Monthly Archives: September 2008

Melamine in Baby Formula


China is now rolling around in the muck with the revelations that twenty-two baby formula producers in China have added melamine to their products.  The result of the melamine additive is the products test higher for protein, meaning more profit for the companies.

The other result is several thousand very sick infants who are being poisoned by the melamine in the products:  Three dead so far as their kidneys fail trying to metabolize the plastic that makes the unbreakable dishes at the cottage.

The last time melamine showed up in food was the pet food poisoning of last year, when North American pet food producers bought protein powder from China that was tainted with melamine.  A massive recall later, as well as the deaths of several hundred domestic animals, North American producers have smartened up.

China, not so much. 

Of course they have also exported the contaminated product to other countries in Asia and quite possibly some third-world countries (Yemen, Burundi and Gabon come to mind) where inexpensive baby formula is in very high demand.  Would some of those products be counterfeits of known international brands, or even domestic Chinese brands?  Counterfeit products from China?  Never…

The telling sidebar is that the producers, have known the baby formula was contaminated since June 28th when very ill infants showed up at local hospitals with kidney stones like an 80-year old professional rye drinker.  The Sanlu Group, the makers of the brand, contend that the packaging was fake, while the parents of various infants said they gave their infants Sanlu milk powder because it was cheap.  According to the Xinhua News Agency, the company knew about the problem as far back as March.  In either case, it isn’t a new story in China.

The Canadian Broadcasting Corporation’s Anthony Germaine reported from China that the local management of Sanlu refused to take action for months, even when pressured by the parent company, a dairy farmers’ co-operative in New Zealand that owns 43 percent of Sanlu Group Inc.

Funny how a state like China that has now embraced capitalism and welcomes international investment, can’t get a handle on corporate governance or simple things like not putting poison in food.  They’re trying, but are nowhere near ready to play with the likes of Spain, Croatia or Egypt. 

One supposes that the next outrage will be a Chinese investment bank and insurance company will need a massive government financial bailout, while the directors take their golden parachutes to Singapore, Taiwan or Abu Dhabi.  The depositors, shareholders and the guy who changes the towels in the Executive washroom are going to be the ones to take the blame on that one.  Especially the washroom attendant:  After a six-month show trial, he’ll get 45 years at a re-education camp because he provided comfort to the guilty parties.

Only when China has its own financial freakout, punishes the innocent and does it all with government money will China truly have made it as a first world country. 

Only then can China truly embrace the capitalist system.  Selling poisoned food to poor families is so 1900’s.

 

Why AIG?


To understand why the US Federal Government has loaned American International Group (AIG) just under $85 billion to keep it afloat, one must understand the arcana of high level corporate insurance and finance.

AIG, more correctly a segment of AIG, the Financial Products group, has been issuing and carrying insurance for big investment houses on their investments since they took over Drexel Burnham Lambert’s derivative group when Drexel burned up in the late 80’s in the junk bond scandal.  Remember Michael Miliken? 

Needless to say to keep up appearances (read: Profits) AIG had to bet on both sides of the equation in any finance or insurance deal.  This is what insurance companies do:  Insurance is nothing more than a bet that you won’t get into a car accident, or burn down your house.  Actuaries are the ones who make book on the likelihood of something bad happening.

Part of AIG’s Financial Products offering was insurance that Collateralized Debt Obligations (CDO’s) wouldn’t go into the shitter.  CDO’s were pools of securities packaged by investment banks, based on paper they bought from mortgage lenders.  See Financially Counter-intuitive posted yesterday for the 411 on what happens when a side of bacon and a box of rocks gets financed for a mortgage.

Until recently, the bond rating organizations, like Moody’s or Standard and Poor’s would rate these CDO’s, called super-senior deals, as AAA, meaning, The Safest.  With AIG providing insurance on the deal, guaranteeing the rate of return, the securities were about as safe as you could get.  Of course there would be the occasional loss, but AIG figured that it could only be a billion or so.

Meanwhile another AIG holding, International Lease Finance Corporation was up to its armpits in leasing passenger aircraft.  ILFC is the largest (by dollar) lessor of aircraft to the airlines of the world.  We know what kind of money swamp airlines are, but Wall Street is looking at ILFC as one of the assets of AIG that might actually be worth something.

As auditors started poking into the most egregious mortgages and the collateral underneath them ("Whaddya mean a side of bacon and box of rocks own a two-storey house in Scottsdale?  Were you friggin’ high when you wrote this loan up?") the underpinnings of super-senior deals started to look very wobbly.  AIG, handling both ends of the deal and the insurance on the deal, started to wobble too.

However, AIG is also the largest commercial and industrial insurer in the US.  AIG does car insurance to individuals, along with life insurance and fixed annuities for the retired.  Naturally all these moving parts are tied to each other, as accountants do a shell game with losses from one area being covered by profits in another and insured by yet another. 

By May 2008, AIG reported that they held more than $20 billion dollars worth of potential dog poop in a bag.  This figure probably included a property owned by a side of bacon and a box of rocks in Scottsdale.

Now, as to why the US Federal Government bailed AIG out is simple.  AIG couldn’t get financing to keep going.  All the banks, brokerages and investment houses that helped propel AIG to the top of the heap suddenly looked at their own balance sheet and said they couldn’t afford the risk.  Phones were answered with "AIG who?  Never heard of ’em". 

The US government could not afford the holder of the savings and insurance for millions of citizens to go Tango Uniform.  Wall Street created the beast and now the US taxpayer is bailing AIG out with loan guarantees. 

Consequently the US taxpayer owns just under 80 percent of a company that holds at least $20 billion worth of toxic loans, aircraft leases in a time of declining revenues, a pervasive insurance business, the retirement funds of millions of citizens and a board of directors that in all likelihood have Golden Parachutes the size of Montana.

So far, nobody has been fired, stripped of their bonuses and stock options, or driven naked through the streets at the wrong end of a bullwhip.  This will never happen, as the high finance folks are the ‘base’ and we all know that the base protects itself, at the same time as it suckles at the government teat.

It all tracks back to mortgage lenders doing a wink and a nod to Wall Street, doing a wink and a nod to the insurers and a wink and a nod back from the regulators, meaning the SEC and the US Government. 

The financial meltdown isn’t a crisis of confidence, or an adjustment, or a swing in valuation.  It’s fraud and fault of regulators who let this nonsense happen with a wink and a nod to the ‘base’.

Financially Counter-intuitive


Let’s see if we can make sense of the financial meltdown in the US, as it is completely counter-intuitive if you watch any of the news coverage.

Lehman Brothers, an investment bank, went into the toilet on Sunday/Monday, essentially owing more than they had.  At the same time, Bank of America bought Merrill Lynch, as Merrill Lynch owed more than they had, getting Merrill at a fire-sale price.  Meanwhile American International Group is looking for international money to prop up their share price.  Goldman-Sachs, yet another investment bank reported "disappointing" quarterly results today.  Morgan Stanley is expected to follow suit with a crappy quarter tomorrow.

FYI:  None of these organizations are ‘banks’ in the sense that they take depositors’ money and loan it out to other folks.  These are investment ‘banks’ that buy shares in other companies, or buy derivatives of shares, or hedges, or simple gambles with Other People’s Money.

Each of these financial meltdowns are traceable back to the mortgage lending fiascos of the past few years.  A side of bacon and a box of rocks could get a $250,000 mortgage with nothing down, no job, no prospects of a job and not even so much as a pulse. 

The companies that sold these things made all their money up front, with their service fees, documentation charges, lending fees, paperclip fees and charges for the air that they breathed in.  Some would even roll the fees into the financed amount so the side of bacon and box of rocks could move in next week.  Naturally the mortgage company, essentially paper shifters, didn’t want to own the mortgage, they wanted to package a couple of hundred of these loans up and sell them.

Investment banks looked at the title "Mortgage-Backed Security" and figured, What the hell, why not?  Mortgages are sensible investments and if worst comes to worst and ten percent of the loans are dogs, we wind up owning a few houses.  However, to ensure that the dogs wouldn’t drag down the price, they packaged several smaller packages into larger packages and then sold the lot to other investors, collecting their fees, commissions and nickel and dime charges up front.

The buyers, usually larger investment houses and funds would figure "Hey, Merrill Lynch doesn’t sell crap, so we’ll charge our customers a premium for getting a piece of this pie."  So they did, again making their money up front.

Every quarter during the last few years you would hear about ‘whispered’ numbers and ‘street numbers’ regarding the quarterly profits of all the investment banks.  What these are, essentially, are rumours and semi-educated wild-ass-guesses by other gamblers regarding who is going to report what level of profit per share, the dividend.  At the same time the stock market is betting, via the share price, that everything is peachy. Meanwhile others are betting that the share price is going to drop and splash up like a high-fibre turd.

This translates into brokers, depending on their orientation, calling their customers, be it individuals, or groups of investors and screaming "buy" or "sell".  Oddly enough these brokers and their companies, depending on their insider knowledge, gut feel, or corporate line, make commission on the sales. 

Then there are the nay-sayers who have a bunch of buyers lined up to buy shares after the bad news hits, the so-called dead-cat bounce, who own the shares for a hour or two, then sell it at the peak of the dead-cat bounce to others.  More commission changes hands as one group bets that the dead cat will bounce a little bit higher, or lower. 

We’ve seen the counter-intuitive.  Merrill Lynch’s share price went up when it was disclosed that it was being bought, while Bank of America’s shares went down as the buyer.  This is nothing more than insiders betting with Other People’s Money, hoping to make a few thousand dollars selling a cadaver before the autopsy.

Lehman Brothers, Merrill and hundreds of other investment ‘banks’ are running what is little more than blatant insider trading in rumour, innuendo, suggestion and a complete lack of due diligence.  Essentially they are no better than the idiots who bet on slot machines or dice, or even the lottery.  Except they get to charge a commission on every bet with Other People’s Money. 

More correctly, your money.  This would be your RRSP, or 401-(k) or your mutual funds, or even your mortgage.  When the investment ‘banks’ lose money, they have to charge more and this affects your finances. 

The real banks say that expenses are up, so they have to charge more, or turn down people, or stick a whack of fees up you to nickel and dime their way back to the ‘whispered’ number of a quarterly dividend being bet on by brokers playing with Other People’s Money. 

 

 

Assumptions: Sarah Palin, Republican for Change(tm)


(Since they’re beating the term like a red-headed stepchild, I’m going to trademark Republican for Change(tm)  That’s mine!)

Here’s the short strokes on Sarah Palin, for good or ill, now that we’ve had a couple of weeks of her as run through the filter of the party handlers and speech writers.  Especially after her interview with Charles Gibson of ABC.

What we’ll do, as an exercise only, is move the calendar to 2011.

Assume the McCain-Palin Republicans for Change(tm) ticket wins the Presidential election in the US with a reasonable plurality.

Assume the economy keeps wobbling along on three wheels, two of which are flat-spotted from the War in Iraq then Afghanistan and the Fannie Mae – Freddy Mac bailout.  Taxes for everyone but the "base" go up to pay for it.  Funny that.

Assume Vladimir Putin, via his lapdog Dmitry Medvedev decides to crank up something along the lines of a Oil-Based Cold War doing the Geo-Political Two-Step.  Watch for the oil taps to Europe being turned off, on and off again, depending on how much Putin gets the night before, the locations of the US Missile Defence Shield and which former Soviet-bloc country is on Putin’s shitlist that morning. ("Georgia, no, Hungary, no, We did the Ukraine last week and it wasn’t any fun.  Let’s mess with Estonia!  Dmitry, turn the taps off and tell NATO to kiss my ass!)

Assume China wakes up one morning with an insatiable thirst for oil beyond what it has now, but wants the oil at a ‘friends’ price.  Putin tells China to cornhole a panda. ("Pектально нарушьте панду для того чтобы держать тепло!" would be the approximate translation)   

China and Russia start making ugly noises at each other.  The last time was in 1969, but that was before various pipelines across the ‘Stans started pumping oil to Europe.  There are several important oil and gas pipelines in Kazakhstan.  (For those who have forgotten, or never took, post-Soviet geography, Kazakhstan is in the top left corner of China.)     

This would be what could be loosely described as a global "Uh Oh…" moment where the person in the Big Chair in Washington needs to step up. 

Of the four US candidates in 2008, both Veeps and both Prez’s, two have the track record and expertise to either do the job, or provide good advice.  That would be John McCain or Joe Biden for those keeping score.

However, let us assume the actuarial tables are correct about John McCain, as the calendar is now 2011. 

Assume that Sarah Palin is in the Big Chair in Washington and has a Secretary of State with the depth of Tom Delay.  Or, the guy who runs the Zamboni at the Wasilla Multi-Use Sports Complex.  His nickname is Slappy and he’s been wearing a hockey helmet every day since Grade 2 when the door to the short bus opened in front of the school. 

Condi Rice can’t be tapped as she was not a Republican for Change(tm).  Being single and childless at her age, Condi must be one of ‘those’ people and can’t be trusted as Rice will corrupt everyone who comes in contact with her.  Plus, Rice is black and obviously just a community organizer with a big resume. 

Shotgun Dick Cheney is still in the Undisclosed Location and refuses to leave.  A dome has been placed over the Undisclosed Location to keep out the curious and if truth be told, to keep Cheney in.  There were too many incidents with illegal-alien prostitutes going missing after ICE agents raided meat-packing plants.

Kousin Karl is back on the Rubber Chicken Circuit with Ari Fleisher, doing a double-act for the "base" at $150,000 a night.  The line that gets the biggest laugh from the ‘base’ is when Karl Rove silently mouths the word ‘health care’. 

Donnie Rumsfeld is still on the sofa in Virginia, watching the UFC Championship on SpikeTV drinking Dr.Pepper cut with grain alcohol.

Palin knows enough not to call Former President Jo Jo The Idiot Boy for advice:  He’s in Crawford being distracted by a sock puppet with a shiny collar and a microphone who is offering to pre-approve him for a car loan.  Laura’s been hitting the Atavan pretty hard since the inauguration and looks more like a Hummel figurine than a human, especially since the other Bush twin took up with some DJ who used to date Lindsay Lohan.

This leave who to advise the boss?  Pat Buchanan?  The Joint Chiefs?  Dougie Feith?  David Frum?  Slappy?  Or does she fall back on her hockey mom experience and send China and Russia for a ‘time out’?   

There’s lack of experience, but the real problem is lack of bench strength.  There won’t be anyone left with a lick of sense to provide advice if the Republicans for Change(tm) take office. 

By 2011 the last of the most venal Ronald Regan – Ed Meese era Republican Reptiles will have retired.  In their place will be policy wanks who can mouth the platitudes but don’t know how to actually do the job unless someone tells them how.  That would be the lobbyists and think-tank yahoos. 

Expect the US Military to be outsourced, along with the FAA, the FDA, Homeboy Security, the GAO and the VA.  Even the guys who keep the Eternal Flame burning on Kennedy’s grave at Arlington National Cemetery will be ‘rationalized’ then hired for $5.95 an hour by a division of Haliburton.

This tells me the real strategy, the true reality, is that McCain and Palin are cardboard cutouts doing the bidding of the Republicans Reptiles.  McCain, less so, but Palin could easily be construed as something that fell off the Central Casting truck.  Which means all the McCain-Palin talk about Change is merely that: Talk.

Perhaps what they mean by Republicans for Change(tm) is exactly how much you’ll have left of your paycheck.

Elizabeth May and Democracy


Up here above the 49th, we’re in a Federal Election.  Like our southern cousins, we have leadership debates, but being a parliamentary democracy, we have a few extra parties compared to the US.  Elizabeth May is the head of the Green Party, a straight-up environmentally-oriented party.  The Greens have one elected representative and it isn’t Elizabeth May.  For the record it is Blair Wilson in the West Vancouver-Sunshine Coast-Sea to Sky Country riding.

A consortium of the broadcast networks wanted to do a televised Leader’s Debate, as they have for just about all the federal elections since the mid-60’s.  In asking the various parties for their terms and conditions, it came to light over the weekend that the Conservatives and the NDP would not play in the same sandbox with Elizabeth May as she was not actually elected to a seat in the House and "she’s smelly and has cooties and she’s a girl too…ewwww…"

The other two parties, the Liberals and the Bloc Quebecois essentially said "Sure, why not?"  Consequently the broadcast consortium didn’t invite Elizabeth May to the Leader’s Debate, in order to get the NDP and the Conservatives into the tent. 

When this came out in public, there was what could be charitably described as a collective manure rain by actual voters, descending on the Conservatives, the NDP and the broadcasters.  The polite calls and emails to the usual suspects started with "You pudknocking rat-violators, pull your heads out of your colons and…"

Yesterday evening the Conservatives and the New Democratic Party changed their collective minds and agreed to let Elizabeth May participate in the Leader’s Debates.  This is a good thing.

For starters, the Greens actually have a platform for environmental change.  Less oil, less carbon, more wind and solar, more recycling. 

The Conservatives eco-plan is to not drill for oil in downtown Calgary with illegal aliens during daylight hours as it will bother the crews of prisoners building the coal-fired generation plant with the asbestos chimney.

The NDP has a Green Plan, which is in the Witness Protection program and lives in a trailer park near Oshawa under an assumed name.  Don’t Ask, Don’t Tell is the platform.

The Liberals Green Plan is a combination of taxes and rebates for farmers whose last names end with vowels, on alternate Tuesdays, but only if they made less than $11,614 in 1994 per Box 7 (a.1) on their T-4 for 1995.  In trying to make sense of the Liberal plan, Stephen Hawking said, via his voice box "I can’t figure this out, screw it…" 

The Bloc Quebecois is the easiest to understand:  "It is our right as a sovereign nation within Canada to ensure that all the environment belongs to all Quebecers, except the ones we don’t really like and No Anglos."

What is happening is Elizabeth May, on the one issue that Canadians actually agree on, has sawn the enviro-plank out of the platform of all the other parties.  She’s going to mop the floor with Harper, Layton, Dion and Duceppe.  It’s all thanks to regular Canadians screaming like the enraged stewards of the democratic process they’re supposed to be.

Maybe this election won’t be as smelly as originally anticipated.

Things Ottawa


This is a bit of a reminiscence of memories of my hometown Ottawa that have somehow seeped up from the brain, in no particular order, for no particular reason.

The number 61 Elmvale Acres bus.  It was the 61 Bayshore until it got the other end of city, when it became the 61 Elmvale.  It took almost two hours for the bus to do the whole loop through the downtown core, east to Elmvale Shopping Centre, back around Urbandale Acres, through Elmvale again, to downtown, then out to the wilds of the West End:  Westgate Shopping Centre, Carlingwood and eventually a loop of Bayshore Drive, before there was a Bayshore Shopping Centre.  You could see almost the whole city for 50 cents.

Tiny Tom Donuts in the Pure Food building at the Ex.  Every year mystery people would bring a convoluted machine that would poop out tiny donuts by the hundreds at the Central Canada Exhibition.  They would be hot, greasy and lightly sprinkled with white sugar and if you paid extra, cinnamon and sugar.  There were also Shopsy Hot Dogs, Pizza, and Back Bacon on a Bun.  Why it was called the Pure Food building, I’ll never know, as the only thing that was ‘Pure" in there was the grease.

Hobbyland.  Downtown for a thousand years.  As all the small buildings downtown were bought up, then razed to make way for huge office buildings, Hobbyland survived.  If you needed Testor’s Candy Apple Red and some new brushes for your Eldon slot car, Hobbyland had it in stock. 

The Capitol Theatre was a monster classic cinema and theatre originally built in 1920 with Thomas W. Lamb as the architect.  The Capitol was an old-fashioned movie palace that sat 2530 patrons in luxury.  The stage hosted everyone from Nelson Eddy to Jimi Hendrix over its’ fifty-year life. 

As a school safety patroller, I got to watch double-bill movies at The Capitol on Saturday mornings.  Up past the dome, there was a slot car track with a huge 8-lane custom track, where you could race against other folks.  You could only get to the slot cars by walking up what seemed like forty-four flights of stairs from an obscure entrance off the side street.  I used to have a half a brick, rescued from the Capitol when it was demolished in 1970.

There were other cinemas/theatres in Ottawa.  The Regent, The Elgin, The Elmdale and The Rialto come to mind.  The Rialto, also known as the RatHole was a very old cinema that became a grindhouse in later years.  Triple-bill Laff Riots with Jerry Lewis, The Stooges and Laurel and Hardy, alternated with soft-core porn, "Emmanuelle, Queen of Sados" and violent exploitation horror films like "Die Die My Darling Die" and "Ilsa, She-wolf of the SS".  The floors at the Rialto were always sticky.

Donald Duck Bread was baked by Morrison-Lamonthe bakery and was delivered to the house by the Bread Man, who trolled the suburbs in a green truck.  Donald Duck Bread was especially fascinating as it was baked as a round loaf, almost exactly the right diameter to fit a slice of bologna. 

Borden’s Dairy served the South end of the city with their milk trucks, while the West end was the purview of Clark’s Dairy and their weird purple trucks.  If you wanted bread or milk you put a little cardboard card in the front window and the various sales people would miraculously stop and deliver to the back door of the house.

The 85 Bank and Grove bus.  For the longest time the 85 Bank and Grove was an ancient gas-powered short wheelbase bus.  Unlike the 61 Elmvale Acres, which was a mammoth GM diesel, then an ultra modern GM Fishbowl, the 85 was always a small, smelly wobbly bus.  At the corner of Bank Street and Grove Street, the 85 would turn around and head back to the ‘burbs.   To get downtown you would have to transfer to a 1A St. Patrick.  The turnabout was a vestige of the streetcar turnabout when the streetcar tracks were torn up in 1954.

Shopper’s City West and East.  Either Shopper’s City demarcated the end of Civilization as We Knew It.  Frieman’s department store always had one half of the Shopper’s City, while Dominion supermarket had the other half.  Tower’s Department store was also in the Shopper’s City East, sort of an early super-discount department store that carried the genetic material for a downscale Target. 

At one time Steinberg’s Grocery was a big chain in Ottawa.  Based in Montreal, it competed with the local IGA and Dominion, but it was also a linguistic and cultural divide.  Anglos shopped at IGA or Dominion, while the Francophones almost always shopped at Steinberg’s.  Any supermarket with an entire aisle dedicated to pink popcorn and Jos Louis snack cakes was tagged as "French".

The Miss Westgate Restaurant, the Carousel Restaurant, The Green Valley and Peter’s Pantry.  A grilled cheese and bacon sandwich?  Banquette seating around an imitation merry go round?  A restaurant on the edge of the Experimental Farm where the average age of the patrons and staff was 843 years old?  Excellent pizza and Zombies that would drop a stone statue on its ass?  Check, Check, Check, Check.  Done.

The Sandpits.  Out near the airport was a huge sandpit where we used to go and slide down the side of the pit.  Bring a cardboard box as an ersatz summer toboggan.  Now expensive housing.

Brewer Park was a response to the Rideau River being essentially a sewer in the 60’s and 70’s.  It was carved out of swamp and sand like a big oblong bowl next to the river.  Conceptually the water in Brewer Park was ‘filtered’ so you could swim there in the summer when the usual Rideau River swimming parks were closed from the pollution in the river.  Brewer Park merely took the big lumps out and pumped the water into the swimming area.

The Heron Road Bridge Collapse.  On August 10, 1966, one span of the Heron Road bridge collapsed while under construction, killing nine and injuring fifty-seven more.  We took the car down to the site to see what happened and I still remember it to this day.

Autorama 68…69…70…71..72…73.. was the winter car show.  Mostly show cars, hot rods and the occasional legit race car interspersed with the various car dealerships flogging that years’ model.  Watching the Valvoline race movies of the previous year races was always a highlight.  Invariably someone would light up a race car inside the Civic Centre and scare the snot out of everyone, while enveloping the arena in choking clouds of semi-burned Sunoco 260.

Fuller’s Restaurant.  A chain restaurant now long gone, but Fuller’s was always open.  The Red Barn was also a chain burger joint that had the "Big Barney".  You can still see the buildings on Bank Street, north of Heron Road:  They were across the street from each other and still are.  Both places had a ‘special sauce’ on their signature burgers, attempting to emulate the guk on a Big Mac.  There were too many stories about what was actually in the ‘special sauce’ to actually consume it, so we would order ‘no sauce’, if only to keep from being exposed to the supposed contents.  Royal Burger in Eastview had a special sauce as well and we avoided it as studiously.

The Ottawa Coal Gas Company and Myer’s Motors.  The Ottawa Coal Gas Company was located on what is now Algonquin College, but was known as Grant Vocational School.  You could see the coal gasification storage tank for the longest time.  As to what toxic sludge lives there, it is covered by Algonquin College and the Transitway.  Myer’s Motors used to be on Catherine Street, where the Bus Station now resides.  You could always tell when the paint booth was in operation, as the paint fumes were vented directly outdoors. 

The Union Station.  What is now the Federal Conference Centre used to be the train station.  We took the CN train to Montreal for Expo67, from Union Station, as the new station out in Alta Vista wasn’t done yet.  Yes, the Queen Elizabeth Parkway used to be train tracks.  Where the Westin Hotel is was the Grand Hotel, a working-man’s hotel.  Next to it was a Canada Post sorting building where the mail would come in by train, then be sorted for delivery.

"Temporary" Buildings.  There used to be hundreds of them across the city, erected back in WWII, to house the machinery of government during wartime.  Where the city hall is, used to be a big one.  Same at Dow’s Lake, a huge one fronted Carling Avenue for the longest time.  The Temporary Buildings were deathtraps when they were put up; cold in winter, hot in summer with asbestos-wrapped pipes.  They never improved over their forty-odd years of existence.

Ice Racing on Dow’s Lake.  In the depths of winter, as part of the Winter Carnival, someone would plow a road course race track on the ice.  Then they would race cars and motorcycles on it. Of the cars, you would see original Mini Coopers and Fiats blasting around corners, with studded tires.  Invariably some loon would bring a hulking stock car to compete with the Minis.  Blindingly fast in a straight line, but couldn’t turn worth a damn, while the little rally cars ricocheted off the snowbanks.  Racing motorcycles with hundreds of sheet metal screws in the tires as ice spikes was an invitation to disaster.  We froze to death on the ice, but we loved it.

Brewer’s Retail and the Liquor Store.  In the day at the Liquor Store you could not see the display of any bottles of liquor or wine.  There was a list of products on offer around the walls; you filled in a paper slip with the product number and handed it to a government functionary.  He went through a door to the warehouse and got your bottle, then brought it to the cash register.  After you paid, he bagged it up in a plain kraft paper bag and you left. 

Brewer’s Retail was a little more relaxed, in that they had display space for one bottle of each product on offer.  The cashier would shout your order into a microphone as you paid for it, then moved over to the conveyor belt as your order magically appeared.  "Peewee Fifty" meant a six-pack of Labatt’s 50, their premium beer at the time.  "Long Red Cap" was a twelve of Carling Red Cap. "Ex" was a 24-case of Molson Export, the implied size was always 24 beers.  Only the underage or women bought Peewee or Long sizes.

Pascal’s.  It wasn’t a department store, or hardware store, or a furniture store, but under one roof in the west end on Merivale Road, Pascal’s had one of everything known to Man.  If you needed 3/8" keyway bar stock, a sofa and restaurant grade salt shakers in a box of 12, then you went to Pascal’s.  From lumber to lingerie, Pascal’s had it.  You could buy a lathe and a dining room at the same time.

The Rough Riders.  At one time Ottawa had a Canadian Football League team with players like Russ Jackson, Whit Tucker and Gerry Organ.  The South side of Lansdowne was where we sat.  Coffee with Palm Breeze rum was the beverage of choice, rain, snow or shine, for young and old.  Only the crazed sat in the end zones.  If you couldn’t be at the game, you listened to Ernie Calcutt call it on CFRA with Dave Schreiber.  If you didn’t listen, or attend, you were a subhuman destined to a life of eternal burning Hell.  Or an Hamilton Ti-Cats fan.

That’ll do for the time being.  Let’s see what kind of link action we get out of this one.  You can always post your own peculiar Things Ottawa too. 

Listeria Hysteria Follow Up


Following up on the Listeria outbreak in Maple Leaf Foods, the CEO of Maple Leaf, Michael McCain, said that the source was most likely found.  In a Friday evening news conference, he revealed that the two slicing machines are the most likely source.  If you’ve seen any of the video of the sanitization of the Maple Leaf production lines, these things are the size of a small car with an equal number of parts. 

As part of the cleanup, Maple Leaf, the companies hired to sanitize the line, as well as government inspectors completely disassembled the two machines.  The existing protocol for cleaning, which Maple Leaf normally exceeded several times over, never called for a complete teardown.  The assumption probably made by the manufacturer, was that manufacturing guck could never get that deep into the machines.  Apparently it did and is the ‘most likely’ cause of the Listeria outbreak.

Today the deaths attributed to the Maple Leaf Food plant 97-B Listeria outbreak is at 13 confirmed, with 38 cases of suspected Listeriosis also linked to the plant.  A $20 million dollar recall is part of the equation, as well as a sharp stick to the eye Maple Leaf Foods reputation.

However, in looking at the whole situation, who is to blame?  Nobody really.  Maple Leaf did their due diligence, several times over and above the Federal standards.  When it was found that the North York Maple Leaf Foods plant was the possible source of the outbreak, they shut it down immediately and started to recall anything from the plant by being very public about the outbreak. 

There was no hushing things up, or mealy-mouthing PR platitudes.  Michael McCain, the CEO went to the front of the line and took responsibility for it, then did more than one would expect a big corporation to do to find the source of the problem.  And fix it.

Yes, Maple Leaf Foods has a vested interest in making sure things are fixed as their reputation is a significant part of their corporate financial value.  But they also recognized the human side of the equation, the trust that the consumer places in their products.

Will the Maple Leaf Food outbreak become a textbook case for the PR and Marketing classes?  Quite possibly, as Maple Leaf Foods acted responsibly, honestly and with complete transparency, as soon as facts were available.  They kept the consumer in the loop and also apologized for something going wrong, which is unheard of, but seems sincere.

Should you buy products from Maple Leaf ever again?  That is truly the $20 million question. 

My answer is yes, if only because Maple Leaf was straight with me as a consumer.  The actual problem was something that nobody could have predicted.

 

    

  

Canadian Election Called


Our Prime Minister Stephen "Steve" Harper had breakfast with the Governor-General Michaelle Jean this morning, Steve bringing the two double-doubles and a box of Timbits.  Over the donut holes and coffee, Steve let slip that he wanted a Federal Election called for October 14th. 

The G-G, who usually takes her coffee milk-only and was eyeing a powdered-sugar dusted cherry-filled Timbit said "Yessss…." as she gobbled the object of her donut affection.  Steve though she meant "Yes" for the Election writ, then jumped up and said "Gotta go…" and snagged the remainder of the box of Timbits.  There were probably 35 left out of the box of 45.

Which means we’re in a Federal Election.  Parliament is now dissolved, the media pundit class is rising up on their back legs to examine the entrails and the camera crews are stocking up on antacids to counter the food related products they will be consuming in the next few weeks on the campaign bus, plane and train.

The rest of us Canadians, who were not privy to sharing a box of Timbits with the PM, are looking at the offerings from the four political parties and wondering where we can throw up. 

Unfortunately our federal ballots do not have a box which says "None of the Above" 

Most Viewed Story


I rarely get surprised by many things.  If you told me that both Presidential candidates in the US were involved in the same club in Maryland that caters those who like rough sex with penguins, I’d shrug my shoulders. 

If you showed me real, unedited video tape of President Jo Jo The Idiot Boy and Shotgun Dick Cheney deciding to go to war in Iraq just for oil, I’d be unimpressed.  For that matter if you showed me Stephen Harper’s cardiogram as proof he has a heart, I’d yawn.

It isn’t that I’m jaded, but if you study enough history, long enough, you realize that it has all be done before and like idiots, we humans keep repeating ourselves.

However, of all the writing done on the blog and in the original incarnation of RoadDave The Website, stretching back to March 10, 2002, there has been one story that has had more references than any other. 

It isn’t the keen observation of the Iraq War, or the rapier-like political commentary.  It wasn’t the fake UN Chat Room posting, or the tour of the White House State Easter Egg Display.

No, gentle reader, it was Bars In Ottawa Pt I, specifically the part about Gerry Barber, the King of Bouncers.  There have been more hits from searches about bars and bands in Ottawa, as well as the legend that is Gerry Barber, than any other story on the blog.  Barely a week goes by that Bars in Ottawa Pt.I doesn’t generate a few hits.

Which leads me to a kind of stream of consciousness about Things Ottawa that have somehow surfaced over the months that I’ve written down as they bubbled up.  I’ll post it in a week or so.

Listeria Hysteria


A couple of weeks ago Maple Leaf Foods recalled a number of deli meat products that were distributed across Canada.  The list is here, and it is extensive.  The suspected contaminant was the Listeria bacterium, which could cause the usual headache, nausea, diarrhoea, and possibly death in the old, very young, or those with compromised immune systems.  So far, eleven deaths have been attributed to the Maple Leaf Foods Listeria outbreak.

Listeria and the symptoms it produces, Listeriosis, are extraordinarily common in the population.  Listeria bacteria are as normal as belly button lint and the vast majority of us humans can shake it off without even knowing we’ve got it.   In the US, the incidence is 2 to 3 people per million population, or in simple terms, more people break their wrists playing tennis than come down with Listeriosis.

What the outbreak has identified is a big problem with the massive consolidation of industrialized food production in Canada.  The specific production plant, 97B, in North York, produced deli meat of various kinds for dozens of companies.  Originally the outbreak was thought to only affect deli products produced for the institutional market, meaning hospitals, nursing homes, cafeterias and restaurants who buy a couple of hundred pounds of corned beef or shaved ham at a clip.  Then the recall expanded dramatically, as investigators found that more products were potentially at risk for contamination. 

Here’s the catch:  Listeria bacteria and the illness can show up as long as 70 days after ingestion.  Which means anything that was processed on the particular line at North York in the past 70 days is suspect.  To be safe, inspectors are going back more than 70 days to find the source and treating anything produced on the line as contaminated.  Then, anything that has come in contact with potentially contaminated meat is also suspect and so on down the line. 

The very common presence of Listeria in our food supply is also a problem.  You can’t easily tell what contamination is merely the usual level of the bacteria, or the specific Maple Leaf-97B bacteria without time consuming DNA testing.  Common-sense says that anything that tests positive for Listeria should be thrown out, which is what is being done.

Where things go strange is with the media and the scare-mongering associated with the outbreak.  Maple Leaf Food, to their credit, immediately shut down the plant, disassembled and disinfected everything, including the ceiling and the kitchen sink, with an extensive protocol of chemistry, scrubbing, steam cleaning, washdowns and then inspections by third-party folks.  I suspect that Plant 97B is cleaner and more sanitary than your own kitchen and bathroom right now.

Also to the credit of Maple Leaf Foods, their CEO Michael McCain didn’t bob and weave around things:  He took the blame straight on and said he was sorry that his company did or didn’t do something that has affected the quality of their products and has apologized for the error.  He’s also allowed the media to come in and watch the sanitization process and to answer any questions, including the dumb and mean-spirited questions that reporters can come up with.  Some learned folks are saying that the Maple Leaf Food outbreak and response is the new case study for how to manage bad news by a corporation, the last case study being the Tylenol poisoning 20 years ago.

Now to the real issue.  One would think that Maple Leaf Foods only produces Maple Leaf products.  This is not accurate.  Like any very large company, Maple Leaf produces other label products.  The list on the Maple Leaf website includes Artisan Collection (A&P brand) Best Value, Bittner’s, Boston Pizza, Burns, Campfire, Compliments, Coorsh, Country Morning, Equality, Harmonie, Hickory Farms, Hygrade, Kirkland, Maple Leaf Consumer Foods, Mayfair, McDonald’s, Mitchell’s, Mr, Sub, NoName, Olympic, Overlander, Parma, Pizza Nova, Safeway, Schneiders, Shopsy’s, Swift, The Butcher’s Cut, Tim Horton’s, Western Family and Westfair brands.

Simply put, Maple Leaf produces more than half the brands that exist across Canada.  Which explains why the recall and reaction has been so big.  There are benefits to big companies, like the economies of scale and the ability to do the testing beyond the accepted standard as a cost of doing business.  To their credit, Maple Leaf Foods tests several times more than the Federal standard, just to make sure everything is fine, as they have a self-interest is producing a safe, quality product.

Where there is a downside to ‘big’ is the effects of one small problem spread very rapidly to many potential points of risk.  One employee not washing their hands can literally destroy thousands of pounds of product in a matter of minutes.

To keep the outbreak in perspective, consider this:  Eleven deaths directly attributable to the Listeriosis outbreak from Maple Leaf.  Another 33 confirmed cases of probable infection.  Let’s double it and make it all the ‘fault’ of Maple Leaf.  That would be 88 all together, worst case. 

Number of deaths from automobile crashes across the US in 2007: 43,000, or 828 a week.  Using the 10 percent rule for US vs. Canadian figures, 82 deaths in Canada a week from cars. 

I’m not hearing anyone demanding they ban cars, or driving, or setting up a class-action lawsuit against GM, Ford, Chrysler, Honda, Toyota, Nissan and Hyundai for wanton neglect in allowing their cars to actually move and potentially kill several dozen people a week. 

Perspective is important.