On October of 2008 Prime Minister Harper
publicly announced that
“Canada Mortgage and Housing (CMHC) will purchase up to $25 billion in
insured mortgage pools as part of the
Government of Canada’s plan,
announced today, to maintain the availability of longer-term credit in
On November 12, 2008, another $50 billion
allocation was announced. The
official text was; “The Honourable Jim
Minister of Finance, today announced the Government will purchase up to
additional $50 billion of insured mortgage pools by the end of the
as part of its ongoing efforts to maintain the availability of
This action will increase to $75 billion the maximum value of securities purchased through CMHC under this program”.
Chairman of the Standing Committee on Finance
House of Commons
Ref; Federal Financial aid given to Canadian Chartered Banks
A report by Bloomberg dated January 23, 2009, indicated the government had pledged as much as $200 billion in this matter.
Regardless of the modifiers, the above record
of financing activity
clearly indicates that the citizens of Canada traded cash money that had
borrowed (think or our deficit) for the purchase of “insured mortgages”
the world has come to recognize as code words for “toxic assets” or
loans”. By this program Canadians have lessoned the financial risk
the shareholders of our banks. Also, by this program Canadians have
banks to engage in foreign acquisition such as the purchase of Commerce
Apart from the staggering conflict of interest condition this program represents it still constitutes a “bailout” as most Canadians now understand the word to mean.
As parliamentarians and particularly as members of the Finance Committee, please correct the public misconception that the Government of Canada did not “bailout” Canada’s banks when in fact we all still own $75 billion of their valueless paper.
Cc Standing Committee on Finance
Jean Crowder, MP
Robert Oliphant. MP
Chris Bowers; Publisher of the Shingle
James Daw; Journalist
Toby Sanger; Economist