Mulcair tells Flaherty to leave the free market alone

Jim Flaherty got all displeased today about Manulife Financial's plan to reduce its five year mortgage rate to 2.99%. I know. I'm falling asleep just typing it. Manulife got all contrite and repentant and declared that it would leave its rate where it was. I find if you pinch the palm of your hand, or maybe jab your wrist with the point of a pen it helps.

Jim Flaherty got all displeased today about Manulife Financial’s plan to reduce its five year mortgage rate to 2.99%. I know. I’m falling asleep just typing it. Manulife got all contrite and repentant and declared that it would leave its rate where it was. I find if you pinch the palm of your hand, or maybe jab your wrist with the point of a pen it helps.

But the punchline to me is the quote from Thomas Mulcair, to whit:

“It’s banana republic behaviour… Since when do you use political weight to push back on financial institutions responding to a market parameter that’s totally legal?”

The leader of the NDP standing up for the rights of a large corporation to charge whatever the market will bear and chastising the government for interfering in a perfectly legal “market parameter”. Whatever that means. Maybe if I understood that term Mulcair’s intervention might make more sense.

But as it is it looks like the leader of the so-called left wing party is admonishing the finance minister of the governing right wing party for intervening in the economy.

Maybe I’d be okay if he’d said, “Leave it alone, Jim. Lower lending rates might encourage corporations to stop sitting on their billions and start investing it to create jobs as we’re so often told they do.” Or maybe if he’d said “Why is it that only private companies get to make these decisions, how about we start offering financial services to directly benefit Canadians rather than just lessening risk for the banks.”

Or maybe if I knew it was Freaky Friday and that as some sort of parliamentary Sadie Hawkins Thomas the socialist and Jim the capitalist swapped roles for the day.

But as it is, I am deeply confused. Can someone enlighten me as to why the NDP is championing an unfettered financial sector?

3 Comments

  1. If Mulcair had an ounce of brains who would be backing Flaherty all the way..High risk mortgages insured by the government endanger every Canadian. Does he not realize that when a high risk mortgage defaults you and I pay not the bank that is insured by the government against loss?.

  2. “The leader of the NDP standing up for the rights of a large corporation to charge whatever the market will bear and chastising the government for interfering in a perfectly legal “market parameter”. Whatever that means. Maybe if I understood that term Mulcair’s intervention might make more sense.”

    The legal parameter he is referring to is the national interest rate. What he is saying is Flaherty is using political weight and not the proper methods and facilities (because he can’t: http://canadiantrends.blogspot.ca/2013/03/dancing-with-interest-rates.html ) to manage this sector of the economy.

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