Tag Archives: stocks

Encouraging Canadians to take advantage of stock market opportunities created by the world economic crisis


TORONTO — Liberal Leader Stephane Dion is taking his Conservative rival to task for encouraging Canadians to take advantage of stock market opportunities created by the world economic crisis.

Dion says Prime Minister Stephen Harper is completely out of touch with the impact the financial turmoil is having on the lives of everyday Canadians.

He says Harper has flunked the first and most important test of leadership by failing to understand the fears Canadians have for their jobs and savings.

Dion is speaking to the same Toronto business audience where Harper unveiled the Conservative election platform and spoke about “buying opportunities” on the stock market the day before.

He says the Tory platform has no coherent plan to help Canada’s economy beyond meagre relief for the manufacturing and forestry sectors.

Dion says the Liberals have a solid strategy to protect people’s savings, pensions, homes and jobs.

Dion’s attack echoed almost verbatim one launched earlier today by NDP Leader Jack Layton, who assailed Harper for saying the stock market plunge presents “a lot of great buying opportunities” for investors.

“Mr. Harper said that an economic storm was no time to switch boats,” said Dion. “Well, I say, the captain of the boat is asleep at the wheel.

“For the sake of all Canadians, we need to change course, we need to change the captain, we need to change the whole crew.”

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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.

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Lehman Files for Biggest Bankruptcy in American History, rumors of warnings with AIG and Citibank and the coming market meltdown


Sept. 15 (Bloomberg) — Lehman Brothers Holdings Inc., the fourth-largest U.S. investment bank, succumbed to the subprime mortgage crisis it helped create in the biggest bankruptcy filing in history.

The 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan today. The collapse of Lehman, which listed more than $613 billion of debt, dwarfs WorldCom Inc.’s insolvency in 2002 and Drexel Burnham Lambert’s failure in 1990.

Lehman was forced into bankruptcy after Barclays Plc and Bank of America Corp. abandoned takeover talks yesterday and the company lost 94 percent of its market value this year. Chief Executive Officer Richard Fuld, who turned the New York-based firm into the biggest underwriter of mortgage-backed securities at the top of the U.S. real estate market, joins his counterparts at Bear Stearns Cos., Merrill Lynch & Co. and more than 10 banks that couldn’t survive this year’s credit crunch.

“There is likely to be a domino effect as other firms and individuals who relied on Lehman for financing feel the effects of its meltdown,” said Charles “Chuck” Tatelbaum, a bankruptcy lawyer with Lauderdale, Florida-based Adorno & Yoss and former editor of the American Bankruptcy Institute Journal. “The whole thing is frankly frightening for the U.S. economy.”
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