It's getting harder and harder to bury our heads in the sand.
The federal government announced Wednesday it will buy an additional $50 billion in residential mortgages - another sign we might not be as insulated from the credit crisis as we'd like to believe.
Last month, Finance Minister Jim Flaherty promised
a similar buyout of mortgages already insured through the Canada Mortgage and Housing Corp. to the tune of $25 billion. But, he claims, the latest move is needed to make sure Canadians will continue to be able to access longer-term credit.
Calling this "a time of considerable uncertainty," Flaherty noted, "This extension of the program...will further support the availability of credit, which will benefit Canadian households, businesses and the economy."
He said the government would take whatever steps are necessary to shield Canada from the global economic crisis, adding that our financial system has been ranked the soundest in the world and we're still on track for a small surplus in the current fiscal year.
For more on the government program,
click here.