Blogs & Comment

2009 budget and investors

The rush to stimulate the economy took precedence in this budget, far overshadowing measures for investors and savers. Nevertheless, there were a few scraps tossed their way.
The Canada Deposit Insurance Corporation is to be strengthened (increased borrowing capacity plus a bridge-financing facility) to enable it to respond more effectively in the event a member institution becomes insolvent. The government also proposes to designate tax free saving accounts (TFSAs) as a separate category of deposits insurable by the CDIC. I thought they already were, but this sentence in the budget document suggests they werent.
The federal government intends to push forward with a national securities regulator. One step is to fund an office to assist with the transition. Another is to table securities legislation based on the recommendations of the Hockin panel, for willing provinces.
There are some new measures to help consumers of financial products. Specifically, the government plans to strengthen disclosure requirements for credit-card issuers. Grace periods to pay off credit-card balances are to be subjected to a minimum requirement. Mortgage insurance provided by banks is to be made more transparent and affordable.
A task force on financial literacy is to be struck, to make recommendations to the Minister of Finance on a cohesive national strategy for financial literacy. To launch in the spring, representatives will be selected from the business, educational, volunteer, and academic communities. Maybe theyll pickone or two of Canadas financial bloggers. Theyre doing a fine job alreadycontributing to financial literacy. Thousands of Canadians turn every day for illumination and guidance to bloggers like Canadian Capitalist, Michael James on Money, Canadian Personal Finance, Where does all my money go, and Canadian Financial DIY.