Dear Mr. President,
By your own admission, you have arrived at this day of reckoning. In saying this, and budgeting for a newly expanded set of goals and priorities as reported in The Huffington Post, you are confronting some of the most difficult issues, ever. According to Politico, you are now ready to begin work with Kansas Governor Katherine Sebelius heading up Health and Human Services. As one of your northern neighbours, I want you to know that you are doing the right thing by advancing health care reform in the United States.
In 2004, the Canadian Broadcasting Corporation ran a series about the greatest Canadian. The list included hockey great Wayne Gretzky, telephone inventor Alexander Graham Bell, and insulin discover Frederick Banting and two great Canadian prime ministers. Who did the public pick? Tommy Douglas (www.cbc.ca/greatest/) the man who introduced universal public health care to Canada, while Premier of Saskatchewan.
I suspect the debates that lie ahead regarding universal health care will make the Stimulus bill appear like child's play. But debate you must. It is wrong to leave 47 million Americans without health care, without the ability to be healthy, without the ability to be well, without the ability to fully contribute to your society.
My American friends want you to get going on universal health care. I believe you have already heard from my St. Louis friend, who believes the economic recovery will be faster if there is a health care plan. The current system equates good jobs with good health care, and that has proved a burden for too many companies. My friend from Virginia, who has lived in Canada for awhile, had a very serious stroke last fall and was hospitalized for 14 weeks. During that period, I asked her if she was angry. She told me that on the contrary, she is so appreciative of the Canadian health care system. She says she could not have afforded the stroke in the U.S.
Mr. President, I do not wish to mislead you and your country. Our system is far from perfect -- we have a shortage of doctors, long wait times, our nurses are overworked. However, we never think for a minute about cost or insurance coverage when anybody falls ill, or goes to the doctor. Medical costs are covered by taxes.
I believe that you and the House will examine many options, and there will be great argument. I hope that the Canadian government studies your various proposals and learns how to adapt and perfect our system in ways large and small. And I advise everybody to keep track of the people leading the charge for American health care reform. Because, like Tommy Douglas, one day they too could be known as your country's greatest Americans!
Good luck,
Diane Wilson
February 28, 2009
The Dow is Cooked for Now
Considering GE slashed its dividend 68% Friday, and Citigroup shares now trade for less than a 12 ounce can of Spam, you would have expected the Dow to fall more than 119 points yesterday. However, The Dow Jones Industrial Average -- the 30 companies that reflect the US economy -- has too many companies on deathwatch. Citigroup, the bank that the US government basically nationalized yesterday, currently has a market cap of US$8 billion. GM sports a cap of US$1.37 billion -- roughly three times Oprah's salary -- and trades at $2.25. By comparison, the Royal Bank of Canada has a market cap of US $32.5 billion, while the BCE takeover that never happened was priced at $51 billion.
Look for a redo of the Dow components later this year. In the meantime, the S & P will provide a better gauge of the market. And investors who used Dogs of the Dow Strategy -- the clever theory that suggests buying the ten Dow stocks whose dividends provide the highest yield -- might want to wait and see. Last year's Dog picks included Citigroup, Pfizer, GM, JP Morgan Chase and General Electric, among others --companies that are either staving off bankruptcy or shoring up balance sheets, while slashing dividends.
Look for a redo of the Dow components later this year. In the meantime, the S & P will provide a better gauge of the market. And investors who used Dogs of the Dow Strategy -- the clever theory that suggests buying the ten Dow stocks whose dividends provide the highest yield -- might want to wait and see. Last year's Dog picks included Citigroup, Pfizer, GM, JP Morgan Chase and General Electric, among others --companies that are either staving off bankruptcy or shoring up balance sheets, while slashing dividends.
February 27, 2009
How to Spot a Depression at 30,000 Feet
Throw out the economics books! Get rid of all the metrics! Forget what you've heard over the years about the Dirty Thirties and dustbowls and all that. This is 2009, and times are tough. How tough? Tough enough that Ryanair is considering charging passengers to use the loo. According to a report in The Globe and Mail , Ryanair boss Michael O'Leary thinks people should pay one British pound for a trip to the washroom, thus creating a new revenue stream. So many questions and concerns come to mind -- what of the passenger who boards without adequate change?
Now for the good news: this low-fare carrier tends to make short haul flights and they are known for very efficient landings!
Now for the good news: this low-fare carrier tends to make short haul flights and they are known for very efficient landings!
Coffee with the Oracle: What lies ahead
by Diane Wilson
On Saturday morning, skip the gym, grab your coffee and settle down at the computer at 8 AM EST to read Warren Buffett's annual letter to shareholders. The letter, which forms part of Berkshire Hathawy's annual report, can be found at www.berkshirehathaway.com. Buffett has been knocked in recent months because Berkshire stock is down severely -- BRK.B shares now trade at $2,408, down drastically from their 52 week high of $4,700, while the A shares go for a measly $75,799, almost half of their 52 week high of $147,000.
Given that Berkshire is heavily exposed to insurance and other ills that plague the market, the stock price is understandable. It is important to know what Mr. Buffett believes of the future and how we arrived at this uncertain point in history. His letter is not your average report to shareholders. It is a well written document that focuses on the state of the market, the price of stocks, and our future.
During the tech boom, Buffett said he did not buy companies that he did not understand and he stayed away. He thought the market was overheated. People frowned. Then the tech boom fell apart and he looked brilliant. Now, with the Dow off 50% from its October, 2007 high, and Citigroup close to nationalized with the US government's 36% stake in the company, it is up to the avuncular Mr. Buffett to cheer us up, and chart a path that makes sense for his shareholders and America.
A notorious value investor, Buffett has been trying to lead by example, purchasing beaten down companies like General Electric and Goldman Sachs. He has substantial holdings in American Express and Wells Fargo. About half of Berkshire's revenues come from insurance while a good deal comes from housing related investments.
You may not agree with the Oracle of Omaha, but you had better know what he is saying and doing. Because the markets just might be trading on Buffett come Monday morning. One more thing: I have always found it curious that the cherry Coke swigging guy who failed to understand tech became best friends with Microsoft founder Bill Gates. Buffett must never, ever be underestimated.
On Saturday morning, skip the gym, grab your coffee and settle down at the computer at 8 AM EST to read Warren Buffett's annual letter to shareholders. The letter, which forms part of Berkshire Hathawy's annual report, can be found at www.berkshirehathaway.com. Buffett has been knocked in recent months because Berkshire stock is down severely -- BRK.B shares now trade at $2,408, down drastically from their 52 week high of $4,700, while the A shares go for a measly $75,799, almost half of their 52 week high of $147,000.
Given that Berkshire is heavily exposed to insurance and other ills that plague the market, the stock price is understandable. It is important to know what Mr. Buffett believes of the future and how we arrived at this uncertain point in history. His letter is not your average report to shareholders. It is a well written document that focuses on the state of the market, the price of stocks, and our future.
During the tech boom, Buffett said he did not buy companies that he did not understand and he stayed away. He thought the market was overheated. People frowned. Then the tech boom fell apart and he looked brilliant. Now, with the Dow off 50% from its October, 2007 high, and Citigroup close to nationalized with the US government's 36% stake in the company, it is up to the avuncular Mr. Buffett to cheer us up, and chart a path that makes sense for his shareholders and America.
A notorious value investor, Buffett has been trying to lead by example, purchasing beaten down companies like General Electric and Goldman Sachs. He has substantial holdings in American Express and Wells Fargo. About half of Berkshire's revenues come from insurance while a good deal comes from housing related investments.
You may not agree with the Oracle of Omaha, but you had better know what he is saying and doing. Because the markets just might be trading on Buffett come Monday morning. One more thing: I have always found it curious that the cherry Coke swigging guy who failed to understand tech became best friends with Microsoft founder Bill Gates. Buffett must never, ever be underestimated.
February 13, 2009
Yeah, I lost my job too: Global Woe
More than 600 job seekers showed up at a Toronto job fair this week, as the ranks of the recently unemployed have begun swelling. According to the The Star job seekers waited in line to meet job counsellors and employers at the fair, held by JVS Toronto. JVS -- a non-profit dedicated to employment -- has been operating for 61 years and has experience placing people during good and bad times.
Canadian employment had been holding up fairly well until recent months. Global job losses from the recession could top 50 million by year's end, The New York Times reports. The figures come from the International Labor Organization, a United Nations agency.
The International Monetary Fund anticipates that global economic growth will reach its lowest point since the Depression by late 2009. According to researchers quoted in the Times, growth has essentially stopped and developed economies are expected to shrink 2 per cent during this year.
The French employment minister noted that this is the worst that his country has seen since 1929. He said globalization makes the unemployment picture much different and more severe.
Canadian employment had been holding up fairly well until recent months. Global job losses from the recession could top 50 million by year's end, The New York Times reports. The figures come from the International Labor Organization, a United Nations agency.
The International Monetary Fund anticipates that global economic growth will reach its lowest point since the Depression by late 2009. According to researchers quoted in the Times, growth has essentially stopped and developed economies are expected to shrink 2 per cent during this year.
The French employment minister noted that this is the worst that his country has seen since 1929. He said globalization makes the unemployment picture much different and more severe.
February 12, 2009
Space Pollution: Trouble in the Heavens
by Diane Wilson
For those of us who would prefer to forget Kyoto and global warming and the many forms of pollution that most people agree are problematic, we now have something else to keep us up at night -- space pollution.
According to the The New York Times , two communication satellites -- an operational American satellite and a Russian satellite -- collided 490 miles above northern Siberia. There is now concern that orbital debris could affect the International Space Station.
Weighing in at about 1,200 pounds -- the size of a fully grown cow, and measuring more than 12 feet long or the height of a mature elephant -- the American satellite was one of a group of 66 spacecraft.
According to Nicholas Johnson, chief scientist for orbital debris at the National Aeronautics and Space Administration, it will take time to find out how much damage was done, and whether the debris could threaten the space station and its astronauts. He noted that the risk to the station is small, because you can dodge the large objects whipping through the universe. Apparently, it's the smaller objects that you cannot see -- think industrial pollution here on earth -- that can cause the most damage.
Which brings us to our risk for more of this in space, given our penchant for communication devices. For that matter, were I to understand physics, would it be possible to track all of the waves and rays and other stuff emitted by all of the machines we now engage? I remember being told years ago not to stand to close to my microwave. I stand three feet away, and then go near it as it beeps the friendly message: "Enjoy your meal." There are all the conflicting stories about mobile phone use and the brain. And now collosal pollution in the heavens. We have created such a superb technological society that my microwave is about to change its message: "Last laugh's on you."
For those of us who would prefer to forget Kyoto and global warming and the many forms of pollution that most people agree are problematic, we now have something else to keep us up at night -- space pollution.
According to the The New York Times , two communication satellites -- an operational American satellite and a Russian satellite -- collided 490 miles above northern Siberia. There is now concern that orbital debris could affect the International Space Station.
Weighing in at about 1,200 pounds -- the size of a fully grown cow, and measuring more than 12 feet long or the height of a mature elephant -- the American satellite was one of a group of 66 spacecraft.
According to Nicholas Johnson, chief scientist for orbital debris at the National Aeronautics and Space Administration, it will take time to find out how much damage was done, and whether the debris could threaten the space station and its astronauts. He noted that the risk to the station is small, because you can dodge the large objects whipping through the universe. Apparently, it's the smaller objects that you cannot see -- think industrial pollution here on earth -- that can cause the most damage.
Which brings us to our risk for more of this in space, given our penchant for communication devices. For that matter, were I to understand physics, would it be possible to track all of the waves and rays and other stuff emitted by all of the machines we now engage? I remember being told years ago not to stand to close to my microwave. I stand three feet away, and then go near it as it beeps the friendly message: "Enjoy your meal." There are all the conflicting stories about mobile phone use and the brain. And now collosal pollution in the heavens. We have created such a superb technological society that my microwave is about to change its message: "Last laugh's on you."
February 11, 2009
Baseball Banking and Madoff
by Diane Wilson
As the top American bankers testified in Washington today, one could only sit in disbelief at the sad spectacle. The heads of the once great banks -- and these were really good banks -- had to explain and apologize, and beg. Washington is beginning to ring out the excesses as it comes to terms with the new realities but it will take awhile to sort out a culture that had coveted excess.
America's national game, baseball, has been having a rough week. The New York Daily News reports that former Blue Jay Roberto Alomar got hit with a heavy duty lawsuit. This follows the flap created by Alex Rodriguez's interview with ESPN, in which he admitted to using banned substances while playing with the Texas Rangers back in 2001 - 2003. Rodriguez told the network that he wanted to prove that he was worth the money.
Then there is the slow steady drip from the Bernie Madoff case. If reports are true, he is the player who has really hit it out of the park, having claimed thousands of victims in his alleged $50 billion Ponzi scheme. Madoff doomed the rich and the retired, but it is his devastating reach into philanthropy and pension funds that boggles the mind. According to the New York Times, this case extends to the New Orleans City Employees Retirement System and locals of the Plumbers & Steamfitters union, among others. Everybody had counted on Mr. Madoff to keep their money safe.
Bankers, baseball players and fund managers. We sit with an issue of trust, a need to sort the good from the bad, and to get back to some sort of normal. So, we have a stimulus bill passed in the US and we have one here at home, but we need more. We need values. No more shock and awe economics. No more swinging for the fences. No more. I want to know which of the banks are still reliable because I'm still foolish enough to believe that they are not all bad guys. I just do not think that. Same with the managers and players. It is the scoundrels that are dominating. Time to get them out of the way, change the culture and move on.
As the top American bankers testified in Washington today, one could only sit in disbelief at the sad spectacle. The heads of the once great banks -- and these were really good banks -- had to explain and apologize, and beg. Washington is beginning to ring out the excesses as it comes to terms with the new realities but it will take awhile to sort out a culture that had coveted excess.
America's national game, baseball, has been having a rough week. The New York Daily News reports that former Blue Jay Roberto Alomar got hit with a heavy duty lawsuit. This follows the flap created by Alex Rodriguez's interview with ESPN, in which he admitted to using banned substances while playing with the Texas Rangers back in 2001 - 2003. Rodriguez told the network that he wanted to prove that he was worth the money.
Then there is the slow steady drip from the Bernie Madoff case. If reports are true, he is the player who has really hit it out of the park, having claimed thousands of victims in his alleged $50 billion Ponzi scheme. Madoff doomed the rich and the retired, but it is his devastating reach into philanthropy and pension funds that boggles the mind. According to the New York Times, this case extends to the New Orleans City Employees Retirement System and locals of the Plumbers & Steamfitters union, among others. Everybody had counted on Mr. Madoff to keep their money safe.
Bankers, baseball players and fund managers. We sit with an issue of trust, a need to sort the good from the bad, and to get back to some sort of normal. So, we have a stimulus bill passed in the US and we have one here at home, but we need more. We need values. No more shock and awe economics. No more swinging for the fences. No more. I want to know which of the banks are still reliable because I'm still foolish enough to believe that they are not all bad guys. I just do not think that. Same with the managers and players. It is the scoundrels that are dominating. Time to get them out of the way, change the culture and move on.
February 8, 2009
Time for Work: Now!
by Diane Wilson
According to January's horrible Canadian unemployment numbers released Friday, we now have a national unemployment rate of 7.2%, up significantly from December's 6.6%. Youth unemployment rang in at at a staggering 12.7%, and men over 25 clocked 6.7%. Unemployment among women fared much better at 5.4%.
The US jobs report for January showed unemployment rising to 598,000, or 7.6%. While some jobs were added in health care and in government, every other sector shed jobs. All of which means, the unemployment rate is well into the double digits for people without a high school diploma. Male unemployment now sits at 7.6% while female unemployment is 6.2%.
This trend is not our friend. I picture women across America feeling guilty now that they have retained their jobs, as well as their housework, and I envision swelling numbers of Nintendo playing disaffected men -- and their fathers -- standing in line to flip burgers. There is only so much Grand Theft Auto and Mario that these guys can play before they start asking how their futures evaporated. Why do women have all the jobs? What happened?
The American heartland tells me that the deadening economy could unleash anger on the streets. Which is why the stimulus package is needed now. This business about tax cuts makes no sense. Young people will not benefit from a tax cut. Unemployed people need job opportunities. We need big government spending, the kind we would normally rail against. We must retain all precarious positions and create new jobs for those disaffected people who believe the rest of the world has stopped caring about them. It is a time to show compassion and interest in your fellow man. If we act, we will create the opportunity for millions of people to start contributing and rebuilding society.
Time to stop with the party politics. Time for everybody to get to work, getting work for workers. Something along the lines of hope and change.
According to January's horrible Canadian unemployment numbers released Friday, we now have a national unemployment rate of 7.2%, up significantly from December's 6.6%. Youth unemployment rang in at at a staggering 12.7%, and men over 25 clocked 6.7%. Unemployment among women fared much better at 5.4%.
The US jobs report for January showed unemployment rising to 598,000, or 7.6%. While some jobs were added in health care and in government, every other sector shed jobs. All of which means, the unemployment rate is well into the double digits for people without a high school diploma. Male unemployment now sits at 7.6% while female unemployment is 6.2%.
This trend is not our friend. I picture women across America feeling guilty now that they have retained their jobs, as well as their housework, and I envision swelling numbers of Nintendo playing disaffected men -- and their fathers -- standing in line to flip burgers. There is only so much Grand Theft Auto and Mario that these guys can play before they start asking how their futures evaporated. Why do women have all the jobs? What happened?
The American heartland tells me that the deadening economy could unleash anger on the streets. Which is why the stimulus package is needed now. This business about tax cuts makes no sense. Young people will not benefit from a tax cut. Unemployed people need job opportunities. We need big government spending, the kind we would normally rail against. We must retain all precarious positions and create new jobs for those disaffected people who believe the rest of the world has stopped caring about them. It is a time to show compassion and interest in your fellow man. If we act, we will create the opportunity for millions of people to start contributing and rebuilding society.
Time to stop with the party politics. Time for everybody to get to work, getting work for workers. Something along the lines of hope and change.
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