Thursday, April 26, 2012

Dwight Duncan's downgrade

This is what happens when a Finance Minister (Dwight Duncan) follows the dictates of the few (Corporate CEOs) and  raises taxes on the masses (i.e. HST) and blows those billions in revenues on the few (corporate tax deductions) and with nothing to show for it, but this:

Moody's Downgrades Ontario Rating To Aa2

TORONTO - Moody's Investors Service has downgraded Ontario's debt rating, citing the cash-strapped province's growing debt burden and risks in achieving its fiscal plan.
Ontario is facing a $15-billion deficit this year and the governing Liberals tabled a budget last month outlining their plan to re-balance the books in 2017-18.
Moody's says it's concerned about the government's ability to rein in spending and stay on track to achieve a balanced budget by 2017-18.
It says the fiscal plan rests largely on significant expenditure restraint.
But the province's expense growth targets appear to be "particularly ambitious," given the growth in expenses over the last five years.
As a result, Moody's says it's downgrading Ontario's issuer and debt rating to Aa2 with a stable outlook from Aa1 with a negative outlook, affecting $202 billion in debt securities.
Moody's put Ontario on credit watch last fall, before the austerity budget that limited government spending increases to just one per cent a year for the next five years.
Standard and Poor's did the same on Wednesday, revising its Ontario outlook from stable to negative


Dr Mike said...

That`s what he gets for listening to his mentor Jim (I love CEOs) Flaherty.

Dr Mike Popovich

crf said...

There still isn't really a serious problem with Ontario's or Canada's finances that growth wouldn't help solve. The downgrade probably reflects the fact that the current western world leaders don't care to collectively advance policies that promote growth. (Austerity for all isn't going to work.)

This isn't going to affect relative bond prices. Every western economy has the same stupid problem.

Anonymous said...

"There still isn't really a serious problem with Ontario's or Canada's finances that growth wouldn't help solve."

That sonds like a ponzi scheme to me. The real poblem is not an income problem but a spending problem.

Look at Onatrio's electricty subsidies for example. Get rid of the subsidies for wind, solar, etc. They are unaffordable.

A once great province has been run into the ground by inept and crooked politicians.


Anonymous said...

Oh, and I should have mentioned implementing a regressive tax system like the HST which is cause untold hundreds of millions if not billions in tax losses for Ontario.