Wednesday, October 28, 2009

Has Jim Flaherty Put Us on the Brink of Collapse?

In this brief video we hear Jim Flaherty discuss the fact that he did not have to bailout banks but instead purchased mortgages for the Canadian taxpayer.

Several months ago I posted an article that got little play from the mainstream media. It involved Flaherty allowing AIG 40 year mortgages that imposed a huge risk on our financial system.

Well, guess what folks? The Canadian taxpayer now owns more sub-rime mortgages than any other country in the world. HIGH RISK MORTGAGES TO THE TUNE OF 200 BILLION DOLLARS!!!!!!!!!!

With increasing unemployment and an already record deficit, this can't be good. What is wrong with our media?

Why Canada's Housing Bubble Will Burst

What do the mid-recession housing boom and the Harper Conservatives' rise in the polls have in common? Answer: the Canada Mortgage and Housing Corporation's massive sub-prime mortgage scheme that is keeping up the appearance of an economic recovery. Reading the newspapers these days, you have to wonder whether Canada was on another planet when the global credit crisis hit. House prices have actually increased in some provinces and now there is a shortage of houses for sale in southern Ontario. Credit is flowing everywhere.

But what few Canadians realize is that the housing market has avoided collapse (prices are down 32 per cent in the U.S.) because the Harper Conservatives directed the CMHC to change the mortgage rules to effectively make the Canadian government the biggest sub-prime lender in the world. What's almost as alarming as this reckless policy is that no one in the financial media is talking about it, even though everyone knows the facts. I was alerted to the scandal by David Lepoidevin, a financial advisor with National Bank Financial, in a warning letter to his clients. ...

I can understand opposition parties not wanting to be the ones to jeopardize our financial fragility, but Canadians need to know what is happening here. No wonder Michael Ignatieff stated that he no longer has confidence in this government. They've taken us to the edge of a cliff and the best we can hope for is that the wind doesn't pick up.

But then, did we really expect anything different from Jim Flaherty?

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