Leo Kolivakis's blog

According to David Dodge, the global financial crisis dealt a severe blow to government revenues and automatically increased some expenditures. Moreover, governments undertook stimulus spending. The combined Canadian federal and provincial deficit in 2009-10 rose to about 6% of GDP, with slightly more than half of this increase due to automatic stabilizers. The comparable deficit in the US was over 10% of GDP.

Peter Boockvar, equity strategist at Miller Tabak. recently appeared on Tech Ticker claiming "it's dangerous to short this market".

CTV's W5 exclusive report on a groundbreaking new experimental treatment for multiple sclerosis, including the first-time the 'liberation' surgery was filmed.

Diane Urquhart's research has wider implications for employees and pensioners of other companies teetering on bankruptcy. If the explosion of CDS and leveraged buyouts is inducing a wave of bankruptcies, then why should taxpayers borne the cost? I say we tax the funds that are wreaking havoc on the real economy with their sophisticated financial "leveraging and hedging".

Far from having good governance, most of these large funds are governed in an ad hoc fashion which provides the illusion of good governance. The claim that "Canada leads the world" on pension governance is an outright lie which ignores serious governance gaps that still remain in our pension system.

ECB President Jean-Claude Trichet on Wednesday urged European insurers and pension funds to have sufficient capital on hand, stressing they are "systemically important" to the financial system. I have long argued that insurers and pension funds need to be monitored by regulatory agencies that respond to systemic risks. Unfortunately, the New Normal for retirement benefits looks a lot like the old normal based on chicanery and deceit.

The global affront on pensions continues. The rebound in stocks will offer a temporary reprieve, but the underlying structural problems remain and unless governments take this issue seriously, there will be many more pensions at risk.

The Pension Benefit Guaranty Corporation on Friday said its potential exposure to future pension losses had increased to about $168 billion in fiscal 2009. The PBGC's ongoing deficits will require another massive bailout down the road. That's why Uncle Ben will let this bubble blow for as long as he possibly can.

With an asset allocation of 45% in public equities and 11% in private equities - by far one of the more aggressive asset mixes among the large pension funds - it's all about beta. If equity markets tank next quarter, so will CPPIB's performance.

What's truly mediocre in Quebec is the media's pathetic coverage of the Caisse under Michael Sabia. If he isn't having second thoughts, it means he's ready to deliver on his promise and deal with his critics, which includes Quebec's media mafia.

In the letter to the IASB, Jörgen Holmquist, director general of Internal Markets at the European Commission, said more assets might be marked to market under the new system than even under existing rules. He urged the IASB “urgently” to consider further changes.

For clues on inflation expectations in this carry-trade-crazed market, Tuesday’s auction of some $25 billion in 10-year treasury notes is something to pay attention to.

“The real question investors need to ask themselves is this: if we truly are in the middle of a Fed-induced liquidity rally where the fundamentals simply don’t matter, do you buy now or wait it out for the inevitable bust?”

Let me put it more crudely. A senior portfolio manager in public markets once told me "when you're writing $100 or $200 million tickets to private funds, they all want to blow you."

Many big hedge funds (and private equity funds) become asset gatherers, collecting 2% on huge assets. When you see more marketing personnel than investment professionals visiting you, pull the plug fast!