Windsor mayoral candidate Chris Holt says the city needs to rethink the way it invests its money but the mayor calls his plan risky and radical.
“Our city is leaving millions of dollars on the table that should be benefiting our community instead,” Holt said in a news conference held Tuesday on his back deck.
Holt said the city should be utilizing One Investment, a not-for-profit corporation that, according to its website, provides “investment options that support the needs of Ontario’s municipalities.”
Holt said that $333 million dollars worth of city reserve funds earn less than one per cent a year in interest. He said that by using One, it could yield an additional $6 milllion dollars a year which would equate to a 1.4 per cent increase in the city’s operating budget.
“We could have conducted maintenance on an additional 485 kilometres of city roads or we could make three times as many bikeway improvements,” Holt said.
But, mayor Drew Dilkens who has not announced whether or not he will be running in October’s municipal election, said that Holt’s plan is “risky and radical.”
Windsor mayor Drew Dilkens called Holt’s plan risky and radical (Jason Viau/CBC)
Dilken’s written statement went on to say what Holt is proposing would “expose taxpayers to more market volatility, increase municipal debts and end up costing more through interest payments than would ever be earned back through investment income.”
‘Just a choice’
Almos Tassonyi, who lives in Toronto but is an executive fellow of public policy at the University of Calgary, said that money being allocated to a One Investment fund would bring a higher return and is a relatively low-risk investment.
“It’s got a long track record,” he said.
“I don’t really see this as a risky prospect. It just has to be considered in the context of the infrastructure financing decisions as well as what’s your surplus cash.”
Holt said that other municipalities, such as Markham and Whitby are able to earn millions on the interest by using One but Tassonyi said that what fits one municipality doesn’t fit all.
“This is just a choice,” Tassonyi said.
Any place we can find extra money or we can save costs and re-invest that in things that people want, that’s a great discussion to have.– Daniel Ableser
“Any municipality can allocate some monies to one fund and some monies to other vehicles just depending on how they view the timing of when they want to withdraw the funds and invest in infrastructure or whatever other pressures they may have.”
Daniel Ableser, who dubs himself a city council watcher, said that Holt is likely seizing on fiscal issues because he has promised a fully costed platform and he will be creative in finding ways to pay for his ideas.
“I am all for having those debates and any place we can find extra money or we can save costs and re-invest that in things that people want, that’s a great discussion to have,” Ableser said.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
