Bank of Canada considers going 'nuclear' in economic battle
Ready to buy up securities
Paul Vieira, Financial Post
Published: Tuesday, March 03, 2009
OTTAWA - With the economy in deeper trouble than it expected and its benchmark-lending rate approaching zero, the Bank of Canada signalled Tuesday it was prepared to enter unchartered territory and flood the financial system with additional cash by buying up securities in the market.
The signal toward "quantitative" easing was included in its statement explaining the latest interest-rate decision, another 50-basis-point reduction in the benchmark rate, to a record low 0.5 per cent. That's four percentage points below its December 2007 level.
As expected, the Bank of Canada cut its key benchmark-lending rate Tuesday by another 50 basis points, to a record low of 0.50 per cent, to spur an economy that it acknowledged is deteriorating at a faster pace than expected, and indicated it would, if required, begin buying back government bonds in an effort to stimulate the economy.
As expected, the Bank of Canada cut its key benchmark-lending rate Tuesday by another 50 basis points, to a record low of 0.50 per cent, to spur an economy that it acknowledged is deteriorating at a faster pace than expected, and indicated it would, if required, begin buying back government bonds in an effort to stimulate the economy.
Tuesday, March 3, 2009
Mark Carney considers going "nuclear", as he did with income trusts.
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5 comments:
The USA tried this, as well as the rest of the world, and it did not work..!
I would put forward that Mark Carney is going to the pages of History! The dark pages of Canadian history.
Cocopah
The asshole can buy up all my income trusts. I'll give him a real deal. He can have them all for what they were worth on October 30th, 2006!
Quantitative easing is what Bernanke, Paulson and Tiny Tim have been pursuing. Look where is has gotten the US. Of course our Goldman Sachs Bank of Canada leader takes his marching instructions from his Goldman friends. Let's look after our financial buddies and piss on the rest of them.
Les
Carney is always willing to help out a down & out CEO---it is the rest of us peons who can go to hell.
These idiots screw themselves & take us down with them & so who does he help , the screwers & not the screwees.
Carney go buzz-off & take that Flaherty dude with you.
Dr Mike Popovich.
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