Caisse's 2010 Annual Report

Bernard Morency, Executive Vice-President, Depositors and Strategic Initiatives at the Caisse de dépôt et placement du Québec let me know that the Caisse just published their 2010 Annual Report, Building the Future on Solid Foundations (click here to download English PDF).

I've already covered the Caisse's 2010 results
back in February but the annual report was not available at the time.
The French version was available last week and on Thursday, the Caisse
posted the English version.

Let me begin by going over some priorities mentioned by Robert Tessier, Chairman of the Board (pages 8-9):

During
the past year, the quality of the relationship between the Caisse and
its depositors remained one of the Board’s top priorities. From
this perspective, it should be noted that we implemented a new
collaborative model to ensure this relationship takes place in a climate
of transparency and trust. In the process, the Board approved the
fundamental reorganization of the Caisse’s portfolios to better suit the
performance objectives, risk tolerance and asset allocation of the
depositors.

The Board strongly
supported the continued improvement of the Caisse’s risk management and
is also very satisfied with the progress in this area. With the
support of the Board’s Risk Management Committee and the close
collaboration of the senior management team, the Caisse strengthened its
risk management tools and processes with the adoption of best
practices.

In addition, the
Board is pleased that rating agencies Standard & Poor’s, Moody’s and
DBRS confirmed the Caisse’s credit ratings, citing among others its
enhanced risk management and financial strength.

Mr. Tessier adds:

The
Caisse’s achievements in 2010 were also due to employees who
brilliantly met their goals in an atmosphere of renewed confidence. We would like to thank them for their loyalty and commitment.

Overall, the Board believes that the Caisse made progress on all fronts. The financial results testify to this fact.
The Board encourages the entire team to pursue the work under way with
energy and to build a strong organization striving to improve its
management in order to deliver, over time, the results expected by its
depositors.

Next, we move on to the President and CEO, Michael Sabia, who wrote the following in his message (pages 10-12):

2010
was a year marked by economic and financial uncertainty. At the Caisse,
we stuck to our basic principle of “common sense” that we have followed
for the last couple of years: performance, client focus, rigour and
simplicity.

This disciplined
approach, I believe, enabled us to make a great deal of progress on our
five strategic priorities aimed at strengthening the Caisse’s
foundations for the long term. Our efforts were aimed at a number of key issues:

• Collaborating with our clients
• Restructuring our portfolios
• Enhancing risk management
• Strengthening our presence in Québec
• Redesigning our internal operations
• Improving our balance sheet

With
rigour and discipline, our teams have refocused the Caisse on its core
areas of expertise and, by emphasizing the importance of high-quality
assets, they managed to navigate a difficult-to-predict landscape.

Thanks to their efforts, the Caisse is healthy again.

What
strikes me most about our performance in 2010 is that the Caisse team
clearly demonstrated its ability to execute an ambitious strategic plan
while generating solid returns. In the coming years, facing an
uncertain, volatile environment much like today’s, this execution
capability will be fundamental to our success.

Many
significant economic changes are under way worldwide – changes that
offer as many opportunities to earn returns as to make costly mistakes.
This will be an environment that demands vigilance and a capacity to
understand underlying trends both in the near term and over the long
run. The Caisse, like all
investors, will have to remain very attentive to these shifts over the
next 12 to 18 months – and especially over the longer term – to grasp
their scope and better understand their significance.

In the Short-Term Two Opposing Forces

2010
was the second year of recovery after the 2008 crisis. Up until now,
renewed growth required support from public authorities, at least in
developed countries. Such support has exceeded US$2 trillion and largely
contributed to the stock market rebound in the latter part of the year.

In
2011, however, we expect a deceleration in growth due to the removal of
economic stimulus, debt reduction by consumers and governments in
developed countries, tighter monetary policies in developing countries
as a response to higher commodity prices, and austerity measures in
overly indebted eurozone countries.

Two major trends will then struggle for dominance.

On
the one hand, the marked improvement in several key economic indicators
suggests that the renewed growth will continue for some time. In
Québec, the infrastructure program launched before the economic crisis
has supported growth, which helped eliminate the gap between
unemployment rates in Québec and the rest of Canada for the first time
in recent history. In North America, a significant improvement in
corporate profits largely explains the increase in business confidence.
In this environment, non-residential private investment is increasing
rapidly and the employment situation continues to improve. All in all,
this trend suggests that the recovery – albeit uneven – will persist
despite volatility and lingering uncertainty.

On the other hand, this benign scenario is challenged by the persistence of worrisome downside risks. For
example, will geopolitical changes in North Africa and the Middle East
significantly disrupt oil production? Is political cohesion in Europe
robust enough to ensure that austerity efforts are equitably shared?
Will measures by the People’s Bank of China to ease inflationary
pressures be successful? Will U.S. residential real estate finally show
signs of stabilization?

The
struggle between these two opposing forces will continue over the next
12 to 18 months. In our view today, it is very difficult to predict
which of these tendencies will prevail. For that reason, remaining
vigilant and agile will continue to be our top short-term priority.

If
the moderate growth trend weathers the storm over the next 18 months,
markets will nervertheless be buffeted by the consequences of the
predictable exit strategies of public authorities, including both
tightening monetary supply and government budget cuts. Of course, these
impacts and their timing are likely to vary by region. Europe is already
moving in that direction. In the United States, a fiscal adjustment
will likely be initiated only after the next election. The Bank of
Canada may resume its tightening cycle, while avoiding major policy
differences with the U.S. Federal Reserve.

Market
developments over the next 18 months will occur against a backdrop of
profound structural changes in the global economic and financial
environment. Every investor and every major economic bloc will be
confronted with this reality.

Indeed, following 2008,
it was easy to ride the beta wave higher, in the next few years, it
will be challenging to deliver value added and risk management will be
critical for large asset managers like the Caisse who invest in public
and private markets all around the world.

Mr. Sabia goes on to write:

How
can the Caisse successfully fulfill its mission in a changing and
complex world both in the short term and in the years to come? At a
minimum, I think we will need three things.

A Better Understanding of Fundamentals

It
will be essential to stay disciplined and continue to invest where we
have comparative advantages, for instance, in Québec. We must also
develop a deeper understanding of the broader world that can be factored
into day-to-day portfolio investment decisions. In
that sense, greatly advancing our fundamental research capabilities has
become an essential priority. Mathematical techniques alone are not
sufficient to evaluate issues that are often qualitative in nature and
demand judgment. An enhanced research capacity will be a vital
tool for identifying sectors and markets with high growth potential,
implementing appropriate strategies and making the right choices to
generate long-term returns.

At the same time, an enhanced
research capability will enable us to strengthen our risk management.
Not only will we continue to closely monitor “conventional” risks, but
we will also conduct more in-depth assessments of risks related to the
economic, financial and political environment. To that end, in addition
to the rigour and accuracy of our existing calculation methods and
analytic tools, we will need to rely on informed, good judgment, based
on a broader, more global view.

A Partnership Strategy

As
well, we will consolidate and further develop our alliances with
partners worldwide in order to make profitable investments for our
depositors. Our strategy will place an
emphasis on partnering with local stakeholders in promising markets
where we plan to invest, so that the Caisse can benefit from their finer
understanding of the market in question. We believe that the
development of our global networks and multiple partnerships will also
enable us to better support the international expansion plans of
promising Québec companies.

The Expertise of Our Team, The Cornerstone of Our Future

The
Caisse’s success ultimately depends on the expertise, talent and
commitment of our people. Those qualities are very much evident at the
Caisse, as reflected by our solid 2010 results. Our people will continue
to make the difference in the future. Given
the intense competition for professional expertise in today’s global
financial markets, talent retention and recruitment will remain one of
our top priorities.

With their rigorous and disciplined
approach, our people possess the capabilities required to identify and
seize real investment opportunities – not investment fads – that will
create value for the next 10 or 15 years and provide the source of
depositor returns.

In this way, we will realize the Caisse’s full
potential to continue meeting the long-term needs of depositors and
supporting the growth of Québec companies.

Ultimately,
what matters to us is the long run. Because we are in a marathon, not a
sprint. The Caisse is here for the long haul.

It truly is a marathon for pension funds. Go back to read my post discussing views from OTPP's CIO, Neil Petroff.
Mr. Petroff said that pension fund's have a much longer time horizon
than mutual funds, allowing them to capitalize on opportunities that
take longer to reach their fully realized potential. When you're
thinking over 10 years, not just next year, then you don't manage assets
the same way and you're not afraid to take a concentrate position which
may take longer to materialize.

Next, I bring to your attention
Table 7 on page 28 which shows the evolution of the benchmark indexes
over the last five years (wish every single major pension fund in Canada
produced such a table!).

On page 30, there is a detailed analysis of the overall results. Some key points below:

• For
  2010, foreign currency depreciated against the Canadian dollar: 5.2%
  for the U.S. dollar and 2.6% for the EAFE basket of currencies. Hedging
  most of the currency exposure risk reduced the negative impact of the
  stronger Canadian dollar by approximately two thirds.
• The
  Short Term Investments portfolio produced a return of 0.7%, 12 b.p.
  (0.12%) above its benchmark index. This performance is due to an
  environment of very low short-term rates.
• The Bonds portfolio returned 8.4%, 160 b.p. (1.60%) above its benchmark index.Lower
  medium- and long-term rates during the year positively contributed to
  portfolio returns. About three quarters of the added value is due to
  insightful corporate bond selection. The other quarter comes primarily
  from provincial and sovereign bond selection.
• The Real Return
  Bonds portfolio posted a return of 11.1%, practically identical to its
  benchmark index. This performance is essentially due to the decline in
  real long-term interest rates.
• In the first half of 2010,
  infrastructure investments were grouped in the Investments and
  Infrastructures portfolio. In the second half, these investments were
  integrated into the new Infrastructure portfolio. For the year, the combined return of these portfolios stood at 25.4%, 1,413 b.p. (14.13%) above the benchmark index.
  This return is due to the good operational performance of the assets in
  the portfolio, particularly the airport service investments, including
  BAA, and energy assets, such as Enbridge Energy Partners, Interconnector
  UK and Noverco (Gaz Métro). The performance also stems from a general
  reduction in discount rates.
• In 2010, the Real Estate portfolio’s return was 13.4%, 184 b.p. (1.84%) above its benchmark index.
  The portfolio benefited from a gradual improvement of the global
  climate for quality assets. Price increases in the retail and office
  building sectors in Canada and the United States, combined with a
  stabilization of fundamentals in the office building benchmark markets
  in the United States (New York, Washington and Boston), explain most of
  the portfolio’s performance.
• The Canadian Equity portfolio generated a return of 15.7%,190 b.p. (1.90%) below its benchmark index. The portfolio’s absolute return is mainly due to high exposure to the energy and materials sectors. Relative
  to its benchmark index, the Canadian Equity portfolio maintains a
  greater exposure to large-capitalization companies with compelling
  fundamentals. In an environment where small companies
  outperformed their large counterparts, this stock selection primarily
  explains the underperformance of this portfolio relative to its
  benchmark index. However, the absolute return strategies contributed positively to portfolio performance.
• The Private Equity portfolio posted a 26.7% return, outperforming its benchmark index by 2,474 b.p. (24.74%). The
  portfolio showed resilience to the financial crisis and its aftershocks
  in 2008 and 2009, due to the quality of its assets. In 2010, the
  portfolio’s high return was due to the combined effect of the good
  operational performance of the companies in the portfolio, increase in
  their EBITDA (earnings before interest, taxes, depreciation and
  amortization) and the notable reduction of their leverage, given this
  performance. The portfolio also benefited from the positive effect of
  rising stock markets on corporate valuations.
• Leveraged buyout financing activities contributed nearly 50% to the portfolio’s performance. At
  the same time, development capital activities account for nearly 25% of
  the return, largely due to the stake in Quebecor Media, given its
  portfolio weight and excellent performance.
• The Hedge Funds portfolio produced a 6.3% return, 11 b.p. (0.11%) above its benchmark index (see table 24). Directional
  strategies (i.e. Managed Futures) and strategies for distressed loans
  and emerging markets were the largest contributors to portfolio
  performance. In 2010, the Caisse tightened its hedge fund selection criteria in favour of transparency.
• In
  a year that saw a sharp rise in public debt, corporations overall
  pursued their deleveraging efforts, contributing to narrower spreads.
  This improvement was particularly noteworthy in the United States. In
  this environment, management of the new ABTN portfolio, created on
  January 1, 2010, translated into a $509 million contribution to net investment results (see Table 24).
  This outcome is largely due to a $781 million increase in the value of
  the portfolio’s assets, buoyed by improving credit markets, reduced by
  the $284 million cost of hedge transactions.
• As
  at December 31, 2010, the Asset Allocation portfolio posted a negative
  return of $77 million, particularly reflecting the cost of defensive
  measures taken to protect the Caisse’s portfolio (see table 24). Overweighting and underweighting of specialized portfolios had a $171 million negative impact on overall performance.
  

As I stated previously, strong outperformance in private equity,
infrastructure, real estate, and bonds helped the Caisse beat its policy
(benchmark) portfolio. The underperformance in public equities isn't
drastic but I would be curious to know if they're using their full risk
budget. (Go back to my comment on OTPP's Neil Petroff
and read the concentrated bet they took on Transocean. There were many
other large cap stocks that significantly outperformed their indexes in
all global regions).

The table below shows an analysis of depositors' net assets for the period 2006-2010 (page 46; click on image to enlarge):

I
bring this table up because it clearly shows how the Caisse recovered
from the disaster of 2008. It also shows that operating expenses have
been steadily declining. From the 2010 Annual Report:

In
2010, depositors’ net assets increased by $20.1 billion, with $17.7
billion in net investment results and $2.4 billion in depositors’ net
deposits.

Over the last five years, depositors’ net assets
climbed by $29.5 billion, increasing from $122.2 billion as at December
31, 2005 to $151.7 billion as at December 31, 2010. This increase stems
from, on the one hand, $15.3 billion in net investment results and, on
the other hand, $14.2 billion in depositors’ net contributions (see
Table 25 above).

As at December 31, 2010, depositors’ total
assets were $183.2 billion, compared to $170.7 billion as at December
31, 2009, an increase of $12.5 billion (see Table 26). This rise stems
mainly from the $10.8 billion increase in investments. The Caisse also
continued to strengthen its financial position, with a reduction of $7.6
billion in liabilities, which fell from $39.1 billion in 2009 to $31.5
billion in 2010. Liabilities, primarily used to finance investment
purchases, largely consist of short sales, securities sold under
repurchase agreements, derivatives and financing programs issued by the
Caisse’s subsidiary, CDP Financial. The 2010 decrease in liabilities is largely due to the reduced use of securities sold under repurchase agreements.

This brings me to the use of leverage. You'll notice the Caisse is
reducing its use of leverage whereas Ontario Teachers' is increasing it.
This point was brought up in my comment on OTPP's Neil Petroff and in a recent article in La Presse by André Dubuc, Une avenue plus risquée pour Teachers'
(only available in French). Mr. Dubuc cited yours truly and Michel
Nadeau, the former second in command at the Caisse who said the
"proportion of debt at Teachers' has increased constantly in the last
four years and is approaching the dangerous peak reached by the Caisse
five years ago". Mr. Nadeau added: "Just how far will Teachers' go on
borrowing to keep increasing their returns?". The article also cites a
finance professor who says that this type of leverage requires strong
risk management, which Teachers' has implemented, focusing on liquidity
risk.

The use of leverage is a contentious issue among pension
funds in Canada. Some have that option, others don't. That's another
reason to be careful when looking at headline performance figures.
Teachers' 14.3% return in 2010 is higher than the Caisse's 13.6% but on
an unlevered or equally levered basis, Teachers' underperformed the
Caisse in 2010. Moreover, the Caisse's benchmarks for their specialized
portfolios are tougher to beat.

And that brings me to my final comment on compensation. The Caisse's
annual report had a detailed discussion on compensation. Not just boring
details, but how individual performance is assessed. Table 68 below
shows details on executive compensation. Once again, Michael Sabia has
the distinction of being the lowest paid President and CEO of every
major pension fund in Canada and the leaders of his executive committee
are well paid, but still compensated less than their counterparts at
Teachers' and CPPIB (to be fair, Mr. Petroff has been at OTPP longer
than Mr. Lescure has been at the Caisse and he oversees both public and private markets, something which I think Mr. Lescure should be doing as well in his CIO functions).

I highly recommend everyone reads the Caisse's 2010 Annual Report. It's excellent and offers many insights for all institutional investors.

Finally,
in the spirit of transparency, I will disclose that I recently finished
a contract at the Caisse and had the privilege of working with a group
of exceptional professionals, some which I knew and others that I just
met. I saw firsthand the changes at the Caisse and have no doubt
whatsoever that they're on the right track (if I didn't believe it, I
wouldn't write it). There is still more work that needs to get done, but
they have the right people to implement changes and confront the
challenges that lie ahead.

Comments

[Imminent Crucible]

Leo, I'm wondering why you put so much time and effort into the pension issue. It seems to be your main avocation.

Seriously interested, not being snide. This article represents a lot of work.  To what end?

[Leo Kolivakis]

I put time and effort because I enjoy it and I consider pensions to be a very important public policy issue. I can't overemphasize how important pensions are going to be in the future political discourse. I want to properly inform people and leave the fear mongering and sloppy reporting to MSM.

[Imminent Crucible]

Thanks, Leo. I won't be receiving any sort of pension (I've been a construction guy most of my life), but I wonder if part of your interest derives from concern over your own share in a pension fund? None of my business, but, in the interest of full disclosure, etc....

[Leo Kolivakis]

I'm currently self-employed and my pension is what I make, save and invest in. :)

[ZeroPower]

Can you comment on whether or not the Caisse is still run by seperatists or are the knowledgeable people you speak of from many different backgrounds and have no problem with speaking english in their MTL offices?

[Leo Kolivakis]

The official language at the Caisse is French but most people are fluently bilingual. I do not care about their politcal beliefs. When it comes to making money, I leave politics aside. It's irrelevant.

[Imminent Crucible]

You're an interesting guy.  I hope you do well.

IC

[Reese Bobby]

Sounds like these Caisse sheep were prime beneficiaries of the Great Bailout, especially in private equity.  And I am sure they are still riding the Canadian real estate bubble.

A question Leo:  How do the asset allocations of the Canadian plans differ from the average U.S. consultants and wealth managers?  Because they all look about the same to me.

John 3:16,17

[Leo Kolivakis]

Reese,

The Caisse got whacked on their US CMBS holdings in 2008. Yes, they're exposed to Canadian real estate because they're the largest owner of Canadian real estate. If the Canadian economy stumbles, they might experience losses there. I say MIGHT because the guys and gals managing the Caisse's real estate holdings are among the best institutional real estate managers in the world. They got rid of the weasels who were responsible for the stupid real estate debt investments. Also, keep in mind, the Caisse and other large Canadian pension funds invest in real estate all over the world. not just Canada. CPPIB, for example, has been aggressively buying US real estate debt and prime property (like in Manhattan). As far as asset allocation, I don't think that it's materially different than most of the large US DB plans (except for HOOPP which is 50% bonds), but the governance structure of Canadian plans is so much better: senior staff are compensated very well based on 4-year rolling returns, independent investment boards, in-house management of assets, etc. What looks "the same" to you looks drastically different to me.

[Reese Bobby]

Thoughtful answer.  I don't find Canadian pension plan results of interest but I am offended by how harshly posters attack you.  Try and get "particularly" religious Leo.  Good Friday is a very good day to start.  God Bless.

[ZeroPower]

Well said.

Despite this ex-blog being all about not following the masses, not being one of the sheeple, it seems the sheeple have almost taken over and anytime a particular handle is displayed or anything slightly negative about a PM is mentioned, they are out in full force.

Disgusting.

[Leo Kolivakis]

Thanks Reese, Happy Easter to you and everyone else here, including the trolls.

[Canucklehead]

I hope Caisse gave you a nice pat on the head for this article.  If you didn't receive a cookie, you should ask for one.

You did a good job.  What do you want to do when you grow up?

[Leo Kolivakis]

I disclosed my contract with the Caisse because it's the honest thing to do. My contract is over and I enjoyed the opportunity to work with exceptional professionals. I didn't have to write about them or praise them. There are many other things you do not know. For example, they accommodated me knowing I have mobility issues, which I appreciated a lot. I do not need to kiss Michael Sabia's or anyone's ass in the Canadian pension industry. I fear NOBODY and will continue telling it like it is, exposing weaknesses and giving credit when credit is due. All the employees at the Caisse deserve credit for the 2010 results. Period.

[falak pema]

I agree that the state side strategy is like Charybdis. But in the current world situation, the inflation + deflation blitz that is upcoming, stage-managed by the free enterprise Oligarchs creators of international labor arbitrage and private to public debt mega-ponzi at work, is much worse; it is Scylla. So don't act if there is only ONE villain on the scene : the state/labor union mafia. T-REX oligarchy is a much worse monster. It's no easy game today to playing at being Ulysses and steering between the two like we were the chosen sons of God! So keep your contempt within bounds as the alternatives are not sound. 

[TheGreatPonzi]

Léo, tabernac, plus personne croit ta propagande. Vas faire du pimp sur tes pensions ailleurs. 

[Leo Kolivakis]

How dare you call me a ''pension pimp'' on Good Friday? Some of you guys are so stupid, it's incredible you can put two sentences together. Bottom line is Canadian public defined-benefit pension plans are among the best pension funds in the world, a true testament that active management by professional pension fund managers works and adds a lot more value than crappy defined-contribution plans. the right-wing zealots here can criticize me all day long but the facts speak for themselves. If you have proper governance (Canadian DB plans do), then they will outperform at a lower cost. This is the model of the future.

[D1eeeeeNAHHHHH]

Leo, you question us trashing you on Good Friday.  Why are you writing on Good Friday on the first place if you're so holy.

Anytime you allow someone to manage your money and/or retirement expectations you are in great danger of not reaching either.

You then move to call people stupid saying Canadian pensions are among the best and slam DCs.

Later you call people right-wing zealots because we're critisizing you.

You talk as if you believe that proper governance will rein forever.  Look no further to the US in the 70's when DB became DC.  Look at all the corporations and media blaming people's greed that's killing them.  Look at how many governments quickly nationalize huge amounts of private money before people can blink.

I recommend that you study the other side of the Canadian DB plans and compare them to other extinct DBs.

If Canada can replace it's people at a 2 to 1 ratio or more, it may survive.  If Canada reproduces like the US 2.1 to 2, they will be forced into DC or will give a lower rate of return as it nationalizes DB and taxes it 50% upon death (this is a plan that's been making rounds in the US government for over a year now.)

When the majority are poor, but physically strong, will they stand up to the old who don't have to work and are rich in their eyes?

Yes and corporations and media will encourage them to get a larger slice of the pie (however small it will be) after the government changes how things used to be.

[ZeroPower]

?

There aint nothing against using technology on Good Friday. Are you jewish perhaps?

[D1eeeeeNAHHHHH]

I feel blessed like one.

[Gene Parmesan]

Again with the insults and name calling. I think you're too thin skinned for this business.

[Leo Kolivakis]

Gene,

You have no idea how thick my skin is. :)

[JNM]

Leo, maybe you should give up spreading the word, that Canada is on the right track.  I seriously can't name another country, better-off.  Pissed-off Americans out number us by about 10 to 1.  We don't need to antagonize them - it's not going to help anything.  Consider, representing Canada, by being the 'bigger-man', and humbly shrugging off idiotic comments.

[Leo Kolivakis]

JNM,

Good point and let me also say this, the US is a great country but it's being ruined by ideological zealots on both sides of the political spectrum. I remember visiting my uncle and his family in Edison, NJ in the mid 80s and feeling the positive energy, thinking the US is invincible. Something terribly wrong has happened and it's a cancer that originates in the selfish, short-term greedy model of Wall Street. The banksters and financial oligarchs are holding the US economy hostage. America needs to get back at being great. Canada is doing exceptionally well for now, but I fear that our luck could run out very soon.

[Deep]

I think just yesterday you were spewing the big economic recovery is coming. Now the above comment. Your a fucking shill leo. Fucking pathetic in my eyes.

Your "Big" recovery has been coming for 2 years now. Ya, ya , ya, but the markets are up, blah, blah, blah

Wake the fuck up.

[Leo Kolivakis]

Deep Fried Brains,

I am awake and see a recovery in the US economy taking place, albeit at a slow pace. After two years of job destruction, job growth is finally picking up steam. I think you should stop with the insults, open your eyes analyze the economy more carefully. My statement above still holds, the US economy is way too leveraged on the financial sector, which leaves it vulnerable to another crisis down the road.

[Deep]

Sorry for the insults, my bad. Leo you really see a recovery? All i see is money printing, and the economy can not stand on its own once QE2 ends. GDP estimates are already coming down with speed, these idiots had 4% this year, give me a break. More like low 2%, maybe even negative 3rd or 4th q if no QE extension.

I see no recovery, our ecomony is built on debt expansion, and people are tapped out. We have WAY too much debt.

I could write 2 pages about it, but dont have time

this is all gonna end in tears, that i am sure of.

[falak pema]

I concur with the Canadian situation but I am for free speech and debate. The big issue in the upcoming white wash of public sector entitlements in USA will be whether the people will be able to hang on to their boomer generated pension funds. Without them, 50 Trillion USD for DM,  being sucked in to the Ponzi "debt-devaluation by inflation" strategy of Benocide/ECB and subsequent fiscal cuts by 'Repugnants'/Sovereign debt hair cuts in EU, to solve permanent , chronic 'debtitis' in Us of Ponzi-A!

[Canucklehead]

Leo, you are evil.  Everyone sees through you.  Go eat some garlic.

[Seasmoke]

more like building the future on the hard work of those who do NOT have pensions !!!!!!!

[masterinchancery]

Just more shill and cheerleader pap.

[CPL]

Exactly take note how all the major depositors are government agencies.  ALL OF THEM.  The regular joe/jill doesn't even show up on the radar.

New slogan for the Caisse...

Caisse Populaire - Rendre plus facile de communisme stomache

[Seasmoke]

public pensions are unsustainable

[The Profit Prophet]

Leo, as a fellow Canadian it pains me to say this but.........

Canadian Shill, Bitchez!!!!