Quote: Originally Posted by dumpthemonarchy
SJP, you're talking mostly the US when you bring up Lehman Bros. Our banks are better managed, they can't enter risky businesses like derivatives, so they not on the wild side of "banking." It is in the US that people are taking any job available, not in the Great White North.
To say the stimulus package and immigration are not related is simply not so. Although that is the perception in the media. Most people who work in the media and politics have little direct contact with immigrants. How many people from China or Egypt apply for jobs at The Globe and Mail/Vancouver Sun/CTV/CBC/Liberal party/NDP for example. Near zero. I get the feeling that the media lives in another world on this topic.
Oh, I quite agree, Canadian banks are well managed and did not need any bailout. However, my understanding is that the credit freeze did not occur only in USA. It was spreading to other counties as well.
The credit freeze was irrational, fear based anyway. Sure Lehman Brothers went bankrupt and that was a big organization. But that doesn’t mean that other banks are also going to go belly up, it was pure nonsense. However, financial markets rarely work on logic, they work on emotion, on fear.
That is why though as you point out, there was no reason for the credit freeze in Canada; credit crunch was spreading to Canada as well. Indeed, there was a danger that it may spread worldwide. That is one of the reasons why governments all over the world (even China, surely they had n reason to fear unemployment) stimulated the economy.
If there had been no credit squeeze, we would have had a run of the mill recession (as we did before Lehman Brothers debacle). There would have been no need or a stimulus package or a much smaller package would have been adequate.
So I don’t understand how immigration and stimulus package would be related. Are you saying that if government had declared a freeze on immigration, then stimulus package would not have been necessary?