The federal government is buying up $25 billion in residential mortgages to give the chartered banks additional cash to issue loans, Finance Minister Jim Flaherty announced Friday. . . extraordinary measure means Ottawa, through the federal government and the Bank of Canada, will have injected a whopping $45 billion in additional cash into the financial system in an effort to counteract the tight credit squeeze that has paralysed markets throughout the world.
Although the market did drop today, Canada isn't facing the same severe problems as other industrialized countries. Our finance minister will be speaking at the G7 meeting in Washington today and will argue for tighter regulations of the kind that has kept Canada's banking system solvent in the midst of this current global crisis.
These measures are aimed at stabilizing the country's troubled lending industry - measures he predicts will prod banks to further lower their lending rates.
To see the entire article click here. Hopefully my next statement from TD Waterhouse will reflect a return of my recent losses.