Bank of Canada Governor Mark Carney Speaks on the 20th Anniversary of Inflation Targeting (Photo credit: canada.2020)
A long time ago Goldman Sachs (NYSE:GS) hired a guy called Mark Carney. Typical hire brilliant and they probably did not spend much time thinking about his Canadian pedigree. Well fast forward and Mark is now the Governor of Bank of Canada. That’s Canada’s central bank. Similar job to Ben Bernanke at the Fed Reserve except Mark Carney has a good economy, sound banks and a center of right governing political party.
So the rumor mill cranks up because the liberal party who for the past two generations was the natural governing party but lost the last federal election and has been relegated to rump status is searching for a new leader. Many are touting Mark Carney the current governor Bank of Canada. They believe he has liberal values and fiscal conservatism which may appeal to the Canadian voter at the next general election in about three years. Mark Carney is not stamping out the rumours. Justin Trudeau may be announcing soon as well. But that’s another story.
But dammit it another alumnus of Goldman Sachs may reach incredibly high office. Canada is a G8 country. Its finances are sound, people are well-educated. They have plentiful oil and a well-functioning public health care system. Which self-respecting power seeker would not apply. But another Goldman Sachs employee moves up. It’s like a Damn Yankees narrative. Except this ain’t no baseball. But it certainly is Goldman Sachs. Blood sucking squid and all.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter@financialskepti
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Canadian Auto Workers are negotiating for their new contract. 5 days to go and the sabres are rattling. They may select one of the big three in Canada for strike action. My prediction is Ford (NYSE:F).
General Motors (NYSE:GM) is still weak after their bail out and building plants in China. The big plant on Oshawa is on borrowed time and probably will close in a few years. In the meantime the Oshawa Works are a shadow of their former glorious past. GM is looking for reasons to padlock the place.
Chrysler is controlled by Fiat (LSE:F) which is run by the Agnelli family. The Agnelli family would just sip proseco and act like there was nothing wrong. Picket lines mean nothing. The Canadian Auto Workers would not know how to fight someone like the Italian Kennedy family.
lSo it would be Ford. Large presence. Public shareholders who would take pain. Just enough non government bailout fat to be abused. Like a shark to fresh red meat. Some unionists see the possibility for leverage.
But here are the problems. Managements are very aware of cost structures and the ease of moving offshore. So if its strike first be prepared for a long one with an eventual closure in favour of a right to work state or even something in an underdeveloped country that cannot spell mandatory union dues. Also Canadian foreign exchange advantages have long dried up. Canadian labour is very expensive.
George Gutowski writes from a caveat emptor perspective. Follow him on twitter @financialskepti
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To those Americans wondering why Canadian did not reply to emails or return phone call, Monday Oct 10 was the Canadian Thanksgiving day. They pretty well do the same turkey thing except the turkeys come in kilos and not pounds. Lots of family stuff and the cops are on the highways handing out speeding tickets.
They’ll all be back in on Tuesday complaining about turkey leftovers. You know the drill. If you have always been celebrating Columbus day and never noticed the Canadians taking a day off. Jokes on you. Oh this year Yom Kippur came roughly at the same time as Thanksgiving day. Awkward maybe I don’t know.
PS: Don’t worry they hold Halloween at the same time