Thursday, December 18, 2008
What to make about the fact that Canada's Finance Minister has told Canada's banks to alter their credit policies?
- Jim Flaherty thinks that the best way out of an economic mess that was caused by too much credit going to iffy people is to give even more credit to even more iffy people.
- Jim Flaherty thinks he knows better than privately-owned corporations what strategies are profitable for them.
- Jim Flaherty thinks privately-owned corporations will choose to make decisions that are not in their best interests because he asked them to.
- Jim Flaherty thinks privately-owned corporations will choose to make decisions that are not in their best interests because they feel they owe him a favour for his past actions.
- Jim Flaherty knows damn well that the banks will continue to make decisions that are in their own best interests, but is merely setting the groundwork for being able to publicly blame the banks later on if the economy really really really goes in the crapper and he needs to score some political points at a later date.
Monday, December 15, 2008
A bailout is not "stimulus". It is a bailout.
Or, more likely, a fun exercise in both pissing money down an endless sinkhole while simultaneously delaying economic progress.
Lessee, here in Canada, we've got bailouts underway for autos, forestry, mining (mining??), and shipbuilding. Oh, and an assumption of risk from the banks, who were doing just fine anyway. Who wants to guess what's next?
I'm looking forward to the Great Chewing Gum Bailout of '09.