I watched a television interview with Jack Layton last night. I was amazed at some of the promises Jack was making, but more amazed that the interviewer didn't ask him how he could do what he promised to do.
I would like to know how he is going to impose low fixed interest rates on credit cards. Has the international business community, e.g. Visa, Mastercard, American Express, agreed to this proposal? How will it effect the Bank of Canada's rates? Is he encouraging debt?
His response to her question on his earlier vague position on the constitutional issues regarding Quebec was brushed off with a response that he would deal with that after they've fixed everything else. Maybe the press isn't taking him seriously enough.
Its all so sad because people believe what they want to believe without questioning the folly of the speaker.
Why do we have low voter turnout? Because the public has been lied to so many times before by politicians that they have lost faith in governments at all levels. What's the point of voting if the folks you are voting for and the positions they state are untrue?
I do think we need electoral reform and one of changes should include recall. You break your promise and you're out. Perhaps politicians would be a more careful on their promises if there was a consequence to them personally. Then perhaps then voters would see the value in voting.
Personally, I'll vote for the politician who will promise me an end to the telephone solicitations and demon dialer ads. Legislate that telephone service providers have to provide customers with block number that prevents these jerks from their incessant calling. It particularly annoys now that they somehow have access to my unpublished cell phone number which costs me extra dollars as they chew up time and fill my voicemail. And I, as a consumer, have no recourse short of having no telephone at all.
Please give me a promise you can keep. Restore the faith.
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"I would like to know how he is going to impose low fixed interest rates on credit cards. Has the international business community, e.g. Visa, Mastercard, American Express, agreed to this proposal? How will it effect the Bank of Canada's rates? Is he encouraging debt?"
ReplyDeleteTo answer these alarmist questions that are obviously intended to spread doubt and misinformation:
1) Banking is under autonomous federal regulation in Canada. We have the freedom to regulate banking as we see best fit. The approval of "Visa, Mastercard, American Express" is not required to set rate limits.
2) Layton's proposal would cap rates at 5% above prime. There is no "fixed rate" he is proposing that would alter the nature of the central bank rate. More misinformed speculation.
3) Banks have speculated that they would limit borrowing by high-risk, high-interest rate customers if such a policy was implemented. This would likely have a net effect of reducing debt.
"Its all so sad because people believe what they want to believe without questioning the folly of the speaker."
Re-read this then look in the mirror. Real critical questioning of this policy would consider how banks could get around such limits through fees, what effects (positive and negative) the strangling of usury debt would have on consumers, and how putting the brakes on high-interest consumption changes the nature of retail business.
Anon 11:10
ReplyDelete1) You can't be serious that the government can institute any control over credit card companies. You hinted that the banks/credit card companies would just place user fees on us all to recoup the funds lost. This doesn't make it any easier on people. If they can control interest on credit cards why are my gas prices skyrocketing. I don't need a credit card but I do need gas.
Borrowing cost money the fact people don't see the credit card companies as the worst choice is their problem.
I agree 100% that we don't need comrade Jack spouting off about how he would change things without showing full costs summaries of his policies. As I see it any increase in government spending is going to cost me the average citizen as corporations see a bottom line and if the Gov. takes more out of it they will turn around and charge more for their products. Socialism doesn't work in a free market system. Can any of us truly say we are that bad off in this country compared to many other societies.
It's alarmist propaganda like this that is going to tilt the political landscape in the favour of the people.
ReplyDeleteThe first response comment nailed it on the head, and makes me wonder if the Civic Mistress ever actually does any research before she vomits all over her keyboard.
Layton will be PM. If not this election then the next.
God help us if Layton ever becomes PM.It is telling that his platform isn't even designed to govern, it is designed for opposition.
ReplyDeletePre tell where you think the 3.6 billion from cap and trade is going to come from in 2011? And tell me you are going to be happy seeing an additional 8 billion sucked out of Alberta and Saskatchewan to support the majority of the promises being made to Quebec in order to buy their support?
I hope everyone appreciates what PCS, Cameco and Mosaic is doing around the province because you can be sure when they each start seeing a billion dollars drop of their bottom lines their charity is going to grow a lot smaller.
Anon 2:10, if you're going to attack the Mistress at least have the balls to print your name. Or are you another one of those socialist weasels who likes to hurl your insults while never facing up to the music? Pathetic.
Ooh, do I sense a testiness in some responses? I would like to see Jack become PM heading a coalition government - for about 1 or 2 years. That would be all it would take for the country to come to its senses.
ReplyDeleteYou did not answer my question as to how Jack would cap interest rates on major credit cards, be it fixed or %5 over prime. I can't see, say Visa, reducing its interest rates to Canadians only to satisfy his election promises. Does that mean Canadians can't have these credit cards if these corporations don't play ball? Or will he introduce a government credit card and let the debtors be subsidized by taxpayers?
The whole thing is a joke.
I see that the Mistress' blog is no different than most others on the internet.
ReplyDeleteWith the polls suggesting that we are headed right back to where we started (Conservative minority) I think the one truth that is going to come out of this election is the sad reality that we are a country that is deeply divided. Never in my life have I heard the vulgarity hurled at party leaders like I have this election.
I find it so disheartening that the people who claim to be on the lookout for a better Canada are resorting to the level of petty insults and lies against Stephen Harper. I don't want a Harper government any longer, but I certainly don't want a government that is in the image of the people who have campaigned to get him out (not the leaders, but the people claiming to want a better society who act as boorish pigs that will do anything to advance their agenda- hmmm almost sounds a little like Harper).
Similarly, the Conservatives have done nothing but smear Ignatieff to media and basically prevented the Canadian people from being able to get to know him and judge him themselves.
The sad reality is that regardless of how the election turns out the country will be deeply divided, sort of like the US was during the last election. I don't see how either side will be able to work with the other at this point. Will Conservatives support a coalition government when it goes in? Will NDP and Liberals support a Conservative government if they win? I doubt either will happen. Not after I was insulted and berated as I put up the sign of the local candidate I was supporting, it is nice when someone calls you a 'b*tch' and a 'whore' for supporting a particular political party.
"You did not answer my question as to how Jack would cap interest rates on major credit cards, be it fixed or %5 over prime. I can't see, say Visa, reducing its interest rates to Canadians only to satisfy his election promises."
ReplyDeleteYes, Elaine. That question was answered. You just chose to again exhibit your own criticism of how "people believe what they want to believe."
Once again, the Canadian Government holds authority over banks and their actions. All the Government has to do is add an amendment to Part VIII of the Bank Act, or more likely Section 347 of the Criminal Code (the same Section of Canadian law that limits things like overdraft fees to $5)
"Does that mean Canadians can't have these credit cards if these corporations don't play ball? Or will he introduce a government credit card and let the debtors be subsidized by taxpayers?""
Yes, Elaine. And Jack is going to personally come to your door and collect the bill each month, baseball bat (or crutch) in hand.
Your ill-informed speculation is ignorant of both fact and law and only works to obfuscate factual policy discussion.
Anon 8:59 you ignorance of the facts is beyond belief.
ReplyDeleteJack is essentially saying that credit card companies will be legislated in what the can charge consumers. Are you so naive to think that this is not going to affect how they do business? There will be adjustments to who is able to qualify, what the fees will be (fees outside of interest rate obviously) among other things. That is a reality.
Furthermore, fundamentally changing the rules mid game is going to cause other problems, for example people who currently have a credit card and may not qualify after the new legislation (ie just not worth the risk) will be in a quandary. Will credit card companies be able to cancel accounts at that point? What happens if that happens, and large balances become due and owing right away? You can't possibly sit here and say that the government not only will legislate what the credit card interest rates are, but also tell them they have to do business with people that don't qualify under the risk assessment at that rate.
It is a serious question, because the government can't just change the rules mid game and expect no reaction from the credit card companies. There will be a slew of people who should no longer qualify, not to mention the impact on young persons trying to establish a credit rating who no longer qualify or can afford high user fees in order to get a credit card. Thus their credit rating will feel the impact down the road.
This isn't a one and done, interest rate only proposal. It will have a ripple effect throughout the credit card industry. My biggest concern is how the government can tell any business it will have to continue doing business with people despite it not being economically worth the risk. Will Jack tell Visa that they can't cancel John Doe's account despite him being a significant liability at prime plus 5%.
Your narrow minded view of the policy is the problem, see the bigger picture man.
Anon 8:59,
ReplyDeleteLegislating the interest rates will only mean that certain people will no longer be able to qualify for credit cards. I don't even think you will debate that (whether credit cards start unilaterally ending relationships once this legislation is passed will be intriguing and certainly is a good legal question).
However, just on the moving forward part of things, with less people being able to qualify for credit cards moving forward (again it is a certainty) how are they expected to function in what is increasingly becoming a credit card necessary society. To book a plane ticket, reserve a hotel room, or do a host of other activities credit cards have become a way of doing business. Restricting the access of credit cards to people is going to cause a host of problems to the way Canada does business. How can anyone in university possibly qualify for a 5% plus prime credit card unless the government cosigns for it? What private company will take on that risk assessment?
Let me guess, Jack's next plan is state that having access to credit cards (at prime plus 5%) is a "Canadian Right" and start going after companies that refuse to issue cards to high-credit-risk consumers.
In a society where having a credit card is almost necessary to do business (even if just for reservations like hotels) how is a large segment of society going to function? As credit cards are now the largest source for people attempting to establish their credit rating how else are young people going to begin establishing credit when they are denied a credit card?
This is the last kick at the cat for all of the leaders of the major parties in Canada. Poor Iggy is about to be job seeking, hopfully in the US. Smiling Jack is old in bad health and only running to see if he can manipulate the pitty card into votes. Harper won't deliver a majority so will become expendable. The recent surge of the NDP in Quebec would indicate that even they are sick of Mr. Duceppe. For me this cannot be over soon enough.
ReplyDeletemy dream political landscape: ndp/grits merge=liberal democratic party. the cpc and ldp split the seats in quebec down the middle by only running in half the seats and fight for the rest of canada. the bloc should become and rump of its self and fade away.
ReplyDeleteWas I walking in the dream anon 12:01 ??
ReplyDelete