The Wall Street Casino

During the global financial crisis in 2008, as he battled to “keep the system afloat,” I listened carefully to former USA Treasury Secretary Hank Paulson’s frequent pronouncements. I was convinced he was too close to investment banks, and he exacerbated the crisis by his reactions: fear, panic, and myopia. After reading his book, I am more convinced.

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Canada Liberal’s Deficit Reduction Goal

The leader of the Federal Liberals, Michael Ignatieff, says, two years after they are elected, they will reduce the Federal deficit to one percent of GDP. Based on today’s deficit, that’s about $40 billion reduction. But I haven’t heard mention of his plans to do this. Isn’t it great to be in opposition? Promise anything; many people will believe, and millions will vote for you! Perhaps Michael Ignatieff knows he will sit in opposition for a while and the deficit will be around his target when (if) he is elected.

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Prolonged Low Interest Rates Fuelled Unprecedented Greed

Two of my favourite quotes are from Einstein: “Insanity is doing the same thing over and over again and expecting different results.” And, “We can’t solve problems by using the same kind of thinking we used when we created them.” Canadian and US Governments are bent on proving Einstein wrong! Prolonged low interest rates fueled unprecedented greed by corporate executives and individuals, feeding off each other. Executives gambled with shareholders’ funds knowing there was no downside for them, but phenomenal upside.

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