From Garth Turner there is a potential speculation that the Bank of Canada has been buying mortgages and credit card debt. At first when he was talking about toxic cash, I thought he was trying to suggest that our bills contained lead. Here what he said:
So, the “other” assets the Bank of Canada has swapped for secure, near-cash holdings appear to be tens of billions of dollars in high-ratio mortgages. The money to buy those assets apparently came from the central bank, through CMHC, and ended up in the vaults of the Big Six banks. It’s also believed that the Bank of Canada has been buying up other commercial bank liabilities, such as credit card debt.
Whether it’s true or not, now would have been a really good time to have parliament in session.