At $35 billion, Flaherty's income trust fraud, out frauds Madoff

Flaherty defrauded Canadian investors out of $35 billion of their life savings, based on his totally false argument that income trusts cause tax leakage. Flaherty's fraud still remains the largest financial fraud to date:

Markopolos Says Madoff Losses Probably $15 Billion-$25 Billion

By Steve Geimann

Feb. 4 (Bloomberg) -- Harry Markopolos said losses linked to Bernard Madoff’s alleged fraud are probably $15 billion to $25 billion, rather than the estimated $50 billion.

Markopolos, testifying to a House Financial Services Committee panel today, said the higher total reflects purported returns. Markopolos tried for nine years to get the Securities and Exchange Commission to investigate Madoff.

Profiles in Leadership, or complete lack thereof

Real leaders, like Barack Obama, admit to errors and correct them: Obama concedes error as Daschle withdraws. Obama: ”I screwed up”

Whereas Stephen Harper does not, as described by Seymour Schulich: Click here

The latest hogwash from BNN

Trust yourself?
Posted by Michael Kane on February 3, 2009
BNN

I recently asked viewers to send in blog topic ideas and one citizen of Business News Nation said he wanted to know my opinion on income trusts.

That got me thinking about the so-called Halloween Surprise – Oct. 31, 2006 – when federal Finance Minister Jim Flaherty revealed a stunning reversal of government policy by announcing income trusts would be taxed just like ordinary corporations.

Until that point, investors had been pouring money into trusts, which were expected to receive special tax treatment and distribute most of their earnings to unitholders.

But what frightened the government was the prospect of some huge Canadian corporations – huge tax-paying corporations – converting to trust status to avoid paying those taxes. It was the intent of BCE Incorporated to convert into an income trust, an event that would have been a disaster for the government. BCE pays enormous corporate taxes and Ottawa did not want to lose that revenue stream.

OK, that's the history.

Here's what I wonder: suppose the government had not reversed its policy. Suppose it had yielded to the cries of investors who felt they'd been duped. Suppose the government had decided to be fair and stick to a policy that would have seen the loss of billions in tax revenues.

Then the global banking community freezes and shatters.

We all hear the gnashing of teeth over Ottawa's plans to run a deficit, a necessary situation for us now. But imagine the jackpot we'd be in if Canada's largest tax-paying companies had been allowed to avoid most of those taxes.

The hole would be much deeper… the muskeg much stickier.

A lot of people lost a lot of money when the income trust sector sold off following Oct. 31, 2006, and the way it happened is regrettable.

But, without the Halloween Surprise back then, we could very well be living a nightmare now.

If you have a comment on this or any other blog, please write to us at blogcomments@BNN.ca
We may print your comment and reserve the right to edit.

One such (unedited) dissenting comment is here, or here, or here, or here, or here.

Harper's triple E Senate: Expeditious. Exploitative. Egregious

Senator Brazeau facing increased public scrutiny

Updated Tue. Feb. 3 2009 6:42 AM ET

CTV.ca News Staff

One of Stephen Harper's recent Senate picks, the former chief of the Congress of Aboriginal Peoples, is facing intense public scrutiny amid allegations of sexual harassment and misuse of public funds at his old job.

In December, Patrick Brazeau gave up his position on the congress after he was criticized for wanting to hold two simultaneous jobs. Both his congress job and Senate seat paid six-figure salaries funded by taxpayers.

But controversy has continued to swirl around Brazeau, who is now facing scrutiny over his choice of transportation: a new Porsche SUV.

In a city not known for ostentatious displays of wealth, the vehicle has raised the ire of fellow parliamentarians.

"Senator Brazeau has been running around like he won the lottery," said NDP MP Pat Martin.

"He doesn't have to be Gandhi wearing a hair shirt, but for God's sake, think about the people you're put there to represent."

Brazeau's Senate appointment has also raised controversy because Health Canada is investigating the congress' use of $260,000 in taxpayer's funds.

And a former congress employee has formally lodged a sexual harassment complaint to the Ontario Human Rights Commission, naming Brazeau and other staff members.

Brazeau has denied those allegations.

The 34-year-old Brazeau, who is among Canada's youngest-ever senators, is a father of three who has been publicized as a family man.

But his former partner and the mother of his 14-year-old son told CTV News that Brazeau hasn't spoken to the teen for eight years.

Dena Buckshot said that the family man image is meant "to advance his career or give this impression of something, that to me, he's not."

Allegations of alcohol use at work

Another former employee has complained that Brazeau allowed an environment of heavy alcohol use while leading the congress.

Recently, Brazeau hired Lorraine Foreman and Al Fleming, two former congress staffers who often drank at work, according to staffers interviewed by The Globe and Mail.

The former co-workers also complained that Foreman and Fleming would often drink with Brazeau in his office, according the Globe.

Brazeau was unavailable to speak to CTV News on Monday because of a busy schedule, according to his office.

When he was appointed to the Senate, he told CTV News that: "Being an aboriginal person, a proud Quebecer, and a proud Canadian, I'm also a big supporter of stronger federalism."

"I think the time has come where a debate and a discussion is needed to unite Canadians towards a stronger federal state rather than having these talks about separation all the time, especially in Quebec."

With a report from CTV's Graham Richardson

Harper's income trust mistake featured prominently in Calgary Herald's Editorial.

Small oil and gas firms and workers suffering
Dave Yager, For the Calgary Herald
Published: Sunday, February 01, 2009

Following Tuesday's federal budget, the growing ranks of unemployed oil workers are "shovel ready" -- ready to go to Ottawa's House of Commons and Edmonton's legislature and shovel the bovine excrement out of both buildings.

Because from the bottom rungs of the oilpatch, what our politicians say about jobs and what they are doing are diametrically opposed. While the greatest challenge comes from collapsed oil and gas prices, federal and provincial policies continue to make a difficult situation worse. It doesn't have to be this bad.

This year's total jobs losses in the oil industry and the myriad of businesses that support it will rival or exceed those in Ontario manufacturing.

Drilling and well servicing has tanked. The direct job losses easily exceed 20,000 compared to 2006. This doesn't include any indirect support businesses like motels, restaurants and industrial supplies that keep Alberta's economic engine running. The Petroleum Service Association of Canada recently predicted a further reduction in drilling in 2009 to only 13,500 wells, about half of 2005 levels and the lowest since 1999. Total job losses will rise further this summer.

The biggest job killer is the oilsands collapse. Everyone bragged about a $100 billion backlog of new plants and upgraders. Three-quarters of those planned expansions have been postponed or cancelled. Some are in receivership. The layoffs of hundreds -- possibly thousands -- of design and construction engineers has been underway for months. Exact figures are impossible to gather.

Gil McGowan of the Alberta Federation of Labour figures that of the 160,000 construction workers in Alberta, 50,000 have been on-site on oilsands projects. He says Statistics Canada reported a 16,000 construction-worker decline in Alberta in December alone. A large portion can be attributed to the completion of CNRL Horizon and Opti-Nexen Long Lake and no new projects to go to. Suncor's sudden suspension of Firebag Phase 3 and the Voyageur up-grader in January added thousands more.

What's infuriating about the continued devastation of the oil industry's workforce is that it was never mentioned in the budget, the pre-budget lobbying or last week's media coverage. At the federal level, nobody is sticking up for the oilpatch even though it is a proven job and wealth creator.

In fact, the only federal actions concerning the oil business have made things worse.

The Alberta-supported Tory government got rid of income trusts and accelerated depreciation for oilsands construction.

During the last election NDP Leader Jack Layton flew over the oilsands and bragged about how he was going to shut things down. Displaced Liberal Leader Stephane Dion campaigned on a new carbon tax on the West's filthy oil industry so he could subsidize central Canadian voters and industries.

These self-righteous oilpatch job destroyers then teamed up to attempt to overthrow Stephen Harper's government and form a coalition with the separatists ostensibly because the Conservatives weren't borrowing enough money to create jobs. The hypocrisy is appalling.

Things are no better in Edmonton. On Jan. 1, and despite the advice and protests of every oil industry manager and investment analyst, Premier Ed Stelmach increased oil and gas royalties. After clobbering his province's most important industry, in his public pre-budget advice Stelmach actually had the audacity to ask Ottawa to ensure Alberta got its "fair share" of federal largesse. Alberta's oil industry and support economy will be devastated in 2009 if nothing changes. Yet stubborn Ed won't even admit he's part of the problem.

The regulatory and red tape onslaught from both governments also destroys jobs. The incomprehensibly long and expensive hearing process into the Mackenzie Valley pipeline plodded right through the recent boom. If federal politicians really cared about economic stimulus, why aren't we building that pipeline right now? A joint federal-provincial environmental panel just stopped EnCana's plans to drill 1,300 gas wells on the Suffield block, allowing Alberta Wilderness Association vice-president Cliff Wallis to proudly declare, "There's some good recommendations that will make it impossible . . . for EnCana to proceed."

Thanks Cliff. One assumes unemployed roughnecks can eat Suffield's kangaroo rats and rare songbirds now that their survival is assured.

The oil business has said for years that if governments just leave it alone, it will roll with the punches of volatile commodity prices. But our governments cannot control themselves when it comes to changing tax policies, increasing royalties, and creating an expensive and tangled mishmash of environmental protection policies and regulatory approval processes. Each is an employment killer created by politicians who purport to care about jobs for ordinary Canadians.

It is impossible not to be angry and cynical.

David Yager is a Calgary oil service executive. His column appears the first Sunday of each month.


© The Calgary Herald 2009

Is Senator Patrick Brazeau Canada's answer to Illinois Governor Rod Blagojevich?

Brazeau hires past colleagues amid drinking-at-work allegations

BILL CURRY
From Monday's Globe and Mail
February 2, 2009 at 4:31 AM EST

OTTAWA — The two most senior officials at the Congress of Aboriginal Peoples, both of whom were accused of drinking at work, have resigned from the organization and have now been hired as aides by Senator Patrick Brazeau.

Mr. Brazeau resigned from the congress after his Senate appointment in December amid criticism that he would be drawing two six-figure salaries at taxpayers' expense if he stayed on.

As national chief of the Congress, Mr. Brazeau, his chief of staff, Lorraine Foreman, and his director of public affairs, Al Fleming, regularly returned to the office after lunch outings smelling of alcohol, several former congress staffers have told The Globe and Mail. Drinking would also take place in Mr. Brazeau's second-floor office, according to former staff, where there was Scotch on hand and a small fridge stocked with beer.

Ms. Foreman - who also goes by the name Lorraine Rochon - and Mr. Fleming are now listed on the Senate website as the only employees of Mr. Brazeau's office.

One former Congress employee, Jade Harper, specifically mentioned the two senior employees, now Conservative staffers, in a written grievance she submitted to Mr. Brazeau last March. It describes an exchange on Dec. 4, 2007.

"I was seriously taken a back as the alcohol on [Ms. Foreman's] breath was overwhelming. I took my invoice back, made the suggested changes and as I was leaving for the day I took my invoice up to Ms. Foreman who was in your office at that time having a beer with Mr. Flemming [sic]. The use of alcohol during business hours has been an ongoing concern to me because of the affects that it has had on our people," the grievance states.

Several former Congress employees, who do not want to be identified, have told the Globe that Ms. Harper's description is accurate. Mr. Brazeau did not respond to phone calls or an e-mail regarding this story.

Last month, Mr. Brazeau told The Canadian Press that Ms. Harper was offered mediation after she submitted her written complaint, but that she left the Congress before the process finished.

Mr. Brazeau has said an independent investigation cleared him of a sexual-harassment allegation filed against him by another female employee. That woman, whose name is not public, has taken her complaint to the Human Rights Tribunal of Ontario.

Ms. Harper sent a letter to Prime Minister Stephen Harper dated Jan. 26, 2009, asking him to postpone Mr. Brazeau's appointment to the Senate until all allegations against him are fully investigated.

"I have been contacted by several young women since my own story was repeated in the media and their stories are similar to mine in their encounters and the resulting emotional and mental stress that they continue to experience," wrote Ms. Harper, offering to brief the Prime Minister further in confidence.

"There are many of us willing to step forward to attest to the track record of Mr. Brazeau as an employer and community leader. To date, there have been no investigations into these claims. Instead, we look on in amazement as Mr. Brazeau is appointed to the Senate."

Board members of the Congress - a group that advocates for off-reserve aboriginals - met behind closed doors for most of last week in Ottawa.

The new interim national chief, Ken Daniels, said he will release a statement on the future of the Congress tomorrow.

We told you Harper's word is completely worthless

Income trust investors (and not the media) were the first to warn their fellow Canadians that Harper’s word is worthless, in this full page Toronto Star ad.

Now it's impossible for anyone to deny that reality. Even the media. Even die hard CONservatives.

It appears no one is easier to con than the media or a Conservative, and who better to do it than the major domo CON Man himself Stephen Harper? If Stephen can so freely and brazenly lie to seniors about tax leakage, then why not the party faithful?

Red-ink gusher from Harper well strikes fear in die-hard Toryland
Read and weep here
By James McNulty, The Province February 1, 2009

Harper gurus feel betrayed by their star neo-con pupil
Read and weep here
By: Gillian Steward Toronto Star February 1, 2009

Conservative supporters upset with Tory budget .
Read and weep here
CTV.ca News Staff Feb. 1 2009

Conservatives abandon election promises with new budget
Read and weep here
By: Andrew Mayeda, Canwest News Service February 1, 2009

Federal budget most reckless in years
Read and weep here
By Rory Leishman London Free Press February 1, 2009

Is the end of the Conservative era looming?
Read and weep here
By Philip Stavrou, CTV.ca News Feb. 1 2009

The end of Canadian conservatism: How Harper sold out to save himself
Read and weep here
By Andrew Coyne Macleans January 29, 2009

The Fraser Institute: "Irresponsible" Federal Budget Caters to Special Interests and Leaves Future Taxpayers With a Legacy of Debt
Read and weep here
MSNBC January 27, 2009