CARIBBEAN STOCK REPORT 26 September to 30 September 2011

Compiled by the Department of Management Studies, UWI Cave Hill - Click image to read in PDF

Redjet: Playing The Fiddle As It Burns

Submitted by Looking Glass

The airline having promised wonders announces imaginary success. In the process Barbadosbecomes the culprit but to date not a word from us. That we need to give the green light–also suggested by the CEO–is another bit of unadulterated falsehood. Barbadosis not Caricom. It cannot control or dictate to the islands what they can should or cannot do. As such it cannot give the Green Light–whatever that means–for another country to grant licence to any airline. Yes the airline was given licence to operate from the country. However, at this point in time we are not a shareholder and cannot dictate or determine how the airline should behave or what others should or must do. That the other countries have not seen it fit to grant or formally announce the granting of licences to the airline has nothing to do with us.

St Luciais concerned about the delay in getting Redjet to operate there and “has written to the government about it” (Nation 20/9/2011). The minister must know that Barbadoscannot dictate what others should do. So why the letter if indeed there was one? That he like some of the airline officials should indulge in falsehood raises suspicion. Is there much more in the mortar than the pestle? More importantly why has our PM remained silent?

Redjet has been granted only Permission not Licence to operate out ofSt Lucia. Permission unlike Licence implies conditionality and is temporary to begin with. The minister should explain the granting of only Permission rather than Licence. The airline servicesGuyana. No problem there. So why has the airline, permission granted some months ago, not seen it fit to service St Lucia from Barbados? Economically the route is unlikely to be profitable and or sustainable even if theGuyanaroute is included.

Fiddlers on the Roof: Great Depression 2 – Why No Lessons Have Been Learnt From Other Stock Market Crashes and Could the Next One Be Cataclysmic?

Submitted by Terence Blackett

“All that is necessary for evil to triumph is for good men to do nothing.” – Edmund Burke

Greece is on the verge of a calamity – with a cure worst than the disease; Italy’s financiers have issued a death knell about it debt levels; Portugal continues to teeter-totter on the precipice of a Greek-style implosion; Spain is destined to move from a “siesta” environment to outright social bedlam; France continues to contract with its economy froth with massive future job losses, possible riots and social anarchy not seen since the French Revolution; Britain is also in throes of a winter of discontent with mass labor strikes and social unrest as more and more jobs move off-shore – coupled with social and structural imbalances which could incinerate the fragile, fragmented fabric of British life. And all this is only a fraction of the EU’s woes.

The other irony is that the ripple effect and the contagion in this part of the world will have even more seismic repercussions beyond the Stock Market Crash of 2008. If the Euro implodes, (and many commentators believe it will) – the fallout will make the Wall Street debacle of 2008 pale into insignificance setting in motion a global crisis of apocalyptic proportions. What we could witness in our lifetime is unparallel poverty, biting hardship and evaporated life chances unseen on such a scale in recorded history.

The question many are still asking – how did we get to this point? Was this engineered? Why was nothing learnt from the Great Depression of the 1930’s? And out of the possible ashes – what will emerge?

Stuart Chase in his book published in 1929 entitled – “Prosperity: Fact or Myth” commented that “ For [12] ebullient years the curve went swinging upward, and ended with a dizzy nose dive in the panic of 1837… In the year 1906, the (US) Secretary of the Treasury was publicly praying that the country be delivered from more prosperity. That his prayers were in order was evidenced by the glorious crash in the following year – the profound business depression of 1907…”

Connecting CLICO’s Dots

The Late Prime Minister David Thompson (L), Leroy Parris (R), former Chairman CLICO Holdings (B'dos) Ltd

The CLICO fiasco continues to hog the news. It is a story which has tainted the government of Barbados for almost the duration of its tenure. BU remains sympathetic to the ‘sufferation’ of thousands of Executive Flexible Premium Annuity (EFPA) CLICO investors and the others. Many were lured by the greed of high interest rates, some appeared to be ignorant to the benefit of diversifying personal investment portfolios. What makes the CLICO fiasco one with a difference is the extent regional governments and regulators are to be held accountable for CLICO’s ‘failure’. In the case of Barbados a very close relationship between the late Prime Minister David Thompson and former Chairman of CLICO Holdings Leroy Parris added to the intrigue.

In his wrapup to the this year’s budget Minister Chris Sinckler promised CLICO policyholders that there is light at the end of the tunnel. Despite the snippets here and there CLICO investors continue to stumble in the dark. The word on the street is that the judicial managers have recommended an injection of capital into CLICO to fund the shortfall in assets of 152 million dollars that will see CLICO morphing to a new company. BU believes if this is true it is laced with uncertainty.

The insurance business requires confidence from the market to be successful. Is there a precedent in the region where an insurance company was restructured successfully? Given the controversy which has enveloped CLICO most if not all of CLICO policyholders want their money. Given the harsh economic times the desire to withdraw the maturing EFPA’s will be strong. Such a sentiment does not bode well for a rebranded company funded with CLICO assets plus tax dollars. What are the alternatives? To liquidate the assets of CLICO will take years.

Owen Arthur’s Extreme Fear Of Youth And Young People

Submitted by Mia Supporter

Opposition Leader Owen Arthur (foreground), Dale Marshall MP

There is a biological, as well as a scientific explanation why ‘senior citizen, 63-years-old Owen Arthur’ is always picking at Mia Mottley and Christopher Sinckler and why he (Arthur) feels DLP Parliamentarians are “poor-rakey:” ‘youth!’ They are “YOUNG,” for the most part.

“Ephebiphobia” is the fear of young people. That is also your explanation why 63-years-old Owen Arthur’ feels that spending money on football is a waste. Football, for the most part, is played by young people and symbolises youth, vitality and energy.

“Leader of the Geriatric Brigade,” Owen Arthur, at 63-years-old, is a senior citizen, who does not understand; forgets easily and does not connect with the youth.  That is the dilemma for him.  As a matter of fact, it was only quite recently that the country knew that Arthur even had children. And for that, David Thompson and his “Family First Programme” must be credited.

Arthur Master Tactician My Foot!

Caswell Franklyn, Head of Unity Workers Union

Someone wrote, “Many Barbadians believe in the world of local politics Opposition Leader Owen Arthur stands head and shoulders above the rest as the master tactician”.

I have heard that before but I am yet to hear that comment from someone other than a BLP adherent. Where is the evidence to support this hypothesis? Other than BLP members who spout this propaganda, who are these many Barbadians that believe that Arthur is this master tactician?

Arthur became leader of the BLP after Henry Forde came to the realization that he would never be able to lead the BLP to victory, which made him sick, and he demitted office as Political Leader of the BLP and Leader of the Opposition. At that time, Arthur was the only member of the BLP parliamentary group that was not gainfully employed outside of holding a seat in the House. He was then managed and his every step choreographed by David Simmons and a few others to make him Political Leader and Opposition Leader in order to give him a decent salary.

You should recall that the death of Errol Barrow caused a fracture in the DLP in such a way that the party became unmanageable with the Dems descending into turmoil. That instability coupled with a recession in the early 1990’s made the DLP extremely unattractive to the electorate. Arthur’s victory in 1994 came as no surprise and was like taking candy from a baby. So far up to 1994, there is no evidence of any master tactician emerging.

First It Was The Used Car Industry, The PSV Sector Maybe Next

The problems created by PSVs have been with us for decades and the situation is deteriorating by the day. It is a sector built on the backs of Black people, although in the last ten to fifteen years we have observed a shift in ownership to the wealthy and prominent who operate behind the mask of limited liability companies.

The government promised when it assumed office to establish the Transport Authority – and it has – an umbrella entity to bring efficiency to the national transportation system. To be honest after three years of a Democratic Labour Party government can anyone say that the PSV situation has improved? The industry is in a mess!

The sector is poorly self-regulated. The Courts of Barbados are not able to efficiently enforce the law because of the systemic problem of congestion in case management. The government by its lethargic approach to regulating sector continues to perpetuate the same practiced by the previous government. In a nutshell the issues with the sector can be linked to known corruption.

Tarek Fatah An Indian Muslim, Warns About Muslim Brotherhood In The White House

Click image to listen to a thought provoking delivery (14 minutes)

 

Things Looking Brown Like Sugar For Gline Clarke

Gline Clarke MP

Many Barbadians believe in the world of local politics Opposition Leader Owen Arthur stands head and shoulders above the rest as the master tactician. The fracture which runs deep in the relationship between Arthur and Mia Mottley achieved by forging an unexpected relationship with George Payne is a classic example.

One characteristic of Arthur’s style of politics which he repeatedly used to good effect during his tenure as Prime Minister was the ‘flying a kite’ strategy. It was his way of measuring public opinion before taking a decision, usually unpopular ones. Making former Minister Anthony Wood look silly in the eyes of the public over a promise to increase bus fares comes to mind.

How Arthur intends to lead a party perceived by the electorate to be a united group remains the topic of conversation among ordinary Barbadians and pundits alike. With a general election constitutionally due in just over one year, time is rapidly running out for Arthur to right the BLP ship. Some believe the good reputation Arthur earned as Prime Minister during a global economic boom made all the difference. How Arthur manages the challenges created by Opposition politics is left to be seen?

CARIBBEAN STOCK REPORT 19 September to 23 September 2011

Compiled by the Department of Management Studies, UWI Cave Hill - Click image to read in PDF