The following article appeared in the Toronto Star yesterday with some good points and interesting idea to help out with our economic recovery.



By: Angelo Persichilli - Toronto Star

Excerpt from Article
"Banks asked for help and got it from governments all over the world, including Canada. Unfortunately, instead of passing that help on to the people, they used the money to replenish revenues depleted by their irresponsible policies. Ottawa pumped in billions of dollars by uploading mortgages through CMHC and the Bank of Canada, and it has dramatically cut interest rates to encourage people to borrow money. Banks have kept part of the cuts for themselves and now they want more – a corporate tax cut. We need tax relief not for the banks, but for the tens of thousands of small companies that risk losing their business because of the credit crunch the banks created."
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Flaherty Says He’ll Pressure Canada Banks on Lending

By Theophilos Argitis
Dec. 18 (Bloomberg) -- Canadian Finance Minister Jim Flaherty said he’ll pressure the country’s banks to increase lending to consumers and businesses, in a bid to help reverse the country’s worst downturn in 18 years. Flaherty said today he’ll meet bank executives early next month with Bank of Canada Governor Mark Carney to convey the need for financial institutions to offer credit.

“I expect them to make it evident to us that they are taking steps to make credit more available in Canada,” Flaherty told reporters today in Saskatoon, Saskatchewan.

The government is providing guarantees on more than C$200 billion ($167 billion) of bank debt and has pledged to buy as much as C$75 billion in mortgages from banks to free up cash for loans to consumers and businesses. Bank of Canada policy makers also have put more than C$36 billion into the banking system this year to restore normal terms for loans of up to three months and expanded the types of collateral they accept.

The government “has been assisting banks by ensuring adequate cash,” Flaherty said. “We expect the banks to reciprocate. We expect the banks to provide adequate credit.”

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