End The Bailouts
Looks like our friends to the north are taking the approach that the U.S. has just given up on:
The Canadian government will buy up C$50 billion ($40 billion) more in insured mortgages from banks as part of a series of steps announced on Wednesday to improve the availability of long-term credit.
The move came as U.S. Treasury Secretary Henry Paulson said he was backing away from buying troubled mortgage assets using a $700 billion bailout fund. Canadian officials said the key difference between the two approaches is that Canadian mortgages are not in distress.
Other measures taken by Ottawa included making it cheaper to use government insurance to guarantee bank borrowing, loosening regulations for banks to allow them more sources of funding, and boosting the borrowing authority of the government’s Business Development Bank by C$1.8 billion.
(Full article at Reuters)
Canada certainly considers themselves to be a socialist country in many regards, so this action is not without precedent. However, socialism these days is simply a relative term. Basically, every country on earth has participated in some form of socialism, it’s just a question of which industries are receiving the bulk of the “benefits”.
With U.S. Treasury Secretary Henry Paulson declaring that he will no longer be purchasing mortgage-backed securities with the $700 billion, it’s interesting to see that Canada is continuing down that path. Even with the famous capitalist Donald Trump stating that the bailout has failed (at least in its original form), Canada has apparently not gotten that memo.
All I can say is, good luck, Canada… You’re going to need it…
One Response to Canada to Bailout More Banks by Buying Troubled Mortgages
Leave a Reply
Start Producing Wealth- Identity Theft, Credit Score, And Fraud
- Identity Theft No Longer Just About The Money
- What To Do If You Think Your Identity Was Stolen
- Top 5 Identity Theft Scams
- Identity Theft: Protecting Your Information While Online
- Identity Theft And Social Media
- Identity Theft Online: How do you protect yourself? (Part 2)
- Identity Theft Online: How do you protect yourself? (Part 1)
- Equifax Coupon Code 2012 – Complete, ID Patrol, 3-In-1
- Four defendants in jail for identity fraud
- Identity Theft Articles
- Wiping Your Hard Drive Clean - Great Identity Theft Protection
- Using A Shredder To Protect Your Identity
- Identity Theft Of Deceased Persons - An Awful Crime
- Single-use Credit Card Numbers Should Be Used More Often
- Things To Look For In Identity Fraud Protection Services
- What To Do When You Lose Your Wallet
- How To Avoid Identity Theft In Your Business
- What to Do If You Lose Your Social Security Card
- History Of Equifax - Company Owns Your Secrets
- How To Prevent Identity Theft From Happening
- Office Walker
- Using a Treadmill Desk For 6 Months
- A Treadmill Desk Walk Through Terre Haute, Indiana
- Virtual Walk Past Farmersburg, Indiana – Treadmill Day 38
- 31 Days Using a Treadmill Desk – Status Report
- How To Start A Weight Loss Program (No Treadmill Needed)
- The Treadmill Desk Revolution Is Spreading – Day 24
- My Vacation (From Treadmill Desk Blogging)
- Using a Treadmill Desk – Day 18
- Treadmill Desk Workstation, Loving It – Day 14
- Walking Barefoot On Treadmill Experiment
You misinterpret the situation. They’s not bad mortgages. Canada isn’t having that crisis. Canada’s banking system was just rated the soundest in the world by the World Economic Forum. It didn’t need the government bail-out and guarentees that happenned in the US and Europe.
But that means that Canadian banks are having trouble competing internationally because they don’t have the new US and European government-backed guarantees for everything they do.
So the Canadian government is insuring mortgages to level the playing field. Again, these are sound mortgages. It’s also loaning the banks money, with the bank’s non-mortgage loans as collateral.
http://www.reuters.com/article/regulatoryNewsFinancialServicesAndRealEstate/idUSN1230255520081112