According to the Calgary Herald, Harper is prepared to purchase up to $225 billion more of our banks' investments.
The bailout would consist of buying more mortgages, essentially making Ottawa a significant public owner of the commercial mortgage market in Canada.
Somehow I don't think this was originally part of Harper's alleged plan to rescue Canada -- not that he ever actually had one. As the article points out, this represents an abandonment of Harper's free market principles.
In truth, there's little else to do as the rest of the world is doing the same. The question is, how much is really necessary?
This isn't a free lunch. To do this, the federal government has to head off to the bond market and raise the cash. Obviously, this costs money in interest payments. We then hope that the mortgages purchased will provide us sufficient return to at least break even over time.
It is most unfortunate that these Conservatives don't understand that spending a liver of such grand amounts on child care and the environment also represents important return-yeilding investments.
*Sigh*
Oh yeah, VOTE! I did.
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Posted By Mark Francis to Section 15 at 10/14/2008 06:40:00 PM
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