Tuesday, May 29, 2012

Thomas Mulcair: Wastrel or Canny Investor?

Given the widespread support that the the NDP Leader of the The Official Opposition is enjoying these days, it is hardly surprising to see a public campaign to erode that support getting underway. The latest, of course, is the non-story of Thomas Mulcair remortgaging his house 11 times; as the trained seals the Canadian public is expected to be, we are supposed to recoil in horror at the thought of this wastrel ever becoming Prime Ministere and doing the same with our 'fragile economy', to borrow a phrase from the perpetually-consternated Labour Minister, Lisa Raitt.

After reading an article in the Financial Post my son, who recently moved to Alberta, sent me the following thoughts:

Everyone's criticizing Mulcair for taking out 11 mortgages on his house and not understanding how to handle money, with the implication being that he'll bankrupt Canada. Here's a good rebuttal to that, saying that it's the opposite, and that he's very savvy with money. As the article says, borrowing to spend is a bad idea, but borrowing to invest is a good idea.

"If you are borrowing money at 3.5% and you have an opportunity for a yield of about 4.5% in a basic investment of say real estate investment trusts, that looks like a winner even before you consider the advantage of writing off interest."

Since he likely borrowed all that money to fund his political campaign, he made a superb financial investment.

Guess that means Harper Inc. is going to have to do a little more work on the Mulcair character-assassination file.

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