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This reminds me of a story that I read in the paper a few years ago...
" Every week a 100 people would meet for lunch at a local restaurant from all across the economic spectrum... poor people .. middle class and there was one very rich man. When they got together they all voted that the people should pay on a graduated scale with the poorest paying nothing.
Every year for decades someone independent (one or two people) used to come with me to check my work. It had to be done because of what was involved. One year there were a couple of different people who came. I went into a restaurant with them for lunch. They put in their order and it wasn't much of a meal. As the waitress was leaving I told them lunch was on me (from my expense account). They called back the waitress and re-ordered.
I notice a third company has now appealed their taxes.
Probably the workers, towns involved and shareholders have to realize they are all in it together. If the courts decide in favour of the companies the tax system will change. If it goes against the companies they'll have to decide how to get permanently smaller, at least in Canada. I don't think the court can order the companies to pay even if they decide against them. The companies can pay nothing for a couple of years and use it as a forced loan. At the end either pay what's owing before the tax sale or move the machinery and let it go. I heard Boise in the U.S. is selling newsprint for $430.00 a tonne. How to compete with that and still make money or break even?
Nothing is being done about the main reason GM got into these problems in the first place... they build crappy vehicles! When I needed a new vehicle I asked a friend of mine that owns a tow truck company what he recommends... he said to buy a honda or toyota because the vast majority of vehicles he tows are Ford/GM/Chryslers. He said that he almost never tows a honda or toyota. Needless to say that I am very happy with my Toyota Camry :)
I'm not a fan of public transportation. I won't be buying GM or Chrysler.
Currently I have a Chrysler and I'm disapponted. The last few months my engine light has gone on twice. The car has under 40,000 km's on it. The first time I needed a tow truck. I had a brake job done less than a year ago. A couple of days ago I was driving and I heard a metal on metal sound. Took it to the dealership. Turned out to be the heat shield for the ball joint on the left front wheel rubbing against the brake rotar. That's a new one for me.
The last two Chryslers I had before that were really good. Practically no problems.
The value of real estate around the GM plant seems to have dropped. One realtor wouldn't list a house for as much as the market value assessment. Didn't want to be bothered with the work trying to sell an overpriced house.
How are real estate prices holding up in the paper mill towns?
What I did was buy shares in an income trust which owns an oil refinery. I was reading they sell the majority of the gasoline they refine into the U.S. [/B]
Would that be Harvest Energy by any chance? They own the Come-by-Chance Refinery.
Would that be Harvest Energy by any chance? They own the Come-by-Chance Refinery.
Yes. That's the one. I'm not wild about the balance sheet and hope I haven't missed something. That is a big refinery.
The second quarter earnings should be announced in the not too distant future. The cash flow should be interesting. The way gasoline prices go up like a rocket and fall like a feather, I'm hoping for a decent quarter.
It also trades in New York. I'm not sure about the currency risk. If it is driven off the Canadian or U.S. price. If the dollar were par Monday, would it be trading at the Canadian price, the American price, or somewhere in the middle?
The analogy isn't exactly accurate... how many jobs will be lost if the mill closes down?
They are already closed down, mostly.
What will this do to the tax base of these towns?
It's already been done. Thus the search for revenues to provide services that are still needed. The rules as to how taxes are collected by the municipalities have not changed recently and the companies all knew them coming in.
Now the towns that have increased the tax rates on the mills are very widely separated, and quite different politically. That suggests that they are reacting to external pressures.
A decent summary is in today's Times Colonist and the article is posted on the paper's web site.
You're rather irrelevant analogy snipped from this reply but the situations are not the same. It would be more like the real case if the rich man had agreed in advance to pay for the meals in fact as a condition for eating with that group.
A decent summary is in today's Times Colonist and the article is posted on the paper's web site.
Hi Ed,
It's an interesting article. I don't know how the article relates to the reality of the regulatory filing of the insider trading. Looks like the major shareholder is dumping shares at a very low price. Those are only the last 10 transactions.
I think the current economic difficulties are entering a new stage. Probably the worst of the fear of the largest financial institutions in North America failing are over. Now there is the fears of loses from credit defaults by consumers. Already there is talk of a second bailout package. This should be smaller than the first one.
The unemployment rate is lower than one would expect. Of course, it's possible this rate does not take into consideration those who have lost their job but are not yet eligible to collect EI. First they have to wait for their severance pay and vacation pay weeks to expire. In the coming months they will be added. I wonder how many sectors will have large companies which fail. Forestry, steel, base metals such as nickel and zinc are all having problems. The next round of municipal elections should demonstrate if people are hurting enough to elect new slates of politicians who promise smaller government and lower taxation.
Electric cars seems to be the buzz phrase these days. Ontario is talking about giving a $10,000. rebate to people who buy the new electric cars. They don't say if the 10 thousand will be deducted before the sales taxes are added, or after the taxes are added. I suspect it will be after the taxes are added. With the 15% sales taxes in Ontario and the shipping and delivery costs the rebate will do little more than cover these.
Then there is the electricity infrastructure to power these cars. I was reading in the newspaper the price to build two new nuclear reactors for electricity will cost 26 billion dollars. I'm glad the Ontario government has the money for the bailouts and to give the rebates and build new electricity facilities as well.
Well, folks, get ready to cast off the shackles of your gasoline powered autos. Plug in at night. Don't forget or your can won't go anywhere tomorrow. Better not lose your electricy overnight. I wonder how these batteries will work in the winter when the temperatures are really cold. Particularly in the north and on the prairies.
I was reading an overnight charge will give a range of 60 kilometers. To extend this, at least some cars will have a gas tank and generator which I suppose will charge the car as you drive. This will give a range of 600 km's. The thing which comes to mind is if a car will burn gas to charge a battery, why not use the gas to run the car like we do now?
Don't get me wrong here. I don't have anything against hybrid vehicles. I drove a company auto for several years which burned natural gas and gasoline. It worked quite well. The range (for those who know this area) was from around the Don Valley Parkway to Peterborough and about 15 miles return before the natural gas ran out. You could feel it lose power and then, without stopping, turn the switch and the gasoline would take over. It was a very smooth changeover.
They had something a person could use at home to charge their vehicle overnight. There were also regular gas stations which were equipped to fill the tank on the vehicle. I used these stations.
I have no idea what the repairs cost because I worked for a big company which had its own garage and mechanics. I can only recall two small repairs (to the natural gas part) which were needed in the years I drove it.
Some people who didn't drive very far used only natural gas. The problem was when they went several months without using the gasoline it would go bad. I don't know exactly how (considering you can let a car sit for months in your garage without driving it), but do recall they asked people to burn a tank of gas every couple of weeks. For me it didn't matter because I usually did long drives.
As far as performance went, the vehicle didn't have the same pickup as a gasoline powered vehicle. A small point, really.
I like my gas guzzler and won't be switching to an alternate powered vehicle.
DISCLAIMER: None of what I write should be used for investment decisions. I write this stuff for entertainment. Consult a financial advisor.
ahh yes the electric car... I watched a great documentary on that a couple of years back. for 90% of the public an electric car would be just fine. The problem is that our wonderful government is dragging its feet allowing these vehicles on the road...
Personally I would love an electric car, not for any 'environmental tree hugger'
reasons... I just hate the high price of gas!
I would imagine, at least initially, the electric cars will sell for that reason. I haven't seen anything which indicates how much electricity it will take to charge these cars so don't know what the savings will be. I can recall when I used to have to plug in a block heater on my car I'd see a noticeable increase on my electric bill. I don't know if they are promoting money saving on these cars rather than the environmental "tree hugging" aspect.
It used to be with a gas powered engine a person really didn't have much of an idea the kind of shape his car and engine had reached. After the car got 4 or 5 years old I'd look at the mileage and listen to the motor and decide if it needed to be replaced. Now the government has given us a rather inexpensive way of knowing. We have to have an emission test every couple of years after the car gets more than 4 years old. I figure if my car passes the emission test with flying colours there can't be much wrong with the engine or the emission components. If the transmission seems to be working properly the car is good for another couple of years.
That's basically how I decide if I should replace my car.
The stock market has been having quite the run. Frankly, I feel giddy.
The Bank of Canada noted the "recession" is over. Heard it on TV. Well, we'll see if this is the case or if we are hearing Happy Talk.
Electric cars seems to still be a hot topic. In the Toronto Star, a few days ago, I saw a picture of one and someone holding the cord in his hand. The cord was so big around the man holding it could not get his hand around it. I wonder what kind of electrical wiring it would take to supply a cord like that to capacity.
I wonder if these electric cars could be the reason Ontario wants to build 2 nuclear reactors. I read the cost of those is around 26 Billion. Seems like a lot of public money to spent so folks can plug in their cars.
Another interesting news story I saw on TV was regarding a proposed oil refinery for New Brunswick. It's been cancelled. I guess with the electric cars and the uncertainty in the future markets it doesn't make sense to build a large oil refinery. Anyhow there goes a 6 to 8 Billion dollar project that would have created jobs. That along with the nuclear reactors Ontario has decided against because of the cost (around 26 billion) has really dampened a more favourable job climate.
We are now into the quarterly report period from the companies. Those quarterly reports are like report cards kids bring home from school. If the reports are good, up goes the stock price. If they are bad usually it's the opposite.
The forestry industry still seems to be in the doldrums. I listened to the Catalyst Paper conference call in which they discussed their second quarter results. Actually, I thought they had a reasonable quarter considering the state of the industry and analyst projections. I'm wondering if the paper industry will ever return to what it once was. Can the day when paper directories are phased out in favour of the internet be that far away? Many magazines have cut back on both the number of issues per year and the number of pages in the issue. In any case, the court cases regarding taxation begin soon and the outcome will be a major factor if I hold or sell. With lower taxes the shares are probably fully valued but worth holding. Without lower taxes they are, well... what I consider a sell.
My little rabbit is moving these days. I have a couple of penny mining stocks I bought back in the early 1980's. Always thought one day they would be real, honest to goodness, mines. Well, one of them, VG Gold, (when I bought it the name was Vedron Gold) has started moving a bit. Some financing. Whenever one of these start to move I feel like a guy who buys a 2 dollar ticket at a horse race and jumps up and down while the nag runs the loop hoping it will win! C'mon, Little Rabbit!!!
So, I'll end this on an up note!
DISCLAIMER: None of what I write should be used for investment decisions. I write this stuff for entertainment. Consult a financial advisor.
Looking back on this long thread, I have some new and old business to care of.
Old business:
1. On Mulroney, at least some of his spending was in an effort to help win the Cold War; Trudeau by contrast admired (and visited) Castro and Mao. Kim Campbell managed to badly lose the election subsequent to Mulroney's departure, after she led in the polls initially - she made a number of big campaign blunders, I seem to recall, basically telling the truth about such things as the fact that new jobs could not be promised. Later, Chretien and Martin reduced the debt largely on the backs of the provinces, who downloaded the cost onto municipalities (as has been previously alluded to in this thread).
2. Regarding Afganistan in the past, Paul Martin could still have got us out before Harper became PM, but possibly Martin didn't bother because at the time the situation there was still under control, and so he continued to please the the U.S. government. I understand once things started to heat up over there, part of the strategic problem was that the local poppy growers could have been paid for their crops by the west, rather than their dealing with the Taliban, but western drug companies did not want to reduce their profits by the increase in legitimate supply that would have resulted.
3. On environmentalist issues, global warming seems to have more dissenters in the scientific community every day. Even if 9 out of 10 scientists agree on something, the truth does not necessarily lie with the majority opinion. Btw, the last few years have been cooler than usual, at least in large areas of this country. Meanwhile here in Ottawa, some grocery stores charge 5 cents per grocery bag, with proceeds going to the World Wildlife Fund, whether shoppers like it or not.
New business:
4. Who to vote for next federal election? Well, one issue is possibly our armed forces. Arctic sovereignty is a good reason to have a robust military. Plus we've already had a showdown with the Danes over some particular island, I seem to recall. On the other hand, Afganistan remains an issue. We're out, supposedly, in 2011. The NDP would have us out sooner, but for that to happen the NDP would need to partner with a minority Liberal government and 'force' them to to agree to pull out. I say 'force', because Iggy was in favour of going into Iraq.
5. Regarding the Democrat's health care initiative in the U.S., I fear that there could be widespread civil disorder of the type not seen since the 60's, when the Vietnam war (and especially the draft) were causes for the baby boomers especially. Now that generation and their children will be in the thick of any health care crisis.
6. Off topic (but raised at times in this thread, sometimes with a slight lack of respect): the matter of religion. As a child one day I happened to look at the sun, and on it I saw a man on a cross. By the time I got home somehow it had gone from my memory, though I had the feeling there was something I wanted to tell my parents. Later in life, after being at times aethist, and agnostic, the memory of that event and more came back to me. If one does not wish to believe, fine, but remember that Einstein came to believe in a higher power even though he was not particularly religious. If he could think of a universe at times not following Newton's Laws, with all of his thought experiments, he would not have bound himself to simply accepting tradition when it came to thinking about the possibility of a higher power.
Anything that can go wrong will go wrong. Murphy's law, by Edward A. Murphy Jr., USAF, Aerospace Engineer
1. On the old business, the Mulroney government pretty much doubled the national debt in 9 years. I suspect the Harper government will also substantially increase our national debt. It's how federal Conservatives govern in this country. After things like the widely disliked GST and the FTA, it's grossly unfair to blame Kim Campbell for the election loss. Pollsters are often wrong before or just after an election is called. I suppose that's why they give a margin of error. The election wasn't even close. The Progressive Conservatives went from a majority government to 2 seats. Eventually the party was folded up into what was the Reform party. You can't blame Kim Campbell for all that.
On your point 3, I'm not a global warming groupie. There have been many ice ages and after each one global warming has caused the ice to recede.
Regarding new business, I don't know who will win the next election. I can't see anyone to vote for nor any reason to vote against either of the two major political partys. Probably I'll stay home again. This is not to say I like what the Conservatives are doing. It's in recognition the Liberals have offered nothing I would call a viable alternative and they have been voting with the Conservatives on major issues such as the budget.
Here in Ontario I think we could use a change in government. The excess spending on things like eheath is stunning. Both times the Liberals have won a majority they have raised taxes considerably. The first time with the health tax. Now it's the harmonized GST. I think McGuinty should step down for the good of the party. The Conservatives can expect to get my vote.
I haven't been following the American Health Care initiative that closely. Over the years the Democrats majorities and presidencies have come and gone. Health care has always been an issue for them. I think the best approach is one of "show me". Particularly since it will be expensive and they are currently spending big money bailing out their financial system and auto industry, etc.
Regarding religion, I don't know how it was mentioned with a lack of respect. The majority of my donations are to a religious organization. To bring comfort and hope to people.
1. After things like the widely disliked GST and the FTA, it's grossly unfair to blame Kim Campbell for the election loss. Pollsters are often wrong before or just after an election is called. I suppose that's why they give a margin of error. The election wasn't even close. The Progressive Conservatives went from a majority government to 2 seats. Eventually the party was folded up into what was the Reform party. You can't blame Kim Campbell for all that.
Yes, I can't blame Campbell for all of it, but she did make her 'contribution'. For what it's worth, John Crosbie would later remark that she could have been 'more astute'.
Regarding new business, I don't know who will win the next election. I can't see anyone to vote for nor any reason to vote against either of the two major political partys. Probably I'll stay home again. This is not to say I like what the Conservatives are doing. It's in recognition the Liberals have offered nothing I would call a viable alternative and they have been voting with the Conservatives on major issues such as the budget.
There are differing compelling reasons to vote against each of the major federal parties. Not many compelling reasons to vote for any of them, as you say. Therefore I look at who are the candidates in my riding. I was thinking of finally voting for the incumbant, Baird, in spite of his personal stance on gay marriage, but he's failed to help stop the sewage overflows into the Ottawa River as he promised (Btw speaking municipally, my whole city councill needs to be voted out, for the most part - Ottawa is overtaxed and nothing useful gets accomplished). On the other hand David Pratt, a previous Liberal Defence Minister, will be his opposition. Given the way the Liberals neglected the armed forces, it's hard to respect him. After Bob Rae provincially, it's hard to want at all to vote NDP at any level of government. I'll probably vote for an independent/fringe candidate once again. I do believe in voting rather than staying home.
Here in Ontario I think we could use a change in government. The excess spending on things like eheath is stunning. Both times the Liberals have won a majority they have raised taxes considerably. The first time with the health tax. Now it's the harmonized GST. I think McGuinty should step down for the good of the party. The Conservatives can expect to get my vote.
I haven't been following the American Health Care initiative that closely. Over the years the Democrats majorities and presidencies have come and gone. Health care has always been an issue for them. I think the best approach is one of "show me". Particularly since it will be expensive and they are currently spending big money bailing out their financial system and auto industry, etc.
The Democrats seem determined to ram their 'plan' through. I've seen enough on CNN to know that things could get ugly fast. It's not just the opposition stacking the town hall meetings; a big % of the public is opposed to the plan, a poll revealed.
Regarding religion, I don't know how it was mentioned with a lack of respect. The majority of my donations are to a religious organization. To bring comfort and hope to people.
I didn't have you in mind particularly. Maybe it's just me, but talk of fundamendalist influence in politics, without mentioning everyone else who practices religion with as much tolerance as they should, strikes a nerve. In my case I'm against gay marriage, based on personal insight more than doctrine, but I wouldn't resort to measures other than the ballot box to reverse it. Ideally I shouldn't even talk about it publicly, but I'm not perfect. We're all saints and sinners, and hypocrites, each in his own way. Even mentioning the word 'God' lightly may be considered a slight faux-pas; demons are supposed to tremble at the word, and we aren't sure why.
Anything that can go wrong will go wrong. Murphy's law, by Edward A. Murphy Jr., USAF, Aerospace Engineer
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