During the last global financial crisis, the Governor of Bank of Canada presents himself as a man in a situation in these problem economic times. The liberal boss is a fraudster, retreating to a conservative camp because it was a Harper country that saved the country in 2008-2009. All these commands resemble and many nuances.
According to liberal propaganda: “Mark (Carney) as Governor of the Bank of Canada during the financial crisis in 2008, he led Canada in one of the most blighter economic periods in modern history, protected jobs and ensured Canada.”
This is false, repeated this week former conservative Prime Minister Stephen Harper during the Great Assembly of Support in Pierre Poilievre, Edmonton. Mark Carney attributes merit to return to the conservative government, and, in particular, his Finance Minister, Jim Flaherty, who died in 2014. Do not let anyone say the opposite last month wrote Mr. Harper in the fundraising campaign, especially not Mark. The crisis in 2008-2009 accepted them. » »
Crisis with two steps
First of all, we remember that this crisis occurred in two phases. It all began with a bursting of a bubble in the United States, which helped the popularity of all kinds of financial products as exotic as undulating, caused by the 2007 collapse in the US cascade, then foreign financial actors, including the famous Bank Lehman Brothers.
This terrible financial crisis would quickly pass on to the real economy, and from 2008 to 2009, called a great recession, it plunged the world.
Canada enters a storm with some rare assets. Unlike what has been in the previous decades, its public finances are relatively healthy and give governments some capacity for intervention. The regulations and generally more conservative culture have also avoided that Canadian banks are too financial products that cause ravination abroad.
Difficult decisions during the global financial crisis in 2008-2009 took them (Flaherty)
The world of Canadian Finance will have before the collapse of what was called “commercial paper”, for placing, whose accounting value, out of $ 35 billion to zero, will have their holders, including their holders, until their past crisis, and the accounting value of $ 35 billion.
Although we generally attribute Henri-Paul Rousseau, the then President CDPQ, the fact that the whole story settled without much breakage, Monique Jérôme-Perget at that time was in the month, he remembered last month. (Stephen) Harper who wasn’t too hot to solve the problem. » »
Central banker on the front
Mark Carney passed from the Federal Ministry of Finance at the head of the Canadian bank in February 2008, when the crisis has already begun, does not waste time committing all means to interfere with its liquidation and even more.
Once its interest rates are to zero, the bank will have the first time on the first time on the first time on the basis of potential indications, that is, it is undertaken to maintain its levels on the floor for a given period, except for opening the door to massive purchase of financial assets as a way of injection in the economy of more liquidity, but eventually does not use it … this time.
Several other central banks will do the same, more or less fast than in Canada. They enlarge their strength of the impact by relying on each other and coordinating their energy actions. Mark Carney draws this collective approach to these issues when the G20 places it at the head of the Council of Financial Stability, the authority responsible for the reconstruction of the global financial system on healthier and lasting foundations, and where the champion will be tightening international financial rules.
But it was not the only queue where we fought against the crisis. The world also needed governments to help businesses and employees assigned to the recession and help the economy continue its dynamics.
I can guarantee that when I was on the phone, it was (Mark Carney) who served as a mediator with (Stephen) Harper that was not too hot to solve the problem
It is estimated to have lost around $ 4,000 billion and $ 28 million during the large recession. The shock was almost as violent in Canada as in the United States, but the recession was shorter there than in all other G7 countries (three quarters).
This remarkable reflection in the Canadian economy was particularly awarded to the Harper government, which deployed one of the biggest plans of economic recovery, all guarded, with $ 47 billion in two years. Efforts, which were based, among other things, based on infrastructure, reconstruction credits and generous assistance to the automotive industry, was all the more remarkable because it came from a government that has so far been very associated with conservative public finance management and economic Laisade.
Forced and forced to do well
However, you have to remember how much the Harper government had to be pulled out before it decides to act. “Minister Flaherty was best ideologically best,” he said Obligation Former higher official of his ministry. “Finally, the G20 was decided. When the United States and China agreed that all governments would use their available room for maneuvering as much as possible, Canada had no choice to join the show.” »
Advanced savings also took advantage of the training effect of China and other developing powers of less affected crises, reminding experts.
The problem is that they rushed in several countries to end their measures for economic recovery to restore the balance of public finances as quickly as possible. This was also the case in Canada. With the result of slow economic recovery.
So? Who deserves to be released from the Canadian crisis during the great recession? Mark Carney and Jim Flaherty. But also their predecessors responsible for public financial and banking regulations in Canada, Monique Jérôme-Perget, Henri-Paul Rousseau, other central banks, G20, United States, China …
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