Canada to buy up 25 Billion in Mortgages

Canada to buy up to $25 bln in insured mortgages (external - login to view) -This sounds promising - it's simple and cuts to the chase. It sound like they plan to buy up mortgages for people who are having a hard time renewing because of this mess.
That would be a mistake.

Their goal is to free up credit and alleviate some of the fear in the market. However, I am not a fan of government tinkering in the economy.

Let's say the bankers cut back on issuing credit because, in their judgement, such loans would be risky. I don't think the government should be throwing 25B into the system to get bankers to go against their better judgement.

Let me re-state this: the government is trying to get bankers to go against their better judgement and issue credit/loans where they otherwise would not.

Leave it alone. Ultimately, such a policy does not work; it only makes the problem worse.

Similar Threads

no new posts