The Harper Conservatives are fond of touting Canadian banks as more stable than other countries’ big banks. They claim all the credit for Canada’s stability during the 2008-10 global financial crisis. And, we’re often told that our banks needed no bailout during the crisis. What a big Whopper! Canada’s big banks actually received $114 billion in support from the federal government and the Bank of Canada during the crisis, according to a report by the Canadian Centre for Policy Alternatives (CCPA).
In this press release, the left leaning think tank tells us:
The study reveals that Canada’s banks received $114 billion in cash and loan support from both the U.S. and Canadian governments during the 2008-2010 financial crisis. The study estimates that at some point during the crisis, three of Canada’s banks—CIBC, BMO, and Scotiabank—were completely under water, with government support exceeding the market value of the bank. Due to government secrecy, the study raises more questions than it answers.
The study: The Big Banks’ Big Secret: Estimating Government Support for Canadian Banks During the Financial Crisis.
Article source: Canadian Progressive World (http://s.tt/1axPi)
See my politics_canada yahoo group posting at:- http://groups.yahoo.com/group/politics_canada/message/48581 The whole stupid mess is being caused by the near-total inattention to the question of satisfactory jobs, being the income sources for all the people being offered cheap home loans, whereby they will be able to start reliably paying off their loans when the time comes to start paying. We are making the same mess in Canada as what led to the subprime mortgage mess in the U.S. – where the whole U.S. business community and political establishment thought it need pay no attention to the question of satisfactory jobs for all the people beinmg loaned money. Quite separate from this was the un-founded assumption that real estate values would endlessly escalate – thus appearing to mean endless "paper income" for all the hapless real estate buyers, who thus "need not worry" about not having jobs. And just WHAT, exactly, is contriving to cause continuation of the "hot" housing market in Canada?
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