One of my colleagues visited Spain her home country and found out crisis there too...lots of unemployment, many real estate projects on hault, half constructed and her cousin in construction is out of job, the country has no fixed rate of mortgage and it fluctuates widly, one day you have 8 % rate and other time it is 16 %...and it is hard to manage monthly exp.

also i was told uk is proceeding towards worst recession ...similar to they had in 60s.

US has billions of $ debt from China....so I guess China is superpower now....also in olympics it proved.

"Meryl lynch (Canada) says taht a crisis will come soon. "

The same article states views of other economists also who say Canada is better regulated so it wont see same effects as USA.

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Originally posted by JRF

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Originally posted by hchheda


How does all this effect Canada?

When more than 70% of Canada's revenue is from business with US of A, how can Canada be not effected?

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Thanks for bringing the NAFTA to the picture.
The press reporters who interview Mr.Harper should raise this question to explain how it would not. From my view, it is not only Canada, the whole world would be severly affected, especially the real estate in India (though, I have my own real estate investments in India).

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No matter what crisis the USA goes through, I am confident, it will remain the strongest but hey China has definitely evolved as an alternative power.
India be cautious in maintaining relationship with China, may need bit of polishing in the approach or face aggression all of a sudden.

Sorry about digressing.. As you said "When US sneezes, world catches the cold", I agree with you 100%.

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Originally posted by Nightmare



When US sneezes, world catches the cold.

So long as world trade is denominated in US $, USA will remain strong. However, It is predicted by many that China will be dominant after 25 years unless USA breaks it like it did to Russia. I believe Chinese dominance will be worse as they have no concept of human rights nor they believe in it. Chinese are brain-washed robots. Many morons, after spending 10 yaers in Canada, call Dalai Lama a murder and bad guy! My colleage joined the demonstration against Dalai Lama. When I discussed Tibet problem with her , I realized that she is hooked to Chinese TV and media and has little knowledge about Tibet issue other than Chinese propoganda. Lo and behold !, my Indian boss considers her as "Most effiecient and intelligent" .

USA, with all its problems, is a graet country and it will survive any crisis. I will any day bet on US $ than on Chinese Yuan or for that matter , any other currency.

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The cowards never started,
The weak died on the way,
Only the strong arrived.
http://www.youtube.com/watch?v=_yK1i9cLAMM

"US sneezes rest of world catches cold"

An Indian on BNN said that when US sneezed last year (stock markets went down)the rest of the world did not catch a cold. They zoomed along.

As a matter of fact stocks in US regained strength in October and the Dow hit its highest high actually getting experts to suggest that the day of China and India had arrived as they helped the turnaround in the US Dow. After that the Dow went down again, the China market hit the skids then the BSE started its downward spiral in Jan, yet Brazil and Russia were brisk until they too succumbed.

And since then the US economy has hit a prolonged period of sickness and sent the emerging markets and the rest of the world into the ICU. This elicited a lot of snickers from the onlookers at the BNN live on location stint in Aug.

In other words the US has to get really sick before the rest of the world falters- a mere sneeze does not cut it anymore.

If you remember well when the Dow hit its high in Oct mavens said that perhaps the crisis was being overplayed and that the US is about to get back on track and by early 2008 things will be allright. Then the time to recover has repeatedly been changed. Now it stands at 2010. Some say even 4-5 years.

But yeah I get the metaphor.

Somebody should coin a new phrase and maybe that will be the new catch phrase.

Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.


http://www.thestar.com/Business/article/506599

And its not even the headlines...has the reporting media already given up hope???

Hiren

What else has been making the news in last 24 hours. I follow Yahoo finance and CNN money and you can read tons on the failure of WaMu. This is the headlines at least on all major US sites.

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Originally posted by hchheda

Seattle-based WaMu, which was founded in 1889, is the largest bank to fail by far in the country's history. Its $307 billion in assets eclipse the $40 billion of Continental Illinois National Bank, which failed in 1984, and the $32 billion of IndyMac, which the government seized in July.


http://www.thestar.com/Business/article/506599

And its not even the headlines...has the reporting media already given up hope???

Hiren

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