Comments on: So, Uh, The Banking System Is Still Insolvent

By: Rudi

Rudi — Sun, 16 Aug 2009 19:20:35 +0000

Here's the actual Canadian tax rates:
http://www.cra-arc.gc.ca/tx/ndvdls/fq/txrts-eng...

* 15% on the first $40,726 of taxable income, +
* 22% on the next $40,726 of taxable income (on the portion of taxable income between $40,726 and $81,452), +
* 26% on the next $44,812 of taxable income (on the portion of taxable income between $81,452 and $126,264), +
* 29% of taxable income over $126,264.

However, this doesn't include GST and HST: Around 18% at the worst case.
http://en.wikipedia.org/wiki/Goods_and_Services...)
But a high sales tax with Habanos, topless beaches ...
isn't all bad.

By: GeorgeSorwell

GeorgeSorwell — Sun, 16 Aug 2009 18:53:52 +0000

Mikkel–

My fault. Sorry.

By: tidbits

tidbits — Sun, 16 Aug 2009 17:11:22 +0000

Mikkel -

As usual you get past the the usual "what happened today" syndrome and force your readers to look more deeply at fundamental issues, like the impact of going off mark to market and the impending commercial real estate loan implosion.

That issue, commercial real estate loans, has been recently and publicly raised by Elizabeth Warren. While politicians may attempt to marginalize her, she has circumvented those same politicians by finding a listening public for her rare (for a public official) and blunt honesty about both the current economic situation and what is yet to come.

Anything that can be done to bring her disclosures and analysis to broader public attention is worth the effort.

Thank you.

By: mikkel

mikkel — Sun, 16 Aug 2009 16:00:35 +0000

Oops, was that not a reply to Rudi? I meant canada. Well actually all the industrialized non-Nordic countries have similar tax rates (they have higher but they have the highest satisfaction in the world too).

Anyway, about your comment, yes that's the idea the government has. But the banks don't.

It's not just small businesses either, individual credit is plummeting.

As the first comment says: "Why should they lend money to small businesses when they can trade and make a killing in their capital markets divisions? It's all about Casino Capitalism and the banks are collecting huge fees on trades and spreads. They do not care about small businesses."

By: GeorgeSorwell

GeorgeSorwell — Sun, 16 Aug 2009 15:52:00 +0000

Well, I hate to be too stupid to get it, but who does what with which tax rates which are very similar to whoever else's tax rates?

By: mikkel

mikkel — Sun, 16 Aug 2009 15:46:08 +0000

And they do it with very similar tax rates…

By: GeorgeSorwell

GeorgeSorwell — Sun, 16 Aug 2009 13:56:58 +0000

I believe—I guess—the thinking is that by postponing the short-term reckoning, banks will be able to write-off their held-over losses against profits accrued along the medium-term.

I certainly agree with you that there are problems with this, to say the least. Personally, I think it would have been more efficient to just socialize the too-big-to-fail banks.

Ha!—imagine the insanity that would have provoked!

By: Rudi

Rudi — Sun, 16 Aug 2009 09:37:00 +0000

LOL Canada has good capitalization, few bad loans, legal prostitution and single payer health care…
A decent model of capitaism and some socialism working…

By: mikkel

mikkel — Sun, 16 Aug 2009 03:48:30 +0000

Haha yes. I had a comment that recognized that originally, but took it out to make it a more implicit critique generally.

By: CStanley

CStanley — Sun, 16 Aug 2009 03:33:59 +0000

I’m not sure why they made her the head of the panel if she was going to be marginalized.

Your question appears to be asked and answered in that statement.