Our banks are a lot more sound then US parties, but the US is our largest trading partner, and when they slow down, so do we. Lower resource prices won't help either. I live in Calgary, big Oil & Gas city and there are some projects/buildings that have been cut-back, slowed down and even put-off for years. The consumer is still fairly clueless.
Xerox Canada gave Xerox US $300M some months ago, similar Circuit City in their bankruptcy filing received permission to withdraw Canadian Circuit City profits, how many other such transactions - profit raids are occurring isn't known Canada's S&P/TSX Composite index (Interi (^GSPTSE) didn't peak until June 08 coinciding with crude oil's peak and has since likewise collapsed interpreted as Canada being 3 months behind in what's going on, resulting in Canada's 'we're alright' economic assessment changing to a firm 'oh shit !' and worsening according to the squabling 6 year old politicians requiring money to be spent immediately on . . . . . to 'save the economy' even tho no one yet knows what's hurting currently the minority Conservative gov under Harper is facing a 'no confidence' vote - coalition of the other parties that may result in them being replaced by a coalition Liberal party: http://www.cbc.ca/canada/story/2008/12/01/question-period.html Canada appears to be adopting the Italian style of politicals
regardless of the world economic conditions, people need raw materials... i'd imagine that Canada would stay competitive. If our dollar is down it means there's huge potential for gains because our resources will be cheaper. The government could either keep the currency somewhat deflated in order to spark trade, or else centralise the economy somewhat and work on our on manufacturing sector and create some new secondary and tertiary industries. (not creating them per.se but offering financing for new businesses wanting to create jobs for Canadians). As far as the depression goes, the Canadian infrastructure is completely different than the depression days. Canada wasn't really anything more than a british colony back in the early part of the century, most of the policies in place were rudimentary and it wasn't until after the first war Canada gained some identity (and i'd assume some better policies for its citizens). We're much more stable, our banks aren't riddled with obscene debt, (some banks are posting earnings, i believe its TD that didn't actually take on any of the mortgage packages and is posting a gain). The new tax free savings account might help as well. $5000 tax free savings account to every tax paying Canadian (start of 2009) to hugely increase saving, in turn creating a massive amount of liquid assets for banks, in turn a great deal of lending can occur. Should help increase the liquidity of our banking system. Overall.... it'll suck..... not as bad as the US though
Good luck with that... WRT zdreg's inquiry about the recent dollar rally, I recall watching a recent interview to Peter Schiff on Bloomberg TV; he's very bearish on the USD, saying that this rally is due to big players and institutions liquidating positions and switching to cash, namely the $. He strongly advises against it, saying that this rally will be short-lived. Interview is available on Youtube.
and lets not forget that any money the US spends to support their economy is an economic benefit to Canada without Canada having to spend a cent
hopefully, once USA and Canada are merged unter the North American Union, we can sell off parts of Canada to the Chinese to reduce our debt Canada is rich in resources China needs, and China is very overpopulated - they need a place to move to Everyone wins
China is doing cutting edge research on extracting oil from oil sands. They have wanted to buy into this for awhile. They have purchased other companies. We are much less dependent on the US than previously. Note how we have a government surplus...plus the strongest banks in the world. Our real estate has not gained as much as in most parts of the world....how wants to live in a cold country, after all? I have been frustrated at times with how conservative we are...but it does payoff.
same nonsense from the weak uneducated americans. Canada doesn't need the US. the US needs Canada.Canada is working on a free trade agreement with the Far East. Let's see who prospers in the future. America is on the verge of being taken over by minority groups. lots of luck.