There is nothing useful on this web site.
Even though the internet is the source of all truth, the only truth here is that everything else is a lie.
We can forgive a man for making a useful thing as long as he does not admire it. The only excuse for making a useless thing is that one admires it intensely.
All art is quite useless.- Oscar Wilde
So, Purdy Crawford, prominent Bay street lawyer, and chairman of the Pan-Canadian committee, is now conducting a whirlwind, cross-country, dog-and-pony show selling The Proposal.
If the plan fails to get the go-ahead, retail investors "get damn little," Mr. Crawford said yesterday. "That's not a threat. It's a reality."
Mr. Crawford calls this the 'art of the possible'.
The only cards on the table so far are Fear, Uncertainity and Doubt. FUD can work if you are big and your pockets are deep; but it can also backfire.
Coventree, the wunderkind of ABCP, does not go bankrupt, they just wind down operations, because the business model is no longer valid?
Caisse dépôt et placement du Québec, the biggest player and one of the innovators in this product, takes a $1.9 billion haircut. But that's still only about 1% of their assets. They still make a 5.6% gain on the year.
Canaccord can even muster a profit and a pay a dividend as they sacrifice their clients and their reputation. What a curious business model!
The Pan Canadian proposal smells bad, really bad. Trust your instincts. Don't step into this.
Don't let Bay street lawyers, bankers, or investment dealers bambozzle you with nonsensical explanations of ABCP, SIV, CDO or default swaps.
Don't be intimidated when they roll out their guilt laden decoy terms like sophisticated investor and assumption of risk.
Do not let them convince you that a 64¢ solution is the best one can hope for.
There a very appropriate word for this kind of hand, for this kind of posturing: BULLSHIT.
Ask them to address things like knowing your client, duty of care, and proportionality. Why was this offered to retail clients? Why did the banks not provide liquidity like they were supposed to? How can this proposal possibly justify the seizure of people's bank accounts for the last 7 months?
Ask the broker, the manager, the vice president, the president, and the chairman to explain what information you were offered when you were sold this product. Ask them to explain in simple terms, as if they were explaining to a spouse or a judge.
They may protest about being cross examined; let them get used to it.
Poker is the art of constantly repricing the risk, and having the right mix of wisdom and courage to call a bluff. The World Series of Poker was won last September by a 19 year old girl from Norway.
Mr. Moneybags has just placed a big bet on the table. He tells us he knows all there is to know about risk. We've heard it all before.
Play your hand, call the bluff. Vote No on this proposal!