July 07, 2015

Growth down and spending up: "Ontari-owe" earns another credit downgrade

Brian LilleyArchive

Canada's largest province isn't getting the message.

Ontario was downgraded by a major credit rating agency Monday amid high debt, high spending, low revenues and plans to spend even more. I break down how bad it really is in Ontari-owe.


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commented 2015-07-11 09:26:47 -0400
“What happens when Every Province has achieved their goal of being ‘Have Not’ ? "
Yup, you said a lot there, RAE FRASER. There’s a whole lot of shovin’ and scratchin’ and cryin’ going on. The provinces (mimicking an ever-increasing percentage of their populations) are like seagull chicks in a nest vying for the biggest load regurgitated tax-dollars from a steadily diminishing source.
commented 2015-07-10 20:53:31 -0400
What happens when Every Province has achieved their goal of being ‘Have Not’ ?
commented 2015-07-10 02:23:33 -0400
Good point Zee. The feds should start taking a hard line on “under-performing” provinces, instead of just handing over more of our hard-earned money. It’s like Germany/EU and Greece. Enough is enough.
commented 2015-07-09 14:54:31 -0400
Maybe it’s time to downgrade the amount of fed. transfer $$$ to irresponsible provinces??
commented 2015-07-09 07:24:49 -0400
Interesting in light of the Greek crash – it makes you reflect on socialist economics- s fat all this government has had is equalization tranfers to shore up profligate spending – can you imagine where Ontario would be if they had the loans foisted on them like Greece did fro EU lenders? Every penny would be spent on largess, personal perks, crony nepotism and vote buying – no thought to ability to repay or the burden it puts on taxpayers. Greece should be the wake up call for all have not provinces with a klepto-socialist regime. But it won’t because too many zombies think the pittance they get from government dole is endless and does not have to be paid back.
commented 2015-07-08 23:16:34 -0400
PK, you are quite right about the spend mentality. As long as one thinks their Credit Card is good, they’ll spend.
I see Transfer Payments as Welfare, and Ontario guilty of Welfare Fraud, grafting.
Cut off the Welfare and people will learn conservatism. Yet Harper feels he must increase Transfer Payments/Welfare, for the better of Canada, because there’s an Election coming? And nothing changes.
Or, the change is much slower and more painful.
It is the Electorate that must make the changes.
commented 2015-07-08 14:42:10 -0400
This is what happens when you put the community “Dog Catcher” in CHARGE . . . .
commented 2015-07-08 13:30:41 -0400
Ontario: old Iroquois word meaning “land where people love crooked chiefs”.
commented 2015-07-08 11:38:54 -0400
The voters of Ontario who elected this government deserve what THEY get! However, THEY are dragging those who did NOT vote for this government down with them! Soon they will drag down the rest of Canada!
commented 2015-07-08 10:12:57 -0400
Peter — transfer payments are one thing. They’re akin to your regular working income. But this spend mentality that socialist groups have is like you borrowing to cover stuff you can’t afford, until you’ve borrowed more than your yearly income can pay off. Your employer/boss won’t bail you out; the employees won’t let him. But the creditors you owe money to, well… they’re not just going to write off the debt. It’s their money you’ve spent.

Harper won’t bail out Ontario. He can’t. Ontario owes too much. (Besides, the rest of us won’t let him.)

But this “credit downgrade” just means that the interest rate on Ontario’s debt went up… which means the interest payments went up… which means there’s even less operational money in the kitty… which means Wynne will have to borrow even more… which means…

Austerity is called for, here, because this is a vicious cycle, and, left unchecked, will bankrupt Ontario. But will Ontarians actually tolerate austerity? Like Greece, we’ve seen that the Unions and Socialists won’t (and this showed up before, too, with Harris only having one term)…
commented 2015-07-08 09:36:56 -0400
Enjoy the decline.
commented 2015-07-08 09:30:36 -0400
From some of the comments below….Ontario could really USE that money to put into Education….perhaps spelling? Oh, wait….you don’t NEED to learn Spelling and Grammar in school anymore….and it is NOT taught….the computer does it for you, right? Sure.
commented 2015-07-08 07:09:30 -0400
It’s a sad day when the province I used to be proud to call home is tanking like Greece. Ontario is turning into a sinking ship and I knew this was going to happen. I tried telling people this, but my warnings fell on deaf socialist ears. Maybe Wynne is subscribing to True-Doh’s philosophy that “the budget will balance itself”. And then there’s the public debt which many just overspend and try to live well beyond their means. I’m no rich man, and never aspired to be one. But I was taught to live within my own means, and do without many luxuries. However I still live a decent life, because I don’t have the big guillotine of debt ready to come down on me. And I think that’s the lesson that many have to take away from this. That, and don’t trust socialist government to “run” your lives.
commented 2015-07-08 06:19:09 -0400

With adolf hitler with bewbs WYNNE running this dump, expect the debt to get much worse. PIG WYNNE keeps handing out pay raises to here unions division.

The great news is that by 2030, 85% of all north American unions will be gone – they can`t meet their obligations today. And what does PIG WYNNE do? Makes MOAR pension – which PIG WYNNE will pilfer and hand over to the contractors to build MOAR useless crap.

Toronto is changing it`s name – new capital of Ontario is Athens.
commented 2015-07-08 00:44:34 -0400
Interesting…….if you happen to be stupid enough to hold any interest in this debt…………:-)

If you do ….sell it to someone who believes in Ms Winn’s vision……bet you won’t find too many INTERESTED takers…..:_)
commented 2015-07-07 21:35:12 -0400
Ontario is almost down to the same level as Greece. What can we expect when we are ruled by a bunch of Grease Monkeys. No offence meant to any Auto Mechanics.
commented 2015-07-07 21:18:26 -0400
Prince Knight, Peter Netterville, I’ll second that!
And Joan, I’ll second that, I couldn’t watch the video either.
Unfortunately Harper feels he must bail Ontario out with Transfer Payments.
How Liberal would Ontario voters feel without those Transfer Payments?
commented 2015-07-07 21:12:47 -0400
Okay, I get it, be stingy and blame the poor.

Because seriously, what is the lesson Greece is teaching us?

Look at this statement from yesterday by the IMF: http://www.imf.org/external/np/sec/pr/2015/pr15318.htm

There is no way the EU will just let Greece go, to be quickly followed by Spain and Portugal then by the EU collapse.

The IMF has been criticized because, before the referendum, it advised the EU Greece’s debt needed to be restructured. But although it has great influence with the EU, it did not press the case and now Greeks have voted no.

The EU will now follow the lead of the IMF, will offer Greece restructuring and Greece will accept and the EU will continue to hobble everyone in its reach with bureaucratic incompetence and – well, let’s call it a spade – enslavement.
commented 2015-07-07 21:07:49 -0400
Oops, better invest in organized crime … or better organized crime … or better use some of those drug trade returns on bringing down the debt … or ….

I didn’t want to view this story because, gee, it’s just so damn depressing. Black cloud over everything. Lots of rain. People are mean. Grind, grind, grind.

On the other hand, if you’re a sadistic predator, you live well. Sigh.
commented 2015-07-07 20:51:21 -0400
Καλώς ήρθατε στη δικτατορία Wynne του Οντάριο
commented 2015-07-07 20:29:53 -0400
If Ontario goes bankrupt it may have to give up provincial status and become a territory. Ontario can’t drag Canada down forever and get away with it.
commented 2015-07-07 20:21:34 -0400
The socialist party in Ontario is showing the rest of Canada that if you just let the gov’t take care of you, everything will work out….out of money, out of jobs, out of pension, out of gov’t.
commented 2015-07-07 20:14:04 -0400
commented 2015-07-07 20:03:47 -0400
Has The Wynne gov’t learned their lesson from Greece? Up to the point it’s been taught, they have.
So far, they’ve learned that if they Just Say No to paying down debt, cutting useless programs, curbing spending, and demanding more job bang for the public buck, then they can negotiate a better deal. The rest of the lesson that hasn’t played out yet is what happens when the EU tells Greece to hit the bricks.
commented 2015-07-07 19:57:19 -0400
And Alberta is heading that way too. Three cheers for the Notley crew! Woot! Woot! Woot!
commented 2015-07-07 18:06:34 -0400
Yeah, but tell that to a socialist, Christian. Ontario is in for a rude awakening in the not-too-distant future, and it’ll be akin to what Greece is facing. Sooner or later the people/institutions holding the note on Ontario’s loans are going to call a halt to the lending. The rest of us in Canada won’t allow Ottawa to bail Ontario out. And then the people of Ontario will look back at Mike Harris with nostalgia…
commented 2015-07-07 18:01:18 -0400
Socialism does not work…thump…socialism does not work…thump…socialism does not work…thump…socialism does not work..