Unsuccessful in his attempts to "vaporize" me, Terry Corcoran is still vainly attempting to villain-ize me, with his reference today to the folks who are attempting to recoup their losses on Asset Backed Commercial Paper, with the allegation that:
“Mr. Hunter and Mr. McFeely have set themselves up as the Brent Fullards of the ABCP fiasco”.
Terry Corcoran once again proves himself the master of tortured analogies, much like the time he inveigled the concept of lesbianism into his piece of journalistic trash entitled “Town Hall Kiss off” which was some twisted account of John McCallum’s Town Hall meeting at the Design Exchange in Toronto about a year ago.
Except today’s tortured analogy about ABCP has nothing remotely similar to the income trust issue, since:
(1) Holders of ABCP were not given solemn assurances by the government in office about the “save haven” nature of their investment.
(2) Holders of ABCP actually hold something that is truly akin to a ponzi scheme (certainly a pyramid scheme) as opposed to income trusts which the National Post has attempted to brand income trusts as. If that were the case, then why did Canwest Media issue such a ponzi scheme, only to buy it back under opportune government induced circumstances?
(3) Holders of ABCP should have realized that you never make an short term investment in long dated paper, unless you are foolish enough to believe that you can always win the game of musical chairs. Meanwhile income trust investors were making a prudent long term investment in stable companies and other companies which afforded investors with commodity exposure upside and downside.
(4) Bay Street didn’t come to the rescue of Income Trusts as they did ABCP, even though Bay Street knows the tax leakage allegation is a trumped up myth and even though Bay Street made $4.1 billion in income trust underwriting fees, not including secondary trading commissions.
(5) The ABCP fiasco was one of its own inevitable creation. For the Caisse de depot to have had the exposure it did was grossly imprudent. Meanwhile hapless income trust investors are made into scapegoats-after-the-fact for the government’s double crossing, double taxing of income trusts, by being accused by the likes of Terry Corcoran for not being “sufficiently diversified”. Just exactly how does one diversify against government lies and capriciousness?
(6) There are 2.5 million retail income trust investors in Canada and throughout the world, whereas there are 1,600 retail investors in ABCP.
(7) And finally, holders of ABCP weren't the victims of some false trumped up allegation that ABCP causes tax leakage that was perpetrated on income trust investors by an intellectually corrupt bureaucrat in Finance who later became the Governor of the Bank of Canada as his personal reward. But then wasn't Mark Carney trying to position himself as the saviour of the Asset backed fiasco and the Montreal Accord? I guess if he actually had any meaningful involvement they would have called it the Ottawa accord, wouldn't they have?
Sorry Terry, you are getting most desperate to suggest that these ABCP “greater fools” are anything close to the cause being championed by CAITI on behalf of Canadians on the betrayal of a generation, known as the Income Trust Fiasco. But then you must know a lot about “greater fools”. After all, wouldn’t that pretty much include all of your most loyal readers?
Thursday, March 27, 2008
Posted by Fillibluster at 12:48 PM