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Originally Posted by haljackey
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Given that the site, up front, admits that it is not politically neutral, I would strongly question the integrity of their predictions.
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Originally Posted by manny_santos
Holder probably lost a lot of votes yesterday after his flop performance at an all-candidates debate, while Doug Ferguson and Irene Mathyssen shined. The audience was mostly seniors, and as we all know, seniors tend to vote.
http://www.lfpress.com/news/london/2.../18037031.html
I've met Doug Ferguson and he is approachable and has real vision about how to bring back Canada's respectability in the world. I knew Ed Holder long before he ran for office and he was once a respectable man, but now he's nothing more than a puppet for King Harper. Last time I talked to Holder he seemed totally clueless about the issue I was talking to him about. I've heard the same thing about him writing to another constituent about a different issue.
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You have to admit that some of these questions are pretty goddamn stupid. Your entitlement to corporate liquidation depends, first of all, on whether or not you own corporate debt or whether you own equity. Debt holders are automatically granted preferred creditor status because they chose to engage in a fundamentally safer financing activity that yields a lower rate of return. Of course, there are various types of debt holders, and based on the interest they command and the size of their loans, different levels will be given different liquidation priorities.
Shareholders, on the other hand, choose to own a portion of the company and thus accept a fundamentally higher risk associated with equity financing (You want to be a part of the company? Get ready to be stung if the company fails). They make a higher return which is mostly the result of a risk premium; when the company is doing well, the owners will do well, but when a company begins to collapse, the owners have to accept their responsibility to creditors and their decision not to finance the business via debt. Being the owners, just like any other business, they are also last in line to get back their investment.
This is how creditor classes work. They are based on economic tradeoff mechanisms, and each class of creditor is entitled to his share of liquidation based on the amount of risk they were willing to take on. Everyone, regardless of age, sex, religion, sexual orientation or whatever, is equal within each creditor class. You can't start going around and arbitrarily imposing age priority rules, or you will destroy the entire system of incentives that allow companies to finance capital spending initiatives. Because Ferguson is arguing in favour of a system that would circumvent the existing set of rules designed to ensure fairness and equality, I would not vote for him. Why should some other investor receive priority over me based on age?