Jim Flaherty and the government of Canada is lying... on not bailing out Canadian banks

[Kuragami]

Originally posted by: sandorski

Originally posted by: Kuragami
Would be nice to get feedback since I'm so wrong and earlier needed to be shown the light.

Now I feel like someone who turned on the light at night and everyone scatters. Funny that.

You turned on the Light? Hardly. You went from discussing the current situation to discussing some Ideological view of Banks/Banking from a fringe Retired High School Teacher.

Sorry I couldn't respond sooner but had no time.

As far as what you said well... at what point is that negating what I said? You didn't even form an argument. Based on your past posts that seems to be a bad habit. Personally I think you do it on purpose to see if you can get a rise out of people. *shrug*

 

[Kuragami]

Originally posted by: Firebot

Originally posted by: Kuragami
Would be nice to get feedback since I'm so wrong and earlier needed to be shown the light.

Now I feel like someone who turned on the light at night and everyone scatters. Funny that.

It's not that hard to contemplate. Canadian government liquid money -> illiquid assets
Canadian banks illiquid assets -> liquid money.

This is not the same situation as the US. This is not bad debt, there is no such thing as the subprime housing crisis in Canada. People see the unregulated mess in the US and expect that this 75$ billion dollar bailout will be similar to the US giving out free money for executive bonuses, but it's not. Canadian banks are heavily regulated, this is why they are not in trouble. They STILL have to deal with the illiquid market right now, and are at a distinct disadvantage despite being profitable compared to other banks who just had an influx of cash at a time when credit is non-existant.

That is why the 75$ billion dollar is needed. It's a preemptive move to keeps the Canadian banks ahead of the rest of the world, and I think it's a very wise move.

Ok so the that whole doubling in value of homes in the past 8-10 years is just my imagination? How does that not keep pace with the US? Some economists think we are 2 years behind the US. I think they are right, but I agree with you that there wasn't this whole system of product selling sub prime loans in Canada.

Having said that such loans were widely available until just recently and I personally know a lot of people who bought into homes with little to no money down and some even went into a variable rate mortgage.

As far as illiquid market goes... according to whom? The Bank of Canada doesn't create credit, the big 5 banks do. If you want liquidity you simply flood the market with as much cheap credit as you want and there is quite literally little to slow down a bank from doing so. So I ask the same question again... where is the money?

 

[CanOWorms]

Originally posted by: sandorski

Originally posted by: Skoorb

Originally posted by: Deliximus
funny, that our banks are doing so well, yet, we are so LIBERAL!!!!! OMG SOCIALISTS!!
anyways, i think Flaherty is bullshitting us a bit, but we are probably gonna see a federal deficit for the first time in a decade or more. =( Big Thanks to the American deregulation machine.

Great job, blame Canada's federal deficit on the US. Canada's economy is intertwined with the US' because it wants to be and must take the good with the bad. If you're going to lay blame there you should also heap praise for centuries of trading with the US being a key reason why Canada is so rich and the US' military a key reason why Canada is so secure, right?

1 Century of Trade approx. Trade with Britain/Europe was the mainstay for most of Canada's(pre/post inception) early Economy.

Let's not go down the whole "Security" BS argument.

Fucking bullshit avoiding the biggest part of Canada's early economy... it was the largest recipient of funds in the British Empire. Canada was built upon the genocide of non-settler colonies.

 

[sandorski]

Originally posted by: CanOWorms

Originally posted by: sandorski

Originally posted by: Skoorb

Originally posted by: Deliximus
funny, that our banks are doing so well, yet, we are so LIBERAL!!!!! OMG SOCIALISTS!!
anyways, i think Flaherty is bullshitting us a bit, but we are probably gonna see a federal deficit for the first time in a decade or more. =( Big Thanks to the American deregulation machine.

Great job, blame Canada's federal deficit on the US. Canada's economy is intertwined with the US' because it wants to be and must take the good with the bad. If you're going to lay blame there you should also heap praise for centuries of trading with the US being a key reason why Canada is so rich and the US' military a key reason why Canada is so secure, right?

1 Century of Trade approx. Trade with Britain/Europe was the mainstay for most of Canada's(pre/post inception) early Economy.

Let's not go down the whole "Security" BS argument.

Fucking bullshit avoiding the biggest part of Canada's early economy... it was the largest recipient of funds in the British Empire. Canada was built upon the genocide of non-settler colonies.

"Genocide"? In some cases, I agree, but the Natives faired much better under Britain then they did under the US. Not that it matters much.

As for your fist point, I pretty much admitted that already. Although it was a 2-way street. Britain gained much Wealth from Canada and other benefits as well.

 

[SickBeast]

I talked to someone pretty high up at TD bank and she told me that they have completely de-coupled the Canadian and US banking systems, and that we would not be affected by the housing meltdown very much at all.

I hate Flaherty with a passion. He was Mike Harris' finance minister and royally fucked up Ontario, with effects that continue today. He was very deceitful then as well, and hid a massive deficit before leaving office and dumping it on the Liberals. He's an asshole and I hope he burns in hell.

 

[Kuragami]

It's not the US housing meltdown that has me worried. It's our own. At some point the value of things have inflated to such a degree that it is no longer reasonable to pay off such a debt. In my opinion we are at the apex of our own bubble that is ripe for a burst. Some question if it will, my only question is when.

I'm seriously worried about some of my friends who recently took on mortgages that will end in the next 4 years. I'm just about the only one who hasn't and instead I'm renting. I could have gotten a mortgage but I'm paying off my student loan debt within a month instead of buying a home. I think it's just more prudent right now to be completely debt free than to be chained to massive debt.

 

[RbSX]

Originally posted by: Kuragami
It's not the US housing meltdown that has me worried. It's our own. At some point the value of things have inflated to such a degree that it is no longer reasonable to pay off such a debt. In my opinion we are at the apex of our own bubble that is ripe for a burst. Some question if it will, my only question is when.

I'm seriously worried about some of my friends who recently took on mortgages that will end in the next 4 years. I'm just about the only one who hasn't and instead I'm renting. I could have gotten a mortgage but I'm paying off my student loan debt within a month instead of buying a home. I think it's just more prudent right now to be completely debt free than to be chained to massive debt.

It already has chump.. I think you're a conspiracy theorist and a whackjob who needs to take a look outside.

 

[Kuragami]

Originally posted by: RyanSengara

Originally posted by: Kuragami
It's not the US housing meltdown that has me worried. It's our own. At some point the value of things have inflated to such a degree that it is no longer reasonable to pay off such a debt. In my opinion we are at the apex of our own bubble that is ripe for a burst. Some question if it will, my only question is when.

I'm seriously worried about some of my friends who recently took on mortgages that will end in the next 4 years. I'm just about the only one who hasn't and instead I'm renting. I could have gotten a mortgage but I'm paying off my student loan debt within a month instead of buying a home. I think it's just more prudent right now to be completely debt free than to be chained to massive debt.

It already has chump.. I think you're a conspiracy theorist and a whackjob who needs to take a look outside.

Well I have friends and family all over Canada and some of what I read in our Canadian financial news matches what I'm hearing from them first hand.

Basically home prices in major metropolitan areas have either completely stopped rising or have began to drop slightly. It is becoming increasingly difficult to sell a home for what people purchased it for only a year ago. This is true both in Calgary and Vancouver and especially true in smaller towns up north where a majority of those who work on the oil sands project work.

This story is not the same here in Ontario and the small city I live in the prices are still slightly rising. This is because there is a massive lack of new home construction that has exasperated the situation and is somewhat counteracting the bubble deflation.

My personal belief is that Ontario will follow suit sometime next year after the holiday season. In January we are supposed to find out about the global monetary policy that was agreed to earlier this month. I may be wrong but I think it's going to crush prices further.