- April 20, 2012 - 08:13
Do you think that people borrow on their credit card to buy food? Needs in this time have turned to a better car or a better house, unlike the past when these were a want. The Bank of Canada has to lead people who are not economically savvy, not to enable them. This means that there should be a base rate below which the Bank cannot go, ie. about three percent. Although you note that incomes have not risen in a generation, when ever workers strike for an increase it is always labelled by business and the media as greed unions (see the recent trawler strike). Spin doctors must now be used to frame every action. And by the way your reference to remortgaging the Parliament buildings, the Federal government may have to do just that when all the doubtful loans banks have sold to CMHC come home to roost. Losses by CMHC could well be in the 100-200 Billion range.