The 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 BoC bumped its rate again, for the third month in a row.
The possibility of a double dip recession isn’t just being considered here in Canada. World-wide the possibility seems to be of real concern. Is the global economy out of the woods? Two years after near-meltdown, with the U.S. looking sluggish, equity markets groggy and Europeans fighting a debt crisis, experts gathered in Italy offered a generally gloomy outlook — especially for the United States and much of the industrialized world. Read More…
We in Canada are not exempt from anything. The real reason for all of this is our greedy lifestyles are unsustainable. We did this to ourselves as much as any big banks did. We made the choices to buy all of the products “Made in China”, we invested our money with the big banks because we are always wanting something for nothing, we drive oil and gas prices up by continuing our “two cars in every driveway” mentality, we NEED nuclear power because of our “I pay for it so I will use as much as I want” attitude. It really becomes simple in the end. Awareness is lost on society today. The majority of the population does not know where power comes from, where the waste water goes when flushed down the toilet, how the foods we eat are genetically modified and mess up our insides. Man, there are so many reasons why this is our own fault. But it could be changed, will it be changed. I say no. You can’t even have a conversation about any of these things as most people don’t want to know that they use to much water, hydro, gas and oil. Man, you would think that the world began with the discovery of oil and the land was not even used prior to that. People lived long before all of this non-sense and it worked very well.
You and me both brother.
I thought Canada wasn’t in a recession and the rest of the world was looking at us as the shining example of controlled regulation and well behaved banks? What am i missing here?
Uh, you do realize there are other reasons they could bump up their rates or does one need an education on the basics of economics?!? Sheesh. Don’t break out the panic kool-aid yet.
From what i’ve read i dont think its going to dip twice. We are only see an adjustment of sorts. You’ll see.
Yes i agree. The real problem lies at the heart of American politics. There financial system isnt fixed despite their celebration of so-called financial reform several months back. When you read the fine print nothing has changed and this double recession is only the beginning of the problems we are all about ot face.
Like it or not the Americans have a stranglehold on how the rest of the world performs. if they are walking crippled the rest of us feel it.
And we can thank the good ole U.S. of A for this global disaster…AGAIN!
I told you it was coming! With the mess not truly fixed but merely broomed under the carpet this recession is looking more like a depression every day.