Wednesday, January 16, 2008

New Bank of Canada Governor Rodney Dangerfield gets no respect: Big banks consider defying rate cut


Looks like Mark Carney is getting the respect he deserves. After all, he only got the job by being an instrument for larger forces.....why would they kow tow to him now?

Looks like the Big Banks are now setting Canada’s monetary policy. Just imagine if these 600 pound gorillas were allowed to merge?


Big banks consider defying rate cut
Would risk destabilizing country's monetary policy
HEATHER SCOFFIELD AND TARA PERKINS
From Wednesday's Globe and Mail
January 16, 2008 at 2:50 AM EST

Some of Canada's big banks are contemplating holding their prime rates steady in the face of a rate cut by the Bank of Canada, a move that could destabilize the country's monetary policy.........

1 comment:

Dr Mike said...

Oh Oh --it was just a matter of time before this happened.

Big business which includes the banking giants have believed for some time that they are the ones that rule this country & that they are the ones who should set policy for us all.

I am not just talking financial policy , but policy in general--basically , every policy that affects You & I on a daily basis.

They have found that mixing the boardroom with halls of government makes for an almost seamless mix of policy which becomes exclusively beneficial to themselves--sometimes a few crumbs may fall our way from time to time.

This problem will continue to worsen as control of these giants of business becomes more centralized .

It was announced a short time ago that Manulife was investing 500 million dollars in CIBC to aid them in their subprime write-downs--how fine is that!!

It was not long ago that Mr Flaherty said no to any merger of CIBC & Manulife--well , so much for that--it seems that a quiet merger of sorts is taking place right under Flaherty`s nose.

It will be interesting to see where this banking interest rate mutiny will take us.

Certainly Mr Carney has been left in the dust--a good place for him!!

Mike.