Canadian banks got $114B 'bailout' during recession

petros

petros

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We all had to chip in to pay for deadbeats who don't pay their credit card bills.

petros said:
We all had to chip in to pay for deadbeats who don't pay their credit card bills.
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Oh ****. I forgot about the freakin' auto company we bought for Ontario.
 
Machjo

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petros said:
We all had to chip in to pay for deadbeats who don't pay their credit card bills.
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So why should we be paying for for the banks' bad decisions. Should we not have let them learn their lesson and swallow the loss instead, so as to teach them not to give credit cards to those who can't afford it? Now that we've bailed them out, they'll just do it again.

petros said:
Oh ****. I forgot about the freakin' auto company we bought for Ontario.
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And that too.
 
petros

petros

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Who spent the money? Banks or the people they lent to? If the persons who borrowed the money aren't responsible of how they spend and then default is that the bank's fault?

If you really really wanted to see the economy take leaps and bounds, tell the people to stop buying new crap for 2 years and pay off bills instead then the banks repay Govt and then Govt opens up big chunks of funds to invest directly into Canada and balance the books.

Grow up Canada and take responsibilty for your personal actions!
 
Niflmir

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Machjo said:
So why should we be paying for for the banks' bad decisions. Should we not have let them learn their lesson and swallow the loss instead, so as to teach them not to give credit cards to those who can't afford it? Now that we've bailed them out, they'll just do it again.



And that too.
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The unfortunate part is that we pay for the banks bad decisions one way or the other.

Either we pay them cash, or we pay for it by having banks closing down left and right, taking people's savings with them in the banruptcies.

Lets hope that the money came with strings attached.
 
Machjo

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petros said:
Who spent the money? Banks or the people they lent to? If the persons who borrowed the money aren't responsible of how they spend and then default is that the bank's fault?

If you really really wanted to see the economy take leaps and bounds, tell the people to stop buying new crap for 2 years and pay off bills instead then the banks repay Govt and then Govt opens up big chunks of funds to invest directly into Canada and balance the books.

Grow up Canada and take responsibilty for your personal actions!
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So why should we bail out the banks for their irresponsible actions of lending to those who can't pay up?
 
captain morgan

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Machjo said:
Canadian banks got $114B 'bailout' during recession - Business - CBC News

I still remember this; and in my opinion, considering the conservatives were in a minority position, all MPs who voted for this, regardless of party affiliation, were responsible.

And then we wonder why the wealth gap.
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What do you think that the money was used for Machjo?.... Really?

Here's the skinny for ya... When the banks get in a cash crunch and need to clean-up their balance sheets, they eliminate liabilities. Those will include extending credit in all forms.

Many/most businesses, families and individuals rely on credit facilities in order keep themselves liquid and operable... Cut-off their supply and everyone is in the pinch.

That said, the gvt didn't bail-out the banks as much as they used the banks to bail out everyone that relies on their services.
 
Machjo

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Niflmir said:
Because it is a bad option which is still a much better option than the banking system collapsing. The whole thing is a crappy Hobson's choice.
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Canada's banks were sound enough that without the bailout they would have suffered, but hardly gone bankrupt. Maybe banking fees would have gone up and banks would have clamped down on lending, which would have been a good thing since those banks that were most responsible would have to jack up the prices the most while the more responsible ones would have attracted more clients. But they were still solid enough not to need the bailout.

captain morgan said:
So, wholesale foreclosures and business closures are your recommendation?
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Isn't that how the free market works. Get rid of the riff raff to make room for the stronger industries and retrain the people for those jobs. This would also send a message not to borrow if you can't afford it.

Yes our economy would have shrunk, but would also have become more sustainable too after restructuring.
 
petros

petros

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We recent did another under the table bail out too. $25Billion in bonds with payment commencing in 2017. How do you like them apples?
 
petros

petros

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U.S. Securities and Exchange Commission (Home Page)

Type Canada into the "company name" on the serach engine and see where your money is going and coming from.

You'll learn more about the Canadian economy in 1 hour than listening to and reading crap in the media for 10 years.

I'll set you up with the link to bonds. One moment please.

Here is one of the bonds coming due in 2014 that we owe the banks. e424b2

There is lots to filter through. I'll keep posting.

Here is one they are hiding from us by not fully completeing the filing. 424b2

The one of the ones due in 2017 Form 424B2

This is the best overall link too see which sectors of the economy the Canada Pension Plan is invested in. They invest long term and have inside knowledge of what the future holds. http://www.sec.gov/Archives/edgar/data/1283718/000114420412006989/v301908_13fhr.txt

And for the Bolsheviks...... exv99w2
 
PoliticalNick

PoliticalNick

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petros said:
It's defaulted debtors that were bailed out through the banks.
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Not quite but a nice thought. The debtors who you speak of saw not 1 penny of any bail out money. They didn't keep their homes, many were sued and had to give up all assets and declare bankruptcy. I don't see how you figure someone who loses everything and is forced into bankruptcy got bailed out. In fact if they are a taxpayer they got a double whammy. They were foreclosed upon and lost their homes and then had to pay taxes that the govt gave to the banks who also sold the homes and recouped their dough in essence collecting double. No wonder our banking industry looks good through this crisis.

The bail-out was also much larger. Using CMHC as a back-door cover the govt bought up almost $450 billion in high-risk or default mortgages in 2008/09 allowing the banks to remove these from their books and make their balance sheets look far better than they should have been. Recent estimates put this figure closer to $700 billion to date.

Wellington Financial Blog – News, Views & Purviews » Blog Archives » No Canadian bank bailouts? Says who?
 
petros

petros

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Not quite but a nice thought. The debtors who you speak of saw not 1 penny of
any bail out money. They didn't keep their homes, many were sued and had to give
up all assets and declare bankruptcy.
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I hate to break it to you but things that were seized were things seized from people who didn't pay.
 
TenPenny

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petros said:
Show me the $114 Billion in bonuses and I'll agree with that.
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I know that you have a hard time with reading, but you might note that I didn't say that ALL of it went to bonuses. However, in, for example, 2009, the bonuses were $8.3 billion, according to the Globe and Mail.
 
petros

petros

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Should they have taken the stock options in their contracts for bonuses or wa it better that CDN Govt bought the stock from them with bonuses?
 
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