Saturday, October 11, 2008
The $25 Billion Not-a-Bailout Bailout
This is a simple question and I pose it because I really don't know the answer.
Where, exactly, is the $25 billion coming from that Flaherty is going to use to buy these mortgages? That's not exactly petty cash, and I don't imagine the Cons account balance at the TD Bank has that many zeroes attached to it, so where is it coming from? Are they simply going to print more money? Borrow it (increasing the national debt)? Go into deficit by tapping into operating expenses?
Somehow, somewhere, Flaherty is coming up with $25 billion and I'd like to know how they are going to do it. Perhaps I can use the same technique to replenish my RRSP after the thrashing it took in the past few weeks.