The Rumour Mill, a Menacing Web

As rumours goes this was a doozy! But before we dwell on it, let me say that what is buzzing about social circles, and the internet is just that, an unsubstantiated rumour based on a projection from one man. It was a rumour that was started by an American online newsletter and picked up several other bloggers. The rumour is that one of Canada's largest banks is close to financial collapse. The interesting part of all this was that it spread throughout the world, and when I got wind of it, it morphed into word of mouth.

It is important for all involved to note that the source of such an alarming rumour originated on the internet, and “as of our press run,” no reputable journalist print source had broke out with the story. Sadly, this is truly the acid test when sifting through the chaff. Because, this type of rumour mongering has the effect of becoming a self fulfilled prophecy and can affect stock trading, which in turn can cause a loss of income for those people investing in the markets.

The source of this is a Mr. Dan Amoss, a Chartered Financial Analyst® and managing editor of the online Strategic Short Report. In a four page blog titled, “The Next Major Stock Set to Crash,” the blogger Stock Gumshoe reports that Amoss will expose this Canadian bank as using shady accounting tricks to hide losses and lying about being able to pay a massive $1.5 billion dividend scheduled for 2009. Amoss teases the internet community by stating that this bank is 192 years old and employs over 37,000 people. The conclusion was from Amoss that, “The news of this bank dropping like a stone would hit the financial markets so hard — creating a tsunami of fear in a previously thought “safe” banking niche — that it’d make the panic of 2008 look like a cake walk…”

The internet community was quick to research the clues on such 'reputable' sources as Wikipedia. In very short order readers began to comment on these blogs putting their two-cents worth into the discussion. Such as “The bank never goes 'broke'. If the bank runs out of money, it can issue as much as needed by writing it on an ordinary piece of paper. In Canada, the banks can print as much as they need,” and “He did not say what his source was. The bank was described to him and the one that fit closest was BMO,” and my favourite, “Stop this, my mom works for the BMO, your scaring the hell out of me!”

This type of news is somewhat easy to believe in light of the current economic environment we find ourselves. Bloomberg News on the same day this rumour was milling about reported “Profits Decline at Two Canadians Banks.” stating that both the Bank of Montreal (BMO) and the Bank of Nova Scotia reported third-quarter earnings decline on rising loan costs. According to these reports the BMO's net income for the period fell 21 percent in it's fifth straight profit decline. In the same report the ScotiaBank reported a 1.9 percent decline in profits.

In the USA, where our banking institutions would enjoy some foreign investors stock trading, the banking story is extremely bleak, so much so that in contrast to the American experience just last February, Barron's, the online journal from The Wall Street Journal, reported “A Canadian Bank Plays It Safe…and Smart,” which painted the Canadian banking experience as strong in light of the global economic crash, and singled out the Scotiabank as “tight-fisted and old-fashioned, and has boosted its earnings and dividends consistently for more than a decade.”

But let us consider the source. When Amoss came out with his projection, he did not name the bank under scrutiny. In fact, he announced that at noon on August 24th he would come out and expose the Canadian Bank that was going to crash. Interesting that he picked a time and day of his release, after giving the world a clue to which institution this was. In fact, his report was scathing in accusations, so much so, that if he was only using conjecture he was opening himself up to legal scrutiny. Amoss is a financial analyst, and like many of those who believe to be connected, or in the know, may use their sources to their financial advantage.

Noon came on the 24th, and what was discovered was interesting. By the time his deadline was met, the internet community had already come to the conclusion that the bank in dire straights was the BMO. Now the interesting facts. At the open of the trading day, the Toronto Stock Exchange was trading BMO stock at $51.20. By 1:30 PM the same day the stocks fell to $49.13 and closed the day out at $49.10. This from a stock that held its trading between 51-52 dollars.

Whether the $1.85 day drop in trading was influenced by the rumour mill surrounding the BMO is really not the question. It would be fair to say that those trading knew of Dan Amoss’s report and could very well have been caused the selling of the shares that lowered their value.

Whether the BMO is in for a financial beating we still do not know, however by the end of the day, the BMO had cuts its dividend. One thing for sure, in today’s unstable economic outlook, rumours of financial collapse in any sector cannot help the situation. In the world of the internet, the rumour mill has become a menacing web.

The Phrase that Shames

What do you say to the mother you witness yelling, while pulling on their child’s arm in anger only to notice the mother immediately breaks down in penitent tears as the child says, "That’s OK mommy, I'll be a good girl."? Do you think maybe there is a history of abuse and the child has accepted her fate? Would the mother in this illustration feel shame that her child takes blame for her own behaviour or maybe existence in spite of her mother's shortcomings. Would it be fair to say that at that moment 'our' mother feels humiliation, shame and a sense of disappointment in her role as care giver, protector and mentor.

I think at some point we have all felt a sense of disappointment in ourselves in some shape or form. It may come at something we said, or how we behaved in a group. It may have come later in life when we are having that "Remember when...." conversation with our now grown up son or daughter and discover that their perception of us was different than what we thought it should be. Those are the moments when we feel shame and disappointment in ourselves.

Last week, I felt something similar when I had a conversation with a good friend. Strange as it may seem, it was not my lack of inner monologue that made me take a 'gut shot'. It was my perception of myself as a proud, enlightened, tolerant citizen of Canada that took the hit.

Just so you understand, my friend was born in Toronto, the son of immigrant parents from Uganda. Suffice it to say, my friend is in his early 20's, dark skin, black hair, clean cut, university educated, and yes, an observant Muslim. Having roots in Ontario he travels often from Edmonton to Toronto by air, and last week when I asked him how his flight went, he began to tell me how he was selected and subjected to what he felt was an unreasonable search and examination.

My first thought was, 'OK, it must be the new airport screening procedures.' But my friend did not stop there. He told me that on numerous flights within Canada, he has been singled out and physically frisked and questioned about his comings and goings. At one point he was surrounded by security, taken to a room and closely examined, only to be told that he was on a no-fly list. It was discovered that another man with the same 'Muslim' sounding name was on the no-fly list. But this fellow was forty years older. When asked what he could do about being detained in airports, security just said, "change your name."

At one point, in an effort to give security no reason to single him out, on another flight when he came to the airport he made sure he had no metal in his pockets or clothing. As he walked through the security gate, amazingly it went off. He was then pulled aside again. After the humiliation of being singled out and placed back amongst the passengers, is it reasonable to assume that other passengers were nervous at his presence during the flight?

That was when it happened, after what was a 'matter of fact' conversation, he said, "Ya, but I'm getting used to it." This from a person who was born in Canada, who's only 'offense' is to be born brown and into a Muslim family. Me, as a Canadian who bought into 'we live in the best and most accepting and enlightened country' I felt sorry for my fellow Canadians, and shame at the fact that we as a nation have come to the point where people like my friend are getting "used to it." Should anyone just 'get used to' being profiled, scrutinized and examined in their own country?

The 49th Imam of the Ismaili Muslims, Aga Khan said, "Canada is the most successful pluralist society on the face of our globe," and "a model for the world." This perception of Canada is not isolated to Aga Khan. In the past eight years Muslims from around the world have seen Canada as the preferable nation to immigrate to, fearing profiling, anger and hatred from other possible homes like the USA as a result of 9/11.

The tone for multiculturalism was set in 1935 when our then Governor General of Canada The Lord Tweedsmuir stated that immigrants "should retain their individuality and each make its contribution to the national character," he further stated, "the strongest nations are those that are made up of different racial elements."

Canada is a pluralistic nation where multiculturalism is viewed that each culture or subculture contributes uniquely and brings valuable cultural aspects to the whole. This spirit of Canada as a cohesive culture was formalized in 1971 and in 1988 the Canadian Multiculturalism Act received Royal Assent.

This targeting of Muslims for the sake of airport security should not be casually accepted by Canadians. One should not stand by as a fellow Canadian is subjected to unreasonable detention and search, something that is forbidden by our Charter of Rights and Freedoms. In the post 9/11 world, we can accept increased security in the form of metal detectors, discrete x-ray screening and air marshals on-board, but to accept the sole discretion of fearful airport security officers who are profiling by skin colour or how a person is dressed in traditional or religious garb is unacceptable.

Cultural profiling is a faulty policy and is motivated by fear which is not the best security counsel because as best selling author Meg Cabot once said, "Courage is not the absence of fear but the judgment that something else is more important than fear. The brave may not live forever but the cautious do not live at all. For now you are traveling the road between who you think you are and who you can be."

The Insignificance of Mankind

“The greater the power, the more dangerous the abuse.” British Statesmen Edmund Burke

Mankind, culture, people, nations, business and self. These are just the few descriptors of what we see mankind as. But as a complex bunch we are the driving force behind it are everyday emotions, pride, ego and self esteem. Many position themselves through life whether consciously or subconsciously above others.

The skilful have the ability of achieving leadership status within their personal groups or circles of influence. These people can be seen in positions of authority and for the most part are looked at by others as deserving. For many others, the struggle to achieve recognition takes on other forms

The old childhood game of “King of the Castle” is an ongoing drama that children take into adulthood and whether they are aware of the dynamics involved, role play over and over again for those people who are not natural leaders and have been slotted into subordinate roles. But for those who do not feel deserving of the humble station in life tend to ‘just take’ power. For those people, manipulation, force, violence and cunning are all the tools they use to make themselves feel significant.

This struggle for influence and power brokering can be seen on a large scale in world politics. Mankind walks this earth and goes about their business as if our species deserve to dominate this planet. Wars are waged through power of the elite. Corporate greed is sought after through people whose self worth is only satisfied through corporate manipulation usually at the pain of others crushed beneath their feet. Foreign policy of nations trample on the human rights and value systems of countries identified as less developed or third world. Terms used to publicly identify theses cultures as beneath those in power and worthy of occupation. Terms used through propaganda to justify the trampling of others in the pursuit of international self worth.

Closer to home in the work-force, conflicts flourish through ‘empowerment’ management. This simple concept preaches that those in power should share. Power taken by the micro-masses, misused in the hands of some individuals in businesses and organizations are abused through cunning, manipulation and greed of those who need to achieve more self worth. The end result are emotionally beaten souls at the hands of those undeserving thumping their chests in self fulfillment.

These power struggles in the work place, although destructive, will never go away because mankind will never change. The game of “King of the Castle” is an ongoing serialized theme.

For some who have been fed upon by micro-empowered brokers come home at the end of working day and in an effort to achieve self-worth target their own families. Sheltered abuse reigns in families where spousal and child abuse flourishes. The offender through cunning, deceit, manipulation and learned behaviour at the hands of others plays out their craft on the down-cast spouse or child.

Beatings, verbal and emotional abuse reduces these family members to the lowest common denominator. The victims develop hatred and self-loathing. The abuser having embraced their new achieved self-worth through dominance thumps their chests in victory, some woefully unaware of the destruction left in their paths. The game of “King of the Castle” continues with its next move.

Through these acts of hill climbing, clutching at power taken from less fortunate societies, spouses whose only claim to fame was to love the abuser, children whose only shame came at the trust of their abusive parents, the power hungry human is seen as truly significant in their own eyes. Walking high in tall cotton, chest pushed out, the power hungry member of mankind is truly the center of the universe.

Afterall, we have achieved technological feats that seem magical, conquered flight, harnessed and redirected energy and recreated life. Powers that truly demonstrate mankind’s dominance in nature. In our egocentrical conquest for power, achievement, recognition and control we have placed ourselves above everyone and everything. So high that we can see the four corners of the earth with arms stretched out saying, “All this can be ours.”

Then a bubble bursts as one morning the sun shines, dark clouds roll in from the northwest. Starting in Edmonton the power of nature comes full force. The power of the earth roles across the prairie and rapidly collapses a stage killing someone’s daughter and injuring 15 others. Huge trees are uprooted and property damages soars. Continuing south in Calgary an innocent child is killed as debris is blown around her. During natures fury we were all held in fear for what really was a brief moment in time.

At that moment all that walk this earth are equal. The bullies, family abusers, power brokers are blown about as nature puts mankind in it’s place. For in the end, mankind is truly insignificant.

We are only visitors on this earth, for those structures in nature will survive each and every one of us. We can feed on the emotions of our families, neighbours and fellow workers in order to climb over the heap of those we perceive beneath us, but to this planet we call home, we are nothing but an insignificant creature created from dirt.

This past weekend was a humbling experience, as the storms tore throughout Alberta leaving death, injuries and property damage. Our hearts and condolences go out to the families forever touched by nature’s power. But for the rest of us, it is a reminder of just how insufficient our clamouring for power truly is, for in contrast to nature, mankind is truly insignificant.