CGC Appointment

[bduke]

Elwin Hermanson has accepted the Chief Commissioner's position, as announced today by Minister Ritz. I have no knowledge of his perspective on KVD etc., but hopefully he will be progressive....Bill

[parsley]

Let's hope he does a better job than John Manley has done as a Director of CIBC where they are going to lose millions because of both an incompetent CEO and incompetent Directors.

Our country does not need more incompetent politicians overseeing our economy. Maybe Hermanson will be great, but guess who pays in the long run if he sucks?

Yup. Farmers.

Parsley

[parsley]

Clarification:

Manley is Director of Risk.

[bduke]

I think you gleaned your info from Fabrice Taylors'column in todays Globe and Mail. I notice there was no mention of ACA's downgrade from A to junk status on Wedneday (one review!).It seems in todays world of algorithms, synthetics, special investment vehicles, special purpose entities,collaterized debt obligations, etc., we are venturing into uncharted territory. There appears to be a great lack of knowledge and/or ability to predict how markets react to unpredicted events, hence large mark to market write downs. Parsley, you're extremely intelligent,could you write an algorithm to calculate the probability of bond insurers defaulting there covenants? The rating agencies need it, and so do investors.

[Kodiak]

Parsley, I think you need to go back to your corner.

1...2...3...4...5...

[parsley]

You have a valid point, and my apology was in your mailbox before you posted your last message.

I'm an armchair banker that forgot my multiplication tables, but derivitives/exponential effect should send shivers down the most devout mathematician's spine.

That was what rancoured, though. Lack of prudence with OP's cash.

Parsley

[Kodiak]

Parsley, I assume your acronym, “OP’s cash” means “other people’s cash.” CIBC may have been imprudent buying what now looks like unsecured debt, and they probably (it ain’t over till its over) didn’t hedge their exposure all that well. It remains to be seen how bad all this really is.

But so far, “other people’s cash” seems secure enough. We’re a long way from depositors taking a direct hit. And thankfully, competition should keep their interest returns adequate in a relative sense (relative to the choices they have as to where to deposit their funds).

Those taking a hit over this are the owners of the CIBC, who took a risk themselves. If you own CIBC shares, were you a prudent investor? Did you hedge your risk?

……hey. I need to slap my fingers. I’m way off topic here.

I think Elwin Hermanson will be a very good Chief Commissioner. He has lots of legislative experience, and that should help get the new Canada Grain Act through Parliament. It’s long over due, and the changes the new Act contain should make the CGC and the grain industry a lot more efficient. In addition, it will remove the silly perception that farmer’s business dealings are someone else’s responsibility, and sillier yet, that the CGC’s bonding system could actually protect them in all instances and for a reasonable cost. Kind of like hedging exposure to bad business deals with ACA. Turns out maybe it couldn’t be done.

…….hey. Maybe I wasn’t so off topic

[parsley]

Kodiak,

Yup. OP...is other people's.

Gotta add, yap, yap, ....This is second time for the CIBC's CEO to mess up, ignore it, and walk away, isn't it, and with a bonus sack full of shares from dreamland, not that I noticed.

Can't argue with bduke though, Kodiak, known each other too long, and besides, he'll send his Harvard kid to my house with notes of logic and reason and facts, and how could I ever defend myself?

So I can only say, "Uncle."

Thanks for the note Bill. MC to u too.

Parsley

[stubblejumper]

Purely political appointment, Ritz was his campain manager yeas ago. payback time

[wmoebis]

I sincerly, wish Elwin the best and congatulate him in his appointment.

I hope that he see the true value af Asst. commissioners and fills and expands the roles of those vacant positions.

[TOM4CWB]

Bduke et el,

On producer security;

I just read my Commodity Perspectives...
17.7mil t short of beans... US to run out of wheat by May 31...

500Bil liquidity insertion by EU central banks... Morgan Stanley to get 10bil from Asia Pacific to meet requirements... $20Bil auction requested $61bil of liquidity...

Obviously:

We are headed into the most volatile financial time in history... with the grain trade the most exposed on swings in the market... and we should abort federal oversight that actually costs less than 5% of the CGC's budget?

How stupid could we be?

Being that no one else can do this job, let alone do it better...


What on earth are we smoking here?


The CGC IS/has the only reasonable people to do this job... The oversight of folks knowing the quality issues... leave them with a synergy and knowledge that preserves our trade and commerce system... BECAUSE they know what is happening... and all the problems... intimately and before they hit the fan!

ACA/CIBC is the perfect example of how well our credit rating system works.

It doesn't. They are in the scam as well as everyone else.

From A to Bankrupt in one ratings change!

And I am to depend on these people to assure my grain gets paid for next month, year... etc.?


IP contracts assure me I CANNOT get paid CASH.

I spoke to Milt last night... we had the system set to resolve many of the issues that needed resolution in 1998.

Goodale chose to do nothing.

Now we are asking us to go out into the dead of winter naked when it is minus40C.

Hope those smoking reefers can keep us with a high pain threshold while we watch our extremities freeze off!

[TOM4CWB]

I second that motion on the appointment!

Sincerely, I pray that Elwin will have the wisdom of Solomon... wish him the best and congatulate him in his appointment.

[wilagro]

Another "old" Reformer gets his patronage reward. This Federal gov't is so transparent...dey don't fool nobody...no how.

[Kodiak]

Wilagro, would you expect the Conservative Government to appoint a Liberal or an NDP'er, when they know that person would not carry out their policies? Perhaps even sabotage them?

Governments appoint people of like mind a who agree, at least in principle, with their policies. To do otherwise would really not make much sense now would it Wilagro.

The Liberals did the same thing, and will again next time they're in Government. Ross Keith on the CWB board, for example. Donna Welke assistant CGC commissioner.

But given the history of voting patterns in the grain belt, when the Libs appoint their people, will they represent and follow the expressed wishes of the farm vote? Not likely, unless things change drastically and farmers actually vote Liberal, which isn't too likely. So we'll have the spectre of a Liberal Government imposing its policies (and appointing Liberals to do it) on a part of the country who by and large voted against those very policies and people. What would you say about that Wilagro?

[cropduster]

Speaking of appointments, word is Ritter`s associates are trolling for a job for him..........maybe new security guy for the Major dump??????????