Thursday, January 19, 2012

Debt Continues To Smother Us All Thanks to the Banksters

So here's how it works.  Although coming off record profits in 2011, Canadian banksters have decided to nickel and dime us in 2012 with their new chequing and ATM fees.  Why?  Because, on the one hand,  healthy corporations are hoarding their Flaherty tax cuts cash, are understandably reluctant to invest given a shaky global economy, and consequently simply don't need to borrow, while , on the other, sick corporations are clearly unable to borrow even if they wanted to do so.  

From where does profit come then? Why little ol' Canadian householders, of course, who are already in deep debt with a 154% debt to income ratio  and who will continue to borrow because their income is shrinking and because their households need to be maintained. These circumstances are bad enough, but the housing market is beginning to wobble seriously too: Vancouver, Toronto, Ottawa are already showing rippling signs. It remains discouraging that the Harper Regime has done nothing about this economic misery and yet is partially responsible for it through misguided neoliberal economic policy and the absence  of job creation initiatives. 

I've said this many times:  prepare for a shallow and long recessionary period - maybe twenty years with little ups and downs and countless mini-crises.

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