The Canadian economy has been the talk of the town recently with the dollar reaching parity with the American dollar for the first time since 1976 and the housing market really heating up.\u00c2\u00a0 These things are both offsetting the effects of inflation and helping to keep the economy running along smoothly.\u00c2\u00a0 Luckily our economy right now is really based on trading natural resources and with our agriculture.\u00c2\u00a0 Grain prices are reaching their highest levels in a long time and thats helping farmers make money.\u00c2\u00a0 Oil is always at or near the highest level it has ever been so thats helping out the Oil companies.\u00c2\u00a0 The problem with such a hot economy is that it is bound to cool off eventually its just a matter of when.\u00c2\u00a0 The USA is having a lot of problems recently with its crisis on sub prime lending, a cooling housing market and the poor state of their economy.\u00c2\u00a0 A lot of that will have trickle down effects into Canada.\u00c2\u00a0 Today, to add to the whole mess, is a strike by GM workers\u00c2\u00a0 at their Saginaw plant.\u00c2\u00a0 This is going to cause over 80,000 workers in Canada to be layed off as a result of the disruption in the automobile creation chain.\u00c2\u00a0 With such a large lay off this will be a devastating blow to our economy.\u00c2\u00a0 Unemployment numbers are going to rise big time and the longer the strike lasts the more harm that will be caused to the economy.<\/p>\n
So with the high Canadian dollar hurting exports and then the GM layoffs raising unemployment, the economy is going to be in for a great shock.\u00c2\u00a0 It is hard to believe that this will all just pass by and we will be unaffected.\u00c2\u00a0 My prediction is for a recession in the USA followed by a recession in Canada.\u00c2\u00a0 The USA will be harder hit but Canada will be going along for the ride with this one.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Canadian economy has been the talk of the town recently with the dollar reaching parity with the American dollar for the first time since 1976 and the housing market really heating up.\u00c2\u00a0 These things are both offsetting the effects of inflation and helping to keep the economy running along smoothly.\u00c2\u00a0 Luckily our economy right … Continue reading Threat of Recession Looms in Canada<\/span>