J.CREW, my name is Melissa

I was pleasantly surprised when I called J.Crew customer service to correct a billing error on some clothing I bought via the Internet.  I was so used to being routed to a call center in Bangalore for everything else in my life, it was actually pleasant to talk to someone in my hemisphere who also knew the products being sold. She was both very helpful and apologetic for the error.

I've been a customer of theirs for about a year, J.Crew is a company that is doing things right. Great quality and style, and excellent customer service. I recommend them. Give 'em a try.

Debt is a four letter word

I had a casual conversation with a colleague the other day and happened to mention that I had to remember to make an extra payment on my mortgage. I got a really weird look. 

I said, yeah I do that when I have a few extra bucks so I can pay it down faster. Each extra dollar goes to paying off principal not interest. I got the look of "Why?" Then I said, did you know if you had a $200K mortgage and you could double your payments each period and drop 20K on it at the end of each year you could have it paid off in 5 years, vs. 30.

The rebuttal was, why not use your money now to buy the nice things while you're young and can enjoy them, like BMWs , Prada shoes, nice dinners.  I realized at that time I needed to switch topics because obviously we were never going to have an appreciation of each other's point of view.

Unfortunately we are a culture that believes that debt is acceptable and normal. If debt is used to as sensible leverage to make money then yeah , okay (e.g. and RSP loan or buy a house for rental income etc). But to use it to buy things we can't afford to begin with is a big part of how we got to were we are today. 

North America a victim of it's own Eco success?

I heard US President Obama said at one time that he US needs to sell $15 million vehicles per year to sustain the auto industry.  Wow, that's a lot of cars. 

I got to wondering that perhaps the government and environmentalists convinced us that we really don't need to buy that car. I sure didn't get a replacement car after my lease ended in 2008. Take the bus, car pool, walk or bike. That must have made some dent towards reducing car sales.

So can North America have it's cake and eat it too? i.e. Don't buy a car, instead take alternative means of transportation to reduce your carbon footprint and reliance on oil, BUT go out an buy a car to help the ailing auto industry.  I think that only works if you plan on parking that new car in a driveway and never driving it.

I just had a idea. Rather than doling out billions in of dollars in bailout cash to the automakers, what doesn't the government order a crap load of replacement fleet vehicles. Workers get new cars, auto orders go up, auto workers and all downstream industries making money. That seems to make everyone happy. Toss in a $5000 tax incentive for domestic car purchases and I might join in too.

First real bike

Aidan just got a new bike earlier this week courtesy of grandpa. 

Every once and a while Aidan and my dad would walk past the Cyclepath bike shop on the Danforth. And each time Aidan would make a point of telling my dad that he wanted a particular green bike in the window.   Last week I checked out the bike with Aidan and found that although it was cool looking, it was too small. 

So we found this 16" Trek buried at the back of the store. Fortunately he loved it just as much as the first one. So the next day my dad, Aidan and myself went to Cyclepath after dinner and bought it. It was my dad's birthday gift to Aidan even though his birthday is in August. We just couldn't let this bike get sold to someone else.

Needless to say he rides it while I'm at work and back to our house when I pick him up after work. Simple joys of being a boy.

CNN - Joke #2

The other night I'm watching Fareed Zakaria GPS on CNN and the topic is whether the outrage over the AIG bonuses are called for.

Of course the panel of guests has to have conflicting views to make it informative (ahem entertaining). But the real news is one of the guests is none other than disgraced financial analyst Henry Blodget. Some of you may recall his oracle-like stock prediction of Amazon.com, but it was overshadowed by his not so graceful exit and lifetime ban from the securities industry. Some people even named move after him, "The Blodget".

Come on CNN. I didn't think you'd sink that low.

Investing in the stock market - perspective

I still remember to this day hearing my father say that investing in the stock market was like gambling.  I was only 7 or 8 at the time, but I knew enough that the stock market was a "grown up" thing. I was born in the 70's so that was a pretty bad time for investing and that was about the same time the US dollar moved off the gold standard, and since then money was printed out of thin air. I'm sure back then he was thinking alot like I'm thinking these days.

So 30 years later, most of the population including myself are in some way invested in the Market. The government and financial institutions did a really good job of convincing the public to invest for the future. It's a shame we all fell for it.

I've been stung by the dot com crash, Nortel scandal, and now this total financial melt down. The only positive aspect I see is the fact that we will recover eventually. And most importantly will have gained the knowledge of when to get the hell out next time.

U.S. President Obama and Tresury Secretary Geithner have a new plan buy up the toxic assest and repackage them as high-risk offerings to investors, public and institutional. Even offer low interest loans for buyers. Are they serious? That's how we got here to begin with. Sure, piss off the public even more by convincing the public to purchase government sponsored investments and come a year later have them go to zero.

Actually that craziness sounds alot like what happened to me and thousands of others. About 7 years ago the Canadian government gave tax incentives to people who bought labour sponsored or venture capital mutual funds. Well this year when I tried to redeem them the company said they couldn't payout due to the market conditions blah blah blah. Instead they'll issue controlled annual distributions. In other words, bankrupt. 

Sleep Country Canada should sell a new mattress line called the  Investor Beauty Rest. Independant coils with memory foam euro-topper and most importantly with a zipper in the side for stuffing cash into it.

Tata Nano - Never in North America

This week Indian conglomerate Tata unveiled it's sub $2000 car called the Nano. This endeavor was announced last year but various hurdles delayed the official launch until now.

But seriously, could someone actually make a claim that this is the cheapest car in the world? I say that it's not even fair to price it in USD because there is no way in hell this car could be certified to drive on North American roads.

This car has no air bags and no anti-lock brakes. From the picture, clearly it does not meet  5mph bumper requirements. It most likely does not have the in body cross-members to protect from side or roll over impacts. In reality this is a scooter with a car-like body over it.  My snowblower has larger wheels than this thing! Could you imagine driving this golf cart in a Toronto winter on the 401? I'd be scared shitless.

What about emissions? The catalytic converter alone would cost more than the car.

If this car were ever put through the NTHSA tests AND if it were ever certified to be sold in North America, it would end up costing at least $9,000. So, please CNN and all the other media outlets ... stop calling this the cheapest car. Because, back in 1978 I made the cheapest car in my parents backyard with scrap wood and stolen shopping cart wheels.

Electronic chains

Some of you who read my blog have probably noticed that I go weeks without writing. I have a lot of daily experiences and thoughts to write about and share, buy unfortunately very little time to put fingers to keyboard. Sure, I could make time but that would mean trading off x time for y time. My personal choice is that my blog is lower priority. Please note that I'm not passing judgement on anyone's choices, it's just how I choose to manage my time. Also I spend about 10 hours a day in front of a computer so the last thing I do when I get home is boot up. Everyone's situation is different. 

Time management isn't as simple as we think especially when were inundated and pressured into signing onto high-tech services we really don't need. For example, Facebook, text messaging, Blackberries, Twitter, cell phones, Ipods, etc. Sure I have a Facebook page but I don't use it. I know people that spend hours on Facebook and neglect all the important things around them. The sad fact is that they don't even know it. This week, in Italy a man is divorcing his wife because she spends hours on end chatting on Facebook and neglected him and their kids.  Who really cares what your score on online Soduku is?

I rarely watch prime time TV anymore. People at work ask me if I saw the last episode of House or the Simpsons. I generally watch the news and some favorite shows on Discovery after everyone has gone to bed.

If you ask me, and you didn't ... all these electronic distractions are really numbing our brains and making society, and unfortunately the adults of tomorrow, less aware of what's going on around us. Maybe that's the whole idea.

Toronto Transit Commission no longer the model

Having been a TTC commuter now for 3 months now I can truly say that it's the armpit of Toronto. In the last month there have been a number of shootings on trains and buses, and one instance of two youths being pushed in the path of an oncoming train.

Delays are are as common as trains are on time.  Escalators work about 50% of the time. For one week an escalator at one of Toronto's busiest stations King, was not working. So people leaving from and going to the platform were share a single narrow stairwell. This resulted in people not being able to get to onto a waiting train because they were all stuck upstairs trying to get down as people came up. Of course none of the TTC employees standing around could care less.

I could go on and on. But I think you get the message. By the way, did I mention those fat overpaid TTC workers are all rude and obviously don't like their job; despite getting a paid $80K for sitting on their duff dispensing tokens and talking on the phone all day. 

When I was a youth, the TTC was a model around the world for mass transportation. Now it's a complete joke. Look to Spain, France, Japan and London for example and you'll see mass transit as it should be.

TTC Chair Adam Giambrone is failing at his job. His youth and hence inexperience truly shows that he is out of his element. It doesn't matter how many languages this wiz kid can speak, the truth of the matter is that he cannot lead and does not have a vision for Toronto's transportation future. I really don't care about new services like, emailing or texting train delays. How about cell phone and Blackberry service underground. Who cares? Just get the trains to run on time. Those countries I mentioned all have well run and massively connected routes, Toronto has essentially only 3 subway lines and a bunch buses and can't get it right.

Publish Post

But not all the blame can go to Adam. There's no money, or maybe those at City Hall doesn't know how to ask.  And clearly transportation should not be at the municipal level, but instead provincially run.

I'm saving $400 per month by not having a car, but I wonder if it's really worth the hassle. And based on the number of drivers downtown I think they decided it's not worth it.

Calories - Double Double etc.

Today's warm weather inspired me to restart regular running. Having recently recovered from a horrible cold and a brutal winter, I really wasn't being as physically active as in previous years.  The added responsibilitues at home and work doesn't help either, but I have to stop making excuses.  

I had written in a previous blog post that I was determined to drop 10lbs. That did happen but only because I got sick. It's not easy to loose 10lbs and keep it off, which brings me to the subject of this post- Calories. 

Being less active means that something has to give in order to maintain a healthy weight. It's pretty obvious that food is my main culprit. I eat out almost everyday.  But I never had I really taken an interest in counting calories until recently. Based on my age, weight and activity most calorie calculators says I need approximately 2400 calories to maintain my current weight. So theoretically if I consume less calories and increase my activity I should loose weight.

Each day I used to consume 2 large double-double coffees. According to the Tim Horton's nutritional calculator (http://www.timhortons.com/ca/en/menu/nutrition-calculator.html) that works out to 230x2=460 calories in just coffee alone!!! I got smart about this a couple of month's ago and started getting 1 sugar and 2 cream 185x2=370.   If I go for mediums it works out to 115x2=230.   I've tried to convince my better half but all I get is a smug shrug of the shoulders. Muffins are BAD too, each blueberry muffin is 330 calories, delicious but pure evil. 

So what's the point? Only that, now that I'm 39 and not 29 I have to put in that extra effort to be kind to my body. Unfortunately I only have one body so I'd like to keep it for as long as I can. Looking forward to the days I go running with Aidan.

End of GM Saturn?

Today US automakers are shamelessly asking for another $22 billion in bailouts in order to stay afloat. GM CEO and lifer, Rick Wagoner, says that the Saturn line will be phased out by 2012. I guess that means about zero chance of anyone walking into a Saturn dealer anytime soon to buy a spiffy new Aura or Vue.

Sadly, this year Saturn actually has a good line up of cars and with hybrid options too. I never really liked Saturns until recently. I hated the plastic body parts and the quirky doors but recently they're pretty decent. Too bad, because I actually considered buying an Astra for a commuter car. Did you know it's one of the top selling compact cars in Europe.

Perhaps GM should just stick to selling cars in Europe and stop asking US taxpayers to fulfill their bondholder and retiree Viagra prescription obligations. And Chrysler, should quit pandering for money too, we all know you've got "money bags" Cerebus Capital to prop you up.

I hate to sound pessimistic but I have to. I wouldn't bet the farm on GM's new electric vehicle the 'Volt'. If the batteries are anything like any rechargeable device out there it's going to be plagued with problems especially in the first year. Generally, what happens when your battery dies in your cell phone,PDA or cordless tool? You buy a new one, because it's cost prohibitive to repair. Does GM actually think they can sell a $40K car to the public with a unknown lifetime on the core part, the battery?

Mutual Fund MERs are plain robbery

As of late we've all experienced incredible losses in our investment portfolios. Because of this I've paid a lot more attention to the details of the monthly transactions as executed within my portfolio. What I became aware of, and maybe I should have known anyways, is that the Management Expense Ratio (or MER) is approximately 2.5% of the total portfolio.

In this pathetic financial market, that essentially means:

1. Any contributions to my RSP are being eaten away by fees.
2. I'm actually paying people to loose money for me (I can do it myself for free).

This weekend I did some comparisons to gauge weather I'm being shafted by my investment advisor (figuratively and literally). Turns out that as Canadians we pay a hell of a lot in Mutual Fund management fees. US investors pay around .5% where Canadians pay anywhere between 1%-3% depending on the complexity or company managing the the fund. The government needs to regulate this.

I compared the ING Streetwise portfolio with mine, and although not exactly the same asset classes it's close:
a. It outperformed mine, i.e. lost less
b. management fees are under 1%

My group RSP is also outperforming my so called "managed porfolio".

I also fail to see what value I'm getting from my broker compared to my other RSP accounts. Not much difference except for a few personalized calls per year and an electronic retirement plan. I think I'd be better off going self directed if I can get $9 per trade.

Anyways, this weekend I'll be sending her a pretty terse email to start the ball rolling on changes for 2009.

Podcasts

Something that I have started to really enjoy are the free Podcasts offered on iTunes.

Now I know there are alot of options for MP3 players but what sets iPods apart from music players is additional media value aside from listening to music. Now that I'm a subway commuter I have to find ways of isolating myself from the miseries of crowded public transportation. Listening and viewing Podcasts accomplishes that, and is also educational at the same time. I also get to catch up on some TV I've missed.

Currently on my list are (no specific order):

CBC National and Local news
Discovery Channel
How Stuff Works (Really cool!)
TV's Best Ads
Grammar Girl

If you have an iPod , check it out. Really cool stuff online.

Virgin Atlantic - coolest ad

Congratulations to Virgin Atlantic for doing it right for 25 years!

Check out their ad that commemorates their achievement. C'mon Air Canada, stop being a corpse.

http://ca.youtube.com/watch?v=v7AR2FsPF8w

Coming home to roost

In yet another example of corporate and personal greed, India's fourth largest outsourcer of computer services has fallen. It's CEO, B Ramalinga Raju admitted to cooking the books for years. To the tune of over $1 billion USD. As a result Saytam has lost over 97% of it's share price on NYSE and on the Bombay Exchange.  Many including myself are left wondering how such a blatant fraud could have gone undetected for so many years, especially as Price Waterhouse as it's auditor.

India's security exchange board (SEBI) immediately launched an investigation, but one has to wonder if this is all posturing to stop the bleeding as investors pull back on Asia Pacific. There is lots of criticism about the effectiveness our own SEC. 

Some of my colleagues are employees are Satyam and are some of the most honest, upstanding, intelligent and hard working people I have known. I know they have made family and personal sacrifices to build the reputation of Satyam. The actions of at least one bad apple does not reflect the rest of the 50K employees that are partnered at 30% of the Fortune 500 corporations of which Satyam supports. I wish the best of luck to anyone affected.

Unfortunately, the timing of world events will undoubtedly make it's corporate clients think twice about the risks of association. The reputational risk and the risks to business continuity is too high with a partner whose future is uncertain at best. I cannot see a take over by any of it's competitors like Infosys or IBM, the liability is too high.

As the financial crisis continues, the misdeeds of the likes of Madoff and Raju are coming to light. There will be more to come.  To quote Warren Buffet, "When tide goes out you'll discover whose been swimming naked".

CNN and Velshi, what a joke

Tonight I was watching Ali Velshi on CNN interviewing "experts" and also giving advice on investing. I usually cringe when watching this doofus because it brings back annoying memories of him in grade 12 math class, but his self absorbed and bullshit advice tonight was really bad even for CNN standards.

So tonight they're all talking about how to get back into the stock market and making sure we "diversify". One piece of advice is to buy indexed funds, i.e. to the S&P or Nasdaq. Hello? If anyone happened to notice lately, the entire planet of investors got creamed regardless of what index or diversification strategy was used.   The only guy I know that made out okay was my younger  brother who for years was too lazy to get a financial advisor and ended up putting it all in GICs and cash.

Velshi ends the segment by plugging his new book, twice. What kind of journalistic conflict of interest crap is that about? Don't even get me started on Larry King or Anderson Cooper.

On a side note,  I heard from some folks living in the US that they received a couple of stimulus cheques in the mail from Uncle Sam.  Around $1,200 bucks tax free, more expected.  What a great country the US of A is, free money. I'm sure iPods and t-shirts that will be purchased with these cheques is really going to pull them out.

Happy New Year!

Happy New Year everyone.

Whew, wasn't 2008 the pits? Admit it.

Some things I am looking forward for in 2009 (not in any particular order):

- Peace on Earth, or at least some signs of peace

- Summer

- Less time working, (but still employed hopefully)

- World financial recovery, or at least some signs of it

- Opportunities

- Barack Obama

- Vacations

- Aidan going to school

My resolutions:

- Loose 10 lbs and keep it off. For the record I am 179 right now so hold me to it.

- Exercise regularly (at least 4 times a week)

- Organize garage and closets, and keep organized

- Learn something significantly new

- Volunteer for 1 thing

- Don't put up with stupid and/or lazy people (usually the same anyways)

- Stop wasting my money (includes me and anyone else)

That's probably  good enough for now.

Window insulation kit works

This year I've noticed the draftiness of the windows in my home. It's so bad that my bedroom is actually 8c colder than the rest of the house. One day I will get nice new windows but it's not in our budget this year. My brother had suggested using the window film that goes over the window casing and your shrink it nice and tight with the heat of a hairdryer.

First of all I didn't think this stuff would work too well. I mean, how much could a sheet of plastic hold back the arctic air. And second, I like to open the window to get some air once and a while even if it is Winter, this stuff seals the window until it's removed.

To make a long story short, the first thing I said after walking into my bedroom was "This shit works!". If you have drafty windows, give it a try. I can live without opening the window until Spring. The only concern I have now is if my cat will tear it up bounce off it if he tries to lump onto once of the window ledges.

My 2 cents on the economy

I'm not denying there is an unprecedented economic problem in the world. But I don't believe that a one size fits all economic stimulus package works, especially for Canada. The political opposition parties want to dole out money like the US has in the hopes of spurring some overnight economic revival. Even with the 700 billion cash infusion into the US economy the markets have tanked day after day. I know, I've been watching it hourly each day ( I guess I should be working). Unfortunately when the US coughs everyone catches cold.

Unemployment in Canada is no where close to that of the United States. Neither are the number of bankruptcies, home foreclosures, or credit card defaults. I don't believe that consumers or businesses in Canada with good credit ratings cannot get loans. In the two weeks alone I've had more than 5 financial institutions/credit card issuers try to give me > 10L of credit. That could be partly from from the modest cash injections by the Bank of Canada, but I mostly because historically Canadian banks have better liquidity compared to the US.

As long as Canadians , business and individuals, continue to act responsibly with their finances we won't fall into pay cheque to pay cheque model that Americans are brainwashed into thinking is perfectly normal.

There is no bank in Canada would have given out the NINJA mortgages (No Income No Job) that those greedy US lenders handed out. I can't wait to see how much more compliance work guys like me are gonna have dumped on after the smoke clears on this one.

Scotiabank Children's Holiday Party

 Some fun moments from the annual Scotiabank event (Santa Claus, hamming it up, surprise gift). Just like the year before, Aidan didn't like the rides at first but he opened up after we met up with cousin Charlie whose mom also works for the same company.

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