Harper's deficit

[Topaz]

I came across an article about what Harper has done with the Canadian taxpayers money, espeically back in October before the election and after. I just would like you to read this article and make your comments if its right thing to do http://www.globalresearch.ca/index.php?con...a&aid=12007

[Keepitsimple]

It didn't make much news because it was such a simple, straight-forward, common sense transaction. Perhaps it would be clearer if we used smaller figures. Let's assume the average mortgage is $300,000 and the Federal government agreed to take 10 of those mortgages. The government would give the bank $3 million and the government would then "own" those 10 mortgages. This is supposed to free up most of that $3 million for banks to lend to other people. Canada's mortgage rules have always dictated that people have to put down a reasonable amount to qualify for a mortgage. The US got into trouble because you could buy a home with NO down payment - tyhis created a housing boom that went bust and because people did not have to make a large down payment, they simply walked away from their mortgage and left the Banks with houses whose values were dropping. That doesn't happen in Canada.....very few people walk away from their mortgages because of our tighter eligibility requirements. As the government said in the article - it's simply an exchange of assets - cash for mortgages. This is NOT a bailout.

[Jerry J. Fortin]

I agree that it is not a bailout. Sellout would be a more proper term for it. A net transfer of wealth from the public purse into private hands would be more accurate. This and the auto sector handouts are a sign of the times and a political statement. The reality is that "Bay Street" and the auto sector have much political clout, far more than the tax paying citizens, and it is clear that corporate influence has translated itself into corporate governance.

Both the left and the right failed to recognize the running play up the middle of the political playing field and the citizens have been handed the bill.

[Keepitsimple]

I agree that it is not a bailout. Sellout would be a more proper term for it. A net transfer of wealth from the public purse into private hands would be more accurate. This and the auto sector handouts are a sign of the times and a political statement. The reality is that "Bay Street" and the auto sector have much political clout, far more than the tax paying citizens, and it is clear that corporate influence has translated itself into corporate governance.

Both the left and the right failed to recognize the running play up the middle of the political playing field and the citizens have been handed the bill.

No....it's not a "net transfer of wealth from the public purse"......as I explained. It's trade of assets - cash for secure mortgages. The auto bailout is a different story because there is significant risk of taxpayers' money. Technically, they are loans but I would readily classify it as a bailout because I don't think those loans are going to be repaid anytime soon. I think we'll be on the hook for at least some portion of all that money.

[Topaz]

Since, the auto sector was bought up, I heard today that GM,will probably go into chapter11 and I also heard that they are thinking of moving alot of their work to China and Mexico for cheaper wages. It was a US station I heard that on and some are questioning the fact that public money in both US and Canada will be loan to them and therefore, they should stay in those countries with the work force there, at least until the loan is paid off. Do you agree and has the government made that clear in writing for both Chrysler and GM coming??

[Moonbox]

Since, the auto sector was bought up, I heard today that GM,will probably go into chapter11 and I also heard that they are thinking of moving alot of their work to China and Mexico for cheaper wages. It was a US station I heard that on and some are questioning the fact that public money in both US and Canada will be loan to them and therefore, they should stay in those countries with the work force there, at least until the loan is paid off. Do you agree and has the government made that clear in writing for both Chrysler and GM coming??

Where did you 'hear' that from?

The way the bankruptcy is going to work is that current shareholders will get basically nothing. They ran the company into bankruptcy. The current debtholders will get almost nothing. They lent money to a company headed for disaster.

Under the bankruptcy agreements being organized, apparently the government and the UAW will end up owning 89% of the company.

The current shareholders ALL combined will end up with a 1% stake in the company, with the remaining 10% owned by the debt holders.

Given the new stakeholders in the organization, I think it's safe to safe they won't be moving to Mexico.

Edited May 11, 2009 by Moonbox

[Topaz]

Harper has told voters in Quebec that the debt will go to 85 billion and even further BUT only for a short time??? How can he say that when it took the Libs 10 years and cutting in the military to get rid of it? How can any government NOT raise taxes to pay off the debt? More people are not paying income tax and more baby boomers are going to retire within the 10 year period. I think its time to put the brakes on the spending and really regroup! http://ca.news.yahoo.com/s/capress/090514/.../harper_deficit

[Mr.Canada]

I came across an article about what Harper has done with the Canadian taxpayers money, espeically back in October before the election and after. I just would like you to read this article and make your comments if its right thing to do http://www.globalresearch.ca/index.php?con...a&aid=12007

We all know what the Liberals do with taxpayer money don't we? They funnel it to their friends...like ADSCAM. I doubt you Liberals can really point fingers with a straight face. Then we have the accidental tourist Ignotieff who wishes to be PM but has been out of Canada for 34 years and is totally out of touch with everyday Canadians. I don't think there's a lot everyday Canadians at the HArvard and OXford yacht clubs.