In yesterday’s blog my Occupy Byron neighbours made reference to repealing Article 457 of the Bank Act. Not knowing the Bank Act very well I decided to investigate. And it’s no wonder they want it repealed.
Article 457 essentially allows Canadian banks to diminish their reserves. In other words they no longer have on hand an amount of money equal to what they have loaned out. This sets the stage for a potential George Bailey situation in It’s A Wonderful Life. And it’s some of what was behind the savings and loan collapse in the U.S. Everyone keeps saying, “Our banks are more heavily regulated and we’re protected in Canada.” Well Article 457 says otherwise.
They also want to get rid of the party system of politics. Your vote would be a direct vote for your MPP or MP, not the party or Prime Minister. They’re irked, as many before them have been, that the PM has a fraction of the popular vote, but there he is, running the country.
If you haven’t done so, please – I beg of you – watch Inside Job. It’s an Academy Award-winning documentary about what happened to the American banks, the sub-prime loan fiasco, the collapse of unregulated derivatives and the many people who tried to stop the free-fall and those who orchestrated it. Matt Damon narrates it and it gives historical perspective and puts the entire, complicated mess into terms that mooks like you and I can understand. And if your jaw doesn’t hit the floor you need to watch it again.