We seem to be straying a long way from the topic but Nortel was pure SRTC.  In other words, 135% of its worth was not only bailed "out" but bailed "in" by Trudeau Sr.  under s 8 of the Income Tax Act.  Bell's management at the time decided it could actually fund the unfunded portion of the research and development on the backs of the TSX.  Monty was right and he was wrong. He was right the TSX swallowed it hook, line and sinker but what he didn't get was, having taken the bait, the TSX's own dynamic would take over from him and create wealth out of nothing. Sadly only the insiders or anybody who read balance sheets realised this at the time and 85+ per cent of everybody got blown.  Nortel was perhaps the most outstanding example of pure financial finagling the TSX and the Liberals have ever engaged in. And guess what? Bell still exists and is involved in transmitting this message, we love Trudeau  Jr and the Liberals again and the CRA's s. 8 provisions remain on the books. Reprise?

Labels: moderation: safe