Sorry we will have to disagree on this one.

We can disagree on what the money was for or what to call it – I say 'bail out', you say to 'free up lending capital' – but the FACT remains that the Canadian tax payer took on a $75 Billion debt so the banks could have that much new cash. Call it what you want, the money doesn't care, and the debt has to be paid by the tax-payer.

And the banks 'need' for free money injections continues as I think you are aware. The Canadian government has said it will backstop more than $200 billion in interbank lending so banks can boost their lending capacity." (Toronto Star, December 13, 2009). WHY?

MAybe we are at cross purposes on terminology and you don't think I should apply 'bail-out' as a term to Canada. OK. Maybe it's too lose a term for the Canadian situation.

So let me put it this way. Canada has a monstrous housing bubble. House prices to income at roughly seven times median income. The government now insures more than a trillion from GE financial CMCH and others.

The mortgages the banks are issuing and the government is insuring are insanely imprudent. In 2007 the average was only 6% equity.

Call it providing liquidity if you feel this is more accurate than bail-out. It doesn't alter what is happening. There is a housing bubble concocted by banks and politicians which is now having to be subsidized by the tax payer and will burst with catastrophic consequences for Canadians. Just my opinion of course.

The government, as an economic stimulus measure, bought *already insured mortgages* from the banks to free up lending capital so they could maintain credit flow in a tough recessionary environment. That is not a "bailout".

And the banks DIDN'T need to get rid of the mortgages… as you pointed out then proceeded to ignore, they were *already insured*. They carried no risk for the banks. The government WANTED them to get rid of them so they could free up more capital and the banks agreed. The fact that you answered your own question then pretended as if the answer didn't count is just sad.