Wednesday, October 28, 2009

More on Jim Flaherty's Secretive Bailout of Our Financial Sector

Despite repeated warnings, Jim Flaherty made side deals with his pals at AIG. Then when the economic crisis came in with a bang, he scrambled to cover his tracks, announcing that he and the Harper government put measures in place to make our banking system more sound.

What he didn't say was that it involved essentially purchasing for taxpayers, all high risk mortgages that he allowed to infect our banking system in the first place.

This has made it look like we're doing better than most countries when in fact we are on the brink of a major bust, if unemployment continues to rise. The Canadian taxpayer now owns more high-risk mortgages than anyone else.

Naturally, they have the opposition parties over a barrel because if they push this it could expedite the housing market collapse. However, Canadians deserve to know just how fragile our economic recovery really is.

CMHC's growth fuels worries over new risks

The federal government has quietly given Canada Mortgage and Housing Corp. more financial muscle, raising concerns the multibillion-dollar agency is expanding at an unprecedented pace with little oversight.

For the second time since the beginning of 2008, Ottawa has raised the amount of mortgage insurance CMHC can have outstanding. The increase moves the cap to $600-billion, up from $450-billion and nearly double the $350-billion limit in place at the end of 2007. ...

But is it prudent for the Canadian taxpayer to back high-risk mortgages at a time when our own financial security is so fragile ? This was a bank bailout.

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