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History and symbolism surround David Rutherford as he speaks with disgust of the controversies swirling in Vaughan.

"I’m embarrassed," says Rutherford, a 65-year-old teacher and son of Albert Rutherford, former reeve of Vaughan from 1961 to 1966, in the bucolic, pre-sprawl era of the 1960s and ’70s.

"City council is dysfunctional," he says with a look of exasperation.

It so happens that he’s sitting at the Al Palladini Community Centre on Rutherford Rd. W., under a plaque marking its dedication by Mayor Linda Jackson’s mother, Lorna, when she was the city’s popular and long-time mayor.

The centre is on a street named for Rutherford’s father, and just across the road from Basilico, the eatery much favoured by the younger Jackson for expensive taxpayer-funded dinners with assistants.

Rutherford is embarrassed by the notoriety brought by city council’s unanimous call last week for Jackson to resign – for a slew of reasons including her response to a controversial audit of her office expenses. He’s embarrassed by the back stories, too, recalling the phone call he got from his son in Kelowna, B.C., snickering about the recent arrest of Jackson’s husband on drunk and disorderly charges.

Embarrassed isn’t the only word Vaughan residents were hurling this week about their politicians: anger, frustration, even comedy. Some are mad at Jackson for her failures as a leader, others at the council for ganging up on her.

Yet they spoke with immense pride and affection for their city, as if the political shenanigans at city hall bear no connection to the smooth functioning of one of the fastest-growing and wealthiest cities in the GTA.

That’s why some residents like Steven Del Duca and Elliott Silverstein are quietly beginning to wonder whether long-term damage could occur, if the current political dramas continue.

The two are members of a city committee called the Task Force on Democratic Participation and Renewal, a group committed to increasing municipal voter engagement

"There is really an unfortunate but almost complete disconnect between what’s happening in that council chamber and the community – all the good things that are happening out there," said Del Duca, former executive assistant to former Ontario finance minister Greg Sorbara.

Councillors need to get their act together because there’s a point at which in-fighting and perceived dysfunction starts to damage the city in more tangible ways, he said.

Vaughan is at a critical stage: a slew of major infrastructure projects are in the works – a hospital, a new downtown, and highway extensions – none guaranteed.

"Any one of these alone is a big deal, but put together it represents billions of dollars of investment that we are hoping other levels of government will make in Vaughan," Del Duca said.

"It’s not just about bruising our civic pride and ego. One has to wonder how much the private sector and other levels of government will want to invest in Vaughan if we appear to not be able to manage ourselves adequately."

Silverstein, a former council candidate, said he’s concerned that despite a long history of controversy and Vaughan’s love of the political game, the level of voter engagement in municipal elections in Vaughan is very low – 20 to 30 per cent – showing a disenchanted electorate.

It’s not likely to improve with the current antics at city hall.

"This is a situation that has gotten worse over the last few years since the last election, but it’s something that has brewing for many years," he said.

Silverstein said it wasn’t Jackson all the time. "In the previous council (2003 to 2006) there was a lot of tension between the members, but now it has shifted," he said. "It’s almost two-pronged. There is continued in-fighting among the council but also direct frustration and hostility towards the mayor."

The call for change may not be that loud yet because, despite the nasty noises coming out of council chambers, for the most part Vaughan works efficiently and well. The city is blessed with a central location served by three 400-series highways, the potential remains for massive growth, and a subway line is expected to arrive soon near Jane St. and Highway 7.

There’s untold potential for commercial taxes to fill municipal coffers when a yet-untapped business enterprise zone in the west end is one day served by a proposed extension of Highway 427 health insurance quotes. The city receives hundreds of millions of dollars in building permit fees every year, has extensive recreation and park facilities, and is looking forward to completing a spanking new $100 million city hall.

All in all, it’s a relatively easy and affordable place to do business and an attractive place to live.

What’s to blame for the political sniping – which doesn’t seem to be about actual civic issues – depends on whom you ask.

Several councillors have said Jackson is to blame for provoking various audits and investigations, whatever the motivations of those who launched them. Jackson has tried to put the blame on councillors and a small group of public detractors.

Some of the hostility may stem from the fact these councillors (Alan Shefman and Sandra Yeung Racco excepted) have known each other too long and perhaps too well, having served not only with Jackson’s predecessor, Michael Di Biase, but also her late mother.

Several have publicly chastised Jackson for not possessing her mother’s work ethic or abilities, saying their disrespect derives from her apparent lack of interest in city business beyond ribbon-cutting and photo-ops.

The mess reflects a confluence of bitter attacks and audit challenges by disenchanted ex-supporters – who haven’t forgiven Jackson for campaigning to "clean up" city hall and then failing to push for an inquiry into alleged misbehaviour after the election – and a council composed almost entirely of people who endorsed the narrowly defeated Di Biase in 2006.

Some critics charge that Jackson just doesn’t have the ability or inclination to forge alliances and lead.

Voters haven’t been all that receptive to the arguments on either side, many saying council has no choice but to work together.

Yet the drama gripping city hall is being closely followed, and everyone seems to have an opinion.

Adriana Stalteri, 34, a pharmacy operations manager who was dropping off her son Lucas at the community centre’s pre-school, said she’s sympathetic to the fact Jackson has been under attack from Di Biase supporters since the day she took office.

"I don’t get angered; I’m sure Michael Di Biase did it prior to (Jackson)," she said of the mayor’s penchant for pricey lunches with wine. "I’m sure others have done it."

The auditor’s report said the meals were legitimate under city guidelines, but the harsh attacks that followed it led to Jackson’s announcement this week that she would no longer use taxpayer money for alcoholic beverages.

Stalteri said the energy spent on petty squabbling would be better spent making a city even more attractive to young families.

However, Roger Dickinson, 69, and his wife Nina Szymanska, 61, both Kleinburg residents, had harsh words for Jackson, saying the mayor had failed miserably as a leader, and blamed the crisis on her inability to pull council together.

Dickinson believes Jackson got elected on the coattails of her popular mother, but doesn’t have the "the common sense or smarts," to survive in the rough and tumble world of Vaughan politics.

"(Jackson) just cannot lead a team, unlike her mother, who to my knowledge was very good at leading council," said Dickinson. He said he was astounded by reports that Jackson had filed more than $13,000 in expense claims with no receipts, which were nevertheless approved by a senior official.

Rutherford said that while Jackson seems to have shown poor political judgment, she had three strikes against her from the beginning, from people hell-bent on seeing her fail. He doesn’t believe anybody in council is sinless, and they have no choice but to work together, even if it means appointing a mediator to straighten things out.

"There’s nothing they can do to get rid of her," said Rutherford. "She’s there, so folks, you made your bed. She got elected. Now let’s work together."

Otherwise?

"Unless you start working together, the best thing that could happen is that we (the voters) could find people who would run, and the whole bunch of them get hoofed."

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NEW YORK — Most stocks gained Friday, extending a second straight weekly advance, as President George W. Bush’s rescue plan for carmakers eased concerns about the industry’s collapse and the loss of jobs.

General Motors Corp. rallied 23 percent as Bush announced $13.4 billion in emergency loans for the largest U.S. automaker and rival Chrysler LLC. Ford Motor Co. rose 3.9 percent, while car parts supplier ArvinMeritor Inc. climbed 5.9 percent. The Dow Jones industrial average erased a 182-point advance as Citigroup Inc. slid 5.5 percent after its debt ratings were cut, while Exxon Mobil Corp. and Chevron Corp. retreated almost 3 percent as oil tumbled below $33 a barrel.

The Standard & Poors 500 index added 2.60, or 0.3 percent, to 887.88. The Dow fell 25.88 points, or 0.3 percent, to 8,579.11. The Nasdaq composite index gained 11.95, or 0.77 percent.

The S&P 500 extended its five-day gain to 0.9 percent, capping its first back-to-back weekly advance since September. The Dow slipped 0.6 percent in the week.

GM rallied 83 cents to $4.49, trimming its 2008 decline to 82 percent. Ford Motor Co. added 11 cents to $2.95.

ArvinMeritor climbed 19 cents to $3.42. BorgWarner Inc. climbed 4.4 percent to $21.79.

Citigroup Inc. fell 41 cents to $7.02. The bank’s senior debt was cut to A2 from Aa3.

Research In Motion Ltd pay day loan lenders. gained 11 percent to $42.83. The BlackBerry smart-phone maker forecast sales of $3.3 billion to $3.5 billion for the current quarter, topping estimates of $3 billion.

Oracle Corp. added 7 percent to $17.78.

Crude oil for January delivery fell $2.35, or 6.5 percent, to $33.87 a barrel in New York. Exxon shares fell 2.6 percent to $75.02, while Chevron declined 3 percent to $70.85.

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Darden Restaurants Inc. climbed 19 percent to $28.55.

Brinker International Inc., the owner of the Chilis Grill & Bar chain, rallied 30 percent, the most since the shares began trading in 1984, to $11.18, after its sale of Romano’s Macaroni Grill chain to Golden Capital was completed.

Weyerhaeuser Co. fell 9.5 percent to $33.59 after cutting its dividend by more than half.

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CHICAGO — Not only are Americans flying less as the economy tanks, they’re spending less time scouting the Internet for travel deals, creating an unprecedented drop in traffic for online travel agencies such as Chicago-based Orbitz Worldwide Inc.
As days shorten and the air chills, consumers typically start to plan winter getaways, making October one of the busiest months of the year for Internet travel sites, analysts said.

Not this year. As consumer confidence reached historic lows in October, the volume of visitors to Web travel portals declined 14 percent, year over year, to 38.2 million, according to ComScore Inc. Web traffic fell for nearly every major airline site.

Hardest hit were the three online powerhouses that have dominated bookings for much of this decade. Web traffic at Expedia Inc. sites plunged 25 percent, to 18.2 million visitors, while Travelocity.com LP and Orbitz saw 16 percent and 23 percent drops, respectively.

The falloff in traffic was unparalleled for the three online agencies, which grew by leaps and bounds during the economic slowdown that followed the Sept. 11 attacks as many consumers turned for the first time to the Internet to unearth bargains.

Anticipating tougher times ahead, Orbitz announced last month plans to reduce its U.S. work force by 10 percent.

"What’s happening in 2008 is a universal buckling down," said Sara Stevens, head of the travel and retail practices for Virginia-based ComScore, a market research firm that tracks Internet traffic. More than half of 1,000 consumers surveyed by ComScore in October planned to change their travel plans this holiday season online cash advance. Of those altering plans, 39 percent said they would opt to stay at home.

However, ComScore’s data did not present a complete picture of online travel activity because it measured only U.S. traffic and not overseas customers. For Expedia, "that’s leaving out a huge chunk," said Amanda Hoffman, spokeswoman for the Bellevue, Wash.-based company.

Hoffman wouldn’t disclose total traffic to Expedia’s sites. But she conceded that the Web travel giant, which controls about 50 percent of the online travel market, did see a falloff in October.

Bucking the trend were two websites that help budget-minded travelers drive better deals. Priceline.com Inc. saw a 24 percent jump in visitors in October, while traffic to Kayak.com surged 93 percent, to 7.9 million visitors.

Kayak, founded by members of the teams that helped start Orbitz, Expedia and Travelocity, has gained a following among younger, tech-savvy consumers for innovations that include a tool that allows groups of friends to plan their travel together.

Although Orbitz has predicted weak bookings into early next year, it should benefit eventually as consumers take advantage of cheaper airfares, as well as a new feature that promises refunds if prices drop after airline tickets have been purchased, said Brian Hoyt, a company spokesman. "It’s an incredible time to travel if you have discretionary income," he added.

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Health care stocks aren’t quite as ill as the rest of the stock market in 2008.

People want to be well and live longer no matter what the state of the economy, so the demand for the majority of health care products and services continues unabated.

In the case of established drug, biopharmaceutical and medical-equipment companies holding enormous amounts of cash, they also aren’t dependent on troubled debt markets.

Health and biotech funds are down 25 percent in value this year, according to Lipper Inc., compared with the average U.S. stock fund that is down 37 percent.
"This has been a year when doing best means losing the least," said Kris Jenner, portfolio manager of the $2.1 billion T. Rowe Price Health Sciences Fund, down 26 percent this year after a 19 percent increase in 2007. "Large-cap biotech stocks have done by far the best for us, while managed care firms have dramatically underperformed and big pharmaceutical companies have been in a downturn for years."

Jenner, who holds a medical degree, especially admires the investment prospects of Teva Pharmaceutical Industries Ltd. as the "king of the hill" in generic drugs, and Vertex Pharmaceuticals Inc. for its steps to bring to market a new class of hepatitis drugs.

Jenner’s current portfolio is 35 percent biotech, 24 percent pharmaceuticals, 20 percent services and 15 percent products and devices, with the remainder in life sciences.

Dynamic performers within his diverse portfolio this year have included biopharmaceutical stocks Celgene Corp., Genentech Inc. and Amgen Inc., while medication-delivery and bioscience giant Baxter International Inc. has held its own. Many other holdings haven’t fared so well, though the real promise of health care stocks lies in the dramatically reduced stock prices of so many important companies.

"I would look for a bottoming turn in health care because no sector stays in a bear market forever," said Kelley Wright, managing editor of Investment Quality Trends Newsletter in Carlsbad, Calif. "We’re seeing some pretty attractive dividend yields and also starting to see acquisitions."

Two positive signs that Wright sees among the big drug companies: Pfizer Inc easy fast payday loans. recently reported strong profits on flat revenue, and Bristol-Myers Squibb Co. is effectively reinventing itself by embracing biotech.

Health care stocks have inherent political, regulatory, legal, clinical and reimbursement risks, which means that any bad news can quickly send them into a swoon.

As President-elect Barack Obama prepares to take office on Jan. 20, he has made it clear the economy is his top priority. Health care initiatives seem destined for the back burner as the president and Congress deal with the financial crisis, the budget deficit and the war in Iraq. Investors, however, will monitor activity closely.

Though reform of health care has been vigorously debated since President Bill Clinton’s first administration, the system remains imperfect and has escalating costs, Jenner said. Yet investors should be forewarned that any potential worrisome news will travel fast, adding volatility.

"The only drawback with the health care stocks and funds is that people will start plowing money into them," said Tom Roseen, Lipper Inc. research manager for the U.S. and Latin America. "Then, once they start turning the other way, they are likely to pop out of them."

Be judicious in what health care stocks you choose because there are so many kinds.

"Traditionally, the market has viewed health care stocks as defensive because the drivers of demand for these companies have tended to remain robust irrespective of economic cycles," said Chris Kallos, senior health care industry analyst with Zacks Investment Research. "However, while this has proven true for the most part in the past, the health care sector is not homogeneous and includes many different sub-industries."

Investors should diversify selectively among health care companies with the greatest earnings certainty, Kallos said. Choose the strongest firms within each category, because competitive position separates winners from also-rans.

andrewinv@aol.com

2008, TRIBUNE MEDIA SERVICES INC.

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Qwest Communications International Inc. said Saturday it has reached a tentative agreement for a four-year contract with a union representing about 20,000 employees.

Members of the Communications Workers of America last month rejected a tentative three-year agreement with Denver-based Qwest (Q, Fortune 500), after the previous contract expired Aug. 16.

Results of a ratification vote on the new agreement by union members are expected by Oct. 31.

The new deal calls for a 12 http://payday-advance-i.com.5% raise over the course of the contract and a pension increase of 3% for those who are eligible and retire from the company after Oct. 12.

The CWA represents Qwest workers in 13 states.

Qwest shares closed Friday at $2.18, down 10 cents. 

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Easing monetary policy in Asia will support what is now the only source of growth for the world economy, but oversold regional stocks and short-maturity bonds will only get a lift when central banks globally follow suit.

Such moves could provide the trigger for many investors that have switched into cash or money-market mutual funds not only to avoid spikes in volatility but also so they are ready to pounce on attractive investments when the time is right.

Total assets in money market mutual funds have soared this year, data from the Investment Company Institute (ICI) shows, suggesting many investors are staying on the sidelines as valuations of stocks relative to long-maturity bonds get increasingly attractive.

“Coordinated central bank action including Asian central banks would be a powerful signal to global financial markets. I wouldn’t rule it out but international coordination is very difficult to achieve,” said Stephen Roach, chairman of Morgan Stanley Asia (pay day loans).

A big 1 percentage-point rate cut by Australia’s central bank provided investors with a taster on Tuesday. Markets jumped immediately, providing relief from a credit crisis that JPMorgan economists say is driving the world economy into recession.

The economists say developing Asia-ex Japan will be spared recession and grow 7.1 percent this year, although China, Taiwan and Hong Kong have sought some insurance by cutting policy rates in the wake of Lehman Brothers’ collapse last month.

Bond markets globally are starting to price in the risk of coordinated rate cuts among the world’s major central banks, which would be an about turn for many policy makers, who until recently were largely focused on keeping monetary policy tight to combat inflation.

But time is of the essence. 

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The Bush administration widened the scope of its $700 billion plan to avert a financial meltdown by including assets other than mortgage-related securities.

The U.S. Treasury submitted revised guidance to Congress on its plan late yesterday as lawmakers and lobbyists push their own ideas. The department also adjusted its new plan to insure money-market funds to limit protection to balances as of Sept. 19, after complaints from bank lobbyists.

Officials made the changes two days after unveiling plans for an unprecedented intervention in financial markets in an effort to halt the deepening crisis. The change to potentially allow purchases of instruments such as car loans, credit-card debt and other devalued assets may force an increase in the size of the package as the legislation proceeds through Congress.

“The Treasury's thinking is to make it as big and wide as possible so they have the flexibility to act if need be,'' said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors, which manages about $108 billion. “There have been losses on a whole range of U.S. debts and as the economy deteriorates in response to the housing slump those losses could escalate.''

Treasury officials now propose buying what they term troubled assets, without specifying the type, according to a document obtained by Bloomberg News and confirmed by a congressional aide.

`Significantly Higher'

“The costs of the bailout will be significantly higher than originally considered or acknowledged,'' said Josh Rosner, an analyst with independent research firm Graham Fisher & Co. in New York. “How, given these changes, can the administration and Federal Reserve believe they are being forthright in their unrevised expectation of future losses?''

Separately, the Treasury said in a statement late yesterday it would limit its $50 billion plan for insuring money-market funds to those held by investors as of Sept. 19, excluding any subsequent contributions.

The American Bankers' Association, which had expressed concern about the plan last week, praised the move, saying it would eliminate an incentive for savers to shift out of bank accounts into money-market funds. The Treasury put no limit on the money-market fund insurance, while the Federal Deposit Insurance Corp. protects bank deposits up to $100,000.

“If all money market mutual funds had been included with the government guarantee moving forward, this proposal would have threatened to take money out of local FDIC-insured banks,'' Edward Yingling, president of the ABA in Washington, said in a statement.

International Scope

In its latest guidance on the bad-debt fund, the Treasury said firms that are headquartered outside the U.S payday loans. will now be eligible.

The changes come after two days of weekend talks between administration officials and congressional staff in Washington. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke told lawmakers Sept. 18 that a comprehensive attack on the worst financial crisis since the Great Depression was critical after a series of government interventions failed to normalize markets.

Paulson on Sept. 19 announced his intention to seek legislation from Congress. Appearing on television talk shows yesterday he called for rapid passage of a bill. Congressional panels have scheduled two hearings this week on the crisis; Bernanke appears at a third hearing on the economic outlook.

Lawmakers are also seeking changes to Paulson's plan, which amounts to an unprecedented intervention in financial markets and would prevent courts from reviewing actions taken under its authority.

Lawmakers' Demands

Democrats are pressing for oversight through the Government Accountability Office, and for the inclusion of efforts to refinance mortgages for struggling homeowners. House Financial Services Committee Chairman Barney Frank wants limits on compensation of corporate executives who benefit from the program.

Republicans are urging limits on how any profits from the program could be spent.

“Just about everyone in the markets agrees the Paulson plan needs to be simple — unencumbered by complications and penalties,'' Christopher Low, chief economist at FTN Financial in New York, wrote in a note to clients. “Of course, Washington doesn't know how to do that.''

It was the third straight weekend of crisis work for Paulson and his Treasury colleagues. The previous week, Paulson and New York Fed President Timothy Geithner led talks with banks in an effort to avert the bankruptcy of Lehman Brothers Holdings Inc. While Lehman did end up in bankruptcy, Merrill Lynch & Co. agreed to be taken over by Bank of America Corp.

Weekend Warrior

On Sept. 7, Paulson seized Fannie Mae and Freddie Mac, the largest sources of U.S. mortgage financing, after the government-chartered, shareholder-owned companies failed to raise sufficient capital from private sources to satisfy regulators.

Late yesterday, the Fed approved requests from Goldman Sachs Group Inc. and Morgan Stanley, Wall Street's last two independent investment banks, to become bank holding companies.

“It's hard to say there are any illusions left'' about the seriousness of the financial crisis, said Jason Trennert, chief investment strategist at Strategas Research Partners in New York.

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VIENNA, Austria — The just-ended OPEC meeting was about more than what a barrel of oil can fetch on the open market as the global economic picture dims.

OPEC heavyweight Saudi Arabia gave a nod, at least symbolically, to fellow member states that have grown increasingly uneasy about the rapid decline in crude prices. The Saudis attempted to placate rival Iran, and laid the groundwork for a potential new alliance with Russia, the world’s second-largest oil producer.

But OPEC’s announcement that it would cut output by more than 500,000 barrels by sticking closer to quotas did little to change what most consumers care most about — the cost of filling up a car with gas or heating a home over the winter.

Benchmark oil prices were on a downward course Wednesday, shedding 68 cents to fetch $102.58 a barrel on the New York Mercantile Exchange. Brent crude briefly touched $98.10.

Behind the scenes, the 13-nation energy cartel juggled the conflicting interests of Saudi Arabia and Iran — and brought oil and gas giant Russia closer into the fold by agreeing to sign a cooperation agreement with the Kremlin.

OPEC’s continued ability to present a common front, while extending a hand to Russia, is potentially bad news for major crude consumers including the United States and Europe. There may be even less wiggle room in trying to find the lowest bidder to meet their energy needs at a time when the summer’s record oil prices close to $150 are a still vivid memory.

But it also may have signaled that record oil prices have spoiled the global appetite for crude, at least for the near future easy payday loans.

"The ministers appear genuinely concerned that the bottom is falling out of global demand and that once-depleted stocks are rebounding with a vengeance," said Antoine Halff, an energy analyst with Newedge USA. "Their panic is testament to how soft the market has become. It is likely to grow even softer."

Saudi Arabia’s clout is key for Washington. President George W. Bush visited Riyadh twice this year to push an oil production increase. The Saudis answered by ramping up production by about 500,000 barrels a day.

OPEC’s decision Wednesday to cut output by 520,000 barrels effectively canceled even that relatively modest nod to U.S. requests, leaving some talking about a Saudi defeat and a victory for Iran, which has sought higher oil prices through production cuts.

Not so, said analyst and trader Stephen Schork, who was monitoring the meeting in Vienna.

"I wouldn’t say the Saudis backed down," he said. "I’d say it was a respectful nod to the other members of the group."

In reality, the Saudis are the tail that wags the dog at OPEC, accounting for nearly a third of the group’s production of around 30 million barrels a day. They often get their way at OPEC ministerial meetings, and a strong push by them in Vienna to keep the status quo on output probably would have succeeded.

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Fairfax Financial Holdings Ltd. announced yesterday it has made a $72-million (U.S.) bid for Polish reinsurer Polskie Towarzystwo Reasekuracji Spolka Akcyjna, valued at 66 cents per share.

Fairfax has commitments to tender the offer from shareholders who own about 47 per cent of PTR’s shares.

The transaction is expected to close in the first quarter of 2009.

"We are excited about future prospects for the Central and Eastern European economies in which PTR is active," Fairfax chair and chief executive officer Prem Watsa said in a statement issued from the company’s head office yesterday.

"This investment will increase Fairfax’s exposure to the region and will provide a long-term platform for expansion," Watsa said pay day loan.

Fairfax is a financial services holding company that, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

Fairfax shares closed up 1 cent at $226.51 Canadian yesterday in Toronto.

The Canadian Press

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Smith & Wesson Holding Corp.’s first quarter revenue rose 5 percent on the strength of increased demand for pistols.

The Springfield, Mass., company reported revenue of $78 million for the three months that ended July 31. That’s up from $74.4 million in the year-earlier period.

Pistol sales grew 18.4 percent, as they were snapped up by consumers and law enforcement agencies payday loans online. Net income in the quarter was $2.3 million, compared with $4.7 million in the year-earlier quarter.

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