Steve's & Flaherty's "Sub Prime" Crisis

From my very admittedly “possibly” weak understanding of the issue he allowed the banks to turn weak mortgages over to CMHC prematurely. If the mortgages had in fact defaulted they would have gone to CMHC in any case. My understanding is that this freed up $75 billion for Cdn banks to lend to Cdn businesses and individuals to help alleviate the credit crunch. So in the end I don’t understand how this is a bank bailout as any mortgage defaults would have gone to the gov’t owned CMHC in any case.

Probably I’m just naive SK boy but it appears this is just another of your many many attempts to get your lib lemmings revved up with false information.

By Doug on 11.28.08 1:42 am

Perhaps this not so naive Sask boy can help you back, Doug.

CMHC approved loans guarantee through insurance, 90% of all CMHC approved mortgages. 75 Billion in mortgage defaults is in reality, a 7.5 Billion dollar bailout for Canada’s banking industry so it is a bailout of sorts but the real bailout is CMHC, Canada’s own crown corporation put at heavy risk by a Harper government who up and decided it was prudent to change CMHC approved mortgage regs from 25 year 10% down regs to 40 year 1.5% down and with the cash back schemes at least two of the chartered banks were offering, it is safe to say a 40 year nothing down mortgage, Canada’s version of sub prime. Flarehty introduced this in July of 2006 and in so doing, flooded the mortgage industry with a whole new set of buyers, buyers that in reality could not afford to buy homes in the first place but that didn’t matter, it was the deal that mattered to everyone, the cut, the commission on the sale.

And since July of 2006, valuations of homes went up by 40% nationwide and in some cities, doubled. This fueled a major boom on an already lucrative housing, residential and commercial real estate market and created hyped new construction starts like no other and the consequences? Overdevelopment (and we can stop right there and ponder what that means as that alone is bad on its own), grossly inflated real estate valuations that breed negative equity for those who buy in late and a market poised for dramatic devaluation which later breeds foreclosures, unemployment and recessions all on their own if bad enough.

So lets consider the consequences of Harper/Flarehty’s version of subprime, a nasty real estate led recession all on its own without the big drop in commodities and think for a moment about why, Doug, you think its wise to attack a messager because you don’t like the message and believe this Harper Con job is worth defending because we now have a major housing, condo and commercial real estate correction, a major stand still in construction and what will be huge layoffs in the construction sector as a result of Flarehty/Harper’s disasterous version of subprime that will end up costing taxpayers 75 Billion bucks before federal deficits begin coming in from what will be a devastated commodity market, gutted manufacturing, busted construction industry spawned by nutter government deregulation.

And Harpers hail mary answer is?…??

Get rid of public election financing in favor of corporate/private payoffs and bribes so that future elections can be bought outright… bring back gender pay inequality… and bust unions.

This is their hail mary.

Doug, if you didn’t at the very least try to feign humility and say “From my very admittedly “possibly” weak understanding of the issue”, I would have been much less than kind. But… if you still wish to defend Harpers policies after reading these words, I would find no reason for remorse or regret in quickly pointing out that people who believe its wise to support governments that waste 75 Billion on policies that breed recessions are quite naive, ignorant or just plain stupid. And since you should now know better, Doug…

By brain on 11.28.08 9:31 pm

In-and-Out Election Scheme August 2008

Internet breaking news from the G&M states Stephen Harper is running scared about the In and out Scheme and subsequence scandals…lots of reasons least of all is the failure of those wwho failed to appeart and tscoff at summons to appear, and total fear of what could happen next!
Once again what are these people afraid of and why is MSM (aka the press the media, and journalist) that they will not continue to mention them by name?
British Columbia
Burnaby-Douglas, George Drazenovic
Burnaby-New Westminster, Marc Dalton
Cariboo-Prince George, Dick Harris
Esquimalt-Juan de Fuca, Troy DeSouza
Kelowna-Lake Country, Ron Cannan
Kootenay-Columbia, Jim Abbott
Nanaimo-Cowichan, Norm Sowden
Okanagan-Coquihalla, Stockwell Day
Okanagan-Shuswap, Colin Mayes
Prince George-Peace River, Jay Hill
Vancouver East, Elizabeth M. Pagtakhan
Vancouver Kingsway, Kanman Wong
Saskatchewan
Cypress Hills-Grasslands, David Anderson
Desnethe-Missinippi-Churchill River, Jeremy Harrison
Manitoba
Winnipeg Centre, Helen Sterzer
Ontario
Algoma-Manitoulin-Kapuskasing, Ian West
Davenport, Theresa Rodrigues
Kitchener Centre, Steven Cage
London-Fanshawe, Dan Mailer
Parkdale-High Park, Jurij Klufas
Sarnia-Lambton, Patricia Davidson
Scarborough Centre, Roxanne James
Thunder Bay-Rainy River, David Leskowski
Timmins-James Bay, Ken Graham
Toronto Danforth, Kren Clausen
Trinity-Spadina, Sam Goldstein
Vaughan, Richard Majkot
Windsor West, Al Teshuba
York-South Weston, Steve Halicki
Quebec
Argenteuil-Papineau-Mirabel, Suzanne Courville
Beauce, Maxime Bernier
Beauport-Limoilou, Sylvie Boucher
Bas-Richelieu-Nicolet-Becancour, Marie-Eve Helie-Lambert
Charlesbourg-Haute-Saint-Charles, Daniel Petit
Compton-Stanstead, Gary Caldwell
Drummond, Jean-Marie Pineault
Gatineau, Patrick Robert
Hull-Aylmer, Gilles Poirier
Lac-Saint-Louis, Andrea Paine
Laurentides-Labelle, Jean-Sarge Beauregard
Levis-Bellechasse, Steven Blaney
Lotbiniere-Chutes-de-la-Chaudiere, Jacques Gourde
Louis-Hebert, Luc Harvey
Louis-Saint-Laurent, Josee Verner
Megantic-L’Erable, Christian Paradis
Montmorency-Charlevoix, Yves Laberge
Mount Royal, Neil Martin Drabkin
Notre-Dame-de-Grace-Lachine, Allen F. Mackenzie
Pierrefonds-Dollard, Don Rae
Pontiac, Lawrence Cannon
Portneuf-Jacques-Cartier, Howard M. Bruce
Quebec, Frederik Boisvert
Richmond-Arthabaska, Jean Landry
Saint-Laurent-Cartierville, Ishrat Alam
Shefford, Jean Lambert
Sherbrooke, Marc Nadeau
New Brunswick
Beausejour, Omer Leger
Moncton-Riverview-Dieppe, Charles Doucet
Nova Scotia
Dartmouth-Cole Harbour, Robert A. Campbell
Halifax, Andrew House
Halifax West, Rakesh Khosla
Prince Edward Island
Malpeque, George Noble
Newfoundland and Labrador
Bonavista-Gander-Grand Falls-Windsor, Aaron Hynes
Humber-St. Barbe-Baie Verte, Cyril Pelley Jr.
Labrador, Joe Goudie
Random-Burin-St. George’s, Cynthia Downey
___________________________________________________
OTTAWA _ A primer on the alleged misconduct of the federal Conservative party in the last federal election, courtesy of Canadian Press:
WHAT _ Elections Canada alleges that the Conservative party organized a program to allow it to spend more on election ads than allowed under the rules through an “in-and-out” scheme. This program shifted $1.3 million in expenses to 67 local candidates who had room under election
spending limits to pay for advertising, but didn’t have the cash.
WHO _ The elections watchdog says the party sent the money to these individual campaigns, which then sent it right back, supposedly as a payment for regional ads. But the money actually was spent by the party on national ads, Elections Canada alleges.
HOW _ The agency says the party transferred money to 67 campaign bank accounts “and within a very short span of time, these funds or funds closely approximating the amounts deposited, were transferred back out of these accounts.”
WHY _ The elections watchdog says this plan allowed the national party to overspend its legal limits by about $1.1 million. And 65 of the 67 the individual campaigns involved got to claim 60 per cent reimbursement from the government for the phantom ad money that just passed through their bank accounts. The other two campaigns didn’t get enough votes to qualify for reimbursements.
PENALTIES _ Elections Canada alleges that the program violated a number of sections of the Elections Act. Convictions could bring a maximum penalty of up to five years in jail and a $5,000 fine for the financial agents involved and a $25,000 fine for the party. Most violations of the act bring fines, usually $2,000 or less.
By David Bakody on 08.21.08 9:18 am (on Garth's blog)

Outsourcing Canada - Garth 23 Nov 08

AIN’T IT THE TRUTH!!?

Joe Smith started the day early having set his alarm clock
(MADE IN JAPAN )
for 6am. While his coffeepot
(MADE IN CHINA )
was perking, he shaved with his electric razor
(MADE IN HONG KONG ).
He put on a dress shirt
(MADE IN SRI LANKA),
designer jeans
(MADE IN SINGAPORE)
and tennis shoes
(MADE IN KOREA)
After cooking his breakfast in his new electric skillet
(MADE IN INDIA)
he sat down with his calculator
(MADE IN MEXICO)
to see how much he could spend today. After setting his watch
(MADE IN TAIWAN )
to the radio
(MADE IN INDIA )
he got in his car
(MADE IN GERMANY )
filled it with GAS
(from Saudi Arabia )
and continued his search for a good paying job. At the end of yet another discouraging and fruitless day checking his Computer
(Made In MALASIA ),
Joe decided to relax for a while. He put on his sandals
(MADE IN BRAZIL )
poured himself a glass of wine
(MADE IN FRANCE )
and turned on his TV
(MADE IN INDONESIA ),
and then wondered why he can’t find a good paying job in CANADA .

By maybe Rhino? on 11.23.08 2:06 pm

------------------------------
But what can we expect when these (above) countries pay their workers $1 per day (perhaps a slight exaggeration!) and the unions have our NA companies paying up to $70 per hour on the GM assembly lines. Something has got to give, eh?