A tangible example of a system failure.
I expect my next book, due out in a couple of weeks, will earn me grief. The reason’s simple: I ‘m telling Canadians to prepare for a depression.
That doesn’t mean it’ll happen, or that I expect it to. It means the odds of one enveloping us are high enough that prudent people won’t risk doing nothing. And that’s what the book is about – doing something. More than 200 strategies, actually.
It all comes down to risk. If the risk of something bad happening is zero, well, you ignore it. If the risk is extreme, you do everything possible to avoid it. So, what if the risk is 20%? Do you ignore that, too?
Would you open a bank account that had a 20% chance of going to zero? Or move into a house that had a one-in-five chance of burning down?
Don’t think so. But if you did, you’d probably take out insurance against loss.
At the moment, very few people are doing anything concrete about the one-in-five chance we’re on the cusp of a deflationary spiral which could equal, perhaps surpass, the Great Depression. This time, of course, there would not be unemployed men riding the top of boxcars or families holed up in culverts on their way to work camps. But there would likely be massive unemployment, sharply reduced government services, sporadic food shortages, restrictions on bank withdrawals, a real estate price collapse and half a decade of corporate failures and stock losses. Some civil unrest is a possibility. Maybe a new war to get the economy moving again.
Is this an extreme view, even with only a 20% probability?
Robert Prechter doesn’t think so, and he’s one of the few people in North American who correctly forecast last autumn’s crash. The Elliott Wave Theorist publisher also say it’s not over yet. Oil will be $10 and there’s no market anywhere that will be immune. Compared to 1929, “This time, the engines of debt are far bigger; the debt balloon is larger; the pool of speculators is far larger; overvaluations among investments went far higher; US banks on average are flat broke; the manufacturing sector in the US has become aged; government is far more stifling.
“I can’t think of a single aspect of the situation,” Prechter says, “that is less bearish than 1929.”
But maybe’s he extreme.
So, let’s go to Arizona.
Yesterday the Wall Street Journal reminded us all of why we’re in the soup.
In Avondale there was a 576-square-foot shack which was owned by a bankrupt woman with a history of substance abuse and was recently declared unfit for human occupancy. Less than two years ago a local mortgage lender arranged a $103,000 mortgage for the unemployed occupant, Marvene Halterman. The mortgage, of course, was destined to go into foreclosure because Halterman had no money and hadn’t worked in 13 years.
But the lender, Integrity Funding, which picked Halterman out of a phone book to cold call, didn’t care. That company made $9,000 in fees, and then sold the loan to Wells Fargo bank, which sold it to a unit of HSBC bank which packaged it into a securitization with 4,050 other mortgages and sold it to scores of investors, after Standard and Poor’s and Moody’s had given a Triple-A rating to the offering. One of the investors was the Teacher’s Retirement System of Oklahoma, which put half a million dollars on the line.
The Halterman property went into foreclosure, of course, was bought by neighbours for $18,000 and torn down. More than 1,000 of the mortgages that HSBC packaged and sold have turned to dust, which means tens of millions of dollars evaporated. Across the US, just over $4 trillion in similar loans were sold in a single year. Many investors are only discovering now, they – and the massive banks that financed these – are ruined.
Meanwhile in Avondale, where about 70,000 people live, one house in nine is now in foreclosure.
This is why you should be concerned. It’s not just Arizona, of course, where easy credit was extended to unworthy people. It’s not just that some of the world’s biggest banks trucked in these kinds of diseased assets. It’s not just that blue-chip ratings agencies certified them as investment gold. It’s not just that this greed, fraud and amorality has hobbled our largest trading partner, and seriously threatens us. It’s because we have done essentially the same here, allowing people without cash to buy houses. We have borrowed more money than ever, saved nothing, leveraged most of what we own and suspended common sense.
The greatest bubble economy in history is popping. Trillions of dollars are still sitting on the books of financial institutions in assets which are worthless, or nearly so. The odds of surviving that are slim for many of them. Without government bailouts, today the American banking system – and its auto industry, including three million jobs – would be gone. Sadly, that may still happen. Meanwhile every week Canadians are losing money in home equity, while unemployment rises and corporations shutter. It’s the greatest loss of wealth in a generation.
Realtors and bank economists are in the media now, saying it will all be over quickly. Perhaps they’re right. Hope so.
But I’m hiding the matches.
100 comments ↓
Right here in Southern Ontario I have talked to and heard of another through my son, rail locomotive engineers being laid off that have not experienced this in 17 or more years. Is this how the rail corporations are trying to recoup the fines for exceeding the fixed profit cap on Prairie grain shipments to the coastal ports? Why is there an excess profit designation? Why are they crippling our transportation infrastructure? Are the railroads trying to create a depression? Some of this economic mess does not add up!
So should we stash our money in our mattresses in anticipation of bank failures that cannot be bailed out by the government treasuries … because if the governments just backed up the evaporated Trillion$$$ with fiat money, we will have a superhypermega-inflation. N’est-ce pas ..???!!!!!
I don’t think that anyone can make any predictions. It’s like a sick patient. Doctors give you the odds of him surviving but add that it’s in “God’s hands now.”
Look, this crisis can move in a number of ways. It can suddenly improve, but it can also implode. No one knows, and all predictions at this point are about as good as a game of craps.
It’s all we can do to keep a cool head, do our best to make it through and keep our fingers crossed (and hope that our political leaders don’t mess up too badly — the only guarantee we have is that they will; all that’s left for us to see is exactly by how much).
Cdns debt load to US consumer debt load on a per capita basis is the same. While it may be true our sub-prime might have a touch more value the consequences for Canada will be worse.
Cdn msm has actually been pumping the notion that we must economically (stimulus) be in lock step with the US,,, HUH?
Our economies are reversed, we export 80% of our production while the US is 80% consumer based. A US style stimulus will not work in Canada. As I`ve explained 50% of US consumer spending is done by 10% of the wealthiest, they have a starting point. We must wait for global demand. Massive deficit spending won`t change those factors, only make things worse for us down the road as the 40/0 is doing.
Deficit spending, good for government, bad for people
Considering the massive amounts of money being injected into the US economy, 8 trillion so far and trillions lost, it will be a major miracle if the dollar survives. They expect a currency crash in the spring sometime when other countries start trading among themselves excluding dollars. There is talk that the Amero is already in limited circulation and if they declare the dollar dead, replaced by the Amero, expect chaos, hunger, and riots. Possible Civil war too in the US. They said gun sales are at record levels since Obama was elected. Doesn’t bode well fo the future does it? I am afraid Harper is waiting for instructions from Washington since they mean to extend the currency to Canada and Mexico as well. Harper has a major problem, he can’t accept the new currency without Parliament and a majority. All his actions point to this. This is why he is so eager to force an election until he gains a majority by bankrupting every other party. It is time we accepted this and try to save Canada and our way of life. I for one have no desire to live in an American run vassal state.
Given that Obama is considering tax cuts I don’t think you’re too far off the mark with your ‘predictions’. If he does the tax cuts I think this is going to be dragged out for a while.;)
http://online.wsj.com/article/SB123111279694652423.html
The money will just be saved or used to pay down personal debt.
Dorothy is co-hab with the Wizard of Oz in the Fed Reserve. Print it and someone will buy but for how long??? That’s the itchy scratchy thang.
And while attention is focused on the monkey and the bananas……
http://www.guardian.co.uk/commentisfree/2009/jan/04/russia
“. . . Integrity Funding . . . didn’t care. . .” — That’s it in a nutshell. No one cares anymore — UNLESS — there’s dollar signs flying around somewhere.
Which is also why there is now a severe crash happening, because just like undisciplined children running rampant at a candy store, we have to learn our lessons.
“. . . Maybe a new war . . .” — That’s what helped get the western world out of a depression last time, only now most countries have nukes of one sort or another. Shit happens, I guess.
A poster said a few days ago that there is now more debt owed in the world than there are any surpluses; why not have a world war, erase all debts, fiat monetary systems and a few billion people to boot?
There won’t be much of anything left anyway!
——
The momentum of The Cycle Of Nines has started with constant job losses in the US (and worldwide) . . . http://tinyurl.com/93vxzj . . . manufacturing has shrunk across the globe . . . http://tinyurl.com/9jbqpm . . . which means Obama is taking over “an empire in decline”, a.k.a. Athens or Rome. — http://tinyurl.com/9wlrup
——
Interesting that Merkel of Germany has given Israel full backing for the invasion of Gaza — http://tinyurl.com/985dqj; the head of the UN General Assembly calls the invasion a ‘monstrosity’ — http://tinyurl.com/9xw2ne
European capitals were full of protestors against the same. Russia (supposedly going to help Syria build its’ first nuke power plant, same as Iran and Pakistan) and Syria have talked re: the situation there, and China says time to stop killing and negotiate instead.
Seems as if the world is quickly dividing itself into two factions — those supporting the west and Israel against everyone else. Would this be what the war-mongers want?
Depression… I don’t think so… but a prolonged 3 year recession is in the works thanks to dummies.
We have to get rid of the bums who are responsible for raising consumer credit to extreme levels, and I do mean specifically the bums who up and decided it was prudent to insure 90% of all homes bought with 40 year, nothing down mortgages with taxpayers dollars for close to 2 1/2 years here (i.e. since the Cons took power) and replace these same bums with people who know what they are doing.
I cannot believe Canadians haven’t caught onto the simple fact that the feds through Flarehty/Harper’s reckless 40 year nothing down regulations that CMHC 90% insured with taxpayers dollars do not yet know for the most part that Harper has already bought over 40 billion worth of a planned 75 billion (it will be more when its over) dollars of bad mortgages and commercial real estate and its all a dead loss (that will take about 3 years to be declared as true losses and skyrocket federal deficits to between $120 to $200 billion over the next 3 years) due to utterly inept and corrupt regulatory policy. (ok, I can believe Canadians haven’t caught on. CTV Globemedia and Canwest are owned by literal pigs at the trough and the sheeple don’t know much of anything right now, the propaganda is so thick)
To think that these bums nearly won a majority… Folks, this nation cannot turn it around with such blind, stupid, ignorant, morally bankrupt, selfserving people in power. Please… for the love of God and your children, try electing people who actually know what they are doing next time ’round. They exist, by the way… they truly do. Much of the hurt we are experiencing or are about to could have been avoided. Many of the things we should be doing now are not being done. Get rid of the bums who created this mess and replace them with people who know what they are doing. Competent people exist to turn this around. Empower them! They are on the sidelines!!
We need an election and Canadians need to vote people into power that actually know what are doing. Vote for losers over and over, and we’ll all lose, its as simple as that. Lets get it right this time, people! The costs of getting it wrong is extreme.
I’ve been shaking my head at a lot of similar stuff for years now.
Some of the folks on my street in Edmonton who were super-over-extended with credit and debt. They told me that things were tough, they were making minimum payments only, used one CC to pay another one, etc. Next thing you know, they added quads, a second car (had to me a BMW X5 of course) and purchased finer patio sets, stopped brewing their own coffee at home and joined the long queues at Timmie’s, they also ordered out almost daily, etc. Of course that was back in 2007 when home prices skyrocketed there and they most have borrowed against the equity of their home. Even a few of these persons that I personally know told me in confidence that “the bank offered us the credit and so we take it”. And what if you can’t repay? To which I had no answer…
My point here is this:
If banks kept lending to irresponsible persons while these folks could barely afford/repay these debts, why did they?
Where were mechanisms of restraint and control?
Or, to be to the point: isn’t it time to regulate banks further?
Is it too niave to assume that the CDIC will be unable to help when the bubble bursts? What would be the best way to keep your money in liquidable assets in your opinion?
Its all the CPC & Harpers fault. Pass it on.
Now ….. add to all this Global Warming and a water shortage while Harper & Co are talking of selling our Water to Washington ….. Harper and his clones will say it’s a renewable source ….. STAND UP FOR CANANA ….. and tell Harper good, then TELL WASHINGTON TO RENEW THEIR OWN DAM WATER!
The depth of financial crisis is still not known. As Garth points out there are millions of bad mortgages and other debt in the US that have still not washed through the system.
Many Canadians may feel smug and believe the bullshit that is coming out of the Conservative government. The fact is that many Canadians were sold ABCP investments without proper disclosure and could stand to lose BILLIONS.
The risk to ABCP investments is also increasing as consumer spending falls since many commercial property developers may not get the rents they are expecting from their commercial properties as more retailers fail. Many investors bought into the myth that commercial real estate is ‘bullet-proof’. All of this simply comes down to supply and demand. As consumer spending falls…. more retailers fail…. as more retailers fail the demand for commercial property falls…. as demand for commercial property falls rents fall… as rents fall revenues from commercial property falls… and the ability to meet loan convenants drop… loans are then called by banks… I’m sure you get the picture.
The ABCP fiasco will continue to play out for some time. People also need to realize that credit card debit is another ticking time bomb since this kind of debt was also packaged up and sold to investors. Even ’secured’ consumer debt (i.e. collateral like homes were put up against the debt) is a house of cards since the value of the collateral is in question. While the average Canadian consumer may feel that since they don’t own any of these questionable investments they will not be affected, the reality is that these monumental financial losses will need to be absorbed by the financial system as a whole. And, that means everyone will feel the impact at some point.
“My point here is this:
If banks kept lending to irresponsible persons while these folks could barely afford/repay these debts, why did they?”
It all had to do with profits. They could take these risky loans bundle them and then sell them, with their fees added, to unsuspecting investors as AAA investments. In effect it was a pyramid scheme because they were often sold several times. When the crunch came the banks were caught still holding some these risky investments and the government is taking them off their hands.
This practice ws encouraged by right wing ideologues who advise both business and government because it meant that people could spend more based on the inflated value of their homes to make the economy robust. It was used to mask the fact that incomes for middle and lower income groups were not keeping pace with executive incomes. People could see their material lifestyle moving up even if their incomes stagnated. This prevented the public from recognizing that they were really falling behind economically.
This is all part of the “free market” concept in which capital seeks new ways to make profits and increase their wealth. Those who believe in the philosophy believe that that those who control capital should be free from regulation because it allows them more creative ways to accumulate capital.
If they make a “mistake” that is all part of the system and eventually things will return to balance although it could take decades and a great deal of human suffering. The last crisis in Japan took 13 years to return their system to some semblance of balance.
Capitalist globalization, at its highest level, is designed to create such complex financial instruments that neither government nor investors understand how the system works nor can they control it. That allows “creative” capitalists to co-opt massive amounts of capital by manipulating the system. It is prone to fraud but since there are no regulations what constitutes fraud is not defined so prosecution for is intentionally difficult to impossible.
This is why so many people are losing confidence in the capitalist system. There virtually no protections in an unregulated system. The rule of law at that level is virtually non-existent. The rule of law only really applies to the “little guy” in free market ideology.
HEY GARTH
What do you know about the Amero?
Conspiracy crazy?
or…
Please comment
Thank you
Tom
It is a myth. — Garth
#7 Charles Oxley on 01.05.09 at 1:45 am
The ancient Levitical Law contains the Jubilee which occurs every 50 years, and at which point all debt is forgiven, erased, non-existent. No war required.
BTW, the U.S., if one were to accurately do some accounting is STILL paying off the debts of WWII, Viet Nam, and all the other fiascos thery have ventured on. I think that truly defines ‘Venture Capital’.
The Star has a good article on how this Trillions of non-existent value evapourated. Madoff played a HUGE Ponzi Scheme. The others simply were irresponsible and greedy. Their religion of ‘Money Love’ is nothing new, but they should know better by now!
Banks to feel the squeeze in ‘09
and
Troubling questions over Madoff scandal
Amidst all the fret and worry others are actually working towards solving some of our problems.
Is small the future of nuclear power generation?
Not even our Department and Minister of Finance should be able to overlook those signs and portents. Surely the upcoming federal budgets will contain the creative and constructive fiscal measures that will protect us in the gathering storm. Hear, hear!
But what if Paul Wells is right, if we do not happen to have a “coherent government” in Ottawa right now? C.f. http://blog.macleans.ca/2009/01/04/canada-a-failing-state-%e2%80%94%c2%a0the-listeriosis-inquiry/
Any bets on PMSH engineering his defeat at the end of the month and happily sitting it out sniping from the sidelines?
I don’t feel in the least bit lucky.
We might try actually producing the things we use. A little protectionism wouldn’t go amiss right now.
Huge salaries for banksters should go right out the window – along with the banksters if their crimes are heinous enough.
Military Keynesianism has seen its heyday. Apart from the moral considerations of using slaughter and destruction to increase your wealth, it requires a short war and a long peace to reap the “benefits” of such a system.
The U.S. has been at war more or less since 1942. There never was much of a peace dividend. We’ve been in Afghanistan for seven years and it’s been an unmitigated disaster, and we’re certainly no better off financially.
And we still have no working government amongst all this.
—–
Re #131 (Tax Free – sort if) Truth B Told on 01.04.09 at 11:37 pm
On your comment on the Canadian soldier charged with murder:
“Now, what I wonder is what else happened that we are not being told? There is a total veil of silence by all of the men in the unit and our military generally.”
—–
Yes – that’s what worries me about this. It seems that it was the concerns of the people he was working with, other Canadian soldiers, that brought this incident to the attention of the authorities. It’s likely that they were worried about the effects of his conduct on themselves, how he would endanger them.
They’ve now been told to keep silent about the incident completely.
Since most Canadians are not supportive of the mission (and that does NOT mean they wish to throw Canadians soldiers under the bus, no matter how much Stevie and the War Boys like to conflate those two sentiments), incidents like this shrouded in secrecy don’t do anything for building up confidence in the Canadian public.
It’s the same as eroding confidence in police forces when wrongdoing by a member at any level is covered up by closing ranks and demanding silence. They lose any moral authority to prosecute members of the public if they commit crimes themselves.
That’s what it’s all about.
—–
Any bets on PMSH engineering his defeat at the end of the month and happily sitting it out sniping from the sidelines?
#24 Herb on 01.05.09 at 11:15 am
I expect anything from Harper. He, like most egomaniacs, does not play by any rules the rest abide by. Not even Laws he himself has brought into being.
“We have borrowed more money than ever, saved nothing, leveraged most of what we own and suspended common sense.”
Motivation for saving? Zero. Garth, are you advocating increasing interest rates? Because with record low interest rates, you can’t expect people to save. The interest rates are on par with inflation (if not lower). If your money sits in your bank account, you are losing money. The gov’t will solve low interest rates by spending in the short term, which will increase public debt resulting in increased interest rates 4-8 years later.
As for spending beyond your means, thank Trudeau for being the role model for a generation.
If you feel you need to be paid for saving, I’d say you are part of the problem. — Garth
I guess I should buy this book…or maybe it would be better just to borrow it from the library and stash the money in a jar for a rainy day.
What troubles me is that we have all these predictions that are very plausible, but in reality most people are so strapped that trying to limit the damage is very difficult.
How can people keep a stash of money when every cent is going out the door now?
If people are in a home that is depreciating now or could depreciate in the future it would be very difficult at the moment to sell it now with the state of the real estate market now. And with most cities having an affordable rental housing market it is very difficult to find safe, affordable rental homes. So even if you do sell where do you move to?
If you have investments it depends on where they are invested. Many have opted for a payout of the company pension plan and have invested the wad in a self directed RRSP. If you pull out money from this to pay off a mortgage or into another investment you are taxed.
With the coast to coast economic mayhem, if you lose your job now where do you move to get another? And it takes money to move.
We can all rally and kick out the current governing party but this takes time and then more time to get another government up and running and then if they have a minority might we just have the same unworkable clown act as we do now? (I am willing to give it a try though)
So it goes on and on it seems we have really got ourselves in a situation where there is no easy way out and for most people there is no easy answer or way to make big changes…for most of us the best we can do is take small steps to soften the blow.
Feeling Lucky?
Apparently, Exxon-Mobil is, and with OUR money (of course) Exxon: Waiting for the tiger to pounce: The company is sitting on a pile of cash, and some think it may soon buy another major oil firm.
Try $265 BILLION!
It’s the same as eroding confidence in police forces when wrongdoing by a member at any level is covered up by closing ranks and demanding silence. They lose any moral authority to prosecute members of the public if they commit crimes themselves.
#25 CM on 01.05.09 at 11:39 am
Ah, like this? Internal hearing turns ugly for Julian Fantino
#25 CM on 01.05.09 at 11:39 am
For more than you will every know and even less will be told as the suicide rate from returned soldiers nears 150! Such are the effects of the Winds of War…..
It is a myth. — Garth
Though so ….. but I do think that sooner or later when a countrie’s National Debt is too high there is devaluation of their currency …… America’s military might may save them lots of time.
Interesting:
PANEL DISCUSSION
ETHICS IN THE FINANCIAL MARKETS?
Transparency, Leadership, Accountability
Who are the key players, what questions should we be asking them, what are their roles, and are they fulfilling them?
A JUST IN TIME presentation by the Canadian Centre for Ethics in Public Affairs (CCEPA)
Featuring:
Greg Grice – Regional President, Atlantic Provinces, RBC Royal Bank
Dr. Greg MacKinnon – Professor of Finance, Saint Mary’s University
David Swanson – Advisor, Investment Management, TD Waterhouse
Moderated by: Bill Black – Former CEO Maritime Life, Board Chair CCEPA
Wednesday, January 21, 7pm – 9pm
Scotiabank Theatre Auditorium
Saint Mary’s University
FREE ADMISSION
For more info: http://www.ccepa.ca
Chris Stover . General Manager
Canadian Centre for Ethics in Public Affairs (CCEPA)
630 Francklyn Street
Halifax, NS, B3H 3B4
Telephone: (902) 428-4731 Fax: (902) 428-4776
http://www.ccepa.ca
Interesting ….. much like getting advice from Jessie James as to which train to put your money on for safe keeping ….
24 Herb
Surely the upcoming federal budgets will contain the creative and constructive fiscal measures that will protect us in the gathering storm.
=======
Undoubtedly the upcoming budget will contain plans for opening the floodgates of deficit spending.
The failure of such will hang on the opposition Parties for demanding it. Harper, lol, under much faked pressure will give in sacrificing our childrens future solely to give opposition enough rope.
Are we both being too cynical? The Garth stated last spring the worse the economy gets the better the election chances for the Liberals. Should we assume the Liberals ran on the GreenST and not on an economic plan in a known economic crunch the last election to give the CPC enough rope?
`That`s the way Parliament works`.
If you really want accuracy Herb in second guessing them, put what is in their best interests collectively at the top of the list and write the rest in disappearing ink.
#22 Bill-Muskoka (Not Anymore) on 01.05.09 at 10:14 am
re: the Ponzi scheme. Over the past few days, I’ve been watching CNBC’s American Greed.
From the episodes I’ve watched, all the crooks have made their money because they managed to convince their “investors” that they could “get rich quick!”
And off course, they all knew their ponzi schemes would eventually fall apart, or be caught by regulators. It was just a matter of how long they could keep it going!
http://www.nrc.gov/reading-rm/doc-collections/for-the-record/2008/12-15-08.pdf
#23 Bill-Muskoka (Not Anymore) on 01.05.09 at 10:19 am
Bill, I agree that some people do have the incentive to work towards positive solutions,but in this case as the above document reads, it will be at least a decade before this approach is brought to the operating state.
Having worked in Pickering and Darlington, plus highly involved in a Quality Assurance Program/Manual for the mfg of construction materials for nuclear installations in the USA, it is my experience that this route is for the long term and not a short term early fix.
The other point is that with all the mandatory safe guards, checks and training required, this is also very labor intensive. Finally, with the inevitable cost over runs and late construction, it is highly debatable that this route can be profitable. The two unfinished, abandoned NRC units at Chalk River are also testament to the track record in this industry. The only reason nuclear is viable, given the very high capital investment is the operating costs are very low, and partly because of the scale of operation. Small is not yet a proven route and may never be. The first question should be: Show me the math!
“Without government bailouts, today the American banking system – and its auto industry, including three million jobs – would be gone. Sadly, that may still happen.”
From the limited information available it looks like the Obama stimulus plan will create 3 million temporary jobs over a 12 to 14 month period. Personally I have serious concerns this direction is just a hunker down and wait, which under normal circumstances would be a safe bet.
Global economic conditions along with the declining strength of global consumer spending power gives the hunker down plan a very low chance of success and increases the current direction of global conflict.
Sadly Garth the odds of plants manufacturing commercial goods retooling to bullets and body bags increases while msm would rather discuss when the polls will open to signal and end to the current election.
#2 Harry S
Good point Harry. It apppears that the ostrich syndrome is spreading. When things are tough and all around are losing their shirts the ostrich sticks his head in a hole in the sand. This makes him feel safe but it exposes a lot of rear ends that ought to have been covered. And yes, a penny saved is just a penny waiting for someone to borrow and a penny borrowed is a penny owed. Net sum=0 but the economic activity created is visible, beneficial and often lasting. The road to wealth is paved with other peoples money…time for a new poker game and may the chips fall where they may.
Rope,
it could turn into a game of Après vous, Alphonse. There are no creative or constructive measures that would promise safety at this point. The economic iceberg is too darn close, and who wants to be Captain of the Titanic in the collision. Not wearing the responsibility now would be in every “normal” politician’s best interests.
On the other hand, it would be the moment for brave and competent politicians to exercise damage control. I think I’ll see the Purser about upgrading to First Class.
Was it luck when we were told by the Harper government that they would not touch our income trust investments.
We believed him when he said our economy was sound and that this was a good time to invest.
We believed them when he said that Harper and his government would not run a deficit.
Trudeau,Chretien and Martin all had their faults but when they left government we had a multi-billion dollar SURPLUS and a strong economy based on common sense not ideology.
In the last 2and 1/2 years we have been lied to and manipulated and most tragically this has resulted in the downfall of our economy. Who brought in the 40 year mortgages?
Everything Harper and his cronies have promised they have reneged on. Even fixed election dates and Senate appointments.
Surely you neocon zealots can tell the difference between what has been promised and what has been delivered?
Take off your “I am with stupid” buttons and stand up for your country and your children!
Garth,
Do you have room in your book for one more strategy on how to prepare for a Depression?
Strategy # 201
Look for opportunity.
A Depression is a great opportunity to lose weight
#25 CM
“It’s the same as eroding confidence in police forces when wrongdoing by a member at any level is covered up by closing ranks and demanding silence. They lose any moral authority to prosecute members of the public if they commit crimes themselves.”
—————————-
I’m glad you brought it up, because I knew that’s what you were thinking. I agree with your point of view regarding Police, but it’s not the same as Policing CM. That’s what many associate with, but this isn’t a case where one always has a variety of options or any options at times, nor the luxury of time.
I don’t think I can adequately articulate the sense of survival and instinct involved, instead I will say the Taliban don’t play nice, and would kill you without regret. The point I am making has nothing to do with the support the troops phraseology, it has to do with the reality of fanatical, uneducated, religious driven people who have known little besides these things, their culture and their martyrs.
I don’t support killing these people and I don’t support being there but I also can’t support the criminalization of people our government sent there unless there are truly extraordinary circumstances. Even then, who is to judge unless one has been where they have been?
If we are going to look for criminal responsibility, we don’t have to go to Afghanistan where we created the field for the bodies to lie. Plenty of choices here at home to work with.
“If you feel you need to be paid for saving, I’d say you are part of the problem. — Garth”
It seems to me that you are either missing something or acting as a spin master for the banking industry.
The banks need our money but don’t want to pay for it. If we save at interest rates less than inflation we are constantly losing value. In some cases the service charges are larger than any interest you might hope to earn.
According to one source prior to the U.S. Civil War banks had to hold capital in excess of 40 %, by 1900 it was 20 %, 12 % in 1925, and now it is below 10 %. If fact, I understand that for Canadian banks the ratio is even lower.
When you put your money in a bank there is no guarantee that you can get access when you need it because the bank is given a length of time to withhold your funds. The reason for that is that they carry such small reserves. They are using your money to make money besides co-opting ever increasing amounts through a wide variety of new and traditional service fees.
It would be nice if there was honesty in the private sector and among their political henchmen. The reason for the government’s new savings accounts is to help recapitalize the banks after they have taken big losses because of their “mistakes.”
This policy is aimed at assisting the banks, no one else.
#36 Micheal
The road to wealth is paved with other peoples money…time for a new poker game and may the chips fall where they may.
———————————-
Shouldn’t you be packing bandages for the massive Israeli casualties or something?
#37 Herb
On the other hand, it would be the moment for brave and competent politicians to exercise damage control.
==========
The brave and competent have already announced $30B in deficit spending damage control for government.
What else did you have in mind for damage control, martial law?
38 Calberta on 01.05.09 at 1:59 pm
“DITTO”
Now that PE Obama has mentioned tax cuts around $500 per person ….. look for that in the package also …. I suspect that Flaherty was waiting for results from Obama’s plan prior to presenting his budget ….. until the roof fell in ….. and that was done all by their little ode lonesome ….. and a foolish move it was …. while the cleaning crew in our HoC is sitting around trying to make themselves busy …. the sad part is they are getting more done than the MP’s “Only in Canader you say”
#27 ggf on 01.05.09 at 11:46 am
“If you feel you need to be paid for saving, I’d say you are part of the problem. — Garth”
Come on, Garth.
If people didn’t want to be paid, they would save their money by shoving it under the mattress. At least its safe there.
But you know, that inflation, no matter how small, will eat into the purchasing power of that money. Hence people need to be paid for putting their money in the bank. (I’m talking savings accounts here, not investing!) That’s why they put their money there instead of the mattress.
Secondly, and this goes all the way back to when backs were formed, the banks purpose is to put together small amounts of funds from people with small savings accounts, and lend it to people who need larger amounts, say for mortgages, business loans and the like. The banks get paid by taking a slice of the interest on these loans, the rest, supposidly, goes to the small saver.
Two problems:
The first, the banks got burnt big time by not being careful to whom they lent the money and tightened the lending requirements in a knee jerk fashion. That all but stopped the flow from small savers to large borrowers.
Second, the banks are making sure they get their cut before the person who’s money it is they are using.
Sure on the balance sheet, the bank apparently owns a lot more than just the saving accounts, and could claim its their money they are using to grant loans. But what would happen if all the savers suddenly decided to pull their money and stick it under the mattress? The bank would collapse!
If you think people shouldn’t get paid for saving, YOU are part of the problem.
Interest rates are going to zero. Get used to it. — Garth
#41 C. B. Innes on 01.05.09 at 2:36 pm
I agree with everything except the last part about TFSA’s, which were announced before the meltdown I believe. Flaherty and Harper don’t have a crystal ball. Maybe they do but its cloudy!
Plus which, and it goes back to the question Garth still hasn’t answered; savings accounts generating interest are not the only thing that can be put into TFSA. Why do you, and Garth, assume that that’s the only thing people will use them for?
Answered already. I would not put assets yielding a capital gain or loss in a vehicle where losses cannot be deducted from gains. But, be my guest. — Garth
#34 Truth B Told on 01.05.09 at 12:25 pm
I, too, have nuclear industry experience. I believe they are on the right track simply because of the distribution problems associated with centralized generation.
The waste water treatment industry dealt with the same principles. Why build costly sewers when a packaged plant will do the job on-site and efficiently? No need for hundreds of miles of transmission lines, sub stantions, maintenance, etc.
Personally, whenever I read of such projects I stop and remember that our instrumentalities have greatly increased, and mensuration is the key, along with safe designs to such concepts.
I, still, appreciate what you say. Maybe Dr. Emmet Brown will find that magical Flux Capacitor and we can all Go Back To The Future, eh? LOL
BTW, just reading Timothy Ferris’ excellent book ‘The Whole Shebang’ on the state of astrophysics. I watched the new Stephen Hawking specials last night, at least the first one. I will watch the second hour tonight on my handy dandy DVR.
I don’t hold Hawking in quite the mindless esteem that many do. He has quite a PR machine assisting him, and has for a long time. That raises my objective eyebrows as a scientist. He is moving to Canada I see.
In fact, another great book that tells many truths about physics is ‘The Trouble With Physics’ by Lee Smolin. He states physics has been stagnated since about 1985, and I agree with him. Nowadays the focus is on a political battle over which ‘renowned’ phsyicist has the Magic Key!
They are hoping for a major breakthrough at CERN with LHC, but I am waiting to see what it produces. I still think they have missed several key elements of the GUT!
I, of course, not being part of their elite crowd, do not bother to share with them a few things I have discovered over the past 40 years of research. I did once, and never heard a thing back, but have seen a few glimmers of what I shared show up in publications. Was it chance or plaguarism? Who knows?
Anyway, thanks for the comment.
Here’s is how a little carelessness can cause a BIG PROBLEM!
Poetry, like fairytales transcends humanity and is a marvelous form of prose, brings even the strong to their knees.
Louisa May Alcott, Burns, Agnes May, Longfellow, Shelley, Caligula (?) and more — all have contributed to the advancement of this form of language throughout the world.
I get this poem every winter and every winter I love re-reading it. ‘Tis beautiful, and very well composed.
Thought it might bring warmth and comfort to you, as it does to me, so enjoy!
——
WINTER
F*@k!
It’s cold!
The end.
Didn’t that bring a lump to your throat, a tear to your eye? Akin to seeing Queen hairy in a red leather dominatrix leotard outfit!
——
Quite nice and it’s getting warmer as the week advances. We’re fortunate in one respect — we live on a hill, so the water rushes past us. Snow on roofs, ‘tho.
——
Diff’rent folks (Russia / China), same strokes! — http://tinyurl.com/8jtwcc
——
Seems as if gold / silver are starting their journey northward. From today’s DailyReckoning.com . . .
“. . . After the crash comes the bounce. And the bailouts. The bailouts cost money we don’t have. So, we get more debt…and more printing press money. What’s to wonder about?
“In the last two months of last year, MZM – a measure of the money supply – grew at 11% per year. Gold rose. With the Obama bailout…and the Fed’s bailouts…it seems a cinch that the price of gold will go up.
“At $879 an ounce, gold is today no higher than it was 29 years ago. In January 1980, it briefly hit $875. If it were just to reach the same level now, adjusted for inflation, it would have to go to $2,400.
“What bothers us about this is that it is so obvious. Looking at the facts, a sensible person would conclude: the price of gold is going up. Most likely, it will go to three times its current price. . . .”
Interest rates are going to zero. Get used to it. — Garth
Can I have a guarantee that the interest rate charged by the banks on lines of credit, mortgages, credit cards will all go to zero?
Dream on!
The BoC may bring its prime rate to zero, or as close as makes no difference. But that’s not the rate the banks charge for people lending. Even with the substancial drop in the BoC prime rate, the banks are still charging 18% on credit cards, and don’t forget the uproar when they failed to pass along the recent BoC interest rate cuts.
Since they are using our savings for that purpose, they should be returning some of the returns to those that deposited their money with them.
As has been pointed out, since they only need keep 10% or less as a reserve, for every $1,000 deposited, they only hold onto $100. What are they doing with the other $900? They’re lending it out, or investing it to make a return. And just whose $900 is it anyway?
39 Barb the proofreader
Absolutely hilarious!!!
42 Comrade Okie
All things pass; only God is eternal, uncreated and ever the Same.
45 James Chatam/Garth
Interest rates are going to zero. Get used to it. -Garth
Yes Garth and so is the dollar so we may as well spend, borrow and spend some more. When everybody says cash is king it is time to buy quality assets and borrow all you can to buy more.
“I agree with everything except the last part about TFSA’s, which were announced before the meltdown I believe. Flaherty and Harper don’t have a crystal ball. Maybe they do but its cloudy!”
It was public knowledge in June 2007 that there were major problems emerging in financial circles. By November 2007 Canadian banks had started write-downs of mortgage related debt. The TFSA’s were announced in the 2008 budget. The government did not need to consult a crystal ball. They were well aware of what was happening and Harper has already admitted that he was aware by the summer of 2007.
#45 James – Chatham on 01.05.09 at 3:28 pm
James your arguments are stronger in this case than Garth’s – his point that you do not need interest in deflation since same amount of money can buy you more goods if you just wait (holding the water) but bottom line is why I should wait for “few business days” to have my money available when I wont and how much I wont – that cause huge problem to the banks because for every $ pulled out from bank there credit potential shrink multiple times (main reason why they making reserve smaller and smaller) and how they will be able to collect (better to say rip) from people with debts on credit cards charging them 16, 19, 29 or whatever percent interest on balance owed.
Let hope that coming out of this recession is not too painful.
I received a 10 percenter from Mr Dion today asking some interesting questions with the answers to be mailed in. I thought he was gone.
He is an MP. — Garth
Check out a piece on PBS, Bill Moyer’s Journal. He interviews a gentleman by the name of George Soros, wildly succesful investor. Provides some interesting insights on the financial meltdown.
Sorry!
That’d be the Oct 10/08 episode in Archives.
#8
"CTV Globemedia and Canwest are owned by literal pigs at the trough and the sheeple don’t know much of anything right now, the propaganda is so thick"Hi Brain,
I was thinking about Harper’s hired gun, Hill & Knowlton — there’s an evil godmother, if ever there was — the public relations/advertisers who are a wand of the Conservatives & Republicans, the U.S. gov’t, CIA, etc. who neatly create public relations mischief for many interesting clients, they are renowned for manipulating the press.
They concocted the phony “incubators babies” story that clinched support for the Gulf War for Bush.
“Hill & Knowlton has generated a fair amount of controversy. Numerous “public relations” campaigns, on behalf of both governments and private industry appear to violate both industry ethics and civil statutes.”
Hill & Knowlton are accredited with government conspiracies including the ‘October Surprise’. They also worked for the CIA in cases where their overseas offices acted as covers for U.S. agents.
“Public relations and propaganda have merged into a profitable business, giving them the funds and ability to influence public opinion.
Examples of H&K use of propaganda on behalf of clients:
1953
Tobacco Industry hired Hill & Knowlton to help counteract recent scientific findings that suggested cigarette smoking led to cancer. “A Frank Statement” was released to every major newspaper and magazine, misleading readers into believing that cigarettes had no verifiable links to cancer.
1990
Hill & Knowlton launched an initiative aimed at changing the American perception towards Kuwait, using a range of tactics including dozens of news releases. One was an essential tactic in the campaign, the fraudulent “Nurse Nayirah” testimony presented to the Congress. Testimony was she witnessed Iraqi soldiers killing hundreds of premature babies at the Kuwait hospital. Members of Congress and Bush would mention the story throughout the war. The story played a major role in swaying the vote of the Senate. But at the end of the war ABC discovered Nayriah’s testimony was entirely concocted. She was revealed as the daughter of a Kuwait royal family member, the ambassador to the U.S. She had been extensively coached before making her horrendous, and completely false, claims. Bush’s chief of staff and good friend was head of Hill & Knowlton’s Washington office.
2008
Hill & Knowlton made sure London Airport got one-sided press coverage — “the residents who were opposing the airport did not even get a mention in the press”
http://en.wikipedia.org/wiki/Hill_%26_Knowlton
Harper’s aides @ Hill & Knowlton are probably paid to blog troll too.
One Hill & Knowlton Senior Vice President and General Manager was previously a Progressive Conservative chief of staff. Another Senior VP with Hill & Knowlton was Harper’s former chief policy advisor in the PMO and now a controversial Lobbyist who slipped himself through a loophole in Harper’s phony Accountability Act. Harper & Co. have no moral values whatsoever. Canada is in a lot of trouble because of these bungling fools and it will only get worse. They’ve robbed us of the truth, and they’re purposely deconstructing Canada.
#47 Bill-Muskoka (Not Anymore) on 01.05.09 at 3:48 pm
I do not have doubt that nuclear will be save an sound but in the future –> when we find reversal process to use existing nuclear waste.
At the moment we have existing technology that can do the job.
All the stories starts on same way –> on beginning of 20th century blacksmiths/horses “industry” where “threaten” by cars; now we have auto mechanics and auto workers (former blacksmith/horses workers) get scared by new technology. For me is even more ridiculous – since difference between cars and electrical cars are much smaller than between cars and carriages.
#54 David Halfkenny on 01.05.09 at 7:22 pm
Intelligent people very often get rejected by ordinary (brain washed) people. Just try to imagine where we will be today that Michelangelo had a chance to finish his helicopter and teach many people to become doctors.
55 Simon on 01.05.09 at 7:52 pm Check out a piece on PBS, Bill Moyer’s Journal. He interviews a gentleman by the name of George Soros, wildly succesful investor. Provides some interesting insights on the financial meltdown.
—–some interesting reading regarding Soros….i believe he is a partner of Mo Strong——————-The new world devised by Maurice Strong and George Soros
Canada Free Press ^ | November 24, 2008 | Judi McLeod
Posted on Monday, November 24, 2008 5:59:36 PM by blackrobe
Have you ever wondered how capitalism was pushed over the edge of the cliff just six weeks before the American presidential election?
According to financial experts, the world, as we know it will change dramatically by the year 2012. People, who provided for their families only three years ago, will be desperately searching for food.
The story of the economic meltdown of 2008 begins and ends with the United Nations and its carefully managed One World Order.
#54 David Halfkenny on 01.05.09 at 7:22 pm
I received a ten-percenter from a Conservative MP, and the questions were not at all interesting. Lucky you. I would share the questions, but it is gone–filed under “G” for garbage.
Hi Garth, FYI
Americans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned.
http://www.telegraph.co.uk/finance/4125947/Willem-Buiter-warns-of-massive-dollar-collapse.html
#38 “Everything Harper and his cronies have promised they have reneged on” ~ Calberta
Calberta, add to that list Harper’s phony “Accountability Sham” ..er, Act. Everything that comes out of Harper’s mouth is concocted sound bytes. Canadians are living Wag the Dog.
Speaking of, I keep meaning to post this GREAT interview of Larry Larry Beinhart whose 1993 novel ‘American Hero’ was the political satire made into the movie Wag The Dog. Writing it… started when he saw George Bush the elder start Gulf War One.
At the time Beinhart joked “Hey, this is a made for tv movie” staging the illusion of a war in order to detract from a domestic problem.
In 2003 he was gobsmacked when Bush Jnr. & Co. simply copied his movie to do Gulf War Two.
Beinhart had thought the world would be hip and more aware, but instead there was total mass stupidity.
This is essentially the problem. This is a contest between fantasy and reality. Great interview, right to the end.
http://www.cbc.ca/thehour/videos.html?id=961240019
Hi Garth, (911 related)
Former Italian President Francesco Cossiga …Israel did 911
http://www.dockersunion.com/phpbb/viewtopic.php?f=7&t=678
Hi Garth,
Many on TV “News” Programs Continue To Mention “$700 Billion” As Bailout Total; Real Total of Amounts On The Line Is About TEN TIMES THAT AMOUNT, Or 7.3 Trillion!
http://www.cnbc.com/id/27719011
#61 Lana on 01.05.09 at 10:28 pm
When you speak sacrilege, you’ll never gain the temple.
No great loss, though … ’specially against a mind-meld
like Halfkenny. ‘Tis said, on parade, he was so out-of-step, he literally pulled the shoes from the man leading him in parade. Sad, but undoubtedly true.
My accountant told me that the new Tax Saving Account is probably better than my investment account.
For example if I make a $50000 gain in my investment account I’ll be taxed at the 43% rate for that gain. However if I make the same gain in the TSA I pay no tax. Also if I withdraw the $50000, then at a future date I can put $50000 back in even if it is only in the second year whereas a standard account ie $5000/year will only have a limit of $10000.
There is some hope for us little folk. Just have to pick the right equities.
Vegas anyone.
With world’s economies going up – down and left – right all at the same time, no one seems to be able to figure anything out any more, which is why Monday’s WW in the KDC come in handy:
“I’m living so far beyond my income that we may almost be said to be living apart.” — e.e. milne
Further, this was taken from the TV show “Newstopia” (Season 2, Episode 3, aired 12 March 2008). An excellent spoof video (almost four mins.) about the economy by two Aussies.
http://www.youtube.com/watch?v=NIfH0vY2ANA
——
See above and below for further explanation. If us ordinary folk were to act as stupid as this, we would be locked up and the keys thrown away, but these jackasses who know everything about nothing are free to spout off whatever they want. — http://tinyurl.com/a2f3vj
——
When combined with the link I posted earlier, about Japan, India, Russia, China, North America and most of Europe going in the wrong direction, it is clear that no one’s “stimulus” package will work.
So they can give me a a little and then I’m alright Jack! — http://tinyurl.com/8rpbmj
——
GM’s 2008 sales didn’t do very well; most automakers did not have a banner year. Couple of links. — http://tinyurl.com/976k24 http://tinyurl.com/97xevj
Robert Pretcher certainly got a lot of things right in his book “Conquer the Crash”. (he predicts Dow below 1000…) Saved me an ‘extreme’ amount of money. He even prefaced it by saying that even if all the events he foresaw did not transpire, the actions he suggested would not cause people to lose money.
It should be interesting to read your latest book Garth. Hopefully your suggestions are equally prudent regardless of what transpires.
OT – but in relation to the science talk… Is anyone in the Kitchener-Waterloo area (esp. U of W) planning to attend the Gary Goodyear (Minister of State for Science) talk this Thursday at U of W? He’s scheduled to talk about science and all the wonderful things the Harper government has done for science in Canada.
http://www.facebook.com/event.php?eid=41398468670
Also, I agree with the core of Garth’s argument. Risk management is the order of the day, to be sure.
There was an interesting article by Peter Gorrie about the impossible notion upon which our economy is based, that of infinite growth. I think this is the first time I’ve seen the issue brought to light in the MSM…
http://www.thestar.com/news/ideas/article/561016
I find it disturbing that people take the cop-out in saying that we as humans are ‘hard-wired’ to consume mass quantities of useless goods. This is certainly not a part of our instinctual behaviour but we have been programmed as a society to consume, as this is the only way our economy can be sustained in the short term.
#52 C. B. Innes on 01.05.09 at 7:08 pm
True, however the lobby for TFSA has been around for years!
Flaherty, not being able to put 2 and 2 together, went along with what the lobby was asking for regardless of the looming financial situation. You give Flaherty too much credit if you feel he was trying to help the ailing banks with TFSAs.
#55 Simon on 01.05.09 at 7:52 pm
“Check out a piece on PBS, Bill Moyer’s Journal. He interviews a gentleman by the name of George Soros, wildly succesful investor. Provides some interesting insights on the financial meltdown. That’d be the Oct 10/08 episode in Archives.”
Well Worth the Time & Effort to Listen …
http://www.pbs.org/moyers/journal/10102008/watch.html
Length: [ 24’ 32” ]
http://www.pbs.org/moyers/rss/media/BMJ-1226.mp3
http://www.pbs.org/moyers/journal/10102008/transcript1.html?iframe
~= 3,463 word transcript
Here is a creative and constructive measure:
Ever the contrarian, he [Shiller] is convinced that the new financial technologies which have such a bad name right now will make us all much better off in the long run. How do we avoid a replay of the housing bubble 20 years from now? Establish a derivatives market for housing in which payouts are keyed to the Case-Shiller house price index. If smart investors think house prices are rising too fast, they’ll sell their shares, driving down the price. When potential homebuyers or homebuilders see the price of “housing futures” falling they’ll think twice about buying or building actual houses. William Watson, at http://www.ottawacitizen.com/Homes/First+irrational+exuberance+irrational+despondency/1145374/story.html
Yes, Rope, I’m being cynical. Just what we need to rescue us from the mess of “financial technologies” is bigger and better ones to mess with!
#64 Greg get serious and stop playing on conspiracy theory web sites or you may end up joining Sid Ryan CUPE in their banning of anyone who does not condemn Israel from speaking at Canadian universities.
Israel is the only democratic country in the mid-East. It is the only country that sees women as equals, encourages women to be educated and follow careers. I prefer to believe and support them. Some extreme lefties make up theories accusing the U.S. & Israel of horrible crimes because they do not believe in freedom or democracy of any sort. They instead support regimes that think women should be stoned for the sin of being raped and that it’s a sin for a female to learn to read. I know what side of the fence I’m on, do you?
Link to Sid Ryan story:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090105/cupe_israeli_090105/20090105?hub=TopStories
Personally I think this makes Sid & CUPE guilty of a hate crime. Leasa
#67 Bill R on 01.06.09 at 12:15 am
And that I feel is the difference of viewpoint between myself and Garth with regards to capital gains and losses.
The small investor (me) doesn’t have other assets outside of his investments that would generate capital gains or losses which could be used for offseting gains and losses from investments. Vice versa also applies.
If all the small investor has is a small amount of cash to invest, a TFSA would seem to be the way to go. No worry about taxes period.
If at a future date he decides to buy a cottage, or valuable art, then moving that money into an open account, where capital losses occur could be beneficial if he then sells the cottage or art for a capital gain.
I know he is an MP.
But I live in London Ontario and he was speaking as head of the party and not just an MP. I just found this to be odd. It was a rehash of what was mentioned during the election and on forming of the colition.
#77 David Halfkenny on 01.06.09 at 8:06 am
Sounds to me like you’re a victim of the black hole a.k.a. the Canada Post Mississauga Sorting Depot!
#54 David Halfkenny (in London)
I received a 10 percenter from Mr Dion today …
and i thought it was only those evil CPCs sending them to other ridings?
“Flaherty, not being able to put 2 and 2 together, went along with what the lobby was asking for regardless of the looming financial situation. You give Flaherty too much credit if you feel he was trying to help the ailing banks with TFSAs.”
Given the fact that this government’s client is CEOs I may be giving Flaherty too much credit for actually understanding the situation. However, I do think that Harper has enough brains to understand.
If the lobbyists have been seeking TFSAs for some time and the government only accepted the idea in 2008 then it would support my contention that the purpose was to help re-capitalize the banks.
Some bank executives must have realized at some point that the risks they were taking to achieve and maintain market share would eventually create major problems for them. At that point they would be looking for strategies to bail them out. If you can identify when the lobbyists began to lobby for TFSA’s then you can estimate when the banks actually began to recognize the problems they were having.
When interests rates went so low that people stopped using savings accounts and began to look for better income and growth alternatives the banks became desperate to offer them those alternatives and at the same time downplaying the risks. They got themselves into what can best be described as a “racket.”
James,
This news item should illustrate just how much the banks need capital:
http://www.financialpost.com/news/story.html?id=1147099
Leasa,
They instead support regimes that think women should be stoned for the sin of being raped and that it’s a sin for a female to learn to read. I know what side of the fence I’m on, do you?
Yes, I do know what side of the fence you are on…Their side. The perpetrators of denying women’s rights are CONSERVATIVES!
So has having the freedom to read helped you yet?
Canadians are living Wag the Dog.
#63 Barb the proofreader on 01.05.09 at 10:33 pm
That Old Dog needs to be put down! Great flic, and so very, very TRUE! Dustin Hoffman played the role to the MAX!
Now, perhaps you recall Tom Clancy’s Book ‘Executive Orders’? The scenario is 9/11 and the currenty stock market crash combined precisely. The son of a Hiroshima victim avenges his father by using computer trading to trigger a mass selloff of the stock markets (a reality, and the systems have been penetrated repeatedly by hackers), then flies a 747 into the U.S. Congress Building during the State of The Union Address killing Congress, the President, Vice-President, and leaving the hero, Jack Ryan, as the one to carry on as President. The Secretary of Agriculture is dumber than Dim Jim on a drunk and wants the position, but he is shut out.
I think the Power Brokers look for viable scenarios from people like Clancy, who although horridly verbous (800+ pages average) digs out the details and presents a better scenario than the WOPR Computer (The ONLY Winning Move Is Not To Play!) could calculate in ‘War Games’. LOL
Whassup @#79
perhaps the vile LPC have seen the error of their ways and are emulating the openness, transparency, honesty and political efficiency of the CPC.
Someone say it isn't so.#82 Bill, honestly, I have to wonder lately if you are taking stupid pills or what’s going on with you? The CPC recognizes women as equals, not addle brained weaklings that have special needs. Like being appointed because they don’t have the brains to do it on their own. In the CPC, it’s the person most qualified for the job and gender has nothing to do with it.
You responded, but failed to answer my question…I wonder why? Leasa
Leasa,
They instead support regimes that think women should be stoned for the sin of being raped and that it’s a sin for a female to learn to read. I know what side of the fence I’m on, do you?
Two comments:
-is it a sin to be raped? I thought it was being a victim!
-being stoned to death is murder
Religious zealots of any stripe are the major violators of human rights and they often do not have any fences!
#86 Good morning Truth, the answers to your questions depend on what country you live in. L
#66 PYOTR PETROBITCH on 01.05.09 at 11:11 pm
#61 Lana on 01.05.09 at 10:28 pm
When you speak sacrilege, you’ll never gain the temple.
No great loss, though … ’specially against a mind-meld
like Halfkenny. ‘Tis said, on parade, he was so out-of-step, he literally pulled the shoes from the man leading him in parade. Sad, but undoubtedly true.
———–
I hope he picked up one of those shoes and threw it at you know who(se). (poetic license).
#70 cms on 01.06.09 at 4:20 am
OT – but in relation to the science talk… Is anyone in the Kitchener-Waterloo area (esp. U of W) planning to attend the Gary Goodyear (Minister of State for Science) talk this Thursday at U of W? He’s scheduled to talk about science and all the wonderful things the Harper government has done for science in Canada.
—————-
I AM in the K-W area, and I AM a fan of science FICTION, so perhaps I should attend? Nawwwwww…….
Someone mentioned that the CPC picks qualified people for their positions regardless of gender–doesn’t the CPC have anyone in their party with a science background for the position of “Minister of State for Science”? What are Gary’s qualifications for this position?
Too bad our government (regardless of which party is the government of the day) can’t do what Obama is trying to do–pick the best person for the job regardless of party affiliation. If they did, then Garth should be Finance Minister. In fact, having a Finance Minister that is non-partisan would seem to be a better way to go. I vote Garth for Finance Minister!
#63 Barb the proofreader on 01.05.09 at 10:33 pm
Thanks for posting that video, Barb. It was a great interview–I really enjoy The Hour–an intelligent interviewer who actually listens, and lets the guest speak uninterrupted–what a novelty!
I must rent Wag the Dog again. I agree we are living it here in Canada.
You responded, but failed to answer my question…I wonder why? Leasa
#85 Leasa on 01.06.09 at 7:05 pm,/I.
Because you are a partisan, blind, FOOL!
#81 C. B. Innes on 01.06.09 at 9:42 am
I’m not doubting that the banks need capital. Its a case of how they get it, and widening their spread, from what they can borrow the money (LIBOR, BoC rate or what they give savings accounts) to the rate they charge borrowers is not acceptable.
I’m reminded od the Enron scandal when the banks were on the hook. CIBC’s ROR fell to 9% that year, due to the write offs, from the previous years 18%.
The banks have lost a lot and written off a lot due to the sub-prime meltdown and associated credit crunch. But trying to make up the losses in as short a time possible only serves their shareholders in the shortterm as the business model is shortsighted.
They need to get back to doing what they’re supposed to do, building slowly so they don’t create another bubble or collapse.
James,
The new preferred share offerings, also may not serve those who currently hold other shares well.
No matter what strategy the banks use the public (shareholders, taxpayers, and customers) will end up paying for their irresponsible behaviour. That is exactly the way right wing ideologues believe things should operate. They see it as perfectly acceptable for corporate executives to take on unnecessary risk as long as they can mitigate that risk by transferring it to as many people as possible through insurers, pension funds, and others.
That philosophy is responsible for a self-serving mindset that has come to dominate a large segment of the executive class. As long as they rest of society has to pay for their greed the philosophers of the right see it as acceptable.
Many of the supporters on the right of the economic spectrum then spin the idea that those people, whose hard earned savings and income is expropriated, are somehow undeserving of what they have earned because they were too stupid to recognize the con-game. They see the con-artists as earning the right to the property of others because of their “superior intelligence” and “hard work” rather than their greed and lack of integrity.
#72, 90
#83
Hi Lana,
I love a great interviewer, and interviewee, which is why we like him, as well as every Bill Moyer’s interview on Friday nights, and anything on Frontline on Tuesdays.
Lana, your hubby could start CPP right now: 2 ways. The qualifying period is 1 month of not working, or 2 months earning less than $908 the month prior and month after starting benefits. He can then continue working, even full time, and keep collecting.
The payment is slightly reduced .05% per month of early application.
Do you have a basement that could be rented? In university first year at Guelph the “apartment” was a bed in a basement with a curtain… beside a furnace…. but I suspect students want better accommodation 33 years later
Bill,
No, I didn’t read that Clancy book.
Interesting to brush up on things.. I was reading about Operation Gladio, Dulles, CIA, the Italian bombings, strategy of tension, etc. So much interesting reading out there. I had forgotten about Aldo Moro, too.
I was in Italy as a teen. When we arrived Rome’s main airport it was closed, the alternative airport had machine gun carrying army-types everywhere. At the time I didn’t realize the intrigue. You know, the world has been so thoroughly disrupted by these extreme right wing guys, they are so paranoid, and if not for them, what promise the world might have had.
Hi Garth,
Even though I haven’t participated in your page in the past few weeks, I just want you to know that I am deeply moved by your loss. I believe that you will rise above all this CPC crap and show our country people and the world what the conservatives are up to and have done to damage our country. Australia, England, USA and Canada are amongst the countries that should be leading their people; however, weren’t all these countries governed by a conservative government? I remember the Grant Devine/Brian Mulroney theiving years…Yes, our family went into bankruptcy. Good luck to everyone. Tory times are tought times.
#91 Bill-Muskoka (Not Anymore) on 01.07.09 at 9:17 am
You responded, but failed to answer my question…I wonder why? Leasa
#85 Leasa on 01.06.09 at 7:05 pm,/I.
Because you are a partisan, blind, FOOL!
Naw, more likely mezmerized, hypnotized, and brain washed! Come too?, not likely, will just remain in the drone of drivel from dregs of the cultist camp of mental cripples. As the food prices paid to farmers begins to fall significantly, she and her ilk will face bankruptcy just like any other industry including the oil industry! Notice that Alberta ranked up there with Ontario today with the rate of lay offs! No surprise to me, I ‘ve seen what is it now 8 cycles of the boom and bust in ‘Berta!
#96, (un)truth, one thing I do not understand regarding most liberal supporters is why they have to be so vicious toward any person that does not hold their own personal political views? It must be a small sad world for you. You and the rest have my sympathy. L
#96 Truth B Told on 01.09.09 at 1:53 pm
Ah, the Old ‘My Ox has been gored’ reality that strikes into the most dense of mentalities eventually!
Time to go watch Curling on TSN. Russ Howard, of Coldwater, ON, against Jennifer Jones from Saskatchewan in the ‘Skins Playoff’ at Casino Rama in Orillia, ON. Darn,. wish we had known and got tickets.
#96 Truth B Told on 01.09.09 at 1:53 pm
Hey, I’m happy! Are you? Must be someone else Leachate is thinking of, eh?
Hey, I even won a Free Ticket on my Super 7 Lotto ticket last night. Yeehaw!
Oops! Should have been Glen Howard. Anyway, he is playing off against Ferbie this afternoon for $57K at Casino Rama.