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Ottawa moves to open credit flows

Globe and Mail Update

Budget measures will improve access to credit; government steps up plan for national securities regulator, but backs off interest deductibility ...Read the full article

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  1. Jordan Beck from Calgary, Canada writes: Why doesn't Flaherty actually read the statistics from the Bank of Canada before sounding like an idiot?

    Reported on January 23rd from the BoC:
    -Personal loans up almost 9% in December 2008 compared to December 2007.
    -Personal Lines of Credit are up 20% year-over-year.
    -Business loans for commercial purposes up 4.7% year-over-year.
    -Leasing receivables up 3.7% for the year.

    I would say that the credit "freeze" is not as bad as Flaherty would make us believe. If the banks would be better at tooting their own horn rather than be quiet and let the "media" re-hash everything they're told by anyone with a title, then maybe consumer confidence wouldn't be in the toilet.
  2. Reg Volk from Kelowna, Canada writes: I do not see much here for the new homeowner with a big mortgage and lost jobs. If they are paying $1500 for their mortgage, where will the money come from. EI?-not likely. There will need to be more direct intervention in the banking sector so people do not lose their homes. This is reality as U.S. problems are catching up to us now.

    The U.S. is putting $1,000,000,000,000 (one trillion) immediately into their economy. By comparison, Canada with one tenth of the U.S. population should be putting something close to 100, 000, 000, 000 (one hundred billion).

    Instead,we are starting with 34 billion sometime? this year and up to 85 billion in total in the next FIVE years.

    And much of it having to be matched by provinces and municipalities who will only have to raise taxes. This will simply counter any federal tax cuts.

    Seems startling doesn't it? But in many ways too little and too late.

    And it seems if governments had played their real role in years past and invested when they should have, we would not be in this mess
  3. Loki Peterson from Toronto, Canada writes: Dumbo Flaherty has failed us. The coalition should take down the Cons as soon as possible.
  4. West Coaster from Victoria, Canada writes: I do not like deficits but I know that, in this instance, it is neccessary. Stimulate now for long term financial success.
  5. Chris E. from Canada writes: I would not dream of taking on debt right now. Anyone who does is either a sucker or is planning on declaring bankruptcy later.
  6. al near lake huron . from Canada writes: government is the lender of last resort?
    200B
    did not work in USA, will not work here.

    Makes you wonder how much crap is on the Canadian banks books?
    No 'mark to market' of the banks toxic debt, and we do not know what the banks hold.............
    sure quiet since 'mark to market' was dropped in the summer, quiet, no just losses building offbook.
    watch the financials crash within 2 weeks, just like in USA.
  7. Roop Misir from Canada writes: Are there safeguards that all monies earmarked for specific projects will be utilized as allocated?
  8. al near lake huron . from Canada writes: why is the 200B to the banks not included in the deficit ?
    they say 64B, but out of the gates 200B goes to banks?
  9. al near lake huron . from Canada writes: what about a projection for decreased tax revenue?
    100B an extra year?

    why does the budget only cover the spending side, and not the decreased revenue side?

    plants closed, mines closed, layoff, all mean less tax revenue?
    will that add 100B a year ??????
  10. garlick toast from Canada writes: Jordan Beck from Calgary, Canada writes: Why doesn't Flaherty actually read the statistics from the Bank of Canada before sounding like an idiot?
    ------------------------------------------------
    There is no problem with '' credit flow'' to worthy borrowers.This is another sub-prime disaster in the making. Some people should not borrow.
  11. Silver Standard (Harper hides behind the Queens skirt)) from Canada writes: There is no such a thing as a credit crisis, just a lack of money crisis. These guys don't get it, WE DO NOT HAVE THE MONEY OUR RETIRED PARENTS HAVE!! They shipped the jobs they had away and gave us credit cards and coffee shop jobs. You can give me a trillion in credit tomorrow and I will not spend a penny. (actually maybe I would then go bankrupt hiding gold away hehehe)

    These people are clueless, we need to save money and pay down debt, we will come out better on the other side if we let the bad stuff happen now. We just neeed to beef up EI and wait it out. HEck double EI for everyone, its still cheaper than the crap we are pulling now.
  12. If I had a million lobsters from canbabwe, Canada writes: I am stunned, we have just written our economic death certificate. Jesus 12 billion for clunker-backed securities. You people who think is great are friggin nuts.

    The old timers here and you know who you are, get into gold as fast as you can.

    they just signed out death certificate as a nation known for fiscal prudence. You think it was bad last year? well let me tell ya it will be 1000 times worse now.
  13. garlick toast from Canada writes: Didn't Flaherty read the BoC's own report on lending? Did he not believe the report? This move is malevolently stupid. What did Canada ever do to him?
  14. Plus 8 from Mont Tremblant, Canada writes: CANADIAN BANKS
    =========
    al near lake huron . from Canada writes: why is the 200B to the banks not included in the deficit ?
    they say 64B, but out of the gates 200B goes to banks?
    =========

    Why in heavens name would you consider that part of a deficit?!!

    Canadian Banks have always had a reputation internationally as too conservative. So now they are ranked the world's safest banks. (Switzerland is now 14th) http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/10/09/it-s-official-canada-has-the-world-s-soundest-banking-system.aspx

    We are incredibly lucky. We have one of the only banking systems in the world that did not get swallowed up by the mortgage scandal the US sold everyone. .

    However, being prudent, our banks are in no hurry to lend during a recession. Do you blame them? Do you feel like lending YOUR money to new businesses or consumers at the moment?

    As well, the demands on the banks have increased as other lenders like, car financing and leasing companies, have gone bust or closed.

    To get them to lend, the Government wants to buy out the loans they are happy with for cash. The CMHC is buying buy solid bank mortgages (AAA) from the banks and the banks will have few options but to lend the money received. The assets purchased are top rate and non-risky and will surely make a pleasant profit for the CMHC and the Canadian people.

    Meanwhile, the government has created a pool of 200,000,000,000 to draw on for consumer and business credit.

    Bless our banks!

    end
  15. garlick toast from Canada writes: Plus 8 from Mont Tremblant, are you assuming a zero default rate on those loans? At the rate we're shedding jobs a high foreclosure rate is inevitable. Plus with deflation the asset base is shrinking faster than can be covered by the mortgage payments. How many condos for sale in Tremblant?
  16. Gary Dare from Portland, Oregon, Canada, writes: Reg Volk writes, "The U.S. is putting $1,000,000,000,000 (one trillion) immediately into their economy. By comparison, Canada with one tenth of the U.S. population should be putting something close to 100, 000, 000, 000 (one hundred billion)." The Obama bailout plan (I presume that you're not talking about the $700 Billion already approved for the last four months' and next couple of months' bailouts) accounts for a lot of situations that don't exist in Canada. For one, state and local (city, town or county) governments will be getting bailout funds (after spending too much and/or taxing too little ... and not being held accountable for reform), likely their feds taking over the cost of various infrastructure projects and taking them off state and local books. Ottawa has no such plans for the provinces.

    http://www.cnn.com/2009/POLITICS/01/27/stimulus.restrictions/index.html

    http://www.time.com/time/business/article/0,8599,1864620,00.html

    http://www.msnbc.msn.com/id/27406747/

    http://www.msnbc.msn.com/id/27426551/
  17. ralph sutton from Canada writes: BUT where's the BEEF!?

    A tax rate reduction by 2012, heck that's 3 and half years from now! Hardly immediate!

    More smoke and mirrors!

    There aint no teeth in this budget at all!
  18. Scumbag Canadians from Orangeville, Canada writes: I am truly stupid. I got myself 2 degrees, worked 60 hours a week, Paid off my house, invested wisely. I should have worked 20 hours a week at GM, drank Labatt 50, levered up the balance sheet and the government would eventually bail me out. Welcome to Poland West
  19. Michele K from Canada writes: Garlic Toast: "There is no problem with '' credit flow'' to worthy borrowers.This is another sub-prime disaster in the making. Some people should not borrow."

    Like, for example, this guy or anyone else with similar sentiments:

    Reg Volk from Kelowna wrote "I do not see much here for the new homeowner with a big mortgage and lost jobs..."

    Yeah, right Reg - we, who are much more cautious in our own spending are supposed to bail out an inprudent home owner?

    I think not.

    As many respected economists (and others) have already stated, there is no credit crisis among worth credit risks. What we have before us is a debt crisis and the chickens coming home to roost.
  20. Michele K from Canada writes: Scumbag Canadians from Orangeville wrote: "I am truly stupid. I got myself 2 degrees, worked 60 hours a week, Paid off my house, invested wisely. "

    So like me then, you must be SO disappointed that there's no relief for the debt-ridden over-consumers that Reg of Kelowna is advocating for (sarcasm, ar ar)?

    In fact, it is OBSCENE that Harper is offering $750 to new homebuyers to further encourage this kind of nonsense (for only a fool would think a house he can't afford suddenly becomes affordable when he gets $750 from taxpayers).

    But he's doing it because our economy is really one big pyramid scheme - must keep getting other fools to jump in with their dollars, else the people at the top won't be able to reap profits.
  21. ED RATH from Canada writes: Just thought I drop a line,you all are crying the blues.You vote for the cons what do you want every time they are in power if you think back Canada is in trouble .you hide your money at home where it is safe.You put it in the bank and they use our money and go on holidays. What do you want people you keep voteing for the cons,and you will be con like Mr.Harper put it trust me, well you all did ,now you put up with what you voted for. YOUR TRUELY MR.HARPER

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