The Cdn numbers are no better credibility wise than in the US. Our BAnk of Canada, Mark Carney and particularly the Harper Govt along with Jim Flaherty are simply portraying an attitude that is either completely arrogant, OR completely in denial. These folks up until even 3 weeks ago thought Canada was an island unto itself, that these problems wouldn't affect us. It was only 4 days before the election that they admitted the system might need some liquidity here as well. They said this was a buying opportunity and not to invest in Ontario. They then cut rates by 50bps, and another 25bps(when they clearly should have done more, sooner). They could have been ahead of the curve or at least on par with other govts. They chose not to. Yesterday they said we are in a "sluggish economic period" that "COULD" lead into recessions. Why don't they just fess up???? When the US sneezes..... We are likely going to see one of the worst market opens today in anyones best recollection. Brace yourself.
And now the experts are predicting when the bounce back will occur even before the real recession hits... :lol: http://ca.news.finance.yahoo.com/s/2310 ... anada.html
Why do you want them to fess up? Would good would it do to our already troubled economy? More doom and gloom we don't need. The media loves to make a bad situation worse. When this happens, people stop spending. When people stop spending, jobs are lossed and it just snowballs downward.
Smitty has it bang on....it was amazing to watch the effect of the US doom and gloom on the Canadian consumer. US economy is in a tailspin so Canadians stop spending money?? Amazing to watch the effect media has on the attitude of the consumer. This lemming attitude is also rampant in the financial world...hence the nonsense in the markets. But it sure is fun watching all the "professionals" trying to make predictions.
I don't know if this is still true, but at one point, 80% of our exports went to the US. If that is still the case, our economies are inextricably linked. If they take it in the pooper, so do we.
...and now our dollar has dropped substantially in value, making all our products much cheaper. Canadian products are now on sale! (sorry, that was GOOD news, nobody really wants to hear about that. )
But an issue could be that many US importers no longer have the credit available to purchase the Canadian exports. Apparently there are lots of containers sitting in ports like Vancouver because the recipients are having issues getting the $$$ to complete the transactions. I think it just means that the stronger companies in the US will be able to take advantage of the low dollar and the weak will die off. But the US does not care that much about Canada....bigger issues with trade to China.
To China, or from China ?? Do you mean they want to trade more with the people who are supposed to be producing stuff thats killing off their jobs? ?
Hmm, go figure, with all the doom and gloom....the bottom still held! I guess some of those pro's must have a clue!
HI Smitty, the reason I would like the BOC to fess up is so that they can quit playing the denial card and then attempt to be ahead of the curve. They should rightfully take credit for not allowing our banks to get in too deep. So, it shows they can make bright decisions...so why not cut rates before every one else, why not support our banks lending and borrowing internationally and why not look for proactive solutions and not reactive adjustments?
for anybody still actually watching the carnage as it unfolds...the tsx took out the recent bottoms and put in a new low today. The DOW did not, so that is slightly positive. The weird thing about today's trading is the selloff on the tsx pretty much occured mostly in the last hour, so I think it is likely very closely linked to fund liquidations. Will be watching to see if we move towards 8200 on TSX, and we will if we can't rally very soon. Under that, it's a looooong way down to about 6400(very hard to see that materialize considering our fundamentals). Oil and Gold both held ground fairly well today. Canuck down again. I believe that once the US election is completed, we likely can see some sort of catalyst for a rally, a democrat win likely does provide the catalyst required.
I don't follow the stock market at all...aside from what stuff hits the mass media...however even I know this is not a good sign: http://www.247wallst.com/2008/11/analyst-call-gm.html Target price for GM stock has now been pegged at zero. That's zero as in $0.00 :shock: I suppose "Chapter 11" can't be far off for the former "king of the hill."
The current equity has been hit with a sell rating and a 0 shareprice target. I think what happens is a bailout of some sort occurs, current equity is whipped out and new equity issued. This is all pretty much priced in as the mkt cap of GM is only a couple billion, peanuts really. Not good any way you slice it. It was one dealer that made that target cut. Doesn't mean they are right.
For my opinion on this see: http://www.advrider.com/forums/showthread.php?t=389978 Basically, I realized GM was screwed when I recently went to buy a new car. The results? I bought a new Suzuki even though I can get a $4000 employee discount from GM. BTW, I LOVE my new Grand Vitara.
Turning GM around is like trying to turn around an aircraft carrier with a rowboat. They have huge legacy issues and were really in a bad place with the UAW/CAW contracts negotiated over the last 20 years. I'm sure GM will survive somehow, but it will likely be a much smaller company in the future. If they collapse and go out of business, the ramifications will be at least another ~10% in US unemployment(between GM and spinoffs), over and above current levels. That would be a shame because they actually build some pretty good vehicles that last a long time and because; The Chevy Volt is going to be the first successful electric car. It will revolutionize car transportation. The average driver will only need to buy gas every 2-3 months. There are apparently over 60,000 people on the waiting list so far. This car will be what keeps GM going. GM is currently working on extending the platform to about 8-10 other models by 2012 or so. They are also now working on the 2nd generation that will extend battery range to over 70 miles. PS Bryan- I think you still bought a 'GM' vehicle(part GM anyways). The SUV you bought is built at the Cami plant in Ingersoll- IIRC
The US government will not let GM go bankrupt. Cami makes the Suzuki XL7. Well, they used to. They just stopped production there.
GMs situation, as an automotive company, is fairly easy to understand....too high operating expense (capital in plants, union contracts, massive redundancies) while positioning as the "affordable" choice. What is GM's competative advantage? Nothing anymore because it is too big.
And our brilliant finance minister has indicated they will assist our auto sector, with selective handouts for specific type of technology....how the hell do you administer that??!! Just brilliant, in the meantime, lot's of jobs being lost in this region.
You sound like proponents of hand outs to horse and buggy manufacturers must have sounded like in the 1920's... :lol: You mean to get some of that there government money we got to start putting them new-fangled n-genes in these here buggies? Well that just ain't right [-X Elmer and Ezeikial and most of their kin folk been workin on these buggies for near 20 years now. We make the best damn buggy this side of Corn Cob Hollow.
