resources into producing railcars and buses as in private vehicles.

Recommend this post

Ottawa to Back Five-Year Auto Warranties - How?

This is throwing more money after bad. First, we've received no assurances that current loans to the auto sector have been protected.

Now Tony Clement announces that Ottawa, following the US example, will back five-year auto warranties for any vehicles purchased as of today:

"We felt this was a way to assure the buyer that if you buy a GM product or if you buy a Chrysler product, your five-year warranty for parts and labour and service will be acted upon."

By whom? Government employees?

The auto industry is dying. Those in the sector still with room to manoeuvre are getting out of the industry as quickly as they can and moving on to another, more profitable one.

A separate entity will be created and funded with cash from the automakers and a loan from the federal government to pay for repairs under warranty on each new vehicle sold during the restructuring period.

Where do you suppose that cash from automakers will be coming from? GM is moving toward bankruptcy protection. They've no cash to contribute. Which means that cash "from the automakers" is, in fact, coming from Canadian taxpayers.

Way to go, Harper!

Recommend this post

Federal Loans to Automakers Currently Unprotected?

Tony Clement is reported to be "preparing" a Plan B "to protect the taxpayer-backed loans, should the automakers fall into immediate trouble."

Why wouldn't such a plan already be in place? What is protecting taxpayer-backed loans now? Nothing?

The photo shows what can happen when the wheels fall off, as seems likely to happen to GM and Chrysler sooner rather than later.

Recommend this post

G20: Crowds Storming the Banks

Wow. This is getting serious.

Protesters rallying ahead of the G20 economic summit in London smashed windows of bank buildings Wednesday as thousands gathered in the capital's financial district. Officials estimated that at least 4,000 people have jammed into the area, with many chanting "Abolish Money" as they marched down the clogged streets.

Some protesters smashed windows of the Royal Bank of Scotland, scrawled the word "thieves" on its outside and stormed inside the building....

Demonstrators hoisted effigies of the "four horsemen of the apocalypse," representing war, climate chaos, financial crimes and homelessness.

"The greed that is driving people is tearing us apart," said Steve Lamont, 45, flanked by his family and protesters who were banging on bells, playing drums and blowing whistles.

"Every job I apply for there's already 150 people who have also applied," said protester Nathan Dean, 35, who lost his information technology job three weeks ago. "I have had to sign on to the dole [welfare] for the first time in my life. You end up having to pay your mortgage on your credit card and you fall into debt twice over."

The people are angry. Yet among those still with jobs, in the banking industry no less, the sense of entitlement prevails:

Bankers were warned not to wear pinstripe suits on Wednesday and many opted for casual clothes or stayed home. But some financial workers taunted protesters from the upper level windows of area buildings and waved £10 notes at them.

Oh, way to go! Taunt the unemployed.

Recommend this post

Tired of Bailing Out Banks ...

and their unethical investment practices?

Then try a little citizen activism. Close your savings, chequing, GICs or other big-bank accounts and walk your money over to your local credit union or "independent community bank" (do we have such things here?) Such is the advice to USians in the article linked above.

Such is also the action I took back in December after reading this article in The Tyee.

Last month, the San Francisco-based Rainforest Action Network ... published a report analyzing the greenhouse gas emissions of Canada’s five biggest banks, based on their financing of fossil fuel projects. According to the report, last year Royal Bank, TD Bank, BMO, Scotiabank and CIBC provided a total of $155 billion in direct corporate loans and financing to coal, oil and gas industries.

"[Banks] play a massive role in Canada's future as a contributor to global warming rather than a country that's helping solve the problem," said organizer Graham Girard.

It was the latest of other articles I'd read about the unethical investing of large banks whose sole raison d'être is to serve up profit to their shareholders. It was the last straw for me.

I'd been a customer of the same bank for over 30 years, which is why I'd hesitated for so long to make the move. My local branch in particular had been good to me, waiving fees they needn't have and taking my word that such-and-such happened without requesting proof. That's unusual for a large bank and so, as a loyal customer, I stayed. Still, community branches are nonetheless part of a huge corporation with tentacles everywhere and I simply couldn't condone my tiny part in supporting the activities of that corporation anymore.

So with regret and not a little anxiety, since the familiar is comforting, I did the deed. Soon thereafter, I felt a huge sigh of relief, my conscience finally salved. Haven't had a single regret since.

Recommend this post

Chrysler Threatens to Leave Canada

Well, after all the subsidies and crying and hand-wringing and excuses and mismanagement and CEO bonuses and private jets and ...

Bye-bye. Don't let the door hit you on the way out!

Recommend this post

Wealthy Invited to Own More of US?

Isn't that what this bit of news amounts to?

The U.S. government plans to invite wealthy investors to invest in the bailout of the crippled financial system.... The investors would be invited to buy up recently issued, highly rated securities that finance consumer lending - without the risk of massive losses.... The idea is to entice the investors to put their huge cash piles to work to stimulate the financial system....

The program, which could involve the government lending nearly $1 trillion to these investors, exceeds the size of every other federal effort to address the financial crisis so far.

Only the wealthy could afford to participate in this program. In fact, they're specifically targeted for it. Which rings, or should be ringing a whole bunch of alarm bells.

Recommend this post

CanWest and HarperCo

If you've any doubt that the CanWest media group is the propaganda organ of the Harper Conservatives, you need look no further than this:

The sickness that is enveloping Canada's local television sector is causing concern for the well-being of one of Stephen Harper's chief electoral strategies - that of going over the national media's head to move his party up in the polls.

Sources say members of the PMO are becoming worried the tactic used by Mr. Harper to aim his message directly at local voters is threatened by the economic difficulties faced by the stations. On Wednesday, CTV announced it would close two Ontario stations in Windsor and Wingham rather than continue to absorb financial losses in those communities.

"Senior officials in the Prime Minister's Office are well aware of the importance to politics of private local television," a senior Tory told The Globe and Mail yesterday. "The government is very concerned of the closure of conventional television stations owned by CTV and Canwest, in particular."

Might we hear "Bailout!" sometime soon? And if not, might we espy - provided we can access the information - some underhanded government machinations designed to rescue CanWest from its own ineptitude?

Other CanWest stations on the chopping block include Victoria and Kelowna (BC), Red Deer (AB), Montreal and Hamilton.

Recommend this post

"Majority" Support Stimulus Package?

That would be the conclusion drawn (as one blogger has) of the most recent Gallup poll regarding public support for the US stimulus package.

The conclusion may well be true. The US package appears to throw at least some crumbs to just about everyone.

On this side of the 49th parallel, however, such is not the case. Therefore, if Canadian polls exist which indicate a majority support for the Harper "stimulus package" (and no doubt they do exist), I'd beg to ask a few questions:

1. What newspapers do survey participants read regularly?
2. Do they watch television and if so, what stations do they prefer?
3. Do they have a phone and/or work two or more part-time jobs at minimum wage?

I'd like to ask these questions because many people at the lowest two income levels with whom I'm in touch don't support the government's rescue package for corporateers.

But then, not a lot of the people I know get to participate in telephone surveys. Some haven't phones. Others are out earning minimum wage at two or three part-time jobs which provide them no additional benefits, including the benefit of collecting Employment Insurance should they become unemployed.

If capitalism is going to be forced on everyone, no matter how good or bad the times are for any of us, then let it be forced on EVERYONE. Don't, when profits are plummeting due to corporateers' massive errors in judgement suddenly allow the system to morph into something else that permits corporate welfare.

Many of us at the bottom of the well looking up know that the return to free-market capitalism will happen once the corporateers are happy again. In the meantime, nothing at all will have changed for us except that our lives will have become harder.

Recommend this post

Greedy Burger King Owners Bite Employees

Goldman Sachs, US owners of the Burger King chain has tapped into the economic bail out, are paying their financial staff huge bonuses and this all on the backs of the underpaid, hourly employees.

Goldman Sachs, where former Treasury Secretary Hank Paulson was once CEO, switched from an investment bank to a bank holding company last year so it could qualify for $10 billion in bailout funds. They then spent $6.5 billion on bonuses for their financial staff. Goldman's recklessness is one of several scandalous stories of Wall Street giants abusing the bailout at the expense of taxpayers and the economy. But in this case, Goldman's excessive spending has had an immediate and profound impact on the American work force....

The average Burger King salary is $14,000 a year--three grand less than the federal poverty line. According to the SEIU and a new campaign from Brave New Films, had Goldman used the $6.5 billion blown on bonuses to help Burger King's woefully underpaid employees, each BK worker would have received an extra $18,000 last year.

Employees are struggling to stay alive in a declining economic market, dishing up tax dollars to assist funding bailout packages and find they are being treated as though they were slaves.

And in Canada?

Recommend this post

GM to File Bankruptcy?

That's one idea being floated by the company.

General Motors Corp, nearing a Tuesday deadline to present a viability plan to the U.S. government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company, the Wall Street Journal said in its Saturday edition.

"One plan includes a Chapter 11 filing that would assemble all of GM's viable assets, including some U.S. brands and international operations, into a new company," the newspaper said. "The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked."

Hmmm: "reworked."

Not good news for all these people, is it? Shareholders should be happy though, what with dumping all those "undesirable assets."

Recommend this post

Auto Bailout for Whom? - P2

(Part 1)

Gindin: "The problem with autoworkers absorbing wage cuts is that it sets the standard for others."

Part 2 with Sam Gindin, former assistant to the President of the Canadian Autoworkers' Union and now a professor at York University. Video courtesy of The Real News Network.

Recommend this post

Poor, poor Canwest

What's the organ of the Conservative Party of Canada to do?

The financial screws appear to be tightening on Canwest Global Communications.

The company says its Canwest Media division may not be able to comply with debt obligations for its fiscal second quarter, which runs from December through February.

The Winnipeg-based owner of the Global television network, the National Post and an array of big-city Canadian daily newspapers says it believes it will be able to continue to operate normally through the present quarter.

In a statement, however, Canwest says it will "actively pursue opportunities to divest of non-core operations and assets."

Perhaps they can appeal to their leader for a bailout.

Recommend this post

Auto Bailout for Whom and Who's to Blame?

Interesting historical perspective of the plight of the Wee Three, as told by Sam Gindin, former assistant to the President of the Canadian Autoworkers' Union and now a professor at York University. The video comes courtesy of The Real News Network.

"In terms of the present moment, all the companies are in crisis, but what needs to be emphasized is that GM, Chrysler, and Ford were already in trouble before this crisis emerged, and the length of this crisis will determine very much whether they will survive." He explains that "there was a very conscious decision going back to the 1970s that [US companies] would leave the small car market to the Japanese."

Recommend this post

The "F" word in the 21st Century

FEMINISM: according to the Collins Gage Canadian Dictionary it is a philosophy advocating rights which are equal to those that exist for men.

Judy Rebick in her book Ten Thousand Roses gives a excellent account of feminism in Canada.

Along comes Harper and his gang of right-wing Conservatives and wipes out the work of thousands of women and men across this country with one quick slash of his pen, eliminating the word equality from the Status of Women's statement and ends the long painstaking inter-provincial negotiations which were moving toward a Universal Child Care policy while ignoring the fact that a large percentage of Canadian children are living in abject poverty. Currently, certain of his minions are attempting to re-open the abortion issue to further erode women's choices, his government has refused to transfer payments to the provinces for affordable housing or adequate health care and yet Harper promises obscene amounts of our tax money to bail out greedy capitalist auto makers.

What are these boys thinking?

Recommend this post

Chrysler buys pricey full-page ads to say "Thank you"

Can these people get any more absurd? Where the hell are their brains?! Chrysler ran several full-page ads last week to say Thank You to USians

for "investing" in the company through the government's $17.4 billion auto industry bailout plan...

The ads ran last week in several major daily newspapers, including USA Today, The Wall Street Journal and the Atlanta Journal-Constitution... A full-page ad in The Wall Street Journal runs between $206,000 and $264,000, and a full-page ad in USA Today runs between $112,000 and $217,000...

"Years ago there was a robber who was really polite. He said please and thank you while he was robbing people. At the end of the day, people had their money stolen. Saying thank you doesn't make it OK. They should give the money back," said [Grover] Norquist, [president of Americans for Tax Reform]...

The ad buys have also triggered a wave of criticism on blogs and editorial pages.

One recent letter to the editor in the Chicago Tribune said the automaker "proved their incompetence" by taking out the ads.

The report is from a FAUX News site. Ergo, this post does not link to it. If you're curious, I recommend you work the google magic.

Recommend this post

HarperCo clinches deal to free up short-term debt

Anyone notice this?

Intense last-minute talks between Ottawa and major foreign banks have yielded a deal that is expected to end a 16-month crisis and head off losses of as much as $25-billion for Canadian investors.

Sources said the federal government and the banks, which include Deutsche Bank AG and Merrill Lynch & Co., reached a weekend agreement that should mean the end of the asset-backed commercial paper (ABCP) meltdown that has locked up $32-billion of money belonging to investors big and small since August, 2007.

The deal, which comes after Ottawa and three provincial governments agreed to provide about $3.5-billion in credit lines, means that investors should get access to their money in January, barring any last-minute complications.

That would be a huge relief for investors ranging from pension fund Caisse de dépôt et placement du Québec, which is stuck with about $13-billion of the debt, to individual Canadians who had sunk their life savings into the investments because they were touted as a safe alternative to government bonds.

Am no economist, but isn't this just another bailout? The timing of the announcement just strikes me as suspicious.

From the point of view of someone having to find evermore creative ways to live on $8,000 - an income which has remained the same for the past eight years, has no cost of living allowance attached to it and of which 70 percent is consumed for rent - I do wonder about all these bailouts.

And I do wonder how so many pro-market capitalists think it justified to apply "socialist" economics to extricate themselves from the results of their own greed. Apparently, market capitalism is fine for the wealthy, except when it isn't. The poor in either case be damned.

Recommend this post