From the Smoke Pit returns from a long absence – work gets in the way of writing.
The economy has not improved for Canadian workers despite all the claims of Harper and his speech writers at the Frazer Institute. It is getting worse for Canadian workers where over 1.5 million remain unemployed, wages, benefits and pensions all under attack and 10,000’s others exhausting their EI.
The Globe and Mail reported today in an article entitled “Job seekers faced with wary employers” that “economists are worried” that the “recovery” will be a jobless one. The article says that “It will take at least another year, and maybe two, to recover all of the 280,000 lost jobs in the recession”. The hatchet man Stockwell Day began his efforts to “trim the fat” in the public service by axing 285 GIC (Government in Council) positions.
Meanwhile bank profits are approaching pre-depression levels with the Scotia Bank reporting today that it will post 1st quarter profits of $988 million, up 17% from the year earlier. The Royal Bank reported a 35% increase in 1st quarter profits for 2010 to $1.5 billion. According to the Globe and Mail that is “bank's second-highest quarterly profit ever”. CIBC profits rose from $147 million a year ago to $652 million in the 1st quarter of 2010. BMO posted a $657 million profit, up $225 million from a year earlier. TD Bank profit doubled from a year earlier to $1.3 billion – a record performance.
Canadian families are facing household mortgage debt that is at an all-time high. February 16, 2010 the Globe and Mail reported in an article entitled “Household mortgage debt hits record”, that Vanier Institute of the Family said “debt is the highest level since the annual study began 11 years ago”. The report says that 2/3 of people 18-34 would be “squeezed” if their pay cheque is delayed by one week. The Bank of Canada reported that mortgages in arrears have risen to a 7 year high.
CIBC Economist Benjamin Tal says that, “Consumer bankruptcies have risen significantly over the past year, and they will continue to rise. Clearly, some people are in over their heads, and more will get into trouble when interest rates rise.” According to the January RBC Consumer outlook survey 58% of Canadians are worried about their debt loads. The chartered banks hold $336 billion of the debt up from $292 billion are year earlier.
Anyone who thinks can see that this spells disaster for Canadian workers. In the Federal Budget speech Flaherty boasted, “Our government took immediate action to ensure Canadian banks could keep lending…Because of prudent government regulation, none of our banks failed. None of them required a bailout from taxpayers, unlike their competitors in other countries.”
