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Meanwhile, in more relevant election news…

Finance Minister Flaherty decides to take $25 billion in mortgages off banks’ books to loose credit. He claims that this will enable banks to drop their prime lending rates, as they only passed along a 1/4% drop to their consumers when the Bank of Canada cut the prime lending rate by a lot more. Maybe they will, but I’ll believe it when I see the announcement. The banks are more concerned with their bottom line then they are with consumers at the moment.

The other economic news the Conservatives are trying to play up is the fact that 107 000 new jobs were created last month, but unfortunately, that’s a bit of old news, given most of this occurred before the current market crisis, and the fact the jobs are mostly part-time:

…almost all of this increase was in part-time work, representing 97,000 positions. “That’s not what you want to see in job creation,” Taruc said. “What you want to see is more full-time jobs because there are more people gainfully employed.”..Despite the increase, the unemployment rate was unchanged at 6.1 per cent, as there were 113,700 more Canadians actively looking for work in the month.

Unfortunately, the TSX hasn’t been impressed with this move or the job figures: The TSX as of this posting is down another 457 points as of this blogpost – a 4.8% drop.

“Buying opportunities” for Canadians are growing better and better, eh Harper? This is the reason the Conservatives jumped on the language difficulties of Mr Dion last night. They’re looking for any bit of distraction to the media and to the voter over the real issues they don’t want to face flack over – the economy and their so far “don’t worry, be happy” approach to it being the main issue.

UPDATE @ 12:42 pmDion responds to the mortgages announcement:

“After months of saying no action was required and his approach was sufficient, it appears, four days before Election Day, Stephen Harper has now had a change of heart,” said Mr. Dion. “It is no surprise that many Canadians will believe that the Conservatives are playing partisan politics with their mortgages and savings in the dying days of a federal election.” “After saying my concrete proposals for action were wrong, it appears Stephen Harper has finally woken up to the fact that a Prime Minister should and must take action to help Canadians instead of lecturing them on buying opportunities available in a collapsing market,” added Mr. Dion.

UPDATE 2 @ 2:24 pm: Ugh. The TSX plunged through the 9000 points barrier, but has rallied a bit since. Still down 587 points on the day.

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8 comments to Meanwhile, in more relevant election news…

  • You want to see bad? Wait until the G7 guys get together and they want to announce a saviour package this weekend and Flaherty tries to delay it so that they can keep up the denial line until after the election.

    This credit crisis is no joke and it is completely different from a recession. Who gives a shit if some jobs were created, if they can’t get paid, and no one can buy food?

  • Oh gawd Moebius, only a Conservative would think that was somehow that was smart or insightful remark .

    I don’t see anyone happily touting anything, rather Scott reporting on a market with its bottom dropping out, while Harper says nothing is wrong, stay the course or better yet, buy some good stocks at fire sale prices.

    By the looks of the polls Canadians around the “kitchen table” (another vapid right-wing cliche) are getting tired of being lied to when they are told everything is fine when clearly its not.

    And how about that $20 billion deficit Flaherty is hiding – its exactly what he did to Ontario.

  • Moebius

    Only a Liberal would be happy touting stock market losses, provoked by Dion and Layton’s hysteria.

    Canadians around the “kitchen table” are beginning to get annoyed with the negativity. Loose lips really do sink ships.

  • @Mike

    It recovered some since your post.. just above the 9000 mark.. but down 535 points (5.6% loss) for the day.

  • 700 Scott, over 700 points, meaning about 500 in the 1 hour since your last update.

  • Tim

    http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2006/2006-06-28-1400.cfm

    Quote:

    Earlier this year, CMHC was the first Canadian mortgage insurer to introduce, on a pilot basis, insurance on loans with extended amortization periods of up to 30 years. Building on the success of this pilot, CMHC is now moving to further facilitate homeownership by making this feature on-going, and is also introducing extended amortization periods of up to 35 years.

  • Tim

    Just a reminder of the destruction started by Harper. Please read the link.

    http://www.taxpayer.com/main/news.php?news_id=2430

    Harper’s Conservatives don’t and won’t accept government’s necessary role of preparing for our future.

    Harper followed Bush’s example and first deregulated credit. June 2006, than again in November 2006 CMHC relaxed its standards. Prior to Harper, government insured mortgage were a prudent maximum of 25 years and with a minimum down payment of 5%. The introduction of dangerous zero down 40yr mortgages fueled already out of control housing prices. Canada is not suffering to the extend the US people are suffering because the Liberals know there is piper to pay and did not follow Bush deregulating credit. Only after Canada felt the growing credit crises did Harper reverse the dangerous zero down 40yr mortgages effective Oct 15 2008 which he earlier introduced in 2006.

    Harper is clueless about the world around him and is in personal denial.

  • Prairie Kid

    If you want to pick certain portions from a script, here’s a portion from the above quote that you “conveniently” forgot.

    “We’ve been so used to seeing the manufacturing jobs disappear and there in one month almost 20,000 manufacturing jobs created. That is an extremely encouraging sign and with the Canadian dollar slipping the way it has been below 89 cents; this is good news,” Kane said.

    Also, the International Monetary Fund just yesterday declared that Canada would out perform every G7 country next year.

    Mr. Dion’s “the sky is falling” approach is so out of touch, I can’t believe Canadians are going to fall for it. But, lets wait until Tuesday, shall we?

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