Global Economic Crisis

Now they tell us. During the height of the global financial and economic crisis, Canada’s supposedly “conservative” government boasted that Canadians had the safest, most secure banking system in the world. Never was a hint made that these banking institutions required taxpayer bailouts. However, the Canadian Broadcasting Company (CBC) is now reporting the following:

“Canada’s biggest banks accepted tens of billions in government funds during the recession, according to a report released today by the Canadian Centre for Policy Alternatives. Canada’s banking system is often lauded for being one of the world’s safest. But an analysis by CCPA senior economist David Macdonald concluded that Canada’s major lenders were in a far worse position during the downturn than previously believed…says support for Canadian banks from various agencies reached $114 billion at its peak. That works out to $3,400 for every man, woman and child in Canada, and also to seven per cent of Canada’s gross domestic product in 2009.”

This revelation ties in with other developments throughout the advanced economies afflicted by the crisis. Bankers and their ilk received trillions of dollars in taxpayer-funded bailouts, and the public is only aware of the tip of the iceberg. Of course, the governments claim this was necessary to prevent economic implosion (due to reckless behaviors by bankers).  But the sovereigns are rapidly losing credibility with their own publics, as the global economy continues to stagnate and weaken under a mountain debt, a debt incurred  for bailouts of the financial sector.