Monthly Archives: May 2019

WHAT HAPPENED TO WESTJET?

WestJet copied the successful business model of Southwest Airlines. But Gucci shoe clad airline executives hated the model. Southwest flies only one airplane – the Boeing 737. It isn’t big and it isn’t sexy. But only one plane means only one set of parts and one training program for air and ground crews. WestJet shareholders fought off the Guccis for some years. And WestJetgrew and grew. Then the Guccis took over. Big airliners. Expensive ground facilities. And it’s shown. The profit shareholders make from Southwest is almost twice as high as what shareholders make from WestJet (a price/earnings ratio of 12.12 versus 22.49). West Jet should be worth 5 Billion Dollars – a hedge fund is picking it up for only 3.5 Billion.

Vulture Kapiitalsm – Bay Street  hedge fund – AKA “Private Equity Firm” –   wants to buy Calgary’s battered WestJet – worth $5 Billion  for only $3.5 Billion  – West Jet Board  wants to sell!!!The Toronto Wheeler Dealer behind West Jet takeover

Lord Strathcona — He drove the last spike

 

THE U.S. – Biden/Warren – a Rooseveltian Compromise?

Moderate Joe Biden

Liberal/Progressive Elizabeth Warren

The Hill – a Washington, D.C. webpage and newspaper  says that – before last November’s election: 

  • 44% of American voters were Moderate
  • 24 % were Liberal
  • 32% were Conservative

And 62% of Independent Voters were Moderate.

Obviously the Democratic Party would be foolish not to select a Moderate. But 24% of voters who are Liberal (“progressive”) believe that America is broken and needs to be fixed and a Moderate like Joe Biden won’t do it. America needed fixing in 1932 too. But master politician Franklin Delano Roosevelt did that by pretending to be a Moderate – running for the presidency by, for example, promising to balance the budget but – after being elected – turning on a dime and bringing in the truly radical, budget-deficiting New Deal that saved America from collapse and made America the World’s greatest nation.

Elizabeth Warren wants the U.S. to adopt Canadian-style health care and to purge or destroy Wall Street. Both need doing but both are not Moderate proposals. Joe Biden is 76. Warren is only seven years younger but might be tempted to gamble on Biden not surviving eight years in office.

Is a Biden/Warren ticket possible? One Washington State Democrat we know says that Biden is tarnished by his many years as a Delaware politician – Delaware is the home of many a U.S. corporation and big bank – and Warren may not want to bed down with Biden. Some of Biden’s corporate friends might abhor the thought. CNN thinks their bad blood runs deep. But politics finds strange bed-fellows. 

Franklin Delano Roosevelt