Tag Archives: depression

Canada will be in a recession – The fundementals are not sound?


Posted: October 06, 2008, 8:01 AM by Jonathan Ratner
Market Call

Declining GDP in the fourth quarter of this year and the first quarter of 2009 will bring the Canadian economy into an official recession, UBS predicted Monday.

“The Canadian economy, which has been only barely above water for nearly a year, does not escape the global undertow…” strategist George Vasic told clients.

He cited weakness in exports and sharp reductions in commodity prices as where the impact is being felt most. While domestic demand has held up, UBS expects weaker confidence will put activity on hold.

Scotia Capital is also forecasting Canadian and U.S. recessions, along with 100 basis point cuts from the Bank of Canada and U.S. Federal Reserve “that could come at any time.”

But for the first time in a long time, the underpinnings of the Canadian economy are sound going into the downturn, Mr. Vasic said, highlighting historically average consumer debt service ratios and a balanced budget.

“…it is not always the case that when the U.S. catches a cold, Canada gets pneumonia,” he added, predicting that consumer sentiment should hold up better.

read more | digg story

Geroge Bush blames the financial crisis substaintial foreign investment and a subsequent increase on bad consumer credit from greedy Wall Street bankers


 

 

President George Bush

President George Bush

A state of the afairs to squash fears amongst citizens in the United States of Amerca is sure to send ripple affects around the world; as we are all intertwined in this financial mess. President George Bush tonight spoke directly to U.S citizens, and candidly explained the situation in America. 

 

  • Housing prices that were valued more than they were actually worth
  • Banks that borrowed too much money
  • The decline in the housing market
  • Securities became unreliable leaving companies stuck with unsellable products
  • Banks began holding on to their money and dening credit to the everyday American citizen

President Bush said that the “irresponsible actions of some…bad decisions” is causing “the market is not functioning properly”. He warned that if action is held up by congress “the stock market could drop even more”. We could end up with “more expensive for credit, even with good credit history”. However he was optimistic and said that there is a spirit of cooperation betweens Democrates and Republicans. This bill will commit a large amount of tax payers money. But given the situtation, if the bill is not passed, it will cost more later for the American economy and the world. His key points to the ballout was to (1) remove risk possed by mortgage back securities, (2) protect tax payers and (3) ensure that there will be no winfall for “Wall Street” executives.

     

George Bush beleives that the plan will solve the financial problem and allow the “flow of credit” to Americans. He beleives that the vast majority of Americians will pay off their mortgages. But what does this mean for the future of America? The first part is to safeguard the financial system. He promised that every savings account will continue to be insured for up to $100, 000. In addition, he said that the laws governing the American financial system are outdated; needing change and modernization. The government should be able to observe, control and ensure that “Wall Street” will never put the system or the American people at risk again. He still beleives that the democratic financial system is the best system one available. His final quote stated that “together we will show the world what kind of country America is”. The world will definately wonder! The question you may ask, if it is the best system, than what makes the U.S different than any other socialist system now that they are essentially owning these companies? Is the problem with America greed? Did they simply learn from history and the depression and wanted to make sure to avoid a global depression?

 

American Wall Street Greed

American Wall Street Greed

One has to wonder, although America is only a portion of the worlds population, they consume the largest amount per-capita basis. Is America’s excess caused by world greed and foreign investment? Is it time for America to learn to live with less? Or is it time for America to embrace a more socialist style of financial system? Has republican or conservative styled economics failed? Or are Western societies just too credit happy, beleiving that they “deserve” to have all of the luxuries of life? Will we ever learn?

 

By Andy MJ
a.k.a. The G.T.A Patriot

We should stay the course! Isn’t that what the captain of the Titanic said before it sank?


By Jim Stanford

Canada and the Economy

Canada and the Economy

We all know the Conservatives are the “rational economic managers,” right?  After all, their tax cuts, free trade agreements, and tough-love social policy are all motivated by the need to free the entrepreneurial beast within us, and allow us to pursue our natural proclivity to truck and trade with wild abandon.  The productivity of the free market is the common intellectual (or should that be ideological?) thread that unites all the disparate, carefully calculated Conservative policy proposals.

How odd, then, that the record of Canadian productivity growth since the Stephen Harper government came to power is so uniquely awful.  StatsCan released their second-quarter productivity numbers on Sept. 10 (http://www.statcan.ca/Daily/English/080910/d080910a.htm).  Productivity declined by 0.2%, the third quarterly decline in a row.

Read more