North American Auto Industry Christmas Package

From The Hoss's Mouth

Santa Claus delivers early Christmas presents to North American auto industry. President George Bush and Prime Minister Stephen Harper put on their Santa suits and provided the North American auto industry with $21 billion: $17 billion (USA) and $4 billion (Canada). Given the huge number of jobs associated with the auto industry, Hoss Cents Free Financial Money Magazine supports these loan packages.



The Hoss is concerned with President Bush's statement that part of the reason for this auto industry loan package was that he did not want to saddle the incoming President with collapse of the auto industry. Give me a break...a loan which is only good until March does not prevent the failure of the auto industry. All President Bush did was delay the crisis until March, at which time it becomes Barack Obama's problem.

Another concern The Hoss has is the refusal of labour leaders in the USA and Canada to recognize that high labour costs are a contributing factor in the disintegrating auto industry. Sure, the main problem has been the auto industries arrogance in building and forcing gas guzzlers on the public, but nonetheless, labour costs are a significant factor in the manufacturing process. For labour leaders to try and deny this does nothing to enhance their public persona.


Yes, The Hoss is aware of the grossly inflated salary and benefits the top auto industry executives receive. They too must accept severe salary and benefit reductions.

It will be interesting to see how President Elect Obama tackles this and the other financial problems left to him by outgoing President Bush. One thing for sure is that President Obama is going to have the biggest challenge any President has had to face since the Great Depression. The Hoss believes that with his fresh views and innovative ideas that he and his team will pull the American people through this economic crisis.

This will be the Hoss's last post before Christmas, so a Merry Christmas to All.

Stay on track,
The Hoss

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Previous Post: Gas Prices Continue Downward

Gas Prices Continue Downward

From The Hoss's Mouth

Today, Hoss Cents Free Financial Money Magazine discusses the continuing decline in gas prices. Gas prices at the pump have been steadily decreasing over recent months. The big oil companies claim that supply and demand is what dictates the price of gas. There is much evidence to support this claim. For example, a report from the Federal Highway Administration (USA) indicates drivers in October 2008 drove 3.5 % fewer miles than in October 2007. Further, since November 2007 and October 2008, Americans have reduced their driving by 100 billion miles. These statistics clearly indicate less demand for gas.



Why are people driving less?

• History has shown that people adjust their driving habits to reduce expenses during tough economic strife and when gas prices are very high.

• In today's society, many people have the opportunity of doing much of their work from home.

• Availability of rapid transit.

• Gas prices exceed consumers' ability to pay.

The Hoss and Mrs. Hoss are prime examples. Due to the high gas prices during the summer months, we reduced our trips to and from our summer residence by 50%, which resulted in a savings of close to $1000.

All of the above supports Big Oil's claim that the law of supply and demand is the reason for continually decreasing gas prices.



The Hoss does not subscribe to this theory. He believes the oil companies have recognized that President Elect Obama is going to take the United States in a direction that is less reliant on oil. Obama's plan to introduce alternate energy sources and encourage the development of Hybrid vehicles will drastically reduce the nation's dependence on oil. But statistics repeatedly show that people don't change their energy consumption habits until they are hit hard in the pocketbook. Lower gas prices are lauded by most, especially during the current economic downturn, which the Hoss believes Big Oil is counting on. The Hoss is of the opinion that Big Oil is running scared and is reducing gas prices in an attempt to keep people from changing their current energy consumption habits, and ultimately from supporting President Elect Obama's plan toward alternate sources of energy.

The Hoss salutes President Elect Obama for his alternate energy plan. It will not only help the environment and our planet, but because of competition, it will also force Big Oil to continue with lower gas prices.


Stay on track,
The Hoss

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Previous Post:Be Gone Dion

Be Gone Dion

From The Hoss's Mouth

Oh, what a difference a week makes. Last week at this time, Hoss Cents Free Financial Money Magazine, posted information regarding a three party coalition made up of the Canadian Federal Liberal and NDP parties along with the separatist party Bloc Québécois. The head of this group was to be Liberal leader Stéphane Dion.





Their objective was to oust the Canadian Conservative party with a vote of no confidence. Then they were to ask the Governor General of Canada Michaëlle Jean to install this coalition as the official Canadian Government with Stéphane Dion the Prime Minister of Canada.

Today Mr. Dion is neither the Prime Minister of Canada nor is he the Leader of the Liberal Party. He was forced to resign as Leader of his party as a result of some clever strategic moves but the Conservative party and Dion's subsequent catastrophic nationally televised video tape.

The Conservative party out maneuvered the coalition. Prime Minister Harper, prior to the opposition being able to pass a vote of no confidence in the House of Commons, asked the Governor General to prorogue parliament until Jan 27, 2009. She agreed.

Mr. Harper and the Conservative party may have made a tactical mistake by not asking the Governor General to dissolve Parliament and set an election date. Numerous polls have indicated that the conservatives would have been returned with a majority government.

Not withstanding the fact that all Liberal members of the House of Commons signed a document in support of the coalition, it now appears the coalition is doomed as many of the Liberals have indicated they no longer support the alliance.

Michael Ignatieff appears the likely successor to Mr. Dion as Liberal Party Leader. Only time will tell if he turns out to be a superior leader than Mr. Dion. The Hoss predicts Mr. Ignatieff will not only ensure his party retreats from the coalition, but also claim it was a bad idea to begin with.

Ok, now for the important stuff. I can here you now, what is the Hoss doing writing about politics? This is supposed to be a financial money magazine. Well, let me put it this way, when the USA sneezes Canada gets the flu. In other words, given the current financial crisis in the good old US of A and the overall global economic situation, Canada cannot afford the current political turmoil and subsequent instability without our economy catching pneumonia.

Stay on track,

The Hoss


Next Hoss Cents Free Financial Money Magazine Post: Gas Prices Continue Downward

Previous Post:CanadianCoup d'état

Canadian Coup d'état

From The Hoss's Mouth

In what amounts to a legal Coup d'état, Canadian opposition parties are forming a coalition to over throw the Canadian Government of Prime Minister Stephen Harper. Hoss Cents Free Financial Money Magazine discusses this unprecedented grab for power by Liberal leader Stéphane Dion.




The Canadian Parliamentary system requires that the governing party have the confidence of the House of Commons. If the Government is defeated, The Governor General essentially has two options: dissolving Parliament and sending Canadians to the polls, or finding a new government that does have the confidence of the House.

The makeup of the Canadian House of Commons following the recent election is as follows:
The Conservatives have 143 seats, Liberals 77, NDP 37, Bloc Québécois 49.

The Liberals and NDP do not have enough seats in the House of Commons to form a coalition, so what do they do? Why they invite the Bloc Québécois (the party whose only purpose for existence is to separate from Canada) to join their coalition. This gives the coalition a total of 163 votes and enough to pass legislation. One wonders what concessions have been made to the Bloc in order to gain their co-operation.

Who do they choose to lead this coalition? The leader who, just seven weeks ago, led his party to its lowest share of votes ever and is scheduled to be replaced by his own party in the spring. Yes, Stéphane Dion, will be Canada's next Prime Minister. Who do we have to thank for this dubious honour? Jack Layton of the tax and spend NDP party and Quebec's Separatist party the Bloc Québécois .

The Hoss does not believe this is what the Canadian voters had in mind when they cast their ballots in the last election. The news of this unlikely coalition appears to have spooked the Canadian stock market, which suffered its largest single day drop ever.
Stay on track,

The Hoss

Next Hoss Cents Free Financial Money Magazine Post: Be Gone Dion

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