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Alekbaylee

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Posts posted by Alekbaylee

    Uncle Sam wants (a bit of) your money!

    in General Discussion

    Posted

    Thought some board members may be interested by this :

     

    Americans living in Canada are discovering that even if they haven't lived or worked in the United States in years, they're still required to fill out a U.S. tax return, and if they don't file returns by August 31, they could be facing some stiff financial penalties.

     

    Christina Simmons is a U.S. citizen who has been living and working in Windsor, Ont., as a professor for more than 25 years. She didn't learn until recently that the IRS has been cracking down on Americans who don't file forms declaring what's in their bank accounts along with their U.S. tax returns.

     

    "They're really enforcing it and there's going to be these really big fines if you don't do it," said Simmons. "I decided to get some help with it since I had never done the form before," she said.

     

     

     

    The Internal Revenue Service website has a 22-page document to help Americans living abroad, but there are no easy answers to be found there and many don't even know they have to file in the U.S. — a law which has been in place for years.

     

    The IRS has set up the Offshore Voluntary Disclosure Initiative, which is giving those who have broken the law, knowingly or not, a bit of a break.

     

    Applicants have until Aug. 31 to voluntarily file taxes and banking information dating back to 2003 in exchange for less severe civil penalties.

     

    "If it's an effort to solve the U.S. financial problems that's not going to help," said Simmons. "They just need to raise their tax rates which are incredibly low for the developed world, so that's what really bothers me. Canada, Europe, you know, people pay a lot more in taxes for good reasons."

     

    Gordon Lee, a Windsor, chartered accountant said he has been helping clients meet the Wednesday deadline. What confuses people is that most countries base taxation on residency, but in the U.S. taxation is based on citizenship, said Lee — citizens have to file from whatever country they live in, for as long as they live.

     

    "I think the undercurrent is they detest it," Lee said. "This is not what I do, telling people they have to pay penalties, but unfortunately the law is there and you better to pay the smaller penalties rather than the big penalties later."

     

    Lee said the U.S. government wants a piece of what's in Canadian retirement savings accounts, bank and investment accounts.

     

    "It's either five per cent, 12 and a half [percent], or 25 per cent depending on the circumstances," he said.

     

    In 2006 there were almost 7,000 Americans living in Windsor. Lee said those who cross the border into Michigan could be getting stopped in the near future if they haven't paid their dues to Uncle Sam.

     

    The chances of the IRS catching those who don't voluntarily file will go up in 2013 when a law requiring Canadian banks to share client information with the U.S. government takes effect.

     

    http://ca.finance.yahoo.com/news/Americans-Canada-unknowing-cbc-3885617959.html

    Fairfax’s Watsa sees Dirty Thirties pain ahead

    in Fairfax Financial

    Posted

    Mr. Watsa has put Fairfax’s money where its mouth is, making investment decisions that cost the Toronto-based insurer substantially in 2010. The company increased the proportion of its stock portfolio that is hedged from 30 per cent to close to 100 per cent in May and June of last year.

     

    Its timing wasn’t perfect, and the move cost it $936.6-million as markets rose.

     

    I didn't follow this. Does he mean $936 M in unrealized losses?

    Otherwise this looks huge to me...?

    fbk results out!

    in General Discussion

    Posted

    Page 19 : "Accounts receivable increased by $14.3 million mainly due to higher pulp sales prices and higher  days sales outstanding due to customer mix when compared to December 31, 2010".

     

    Not sure what that means exactly...

    FFH 2nd Q earnings

    in Fairfax Financial

    Posted

    With all the incertainty surrounding the NA and Europe future, I'm surprised FFH is not fetching more than roughly book value, specially when one consider their hedged portfolio (CDS, deflation bet, etc.).

     

    Any thoughts?

    How long?

    in General Discussion

    Posted

    Hi folks,

     

    In your opinion, how long will it take for the US/world economy to get out of this whole mess and starts expanding again?

     

    1-2 years

    2-5 years

    5-7 years

    7-10 years

     

    I know it depends on multiple factors, but let's just keep it simple...

    Fairfax's Zenith Group's issuer credit rating at a

    in Fairfax Financial

    Posted

    A.M. BEST AFFIRMS RATINGS OF ZENITH NATIONAL INSURANCE CORP. AND ITS SUBSIDIARIES

     

    A.M. Best Co. has affirmed the financial strength rating (FSR) of A (excellent) and issuer credit rating of a of Fairfax Financial Holdings Ltd.'s Zenith National Insurance Group (Zenith Group) and its two property/casualty insurance company members, Zenith Insurance Company and ZNAT Insurance Company, which operate under an intercompany pooling agreement. Both companies are domiciled in Woodland Hills, Calif.

     

    Concurrently, A.M. Best has affirmed the ICR of bbb of Zenith National Insurance Corp. (ZNIC), an insurance holding company wholly owned by Fairfax Financial Holdings. The outlook for all ratings is stable.

     

    The ratings of the Zenith Group reflect its supportive level of risk-adjusted capitalization, historically strong operating performance and management's commitment to maintaining underwriting discipline through market cycles. The ratings also recognize the financial flexibility afforded the group through Fairfax.

     

    Somewhat offsetting these positive factors is the recent decline in Zenith Group's underwriting and operating performance, which have been driven by competitive market conditions and state mandated rate reductions in the group's largest states, along with weak macroeconomic conditions that have contributed to a reduction in the premium base. The concentration of Zenith Group's business in two states, California and Florida, exposes it to a heightened level of regulatory and legislative changes.

     

    The outlook reflects A.M. Best's expectation that the group will continue to outperform the workers' compensation peer group over the long term, as well as the support of Fairfax.

     

    In addition, A.M. Best has withdrawn the debt rating of bb plus on the capital securities issued by Zenith National Insurance Capital Trust I due to the capital securities being no longer outstanding. A.M. Best also has assigned a debt rating of bbb minus to the $38.4-million of 8.55-per-cent subordinated debentures of ZNIC, due 2028. The assigned outlook is stable.

     

    The subordinated debentures were issued by ZNIC in 1998 and had previously been owned by the trust. The assignment of a rating to ZNIC's subordinated debentures follows the trust's December, 2010, exchange of those securities for capital securities the trust issued in 1998. The capital securities were cancelled and the trust was dissolved subsequent to the 2010 exchange.

     

     

    Europe's problems

    in General Discussion

    Posted

    Sanj,

     

    The Euro will not survive in it's current form long-term. 

    What do you foresee? What's the alternative to the Euro?

     

    I have a hard time envisionning a return to national currencies.

     

    What I think will happen is :

    - Very strict austerity measures will be applied. 

    - You will get massive outcry by the populace...perhaps a large exodus of both people and capital. 

    - The economy will suffer for the next several years, but will survive longer term. 

    - They will stay a part of the union as the alternative isn't any better.

     

    for all those countries you cited : Spain, Italy, Belgium, Portugal, France, etc.

    Credit Cards

    in General Discussion

    Posted

    I do appreciate the fact that Visa has so much faith in my longevity

    LOL! That's true!

     

    This is just an example of why I have always felt that a short course on credit should be mandatory before anyone graduates from junior high school.

    Yeah, could be titled "how to avoid shark loan companies 101"  ;D

     

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