Wednesday, April 4, 2012

Flaherty, you're not making any sense

So this article here just came to my attention. I have written a few different articles about debt and our housing market lately. On March 21st I published "Canada and the fine line between reality and lies". On the 29th I published "All that matters is the math - but don't forget about the mathematicians". Finally yesterday I did a quick one "The Canadian Housing Conundrum".

It seems that Flaherty doesn't want to tighten the lending markets again. I love that word, tighten. It's excellent newsspeak, as it sounds like something changed and a problem was addressed. Flaherty may soon be caught in his own lie that "growth has been stimulated", as there hasn't actually been growth at all. Debt has been stimulated, which temporarily and at a higher expense makes growth appear to be happening. The basis for this growth as yesterday's post points out is household financing. The same household financing that has been very volatile as I pointed out in the fine line between reality and lies. If that is "tight", then what exactly is loose?

Would it be the reliance on the ponzi American economy our banks admitted to that I showed in all that matters is the math? Is that "tight"? It's not the rules around lending that are the problem, Flaherty. It's the whole damn financial system. It's corrupt, based on fractional reserve lending and exponential never ending growth. Did I mention that pesky problem of peak oil?

We've got a problem here Canadians, journalists and citizens - you need to question the "stability" of our financial system. We didn't avoid the crisis, we delayed it, compounded it, and that won't last.

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Richard Fantin is a self-taught software developer who has mostly throughout his career focused on financial applications and high frequency trading. He currently works for CenturyLink

Nazayh Zanidean is a Project Coordinator for a mid-sized construction contractor in Calgary, Alberta. He enjoys writing as a hobby on topics that include foreign policy, international human rights, security and systemic media bias.

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