Opposition deal to oust Harper offers $30-billion stimulus

[jdobbin]

http://ca.news.yahoo.com/s/capress/081201/...rliament_crisis

The Liberals and NDP have agreed to an immediate $30-billion economic stimulus package should they succeed in ousting Prime Minister Stephen Harper's minority government next week, says a senior Liberal source.

And NDP elder statesman Ed Broadbent said the plan - supported by the Bloc Quebecois - would be directed at the beleaguered auto and forestry sectors and at an infrastructure rebuilding program.

Guess we now see what the plan is.

Edited December 1, 2008 by jdobbin

[OddSox]

Sounds like the plan is a $30 billion deficit...

[jdobbin]

Sounds like the plan is a $30 billion deficit...

Will you say the same thing about the Tory plan?

[johhny]

Sounds like the plan is a $30 billion deficit...

I don't thinks so I think they will use the Billions that are being used to prop up the banks, you know these banks that are sound and don't need it. Since the private sector has been unwilling to borrow or invest the government will take the initiative to do so.

[capricorn]

http://ca.news.yahoo.com/s/capress/081201/...rliament_crisis

Guess we now see what the plan is.

Meanwhile, the TSX is down 8 percentage points.

The S&P/TSX composite index was down more than 8% in early afternoon trading Monday as a fractious battle to control the federal government destabilized the financial services sector and a drop in the price of oil weighed on the resources sector.

http://www.nationalpost.com/rss/story.html?id=1016891

Guess we see how the markets feel about the opposition's antics. This is the tip of the iceberg.

Interesting that there is a plan to bail out the auto industry before we know whether there will be bankruptcies in the US auto industry. There's nothing like throwing money at companies that have gone under.

Edited December 1, 2008 by capricorn

[johhny]

Meanwhile, the TSX is down 8 percentage points.

http://www.nationalpost.com/rss/story.html?id=1016891

Guess we see how the markets feel about the opposition's antics. This is the tip of the iceberg.

Interesting that there is a plan to bail out the auto industry before we know whether there will be bankruptcies in the US auto industry. There's nothing like throwing money at companies that have gone under.

They never said it will be to prop up the big 3 did they?

[OddSox]

Will you say the same thing about the Tory plan?

Sure, if they spend $30 billion they don't have...

[Moonbox]

They never said it will be to prop up the big 3 did they?

If the NDP is involved you can bet your ass it will be a big part of the plan.

[Wilber]

They never said it will be to prop up the big 3 did they?

So who will it be, are we going to pump money into parts producers who are making parts for companies that the US government may let declare Chapter 11? The Asian manufacturers who build cars here haven't asked for help. Canada can try to come up with different plans for different scenarios but until Congress makes up its mind, Canada doesn't know what scenario it will confront.

[Topaz]

So who will it be, are we going to pump money into parts producers who are making parts for companies that the US government may let declare Chapter 11? The Asian manufacturers who build cars here haven't asked for help. Canada can try to come up with different plans for different scenarios but until Congress makes up its mind, Canada doesn't know what scenario it will confront.

The Asian auto sector uses the same auto part manufacturers as the Big 3 and they are worried that those auto part makers will go out of business if the Big 3 are no longer.

[M.Dancer]

The Asian auto sector uses the same auto part manufacturers as the Big 3 and they are worried that those auto part makers will go out of business if the Big 3 are no longer.

For the most part, no they don't.

[jdobbin]

Sure, if they spend $30 billion they don't have...

Wait for it then.

[fellowtraveller]

So who will it be,

FRank Stronach, obviously will get a big chunk,.

Is this the plan where they add $50 billion in new business taxes then give the survivors back $30 billion.

I don't understand the comments on 'propping up the big banks'? Harper freed up $25 billion of bank credit by purchasing a solid portfolio of mortgages, a deal that will almost certainly make money fpor taxpayers over time. As a result, and as of today, it is not difficult for a qualified borrower to get a mortgage from a Canuck bank at a decent rate. In fact, they are all back to competing.

[Smallc]

For the most part, no they don't.

For the cars built in North America, they do.

[ThatGuy]

There are two options.

1. Let the US do it and see how it works out

2. Be our own nation

There was an interesting article in the London Free Press today mentioning how much more it costs companies to do business in Canada thanks to wages and exchange etc. It was something like +$27 a person. That is a ton. That has to be redone. I would hope that any stimulus would contain some sort of conditions that must be met.

[Argus]

Will you say the same thing about the Tory plan?

Surprise, surprise, Jdobbin's desperate concern about deficits and overblown government spending has suddenly evaporated!

[Argus]

If the NDP is involved you can bet your ass it will be a big part of the plan.

And you can bet that there will be no demands to restructure their way out of those insanely unfordable labour agreements which pay 10 workers $80k apiece to do a job 3 people could do at $40k.

[Argus]

So who will it be, are we going to pump money into parts producers who are making parts for companies that the US government may let declare Chapter 11?

Remember, none of that money is aimed at actually doing anything about the recession. It's all aimed at making the opposition look good. That is the ONLY purpose behind spending it, and spending it as rapidly and noisily as possible. I don't think any of those three will care if it's all wasted if it makes them look good.

The bills can wait. They're some other government's problem. The only concern now is popularity and trying to legitimize their grab for power.

[johhny]

And you can bet that there will be no demands to restructure their way out of those insanely unfordable labour agreements which pay 10 workers $80k apiece to do a job 3 people could do at $40k.

I would not even bother showing up for work if I made $40,000

[Smallc]

Surprise, surprise, Jdobbin's desperate concern about deficits and overblown government spending has suddenly evaporated!

Without massive cutting, deficits are unavoidable now, no matter who is in charge.

[jdobbin]

Surprise, surprise, Jdobbin's desperate concern about deficits and overblown government spending has suddenly evaporated!

Since I haven't seen the books that Harper has left, it is is hard to say where the country is financially.

I supported a stimulus and I have outlined where I think cuts should take place to ensure we don't sink into an enormous deficit.

One good thing I have seen is the new coalition will have 24 ministers as opposed to Harper's 37.

[cybercoma]

One good thing I have seen is the new coalition will have 24 ministers as opposed to Harper's 37.

Let me guess the first one to go...

Could it be the minister responsible for democratic reform?

[johhny]

[jdobbin]

Let me guess the first one to go...

Could it be the minister responsible for democratic reform?

It certainly didn't need its own individual minister despite the hue and cry from Tories that all 37 ministers were no more, no less than the country needed to survive.

[Bryan]

I can't wait. These idiots are just going to start lighting money on fire and call it "stimulus".