Finance Minister Jim Flaherty to hold news conference

[jdobbin]

http://ca.news.yahoo.com/s/capress/081022/...al/bank_lending

Finance Minister Jim Flaherty was to hold a news conference Thursday morning before the opening of financial markets amid speculation Ottawa will guarantee loans made by banks to other financial institutions and beef up insurance for money deposited in banks.

An announcement by the Finance Department late Wednesday said Flaherty would hold a media availability at 8 a.m. ET in Ottawa.

If the government moved to guarantee loans made by banks to other financial institutions it could encourage more lending and help thaw the frigid credit markets.

Eek.

If the banks are not in trouble, why the move? I can't major depositors in Canada fleeing.

Edited October 23, 2008 by jdobbin

[Smallc]

The banks aren't in trouble. Its to keep the system running. It makes the banks less afraid to give out loans.

Edited October 24, 2008 by Charles Anthony
re-copied Opening Post deleted

[jdobbin]

The banks aren't in trouble. Its to keep the system running. It makes the banks less afraid to give out loans.

Does it?

[Smallc]

Does it?

Lets hope so. I think this is more of an optics thing than anything though.

[Argus]

The banks aren't in trouble. Its to keep the system running. It makes the banks less afraid to give out loans.

Actually, it's to help them to GET loans. This doesn't involve loans to individuals, but loans between banks. Other banks have had such loans guaranteed by the state, which puts the Cnd banks at a disadvantage in terms of world trust.

[scribblet]

The Ontario Liberals will be running a deficit, probably other provinces too. In times of global economical problems such as this, I doubt that it would matter who was in charge, it's going to happen. I have to say I don't know why anyone would want to be in charge in times such as this.

[M.Dancer]

Bank-hating credit union clients owe Finance Minister Jim Flaherty a ‘thank you' Thursday morning.

So do home owners who use mortgage brokers, drivers who have fender-benders and must tap their car insurance, and companies borrowing from the local branch of a foreign bank.

The Finance Department didn't just backstop the six big banks with Thursday's promise of a ‘Canadian Lenders Assurance Facility' that will insure wholesale lending.

What the government did should ensure that funding continues to be available to all federally regulated financial institutions - all the companies overseen by OSFI. That sweeps in a number of credit unions, P&C and life insurance companies, and the domestic operations of foreign banks. This sector, by the way, makes up the single largest component of Canada's equity and credit markets.

And all of this is being done with an insurance scheme that's going to feature premiums comparable to the private sector. In other words, unlike most jurisdictions, Canada is ensuring liquidity in financial services without taxpayers footing the bill.

http://www.theglobeandmail.com/servlet/sto...y/WBstreetwise/

At this point had canadians been unlucky enough to risk one on Dion, Dion would still be trying to find experts who could clear their agenda to have a meeting with him so he could prioritize a plan. I think the advice he would get would be to contiinue the plan the Conservatives have had in place for months.

Edited October 23, 2008 by M.Dancer

[jdobbin]

Looks like the deficit might end the Flaherty's next round of tax cuts.

http://ca.news.yahoo.com/s/reuters/081023/..._canada_deficit

Flaherty also said he would have to look carefully at tax-cutting commitments the government made in the last budget.

"This isn't the time to start taking stimulus away from the economy in Canada, so I expect we'll stay on track that way. Having said that, we have to review where we are in terms of various obligations and pressures in the next fiscal year," he said.

Meanwhile the dollar is on a freight train down to the basement. Anyone cancelling trips this year?

[Argus]

Looks like the deficit might end the Flaherty's next round of tax cuts.

http://ca.news.yahoo.com/s/reuters/081023/..._canada_deficit

Meanwhile the dollar is on a freight train down to the basement. Anyone cancelling trips this year?

The dollar's precipitous fall is the only economic good news we've heard this last month. It will go a long way to helping the manufacturing and tourism sectors.

[Topaz]

There are some good things happening because of the "global recession". Oil prices are down so gas prices are down, if you have a loan and not locked at any rate , the interest on that loan is cheaper, exporting is cheaper because of the cheaper C$. The bad side is the unemployment could reach high levels and then business and everyone will experience the down side.

[independent]

The dollar's precipitous fall is the only economic good news we've heard this last month. It will go a long way to helping the manufacturing and tourism sectors.

It will help manufacturing and our tourism industry. http://www.canada.com/reginaleaderpost/sto...a5d&k=32384

http://www.bloomberg.com/apps/news?pid=206...;refer=currency Harper understood the problem the problem of the rising dollar and how it effects manufacturing but prefered too do nothing about it.

[M.Dancer]

http://www.bloomberg.com/apps/news?pid=206...;refer=currency Harper understood the problem the problem of the rising dollar and how it effects manufacturing but prefered too do nothing about it.

Very little a goverment can do if the traders feel that a dollar has value and there is money to be made trading it. The government can enter into the trading but when it comes down to it they become a player in the market and there is no reason they can't lose their shirt....the market has mor money to trade than the feds.

[madmax]

The dollar's precipitous fall is the only economic good news we've heard this last month. It will go a long way to helping the manufacturing and tourism sectors.

I can't comment on the tourism part sector specifically. But the Manufacturing Sector is NOT coming back to Canada because of a sudden drop in the dollar. There are also many factors involved other then the dollar which determine the profitability of the operaton. Clearly the price of steel has seen a sudden drop. The two factors of a lower dollar and affordable steel should aid certain industries that benefit from these factors.

However, most industry sources concur that these would be great factors in good economic times, none of these factors has any effect on US consumption or their ability to pay. Seems many orders are being cut, cancelled or defaulted on because of US companies inability to pay, because the line of credit has disappeared with the banking industry through no fault of their own.

The Federal governments haven't given a rats ass to manufacturing, and so I fully expect them to continue to comment like Armchair Industrialist knowitalls as they watch certain economic variables go up and down. But that is all they do, watch and comment.

Listening to CIBC and the Financial Post, they don't encourage tax cuts, (Pulling a Layton), and want to run deficits, (Pulling a DIon), so, with the unpredictable Flaherty at the helm, sit back and watch.

Could get deficits and tax cuts, for more deficits.

Of course the Banking Industry suggested they aren't going to make alot of money, so the tax cuts wouldn't help them. Same position the manufacturers told Flaherty a year ago.

Of course if you are making money, tax cuts gives you more money.

The Banks view, was to wait until the Banking industry recovered, then give them the tax cuts.

How thoughtful

[eyeball]

I can't comment on the tourism part sector specifically.

Its hard to imagine tourism won't be one of the hardest hit sectors. That said movies and plays were apparently quite popular during the depression - people looked for things to do that would take their minds off their problems. That probably explains why booze was so popular too.

[Mr.Canada]

Its hard to imagine tourism won't be one of the hardest hit sectors. That said movies and plays were apparently quite popular during the depression - people looked for things to do that would take their minds off their problems. That probably explains why booze was so popular too.

Eyeball please explain how your life and finances have gotten worse since Oct.14.

[madmax]

Eyeball please explain how your life and finances have gotten worse since Oct.14.

Wow, that is a good one.

My Life is ok, I have only lost lots of money on paper. The Job, (the Wife), the House, were all lost over this past year and a half. We are just seeing the tip of the iceberg. THat doesn't mean the ship is going to hit the iceberg.

That said, in my region, there have been 3 plant closures since the 14th and two more announced. One Big Box store. Housing sales are now parked. It is no longer a buyers market. It is a sitters market. Sit and wait. Construction has just went flat, one of the few things to keep on chugging. And a big box store has announced it is closing in a couple weeks.

I am in good shape as I run a training and placement centre. Business is booming. Not good for the people on the other end of the stick. But everyone in this region has seen this coming for over a year, so no one is either surprised, or shocked. The growth of the low pay service sector jobs still appear to be around for the time being.

Otherwise, the options are the same. "Leaving on a Jet Plane"

Oh, and the Provincial Finance Minister has decided to run a modest deficit just to queu us up for the deep doo doo coming ahead.

[Mr.Canada]

Wow, that is a good one.

My Life is ok, I have only lost lots of money on paper. The Job, (the Wife), the House, were all lost over this past year and a half. We are just seeing the tip of the iceberg. THat doesn't mean the ship is going to hit the iceberg.

That said, in my region, there have been 3 plant closures since the 14th and two more announced. One Big Box store. Housing sales are now parked. It is no longer a buyers market. It is a sitters market. Sit and wait. Construction has just went flat, one of the few things to keep on chugging. And a big box store has announced it is closing in a couple weeks.

I am in good shape as I run a training and placement centre. Business is booming. Not good for the people on the other end of the stick. But everyone in this region has seen this coming for over a year, so no one is either surprised, or shocked. The growth of the low pay service sector jobs still appear to be around for the time being.

Otherwise, the options are the same. "Leaving on a Jet Plane"

Oh, and the Provincial Finance Minister has decided to run a modest deficit just to queu us up for the deep doo doo coming ahead.

I see. So by your reasoning. The Liberals run a deficit and they're heros. If Mr. Harper does it he's not fit to lead us?

I just to make sure I got this right.

[jdobbin]

The dollar's precipitous fall is the only economic good news we've heard this last month. It will go a long way to helping the manufacturing and tourism sectors.

That's if anyone in the other markets has money to buy our cheap exports or make a cheap vacation here.

[madmax]

I see. So by your reasoning. The Liberals run a deficit and they're heros. If Mr. Harper does it he's not fit to lead us?

I just to make sure I got this right.

No, I disagree with your comments above. Don't know how you came to those radical conclusions.

However....

http://www.nationalpost.com/story.html?id=903788

The political imperative is simple: No deficits. His boss, Prime Minister Stephen Harper, made that point several times during the recent election campaign

At no point have I indicated the OLPC are heroes. The Harper campaign was not forthcoming if they plan to run deficits.

What I see is another lying politician misleading the public, which is what they do.

Just say no to deficits

Calgary Herald

Published: Friday, October 24, 2008

"Let me be crystal clear. A Conservative government will not be raising taxes. We will not impose a carbon tax. We will not cancel planned tax reductions for business. We will not be running a deficit

This week, that same Flaherty said while the current fiscal year would end with a surplus, a deficit could not be ruled out in 2009.

are Canadians being set up for a deficit budget next spring?

Edited October 24, 2008 by madmax

[Mr.Canada]

No, I disagree with your comments above. Don't know how you came to those radical conclusions.

However....

http://www.nationalpost.com/story.html?id=903788

At no point have I indicated the OLPC are heroes. The Harper campaign was not forthcoming if they plan to run deficits.

What I see is another lying politician misleading the public, which is what they do.

Would you like me to quote all the broken promises of the Liberal party of Ontario or Federally? The list wouldn't fit into this screen.

Now Mr.Harper has also said more recently that there will be no deficit for 2008. The mark of a good leader is to be able to switch gears and in these rough economic times it's refreshing to see honesty and integrity on the Hill. A leader who isn't afraid to do the tough thing, to ask Canadians to dig deeper so we, as a nation can get through this together.

You see. Mr. Harper knows that running a $1.5 Trillion dollar economy isn't easy and is a bit harder than sitting on a forum complaining all day long. Mr. Harper knows what it takes to get the results Canadians want. He's an economist for Pete's sake, I think it's safe to say that he knows a tad more about this than anyone on MLW. As economic times change so must the plan. To stand firm may lead to large economic loss.

Let's rally behind our leader and trust him. We may be surprised and how great a job he's actually doing.

Let's not forget Mr. Dions plan to implement more taxes on all the good we buy or Mr. Laytons plan to raise corporate taxes in a rough period. All of these would lead to massive unemployment. The Canadian public knew that and chose the right leader for the right time. PM Stephan Harper and the CPC, they get the job done.

Edited October 24, 2008 by Mr.Canada

[jdobbin]

Would you like me to quote all the broken promises of the Liberal party of Ontario or Federally? The list wouldn't fit into this screen.

The "but the Liberals" argument probably helped the Tories this election. It won't go on forever.

Now Mr.Harper has also said more recently that there will be no deficit for 2008. The mark of a good leader is to be able to switch gears and in these rough economic times it's refreshing to see honesty and integrity on the Hill. A leader who isn't afraid to do the tough thing, to ask Canadians to dig deeper so we, as a nation can get through this together.

The fact of the matter is that for the first six months of the year the economy was producing huge royalties from oil, corporate remittances and from other tax money. As the Bank of Canada said yesterday, we are limping along. A surplus with three months left in the year seems pretty obvious.

2009 doesn't look so hot. And the way the market is spiraling the drain this morning, there seems to be growing concern of a global recession.

You see. Mr. Harper knows that running a $1.5 Trillion dollar economy isn't easy and is a bit harder than sitting on a forum complaining all day long. Mr. Harper knows what it takes to get the results Canadians want. He's an economist for Pete's sake, I think it's safe to say that he knows a tad more about this than anyone on MLW. As economic times change so must the plan. To stand firm may lead to large economic loss.

He's an economist who chose GST cuts rather than income tax cuts even though the OECD said it would have been more effective to cut income taxes.

Let's rally behind our leader and trust him. We may be surprised and how great a job he's actually doing.

Uncritical rallying behind the leader years ago would have led Canada into Iraq. I think it is important to question everything the leader is doing.

Let's not forget Mr. Dions plan to implement more taxes on all the good we buy or Mr. Laytons plan to raise corporate taxes in a rough period. All of these would lead to massive unemployment. The Canadian public knew that and chose the right leader for the right time. PM Stephan Harper and the CPC, they get the job done.

Yup. Dion and Layton didn't win. Harper didn't get it done when it comes to getting a majority.

It is now on Harper to avoid the unemployment and large deficits of a recession while creating the right atmosphere for growth in the aftermath.

Given that is good times Harper spent as much as he did and made poor choices on tax cuts, I'm not sure he can blame anyone but himself for things are pretty tough in 2009.

[normanchateau]

Mr. Harper knows what it takes to get the results Canadians want. He's an economist for Pete's sake,

I keep hearing and reading that Harper's an economist but I've seen no evidence that he ever worked as an economist. Do you know what positions he held which required a degree in economics?

The top positions for economists are for those with a PhD in economics:

http://www.bls.gov/oco/ocos055.htm

If Harper was never employed as an economist and never completed a PhD in economics I'd be wary of calling him an economist.

Does Harper even call himself an economist or is this a label bestowed upon him by those who don't understand the profession of economics?

[normanchateau]

Does anyone, Harper supporter or opponent, know if Harper was ever actually employed or hired as an economist?

Certainly if he was never employed as an economist, it would explain the poor decisions he's made since being elected in 2006. A good economist would not simultaneously increase spending while reducing revenues as Harper has done. It is, however, the policy that Bush has followed. It's worth noting that Bush was never employed as an economist either.

[Mr.Canada]

Does anyone, Harper supporter or opponent, know if Harper was ever actually employed or hired as an economist?

Certainly if he was never employed as an economist, it would explain the poor decisions he's made since being elected in 2006. A good economist would not simultaneously increase spending while reducing revenues as Harper has done. It is, however, the policy that Bush has followed. It's worth noting that Bush was never employed as an economist either.

Yes, we should spend more and raise everyone's taxes instead. Just like the Liberals and NDP would like to do. Wow, what was I thinking. You're a genius. Great idea. Let's try that next election.

[Who's Doing What?]

I see. So by your reasoning. The Liberals run a deficit and they're heros. If Mr. Harper does it he's not fit to lead us?

I just to make sure I got this right.

RE-read the post, I think you got lost somewhere.