It seems like it was just a few years ago we had a recession, could it really be time for another already?
The Canadian economy has now contracted four months in a row and if that trend continues will Poloz have to cut rates again?
Economists have already written off the first half the year, but something better was still expected for April.
This also brings into question the outlook that had been painted by Bank of Canada Governor Stephen Poloz.
A recession is typically defined as two consecutive quarters of contraction, meaning May and June will have to be stronger to avert that in Canada.
Even if the May showing is flat, said Andrew Grantham of CIBC World Markets, there could still be a “modest negative” for the second quarter.
“It probably already feels like a recession for people in Alberta and Saskatchewan,” he said.
Read the full article here.
It’s that time of the week again!
Let’s get to our regular Friday Free-for-all post, this is our traditional end of the week news roundup and open topic discussion thread for the weekend.
Here are a few recent links to kick off the chat:
–BC income growth worst in Canada
–Why rate cut may not drop mortgages
–Bankers keep filling the punchbowl
–The Okanagon oil link
–The British Columbia oil link
–Owners ask for reduced valuations
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
The more things change the more they stay the same.
The president is back in the white house and there’s rumbling of a fiscal crisis again.
Flaherty has said he’s not going to take another recession lying down.
Finance Minister Jim Flaherty and Bank of Canada governor Mark Carney both pledged Wednesday to take action to support the economy if a shock from the U.S., or Europe, threatened to once again plunge the country into recession.
“We are a pragmatic, sensible government. If our economy goes into recession because of an external shock from the United States or the eurozone, or both, we will take steps to stimulate the economy,” Flaherty told the Commons finance committee in an evening session.
“What we have done before we will do again. We will not do exactly the same thing again…but we are not going to stand by and have the Canadian economy slip deep into a recession with high unemployment.”
Good monday to you all!
As we head into another week it will be interesting to see if the current dismal sales trend holds.
VHB puts it into perspective:
If we get another week like last week, we will be on pace for sub-2008 September sales. Pause and think about that. In the middle of the biggest financial crisis in 75 years, more houses were sold than now. Wow.
So let’s look short term – what do you think? Will this week reverse the trend that kicked off the month or are we going to see more of the same?
A couple of very interesting articles:
Pimco and JP Morgan halt vacations to prepare for crash?
When one company decides to cancel vacations, or impose additional workloads on their employees due to projected events, it is not considered relative news. However, when several institutions, analysts, and even the head of the World Bank acknowledge a coming crisis, then everyone needs to come to the realization that something big is on the horizon that will have an effect on both Wall Street and Main Street.
21 signs this could be a long hot crazy summer for the global economy
The summer of 2012 is shaping up to be very similar to the summer of 2008. Things look incredibly bleak for the global economy right now. Economic activity and lending are slowing down all over the planet, and fear is starting to paralyze the entire global financial system. Things did not look this bad back in the summer of 2011 and things certainly did not look this bad back in the summer of 2010.