By Henry McRandall
WRISEUP.COM
Prime Minister Stephen Harper has made it clear that when the G20 next meets to try to repair the shattered global economy, Canada will oppose a global tax on bank transactions or any rigid new regulations on the activities of financial institutions.
Harper argues, correctly, that Canada’s financial sector is better regulated than most and that its financial institutions are in relatively good shape. But he makes a great psychological leap, incorrectly, to the conclusion that further taxation or regulation are not needed.
First of all, Harper continues to try to camouflage the fact that despite the relative health of Canada’s financial sector, his government did indeed come up with a massive, unnecessary bailout that has already cost Canadians more than $200 billion. Specifically, he had the Bank of Canada make $200 billion available to relieve the banks of the mortgages they were holding and since then he has had the Bank of Canada lend money to those same financial institutions virtually free (0.25 percent). read more »