Jim Flaherty says he is leaving the federal cabinet and returning to the private sector!
Jim Flaherty is leaving the federal cabinet and returning to the private sector and in my opinion one of the reasons for this could be what’s going in the Canadian housing market. If you ask me I would tell you Jim Flaherty was one hell of a finance minister that in a few years could have easily became the Prime Minister of Canada if he wanted too. That said based on what I’ve been seeing Jim Flaherty has done the best job of anyone finance minister I’ve seen to warn Canadians of the potential financial disaster that might become a reality in the next 2 -5 years.
Housing and house hold debts for Canadians are at ridiculous levels right now. If you watch the news they often paint a picture that the Canadian housing market is not as a bad as the United States is or was. However if you look at the numbers Canada is one disaster away from financial meltdown. It’s important to remember that Canada does not have the worlds reserve currency for those of you that visit other countries and tried to purchase items using Canadian dollars you know what I’m taking about.
Jim Flaherty has done a great job warning us without frightening Canadians but Foreign forces are propping up the Canadian housing market and the Canadian tax payer is going to be on the hook for the bill in the name of the banks and CMHC.
Jim Flaherty tried on more than one occasion to stop the banks from lowering interest rates on mortgages but this hasn’t stopped the banks from lowering mortgage rates and luring more renters and debt seekers into more debt. This is happening all while jobs are leaving Canada! For those of you that don’t understand how the real estate market works when there are no jobs real estate prices FALL! and when there are no jobs people can’t pay their mortgage debts or other debts for that matter. Add this to the Canadian dollar falling and Canada appears to be headed for trouble.
When governments get into financial difficulty they start squeezing people for the little money they do have. This might also favor the liberal government who if hired by the Canadian people will use this opportunity to tax the hell out of businesses which will further escalate the problem! I think Canada missed out on a perfect opportunity to raise interest rates. That was the one thing I wished the Bank of Canada did a long time ago. Being that Canada doesn’t have the worlds reserve currency we could have stabilized our economy cooled housing prices and been in a better position with the current corporate tax policies in place.
Maybe Jim Flaherty just got tired of politics and wanted to go back to the private sector where things are more predictable I’m not sure. But with all the suicides going on in the banking sector it makes you wonder how Canada is really doing financially when the finance minister leaves his position not for health reasons but because it was the right decision for he and his family.
To anyone reading this not sure what to make of it. All I will say to you is if you’re in debt I think it would be smart to get out of it as soon as possible. For the record I don’t give financial advice and anyone reading this should do so for entertainment purposes only!
Best of luck!