By Mark Taliano
The Wall Street meltdown in 2008/2009 triggered the Great Recession, and led to a tax payer funded bailout of two trillion dollars. Despite the losses, attributed in large part to a poorly regulated financial system, Wall Street continues to lobby against regulations in a world where self-interest trumps economic and social good.
It was during this same time that Prime Minister Harper assured us that our financial system was stable, and that we need not worry.
Well, he wasn’t telling the truth.
The Canadian Center For Policy Alternatives recently discovered that the bank bail-outs inCanadawere much larger than thought. Canadian banks received $114 billion in bailouts during the recession, which is 10 times the amount that Canadian taxpayers spent on auto bailouts in 2009.
Sixty-nine billion dollars worth of mortgages were taken off bank balance sheets, and are now covered by the CMHC program. The banks won’t have to pay this back, but the tax payers will continue to be burdened with the risks.
Banks also received $41 billion from the Bank of Canada, and they received $11 billion from the U.S Federal Reserve.
Despite this, Canadian banks, like their American counterparts, want to “hit the pause button” on government regulation of their industry. This,despite the risk to Canadian taxpayers, and the Canadian economy.
Bank Of Canada governor Mark Carney is right when he observes that the “too big to fail” mentality in the financial world isn’t fair, and that it necessarily exacerbates income inequalities in this country.
He notes, too, that other businesses went broke during the recession, but not the banks, because they are protected by the tax payers. Again, not fair.
Carney, who is also chair of the Financial Stability Board, adds that the Canadian Bankers Association is mistaken to suggest that government regulations on the industry “hit the pause button”. No doubt taxpayers would (or at least should) agree.
Self-regulation in the financial industry is as ill advised as self-regulation in the petroleum industry. In both cases, it is occurring, and in both cases, it is costing the tax payers dearly.
With health care on its knees, and “austerity measures” being imposed from above, Canadians would do well to remember that the 99% didn’t create the current economic mess, but that they are being asked to pay for it … again.
Mark Taliano is a Niagara resident and frequent contributor of news and commentary to Niagara At Large.
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Niagara At Large 
Mark this is a very revealing article that should stir up resentment BUT IT WON’T and the Government of Canada is counting on this. Sheep to the slaughter is the most profound message this generates even as recently the CEOs of the major banking institutes were allowed to increase their take home pay by in one case up to 29%.
A past Liberal Minister of Trade stated categorically that there was no collusion when all of a sudden the oil prices rose almost in unison. This same man was very instrumental in the proposed integration or secession of Canada with or to the U.S.A. and this man holds government “Appointed” position that greatly influence the lives of the common folk.
Yes this is the same individual who is Chairman of the Canadian CEO’s Association a “Union” by a different name and along with the Canadian Board of Director’s Association (Another Union) In my opinion they have all avenues locked up tight and common folk are left to scrounge for the bits that fall from their tables.
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Mark
Not only an insightful teacher (retired?) but well spoken on this issue. Interesting how we don’t hear/read much of this point on the “mainstream” media. Good to have Doug Draper around, eh?!
We have governments at all levels who decry the cost of welfare and social services. Look at what is getting cut. Look, too, at who’s getting laid off: not those at the highest positions.
Corporate welfare is still alive and well in Canada. So much for the brains behind banking and other big businesses. Are we so afraid of a bank going bankrupt that we will continue to rob the poor to support the rich? Small businesses in Canada still provide the majority of jobs. Let’s do more to keep them afloat — ah, but that might include race tracks (and the small businesses their business supports) and local hospitals.
Big isn’t always better. In fact, the bigger they are the harder they fall: even in business.
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Not “asked” to pay for the mess, but rather drafted. The buffet is firmly padlocked against the 99 percent, but it is entirely compliments of them. By the same token, wide-open access is granted to the 1 percent, but not a penny has come out of their pockets for it.
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Mark, you have a lot of comments addressed to you. I’ll try to avoid this.:-) I’m glad to finally see an article praising the Harper Government. I mean this is the only logical understanding of this comment. – “Canadian banks, like their American counterparts, want to “hit the pause button” on government regulation of their industry.” – So if the Bankers want to pause regulation it must mean someone is trying to regulate them. Thank goodness we have Harper in Ottawa.
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They the banks say that it wasn’t a bailout per se but money given to them to lend out to canadians to buy houses and buy autos et cet, When they had their money tied up on other deals, To most people that is a lame excuse, the government made me take the money.We had to take it.!!!! They insult our intelligence at every turn, We the taxpayers are nothing but milk cows,
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I am so tired of the small business community being pushed into destitution by these banks and other “too big to fail” corporations that get tax cuts year over year and handouts in the trillions. I am considering gathering everybody I know that operates an owner operated small business in Niagara and getting ourselves bused to Ottawa to ask for our bailouts. After all, if it is good enough for the rich, is it not good enough for the rest?
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Here’s an excellent clip:
http://www.theglobeandmail.com/report-on-business/video/video-were-canadas-banks-secretly-bailed-out/article2418449/?from=2420660
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Tax havens
http://www.operationmaple.com/big-business/the-men-who-stole-the-world
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Brigitte De Pape:
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It’s like Robin Hood in reverse rob the poor to give to the filthy rich. while they hide the dough off shore in the Caymans or Switzerland.this is the stuff of revolutions.How come Brian Mulroney could put 250 thousand dollars in cash into a lock box in New York c ity when no one else is allowed that priviledge? If you don’t declare ten thousand dollars it is confiscated..and you may get a jail sentence.
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Please excuse my spelling faux pas I get my Cataract surgery June 15th hope everything goes well.then, I’ll be seeing the world from a different perspective, maybe.
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