Links for March 12th

From 20 Minutes with Mark and the Markets
Germany: The Unnamed Co-Conspirator
ZeroHedge

Scenarios: Euro zone faces two-class future after Greece
Reurers

Dubai World to Seek Loan Delay in Talks, Bankers Say
Bloomberg

Europe may consider IMF-style institution to avoid next Greek crisis
Telegragh

Fitch Announces Another Record In CMBS Delinquencies
Zerohedge

I am not a criminal, insists billionaire behind Icesave
Telegrah

I am not a criminal, insists billionaire behind Icesave
Telegraph

China will be prudent in buying gold: official
Reuters

Washington Must Ban U.S. Credit Derivatives as Traders Demand Gold
Huffington Post

Greek Crisis Is Over, Rest of Region Safe, Prodi Says
Bloomberg

China hits at currency ‘protectionism’
Financial Times

Moody's Warns Of Pain Ahead For Financials, Profitability Concerns Due To Record Charge-Offs
Zerohedge

Greece brought to a halt by austerity protest strike
Times Online

Greeks Strike Over Budget Cuts, Bonds, Stocks Decline
Bloomberg

PIMCO's El-Erian: You Fools Don't Realize That The Sovereign Debt Crisis Goes WAY Beyond Greece
Business Insider

Muni Bond Market Begins To Burst With Defaults
Business Insider

Rick Bookstaber: Hedge Funds Are Pumping The Gold Bubble And Luring Investors Off A Cliff
Business Insider

Forget Greece: Italy derivatives bomb also ticking
Reuters

Detroit Sells $250 Million Without Recent Disclosure Filings
Bloomberg

It's Going To Implode: Buy Physical Gold - NOW
Zerohedge

Big ax looming at the FDNY: Threat of 1,000 layoffs, closing of 62 fire companies
NY Daily News

List of banks under stress keeps growing
MSNBC

Fed Shoulders AIG Loan Losses to Ease Sale to MetLife
Bloomberg

Last Friday's Show Material

Interview with Tim Carney

Here is the link to purchase his book.



Articles from 20 Minutes with Mark and the Market

Greek, Portuguese Workers Strike, Protest Against Deficit Cuts
Bloomberg

What problem?

Oops.
Gath Turner's blog

Governor Christie: "Time to Hold Hands and Jump Off the Cliff" - Chris Christie For President?


Rep. Suzie Bassi: "Illinois in Utter Crisis, Next to Bankruptcy, $13bn Hole in a $28bn Budget"; Ambrose Evans Pritchard Inflicted with FIV
Mish's blog

Ken Rogoff On Japan's Slow Motion Crisis

Marc Faber: "I Would Recommend People Buy Every Month Some Gold For Ever"

Moody's Downgrades Deutsche Bank From Aa1/B To Aa3/C+
Zero Hedge

Is the Sprott Physical Gold Trust in the Market Trying to Buy 10 Tonnes of Gold?
jessescrossroadscafe.blogspot.com

Quebec living off the rest of Canada?

An intresting study was published by the Frontier Centre for Public Policy about equalizations payments in Canada. The paper is called The Real Have-Nots in Confederation: Ontario, Alberta and British Columbia.

Here is a small summary:

''Equalization is a $14.2 billion federal program which transfers federal tax dollars to provincial governments. In 2009/10, Quebec will take the lion’s share of the money at almost $8.4 billion, while the other major recipients include Manitoba at just over $2-billion, New Brunswick at almost $1.7 billion, and Nova Scotia at almost $1.4 billion.

This study takes the “long view” of equalization. Thus, while Ontario will receive equalization payments of $347 million this year, this is an anomaly; most years, Ontario is a “have” province on equalization and is counted as such in this study. In addition, Ontario is still a net contributor to confederation and federal coffers when other transfer programs are included.

Equalization is described in the following manner Subsection 36(2) of the Constitution Act, 1982:

“Parliament and the government of Canada are committed to the principle of making equalization payments to ensure that provincial governments have sufficient revenues to provide reasonably comparable levels of public services at reasonably comparable levels of taxation.”

Findings:

In fact, far from “comparable levels of services,” British Columbia, Alberta and Ontario have lesser levels of services. For example:

· Nova Scotia and Quebec have more doctors per 100,000 people than do B.C., Alberta and Ontario;
· New Brunswick, Prince Edwards Island, Nova Scotia, Manitoba, and Quebec have more nurses per 100,000 people than do Ontario, Alberta and British Columbia;
· Prince Edwards Island, New Brunswick, Manitoba, and Nova Scotia have more long-term residential care beds per 100,000 people than do Ontario, Alberta and British Columbia;
· On social service spending, Quebec spends more per capita than any other province, at $2,342, while British Columbia is second at $1,702; the other two have provinces, Alberta and Ontario, spend $1,592 and $1,398 respectively;
· In terms of provincial public servants per 100,000 people, PEI, Manitoba, New Brunswick, Nova Scotia and Quebec all have more provincial civil servants than do Ontario, Alberta and British Columbia; perhaps more than any other indicator, this measurement reveals how have provinces subsidize large governments in the have-not provinces through the federal equalization program.

“The real have-nots in Confederation are those provinces that have, through their federal tax dollars, historically contributed massive amounts to equalization,” write authors Eisen and Milke. “British Columbia, Alberta and Ontario now find their benefits from taxation are demonstrably fewer than those available in the provinces to which they have contributed so much, the so-called have-nots.” ''


These issues really comes out in tough economic times. The Have provinces will really begin looking at these issues in the futur as times get tough and will demand changes. This will leave Quebec in a tough situation. The solution for Quebec is to move towards encouraging entrepreneurship and not dependance on state programs.