Tuesday, December 15, 2015

Banks acting like it’s 1929

from thestar.com


Re: Just go for it, implies Bank of Canada's governor, Dec. 10
Re: Low-dollar policy hurting us, Letter Dec. 8
Just go for it, implies Bank of Canada's governor, Dec. 10
So now the banks want to charge us to deposit our money with them? It was bad enough to read about their outlandish profits of $96 million a day and laying off close to 5,000 people.
The front-page headlines are dominated by the Syrian crisis but it appears to me the banks will be the downfall of our society. Can the politicians and banks not figure out that when people have money, they spend it and it generates the economy?
As another example of banks’ ignorance and greed for profits is giving first-time home buyers way too much mortgage money. My friend’s daughter and her husband were told they could have an $850,000 mortgage. That very night I saw an article in the Star Business section stating that for an $850,000 mortgage, you would need to earn $175,000 a year. They are at least $50,000 below that amount. So why are banks putting young first-time home buyers into this precarious situation?
Back in the 1960s, young people hit the streets in massive numbers to change society. It’s time we all started to think that way again because it’s obvious our banks and politicians only care about themselves. And if our society collapses, it seems they are taken care of.
I would also encourage readers to study the history of the 1930s, because we are repeating it with alarming speed.
Gary Brigden, Toronto
The possibility that Bank of Canada governor Stephen Poloz would seriously consider negative interest rates is an extreme example of interfering with the rights of people to save or spend their money as they see fit. Where is the fairness for those Canadians who have diligently saved for their retirement and potentially be penalized because they are not spending their money to stimulate the economy?
It strikes me as a desperate measure that does not belong in a democracy that respects the rights of its citizens. Please Mr. Poloz don’t do it.
Charles Campisi, Oakville
Well isn’t this simply perfect. The geniuses at the Bank of Canada are going to solve all of our financial problems. Mr. Poloz is going to create money out of thin air but only to pay for bonds issued by corporations so the bankers (who own most of the corporations) will still get their cut by creating money out of thin air and loaning it to governments in Canada.
I guess it never occurred to Mr. Poloz to eliminate the bankers from the loop altogether and create the money ourselves, which the Bank of Canada has the mandate to do and indeed is planning to do as outlined here.
And as if that wasn’t enough, he is going to introduce negative interest rates, which he claims would only affect commercial interests who deposit money with them but not people who deposit their savings in commercial banks. This is a lie. This is exactly where it would go.
So now the banksters would get two shots at us: The interest on the bonds we would purchase from companies (which I repeat are for the most part owned by the banksters) and the interest we would pay to them on our savings in the banks.
Mr. Poloz, do you understand the concept of treason?
Rick Tufts, Toronto
Low-dollar policy hurting us, Letter Dec. 8
Reader Greg Sheehan complains that a low dollar is harming not helping Canadians but in the very next paragraph goes on to tell Bank of Canada governor Stephen Poloz to abandon his low-dollar strategy in order to compete in a global economy. And therein lies the problem.
We cannot compete in a global economy until the rest of the globe catches up in paying livable wages, proper labour regulations and workplace safety. Until that time, the low dollar is what is going to be Canada’s best advantage in a global economy.
Lydia Daurio-Sas, Toronto

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