National Post (National Edition)
Canadians should take a lesson from Cypriots
Re: Cyprus Vote May Put EU On Brink — Again, March 19; Flaherty Forces Mortgage Reversal, March 20. I find myself puzzled at the general apathy that most Canadians project. In Cyprus, an inappropriate “tax” was greeted with a strident but peaceful public protest that caused the government to repeal the program in its entirety. Here in Canada, there was very little response when the Finance Minister unilaterally decided to “suggest” to two banks that they should increase home mortgage rates, thus clearly interfering with the free market. (Interestingly, one bank quickly conceded to the Minister while the other ignored him.)
Banks are not known to back away from a healthy bottom line. If the market dictates lower fixed rates with acceptable bank spreads, the Finance Minister should attend to other matters. And he should cease his paternalism and allow citizens to determine their own individual capabilities. To paraphrase a certain prime minister, “The government has no business in the personal finances of Canadians.”
Another interesting point is that based upon a five-year fixed rate for a $100,000 mortgage (most are higher, of course), the differential as to interest cost between 2.79% and 3.09% is $1,500 (or $7,500 on $500,000). That money is better in the homeowners’ pockets than the banks’, don’t you think? Leonard H. Goodman, president, First Financial Group, Toronto. The recent lessons of Cyprus’ recent bailout conditions should not be lost upon Canadians.
Clearly, the European Union considers the savings of private citizens to be their personal piggy-bank and a government kleptocracy to be a reasonable solution to their own fiscal imprudence (for the greater good). Canada is rife with the same type of “progressive” tax and over-spend politicians that make up the bulk of the Brussels über-lords, and our Constitution offers no protection for the personal property of Canadians.
If the Harper government wishes to leave a lasting legacy to the Canadian people, then perhaps they should use their majority to amend the Canadian Charter to protect the property rights of the people against a future government that does not share Mr. Flaherty’s fiscal sensibilities.
Robert S. Sciuk, Oshawa, Ont. It is indeed a mad (repeat indefinitely) world. Didn’t the Cypriot parliament explain to the citizens that the alternative to accepting the EU terms means losing much more than 5% to 10%, which is a mere trifle compared to what national bankruptcy will take out of their accounts? I had friends who lost their total bank accounts during the 1930s Depression fiasco. They would have accepted losing only 10% or less but were not even asked, because in those days you hung tough. Welcome to an age where you are at least given alternatives.
Patrick MacKinnon, Victoria.