An eerie calm fell over Canada’s financial markets one year ago. Battered by collapsing equity markets worldwide, and further hampered by falling commodity prices, the Canadian economy ground to a screeching halt. A decade of growth fueled by expanding debt was about to be unwound. Or so it seemed. However, into the breach stepped the Canadian government with a stimulus program of mammoth proportion. Though dormant in the spring, by the summer we saw a few green shoots emerge. And by the autumn of 2009 we began to harvest debt-fueled growth in this country once again.
This post does not quibble with the growth we see. It is there for all to observe. If we dare to ask a question it is only regarding the less studied subject of the durability of a rebound built on government largesse. Simply put, does the Canadian government have the borrowing capacity to keep on priming the pump?
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Rogers Communications lays off 900 managers
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A closer examination of the CMHC will demonstrate a liability of closer to C$850 Billion. Yes indeed, the Canadian Government is likely the largest sub prime lender on the planet these days.
ReplyDeleteA lot of canadian's in BC are in complete denial of the market melt down and think the recession is over thanks to the media and the super inflated houses prices. 30 yr old, 1200 sq ft very average bungalows still selling for 600,000. plus is still the norm in bc until the vancouver olympic festival is over and the money train is gone. 2010 will be shock and yike!!!
ReplyDeleteCanada, thanks to it's inbred government has succesfully kept it's citizens in the dark.
ReplyDeleteTotal insanity! people are still lining up for days in the rain to purchase condos that are yet to be built. In many cases prices haven't even been set but they line up like latte laden panzies just the same.
Can't wait for the shoe to drop in this country and watch all the fat rats chewing on one another to save their ass.