tag:blogger.com,1999:blog-32931256.post3715248268036869660..comments2024-03-22T05:20:44.167-07:00Comments on The Disaffected Lib: Pulling the Pin on Good BusinessThe Mound of Soundhttp://www.blogger.com/profile/09023839743772372922noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-32931256.post-52323284507766314162009-01-21T12:56:00.000-08:002009-01-21T12:56:00.000-08:00Yeah, I read that Ted. What I want to know is the...Yeah, I read that Ted. What I want to know is the extent of the Harper 40/zero mortgages among the securities "bought back" from the banks with the $75-billion "liquidity" bail out.<BR/><BR/>That said I fear the emerging American debt realization mentality could easily sweep north and bring with it the sort of bankruptcy/receivership ills mentioned in this post at the very worst moment for Canada.<BR/><BR/>Once this starts it may be enormously difficult, even impossible, to correct.<BR/><BR/>We're all familiar with the truism that recessions are created, in part, by a cratering of consumer confidence. We need to realize that a similar confidence problem on the part of lenders could be just as bad, even worse.The Mound of Soundhttps://www.blogger.com/profile/09023839743772372922noreply@blogger.comtag:blogger.com,1999:blog-32931256.post-48260142781300874622009-01-21T12:44:00.000-08:002009-01-21T12:44:00.000-08:00DL: It is worse than that. And Harper is directly ...DL: It is worse than that. And Harper is directly complicit in making it worse.<BR/><BR/>Canada did not have a subprime mortgage market like the US. Harper created it in 2006 when, after long lobbying efforts from the US mortgage insurance companies, he changed the rules to allow 40 year no money down mortgages. At that time, “Canada’s New Government” guaranteed the mortgage insurance, estimated at up to $300M. Interestingly and very tellingly, only the day before the legislation was passed, the mortgage insurers registered as lobbyists.<BR/><BR/>Now Harper has the gall to claim he saved Canada from the subprime nightmare in the US because he changed the rules back, partly late last year.<BR/><BR/>The Globe published an excellent, in depth investigation into the whole looming mess - wholly created by Harper’s “stable hand” on the economy. Here is the article: <A HREF="http://www.theglobeandmail.com/servlet/story/RTGAM.20081212.wmortgage13/BNStory/Front/home" REL="nofollow">Special investigation: How high-risk mortgages crept north - The untold story of how elements of the first Conservative budget in 2006 encouraged big U.S. players such as AIG to make a push into Canada, creating our version of subprime mortgages.</A>Ted Bettshttps://www.blogger.com/profile/06223729391428982448noreply@blogger.com