Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

mykalberta · 08-16-2007, 10:09 AM

I have a question about this. I have read/watch as many GnM BNN, NP articles as I can get and I still am not getting it.

In Canada, it appers that some company called Coventree is responsible for most of the problems up here. From what I can tell is that they own debt related to subprime mortgages (likely mostly in the US). And the problems started when Deutche Banc would refinaince their 400+mil ion debt notes.

So here is what I dont get. Why are we giving bailouts to Coventree. From what I can tell they made risky investments and now banks wont cover there a$$es. So why not let them declare bankruptcy. The subprime mortgages they own would be sold off for fractions of the dollars and Coventree would go belly up.

Yes that affects Coventree but so what, Coventree made their bed and now they should be forced to lie in it. This solution wouldnt work in the US as the problem affects them directly with more of an impact by why should my RRSP funds take a hit so Coventree can survive? Or is it that Coventree is like Fannie Mae or whatever its called in the US and Canada couldnt survive without it?

MYK

08-16-2007, 10:09 AM	#5
mykalberta Franchise Player Join Date: Aug 2005 Location: Calgary Exp:	I have a question about this. I have read/watch as many GnM BNN, NP articles as I can get and I still am not getting it. In Canada, it appers that some company called Coventree is responsible for most of the problems up here. From what I can tell is that they own debt related to subprime mortgages (likely mostly in the US). And the problems started when Deutche Banc would refinaince their 400+mil ion debt notes. So here is what I dont get. Why are we giving bailouts to Coventree. From what I can tell they made risky investments and now banks wont cover there a$$es. So why not let them declare bankruptcy. The subprime mortgages they own would be sold off for fractions of the dollars and Coventree would go belly up. Yes that affects Coventree but so what, Coventree made their bed and now they should be forced to lie in it. This solution wouldnt work in the US as the problem affects them directly with more of an impact by why should my RRSP funds take a hit so Coventree can survive? Or is it that Coventree is like Fannie Mae or whatever its called in the US and Canada couldnt survive without it? MYK