All the government is doing by purchasing them now is freeing up capital in the banks so they can increase lending as a general economic stimulus measure. There is a large difference between stimulus measures and bailouts.

Listen people… few Canadians realize is that the housing market has avoided collapse (prices are down 32 per cent in the U.S.) because the Harper Conservatives directed the CMHC to change the mortgage rules to effectively make the Canadian government the biggest sub-prime lender in the world. What’s almost as alarming as this reckless policy is that no one in the financial media is talking about it, even though everyone knows the facts.

I was alerted to the scandal by David Lepoidevin, a financial advisor with National Bank Financial, in a warning letter to his clients.

The facts are that over 90 per cent of existing mortgages in Canada are “securitized.” That is the practice of pooling mortgages (or other assets) and then issuing new securities backed by the pool — MBSs, or Mortgage Backed Securities. That’s what happened with the sub-prime mortgages in the U.S. which (because the whole pool was so diversified) received triple-A ratings by the rating agencies. Losses around the world amounted to hundred of billions of dollars

This is the ticking time bomb Prime Minister Stephen Harper has tossed at the Canadian taxpayer. Why? So that he can maintain the fiction that he is a good economic manager and win a majority in the next election.

The problem is no opposition political party wants to expose the looming disaster and risk being responsible for a dramatic fall in house prices. As Liberal finance critic John McCallum told The Globe and Mail: “I don’t think we want the government to be rationing Canadian home-buying.”

The price of political cowardice will be very high. And in the end the housing bubble will burst anyway, putting taxpayers on the hook for tens of billions of dollars in defaulted mortgages.

http://thetyee.ca/Opinion/2009/10/22/BubbleWillBurst/

Few Canadians realize is that the housing market has avoided collapse (prices are down 32 per cent in the U.S.) because the Harper Conservatives directed the CMHC to change the mortgage rules to effectively make the Canadian government the biggest sub-prime lender in the world. What’s almost as alarming as this reckless policy is that no one in the financial media is talking about it, even though everyone knows the facts.

I was alerted to the scandal by David Lepoidevin, a financial advisor with National Bank Financial, in a warning letter to his clients.

The facts are that over 90 per cent of existing mortgages in Canada are “securitized.” That is the practice of pooling mortgages (or other assets) and then issuing new securities backed by the pool — MBSs, or Mortgage Backed Securities. That’s what happened with the sub-prime mortgages in the U.S. which (because the whole pool was so diversified) received triple-A ratings by the rating agencies. Losses around the world amounted to hundred of billions of dollars

This is the ticking time bomb Prime Minister Stephen Harper has tossed at the Canadian taxpayer. Why? So that he can maintain the fiction that he is a good economic manager and win a majority in the next election.

The problem is no opposition political party wants to expose the looming disaster and risk being responsible for a dramatic fall in house prices. As Liberal finance critic John McCallum told The Globe and Mail: “I don’t think we want the government to be rationing Canadian home-buying.”

The price of political cowardice will be very high. And in the end the housing bubble will burst anyway, putting taxpayers on the hook for tens of billions of dollars in defaulted mortgages.

http://thetyee.ca/Opinion/2009/10/22/BubbleWillBurst/

http://www.sprott.com/Docs/MarketsataGlance/11_09%20Dont%20Bank%20on%20the%20Banks.pdf

- skip to page 4 to find out what really happened to Canada’s bank…they’re actually in much worse shape than I thought

Comments on the then recent stock market merger of Time Waner & ALO (A-hole).

http://www.youtube.com/watch?v=F1GUoQpkr0s

shows that any politician with their fingerprints found on that stupid TARP bill and bail outs for Goldman Sucks and JP Morgan will be KICKED-OUT-OF-OFFICE!!!!!!

WARN CONGRESS TO STOP ALL BAIL OUTS IMMEDIATELY!!!

If you wish to peruse housing in any city in Canada, you can always refer to mls.ca, where they recently upgraded the searching of properties.

You get a very sharp, clear idea of what housing looks like and what it goes for in any particular city. Its for very certain that urban properties in major centres will retain more value than depressed regions, even though those major urban centres have suffered tremendous economic pullbacks.

The truth eventually boils down to the math. You can continue the charade for a while, through market momentum, but eventually, there has to be an adjustment.

It maybe a “socialist” source, but the really one of few sources reporting on it in Canada:

“On November 12[2008[, the Department of Finance announced that it would buy up another $50-billion in securities by the end of the fiscal year through the CMHC as part of its Insured Mortgage Purchase Program (IMPP), bringing the total of the programme up to $75-billion. This was justified as part of the government’s efforts to maintain the availability of longer-term credit in Canada. Simultaneously, the government announced that they would indeed “guarantee…more than $200-billion to pay back new loans made to Canadian financial institutions.”