Recession May Have Ended But Economy Still in Hole

Recession May Have Ended But Economy Still in HoleTwo years removed from what many feared would be the total collapse of the world economic and financial systems, Canadians may be forgiven for asking — “What was the big deal?” The most severe global recession in six decades fizzled into a run-of-the mill slump in Canada lasting three quarters and costing just over 400,000 jobs, a mere 2.4 per cent of the labour force. And as the second anniversary…

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The Dreaded Double Dip Recession Looms

The Dreaded Double Dip Recession LoomsThe Bank of Canada has raised interest rates again, saying: the economy is recovering but still faces major challenges. If the economy is facing major challenges, then why raise rates? BMO economist Douglas Porter said poor housing sales and less spending by Canadians is still making for a fragile economy — and higher borrowing costs wouldn’t help improve the situation. I can’t think of a really good reason why the…

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Tories-Liberals strafe each other over jets

Tories-Liberals strafe each other over jetsThe economic and diplomatic strings attached to Ottawa’s multi-billion dollar deal to buy the F-35 stealth fighters would make it extremely painful — if not impossible — for a future government to unravel or cut, senior Conservatives insisted Wednesday. Unlike the EH-101 helicopter deal axed in the mid-1990s by Jean Chretien’s Liberal government, the pending agreement to purchase 65 new interceptors for the air force is a more complex arrangement…

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Canadian Economy Continues To Soar

Canadian Economy Continues To SoarCanadians appear to be a vehicle-buying mood, according to July figures in the latest Global Auto Report from Scotia Economics. It says Canadian sales advanced to an annualized 1.65 million units last month, lifting volumes at several automakers to the highest July on record. It was the second monthly rebound in a row after a weak performance in May…

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Loonie’s Strength To Invest In Eagle Market

Loonie's Strength To Invest In Eagle MarketI actually like what is going on in the markets right now as I believe there is a huge opportunity for us to make money over the long term. While many investors thing the stock market is sick, I’d say it is just another rough patch to ignore. The good side of things is that our Canadian dollar is still pretty strong (fluctuating between $0.95 and $1.00 US) and the…

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TSX drops on global growth concerns

TSX drops on global growth concernsToronto’s main stock index dropped on Monday to its lowest in nearly five months as energy, materials and financial issues receded on concerns about global economic growth. The broad-based decline came on thin trading on a day when U.S. markets were closed for the Independence Day holiday. Among the biggest decliners, Suncor Energy lost 0.9 percent to C$30.84, Royal Bank of Canada fell 0.9 percent to C$50.45 and Teck Resources…

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Canada’s economic recovery stalls in April

Canada's economic recovery stalls in AprilCanada’s economy stalled in April on a slide in retail sales, suggesting the pace of growth is slowing and that the central bank may think twice about raising interest rates again this month. Statistics Canada said on Wednesday real gross domestic product was flat in the month after seven straight months of expansion and the fastest growth in a decade in the first quarter. The Canadian dollar sagged after the…

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Financial Bubble Still Here with Yet More to Unravel?

Financial Bubble Still Here with Yet More to Unravel?Is there such a thing as a secular financial bubble? Has the financial sector become bloated out of proportion to the economy over the last few decades and is there be a contraction in store, abrupt or prolonged, back to a smaller financial sector? Was the crisis of 2008 merely the start? I’m not sure of the answer but a couple of data points have stuck in my mind recently:…

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