Bankers get the bonus, and government takes the risk - The Globe and Mail

This is a really important piece and I ask everyone to read it. Bankers get the bonus, and government takes the risk - The Globe and Mail

Of course, the situation is much worse than the article states, specifically this point.

At the end of 2008, the latest figures we have, CMHC had $149-billion of investments in mortgage-backed securities on its balance sheet, up from $96-billion the previous year.

While the CMHC may only have 149 Billion of MBS on its books. It has a limit of $600 billion of mortgage loan insurance, up from the previous $450.

Adding to the article, the CMHC, as well as any other insurance such as the Canada Deposit Insurance Corporation, allow the banks to take huge risks that they otherwise would not be able to take (as well as get huge rewards).