Marc Carney finds Fiscal Religion

Well as you all know, I have been a vigorous critic of Central Bankers who for three decades have followed the 'Greenspan Doctrine' that :

1) The business cycle can be thwarted by easing monetary policy if speculation deflates

2) Markets are best left to run themselves

3) You can only see a bubble after it has burst.

4) Only intervene if the speculators are very large and can threaten 'the whole system' or have good connections

5) The accumulation of enormous debt on shaky assets or income flow, is something that should be ignored until it is so large as to threaten 'the whole system' and then some gentle finger wagging is in order.

6) Savers and the prudent most always be punished to benefit the indebted speculators.

Carney has been no stranger to this play book. He assumed office nearly three years ago and has only just now realized what a critical burden of debt Canadians have put themselves under.

The three years have been filled with mortgage shenanigans from the Federal Government, lax lending from banks, the myriad home-equity-sucking loan companies, and his own zero rates- running 2-3% BELOW inflation.

Bit late old chap! It's like giving a teenager a bottle of moonshine every day and then complaining that he isn't doing his home-work!

Of course Jim Flaherty has been there for nearly 5 years, so when he wags his finger about too much debt, it is worth remembering that he has passing the moonshine out for even longer.