And while we were all just enjoying our gardens, holy smokes, some investors may have had the inside scoop on Canada's Friday jobs numbers. According to The Globe and Mail, Canada is making sure that leaked data did not help currency speculators in advance of the surprisingly good numbers. The Canadian dollar was up .7 per cent between 6 a.m. and 7 a.m. ET for no apparent reason, well in advance of the report.
The rumour that has people concerned concerns a large London based hedge fund that made a substantial purchase of Canadian dollars nearly an hour before the Statscan release. Brokers are questioning a leak, but also acknowledging that the Canadian dollar was thinly traded at the time. Some are questioning whether it was the Finance Minister's office that leaked the numbers. Frankly, it was such an odd report that it doesn't seem to matter all that much, and the Canadian dollar was due to rise. But Statscan had better make sure that nobody, but nobody is talking ahead of the news. There are a lot of eyes on Canada and many sophisticated investors like Dennis Gartman are betting on this country. We do not want to look silly.
May 8, 2009
Green Shoots: It's the Demography, Stupid!
by Diane Wilson
It is springtime. My lilacs are in bloom, as are the daffodils, tulips and the cherry blossoms. The air is moist and suffused with the fragrance of a thousand buds and blooms, all pregnant with the promise of summer. Languish no more indoors. You have suffered a harsh winter and now there is payment for that suffering.
Truthfully there's nothing better than green shoots, except that the mere phrase has us heading for the hills. It was Fed Chairman Ben Bernanke who famously used the term in his 60 Minutes Interview, when he wanted to calm the markets and the country, as noted in The New York Times. This green shoots discussion has not abated. Now it's a global issue, as described once again in The Times. Anyone brave enough to google green shoots will find a bumper crop: Green Shoots Remarks Defended, Keeping a Close Eye on Those Green Shoots, or The shoots of recovery look pale green at best.
I liked the term the first time round. Now I am beginning to think it more to do with demographics than economics. Could it be the world -- especially the developed world -- is just aging, and Mr. Bernanke wants to relate to us? According to the 2006 Canadian Census, the median age was 39.5. At that time, it was observed that the median age was expected to keep rising and could exceed 44 years by 2031. And older people tend to have a greater appreciation for gardening, as noted by JPM Morgan with its age-related basket of stocks in Seeking Alpha. It was not an accident that Scotts Miracle-Gro made the list. And that's probably why we keep seeing these commercials on television for upside down vegetable gardens that look plenty weird.
So this green shoots thing is really a case of knowing your audience and relating. Okay, you lost a bundle in your retirement plan and your job might be on the line. That's winter stuff. Don't worry, there are beautiful green shoots emerging.
And that alone is telling because it speaks to the next hurdles our economy will face after the Great Recession has come and gone: our mature workforce and spiralling health care costs. Bernanke's a smart guy. I suspect he is dealing with the problems at hand and thinking ahead. No doubt, he is anticipating the issues associated with people who get altogether too worked up about by green shoots. He is starting to confront the issues associated with an older America.
It is springtime. My lilacs are in bloom, as are the daffodils, tulips and the cherry blossoms. The air is moist and suffused with the fragrance of a thousand buds and blooms, all pregnant with the promise of summer. Languish no more indoors. You have suffered a harsh winter and now there is payment for that suffering.
Truthfully there's nothing better than green shoots, except that the mere phrase has us heading for the hills. It was Fed Chairman Ben Bernanke who famously used the term in his 60 Minutes Interview, when he wanted to calm the markets and the country, as noted in The New York Times. This green shoots discussion has not abated. Now it's a global issue, as described once again in The Times. Anyone brave enough to google green shoots will find a bumper crop: Green Shoots Remarks Defended, Keeping a Close Eye on Those Green Shoots, or The shoots of recovery look pale green at best.
I liked the term the first time round. Now I am beginning to think it more to do with demographics than economics. Could it be the world -- especially the developed world -- is just aging, and Mr. Bernanke wants to relate to us? According to the 2006 Canadian Census, the median age was 39.5. At that time, it was observed that the median age was expected to keep rising and could exceed 44 years by 2031. And older people tend to have a greater appreciation for gardening, as noted by JPM Morgan with its age-related basket of stocks in Seeking Alpha. It was not an accident that Scotts Miracle-Gro made the list. And that's probably why we keep seeing these commercials on television for upside down vegetable gardens that look plenty weird.
So this green shoots thing is really a case of knowing your audience and relating. Okay, you lost a bundle in your retirement plan and your job might be on the line. That's winter stuff. Don't worry, there are beautiful green shoots emerging.
And that alone is telling because it speaks to the next hurdles our economy will face after the Great Recession has come and gone: our mature workforce and spiralling health care costs. Bernanke's a smart guy. I suspect he is dealing with the problems at hand and thinking ahead. No doubt, he is anticipating the issues associated with people who get altogether too worked up about by green shoots. He is starting to confront the issues associated with an older America.
April 9, 2009
Stephen Goodwrench: Imagining the PMO in the car business
News that the federal government will be guaranteeing new cars brings auto repairs and warrantees to a whole new level. According to The Globe and Mail, the feds wisely want to protect consumers and parts suppliers in light of the potential bankruptcies of GM and Chrysler.
Industry Minister Tony Clement said Ottawa will stand behind the warranties of new cars sold between this week and the the conclusion of their restructuring efforts. How will it work? In the event of difficulties with engines and the like, perhaps troubled car owners will simply dial the office of the PMO.
Customer: "Hey, I just purchased a minivan. There's this really loud whistling sound in my engine, haven't a clue what it is, can you help me out?"
PMO:"Sure thing! Let's start with Tony -- see if he can shed some light."
Tony (Clement): "Yeah, whistling....That can be dicey. Hold on, I'm gonna get the head mechanic. Steve? Whistling in the engine. What do you think?"
Steve (Harper): "If I knew what that is, I would not be Prime Minister of Canada. My wife would be in this role, which she is not. Tell the customer not to assume that there is a problem with the car. Minivans usually perform very well, and we can rest assured that -- "
Customer hangs up.
New Customer: "Do you guys really stand behind the cars?"
PMO:"We certainly do. We have budgeted that way."
New Customer: "But it could cost taxpayers $185 million!"
PMO: "Hold on to that thought. I'm gonna get one of our top mechanics. Hey Jim, Line 4."
Jim (Flaherty): "If the caller is questioning whether or not the Government of Canada is standing behind the new vehicles, especially in light of the many other stimulative actions of the Department of Finance as articulated in the recent budget update, especially the home renovation tax credit, I can unequivocally state that we are in all respects supporting the guarantee of new cars sold as of this week. You will note that when Canada attended the G20, Canada emerged as a leader, and we will continue to lead -- "
Customer hangs up.
Good news for the taxpayer. If we had to speak to Steve, Tony and Jim to service our cars and check on our warranties, we just might not stay on the line. Net cost: Zero!
Industry Minister Tony Clement said Ottawa will stand behind the warranties of new cars sold between this week and the the conclusion of their restructuring efforts. How will it work? In the event of difficulties with engines and the like, perhaps troubled car owners will simply dial the office of the PMO.
Customer: "Hey, I just purchased a minivan. There's this really loud whistling sound in my engine, haven't a clue what it is, can you help me out?"
PMO:"Sure thing! Let's start with Tony -- see if he can shed some light."
Tony (Clement): "Yeah, whistling....That can be dicey. Hold on, I'm gonna get the head mechanic. Steve? Whistling in the engine. What do you think?"
Steve (Harper): "If I knew what that is, I would not be Prime Minister of Canada. My wife would be in this role, which she is not. Tell the customer not to assume that there is a problem with the car. Minivans usually perform very well, and we can rest assured that -- "
Customer hangs up.
New Customer: "Do you guys really stand behind the cars?"
PMO:"We certainly do. We have budgeted that way."
New Customer: "But it could cost taxpayers $185 million!"
PMO: "Hold on to that thought. I'm gonna get one of our top mechanics. Hey Jim, Line 4."
Jim (Flaherty): "If the caller is questioning whether or not the Government of Canada is standing behind the new vehicles, especially in light of the many other stimulative actions of the Department of Finance as articulated in the recent budget update, especially the home renovation tax credit, I can unequivocally state that we are in all respects supporting the guarantee of new cars sold as of this week. You will note that when Canada attended the G20, Canada emerged as a leader, and we will continue to lead -- "
Customer hangs up.
Good news for the taxpayer. If we had to speak to Steve, Tony and Jim to service our cars and check on our warranties, we just might not stay on the line. Net cost: Zero!
March 26, 2009
The Canada-US Border: Why Janet and Hillary Need to do Lunch
by Diane Wilson
I hope that Secretary of State Hillary Clinton has lunch with Homeland Security Secretary Janet Naplitano and points out that the 49th parallel in no way resembles the Mexican border. In fact, Canada and the U.S. share the largest undefended border in the world, measuring 3,145 miles. The two countries do enormous trade. So much so, that according to a 2003 study commissioned by the Canadian Embassy, Canada–U.S. trade supported 5.2 million U.S. jobs.
Actually, perhaps Treasury Secretary Tim Geithner should join them for dessert because the Canada-US border will serve as a crucial part of the economic recovery. An efficient border affects retail, commodities, manufacturing and tourism. It matters to just in time delivery and it matters to a truly integrated economy. It matters to rolled steel and fresh fruit, to autos and plasma TVs.
Napolitano wants a tough border with passports, and says we are going to have accept this "culture of change," according to The Globe and Mail. The culture shift actually dates back to 9/11. But citizens of both countries living near the border -- in Buffalo, Niagara Falls and Windsor -- know that we must have an efficient seamless border. Not a porous border, but an efficient border.
There have been contentious issues between Canada and the U.S. Think softwood lumber. But by and large, we have had one heck of a good relationship ever since the War of 1812. So it is sad to hear tourist industry officials predicting fewer cross-border trips when the passport rule hits June 1, because 75% of Americans are without passports. And manufacturers are making contingency plans for alternative suppliers and warehouses, in the event of delays in shipping.
Ms. Napolitano is more familiar with the U.S.-Mexico border, having lived in New Mexico and Arizona, and she has voiced concerns that the two borders should be treated equally. There are issues with Canada's immigration policies, the way we screen people and goods, etc.
I can't help but think of Europe and its easy flow of people within the EU countries. Why can't the US and Canada have a similar flow of people and goods?
Canada will proceed with its new Windsor-Detroit bridge, where one quarter of all Canada-U.S. trade flows, but it is time to build other bridges as well. Canada needs to work with Secretaries Clinton and Napolitano to create the type of border that best suits favoured nations depending on one another for just about everything. No fences, nothing too scary. How about sensible American and Canadian rules and regulations that promote trade and travel, while saving 5.2 million US jobs!
I hope that Secretary of State Hillary Clinton has lunch with Homeland Security Secretary Janet Naplitano and points out that the 49th parallel in no way resembles the Mexican border. In fact, Canada and the U.S. share the largest undefended border in the world, measuring 3,145 miles. The two countries do enormous trade. So much so, that according to a 2003 study commissioned by the Canadian Embassy, Canada–U.S. trade supported 5.2 million U.S. jobs.
Actually, perhaps Treasury Secretary Tim Geithner should join them for dessert because the Canada-US border will serve as a crucial part of the economic recovery. An efficient border affects retail, commodities, manufacturing and tourism. It matters to just in time delivery and it matters to a truly integrated economy. It matters to rolled steel and fresh fruit, to autos and plasma TVs.
Napolitano wants a tough border with passports, and says we are going to have accept this "culture of change," according to The Globe and Mail. The culture shift actually dates back to 9/11. But citizens of both countries living near the border -- in Buffalo, Niagara Falls and Windsor -- know that we must have an efficient seamless border. Not a porous border, but an efficient border.
There have been contentious issues between Canada and the U.S. Think softwood lumber. But by and large, we have had one heck of a good relationship ever since the War of 1812. So it is sad to hear tourist industry officials predicting fewer cross-border trips when the passport rule hits June 1, because 75% of Americans are without passports. And manufacturers are making contingency plans for alternative suppliers and warehouses, in the event of delays in shipping.
Ms. Napolitano is more familiar with the U.S.-Mexico border, having lived in New Mexico and Arizona, and she has voiced concerns that the two borders should be treated equally. There are issues with Canada's immigration policies, the way we screen people and goods, etc.
I can't help but think of Europe and its easy flow of people within the EU countries. Why can't the US and Canada have a similar flow of people and goods?
Canada will proceed with its new Windsor-Detroit bridge, where one quarter of all Canada-U.S. trade flows, but it is time to build other bridges as well. Canada needs to work with Secretaries Clinton and Napolitano to create the type of border that best suits favoured nations depending on one another for just about everything. No fences, nothing too scary. How about sensible American and Canadian rules and regulations that promote trade and travel, while saving 5.2 million US jobs!
March 25, 2009
Stung: The Phantom and the Beekeeper
It may have been Livent co-founder Garth Drabinsky's big day -- the man who created North America's largest live theatre company with hits like Show Boat, Ragtime and The Phantom of the Opera has been found guilty of fraud and forgery -- but news comes from an Australian court about a very serious conviction.
We learn of Donald Alcock, a financially troubled man who murdered a highly respected beekeeper in order to get his hands on $40,000 worth of honey. According to The Globe and Mail, Alcock has been convicted of murder and will now spend 15 years in prison, hopefully wondering why he ever embarked on such a crime.
Alcock shot the esteemed beekeeper, Anthony Ross Knight, in the back as he slept and loaded the haul of honey onto his truck so he could sell it to a honey distributor. While unloading the sweet stuff, Alcock was pinned under an enormous vat and was rushed to hospital.
In court, with all of Knight's colleagues in attendance, the unfortunate Alcock pleaded not guilty, explaining that he assumed the bullet would go straight through Knight's body without killing him.
We learn of Donald Alcock, a financially troubled man who murdered a highly respected beekeeper in order to get his hands on $40,000 worth of honey. According to The Globe and Mail, Alcock has been convicted of murder and will now spend 15 years in prison, hopefully wondering why he ever embarked on such a crime.
Alcock shot the esteemed beekeeper, Anthony Ross Knight, in the back as he slept and loaded the haul of honey onto his truck so he could sell it to a honey distributor. While unloading the sweet stuff, Alcock was pinned under an enormous vat and was rushed to hospital.
In court, with all of Knight's colleagues in attendance, the unfortunate Alcock pleaded not guilty, explaining that he assumed the bullet would go straight through Knight's body without killing him.
March 20, 2009
Yet Another Fish Story
As concern mounts about the depletion of fish stocks around the world, British researchers have come up with a new smart fish. While not edible, these seal-size fish are going to be kept busy.
According to The Globe and Mail, these robot fish will be dumped into the sea off of northern Spain in an effort to detect pollution. They will be equipped with sensors to monitor oxygen levels in the ocean, as well as identify oil slicks from ships and other nasty contaminants. If the project works, these carp-shaped robots could soon be sniffing out hazardous pollutants at a lake or river near you.
At $28,000 apiece, the fish operate without human help. They transmit their information back to shore via Wi-Fi technology, undoubtedly listening to their I-Pods while swimming about.
According to The Globe and Mail, these robot fish will be dumped into the sea off of northern Spain in an effort to detect pollution. They will be equipped with sensors to monitor oxygen levels in the ocean, as well as identify oil slicks from ships and other nasty contaminants. If the project works, these carp-shaped robots could soon be sniffing out hazardous pollutants at a lake or river near you.
At $28,000 apiece, the fish operate without human help. They transmit their information back to shore via Wi-Fi technology, undoubtedly listening to their I-Pods while swimming about.
March 19, 2009
Yearning for Walter Cronkite: American Media Needs to Quiet Down
by Diane Wilson
I have watched CNN and CNBC and MSNBC and NBC, and I have come away thinking that Canadians really are different. CBC's Peter Mansbridge and company lack the frenetic sense of being. He is grounded. The interviews are longer, more news is covered, and people have the good sense not to all talk at once, yelling each other down. Come to think of it, Mansbridge and crew actually listen. Thank goodness.
CBC is much like our Canadian banks. Which many of us had knocked over the years, knowing they were just conservative cash machines for Bay Street. They never seemed to be the real deal, like say a Citigroup. They didn't have the right stuff to get into over their heads with exotic derivatives. They just stuck to their knitting. Who knew that the entire world would look to Canadian banks? Thank goodness.
Or, how about the decision to go to war? Prime Minister Chretien seemed to take forever to make up his mind over joining the US on Iraq. He wanted to study the issue. Meanwhile President Bush had laid out a solid case for invasion and the other allies were falling in line with the US. In the end, the PM said No, and Canada was not the most popular country in the Bush White House. Thank goodness.
I say this not out of malice for the U.S. but affection. America has always been Canada's neighbour and good friend. But the tone south of the border is worrying. Americans are more bellicose than ever. Look at CNBC's Jim Cramer and Rick Santelli, and their rants. It is also pretty weird that the finest American broadcast journalism is coming from a comedian, John Stewart.
It's enough of broadcasters stating that Obama has declared war on investors. It's enough of the hyperbole. Hope lurks in one little corner of MSNBC, with a show run by the very erudite Rachel Maddow. She refuses to have guests bicker and she spends longer on interviews. Come to think of it, I would like to see her do an interview asking why American TVsters are so busy yelling and what can be done about the matter. Are the anchors and the guests just reflecting the mood of the country or is it something more?
Because, deal with the issue, they must. Years from now, patients with hearing deficits are going to be asked a simple question: Were you around heavy machinery and American news?
I have watched CNN and CNBC and MSNBC and NBC, and I have come away thinking that Canadians really are different. CBC's Peter Mansbridge and company lack the frenetic sense of being. He is grounded. The interviews are longer, more news is covered, and people have the good sense not to all talk at once, yelling each other down. Come to think of it, Mansbridge and crew actually listen. Thank goodness.
CBC is much like our Canadian banks. Which many of us had knocked over the years, knowing they were just conservative cash machines for Bay Street. They never seemed to be the real deal, like say a Citigroup. They didn't have the right stuff to get into over their heads with exotic derivatives. They just stuck to their knitting. Who knew that the entire world would look to Canadian banks? Thank goodness.
Or, how about the decision to go to war? Prime Minister Chretien seemed to take forever to make up his mind over joining the US on Iraq. He wanted to study the issue. Meanwhile President Bush had laid out a solid case for invasion and the other allies were falling in line with the US. In the end, the PM said No, and Canada was not the most popular country in the Bush White House. Thank goodness.
I say this not out of malice for the U.S. but affection. America has always been Canada's neighbour and good friend. But the tone south of the border is worrying. Americans are more bellicose than ever. Look at CNBC's Jim Cramer and Rick Santelli, and their rants. It is also pretty weird that the finest American broadcast journalism is coming from a comedian, John Stewart.
It's enough of broadcasters stating that Obama has declared war on investors. It's enough of the hyperbole. Hope lurks in one little corner of MSNBC, with a show run by the very erudite Rachel Maddow. She refuses to have guests bicker and she spends longer on interviews. Come to think of it, I would like to see her do an interview asking why American TVsters are so busy yelling and what can be done about the matter. Are the anchors and the guests just reflecting the mood of the country or is it something more?
Because, deal with the issue, they must. Years from now, patients with hearing deficits are going to be asked a simple question: Were you around heavy machinery and American news?
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