Now that the "bail-out" package has been signed into law in the US, what do you all think about the following -

- Is the bail out package going to help or actually do more damage in the long-run?
In other words, creating $700B out of thin air - would that further devalue the USD?
Who is going to ultimately buy the debt securities - China, Saudi, or mostly private investors?

- What is this going to do to oil and gold prices?

- Does the US economy has any hopes at all of gaining any fundamental strength any time in the next 5 years?
By fundamental I mean in terms of manufacturing, industrial or agricultural production - not overinflated stock market values based on bubbles (tech or housing or oil).

- Are any of you planning to change your investment strategy based on recent happenings?
If so, how?
Selling stocks and moving into fixed interest investments?
Or buying up more stocks and looking for value stocks?

The Internet and chat boards are abuzz with all kinds of opinions and predictions, ranging from the end of the civilized world to business as usual.
What do our fellow Canadian Desi's think?

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Even the passage of the Bill failed the stock market from closing in the negetive. So this as well means that the markets are still not very receptive to the idea that the $700 billion can atleast solve some of the problems...
I belive that USA is already in recession and that it will put Canada with it. So that means that Canadiandesi's job in venruble positions (Manufacturing etc...) may be lost.
Already the Cdn. dollar is around 91 cents to a US $. The situation will further detoriate as the crude oil falls further. But the US$ will weaken further against Euro.
How Oil and Gold goes is anyone's guess but it is more likely to be down rather than up.
I belive that people who have invested in high / medium risk mutual funds should pull out and reinvest in GIC's (low risk) until a direction is found.
There is no need to keep in mind 5 years for the US economy to bound back. Many suggest that it will bounce back next year same time.
Once a bottom is reached (again this is subjective and is not today), Stocks are a very good buy. Almost all the stocks are beaten to the bottom even now.
As someone said, most of GTA'ians are living in inflated price houses and be assured that the value wil decrease significantly in the coming months. May God help those people living / who have booked Condo's and who have to pay a monthly maintaiance fee.

Hope this helps.
I belive Investpro will give more solid answers as all this was IMHO only.

Peace by TK

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I am a Gents and not a Ladies.

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Originally posted by tamilkuravan
I belive that USA is already in recession and that it will put Canada with it. So that means that Canadiandesi's job in venruble positions (Manufacturing etc...) may be lost.

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Already the Cdn. dollar is around 91 cents to a US $. The situation will further detoriate as the crude oil falls further. But the US$ will weaken further against Euro.

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I belive that people who have invested in high / medium risk mutual funds should pull out and reinvest in GIC's (low risk) until a direction is found.

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Once a bottom is reached (again this is subjective and is not today), Stocks are a very good buy. Almost all the stocks are beaten to the bottom even now.

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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."

-- Rhett Butler in "Gone with the Wind"

Do not quite agree with the arguments that US stock market has hit bottom as Dow has just reached 52 weeks low. This means some stocks have had a beating while some have moved up to maintain DOW.The crash in the Dow is not going to be just a one-day event. It's going to continue, and it's going to be ugly.

Everyone now look forward to next Thursday when ban on short sale will be lifted. Majority of investors are still holding on to their shares. They were hoping that Congress will still pass some kind of legislation to bail out sinking banks. Today's Market Plunge Is Telling You That They're Stubbornly Wrong.

The Toronto Stock Exchange tumbled 11 per cent over the trading week - a loss of more than $150 billion in value - a shocking drop that reflected economic worries about how deep the U.S. recession will bite in Canada, Europe and elsewhere. On the other side Dow lost around 7% and Nasdaq lost 10% and S&P 500 lost 9% in this week.

In a move to loosen up Canadian credit markets, the Bank of Canada said today it is pumping another $12 billion or more into money markets to ensure Canadians have access to loans.

The recent economic turmoil has reinforced worries that Canada's resources-based economy will suffer from a worldwide drop in demand for oil, metals, fertilizer and grains. Worries also persist that the global financial crisis is squeezing the availability of credit in Canada.

It looks like The worst is yet to come.

Cheers and good luck!

California May Need $7 Billion Loan from Treasury

California Gov. Arnold Schwarzenegger has told U.S. Treasury Secretary Henry Paulson that the most populous U.S. state may need the federal government to buy $7 billion of debt the state is unable to sell due to weak credit markets—and that California may not be alone.


If the state could not sell the notes, it would have to adopt measures to cut spending, such as delaying salaries of teachers and other state employees

http://www.cnbc.com/id/27004463

Personally I am more worried about S Ontario's economy as from what I understand this is the auto manufacturing hub for N America.These high $ jobs have been lost for ever.Middle class is dependent on manufacturing.

I will research on the quality of jobs being created vs the quality of jobs being lost.

Bank of Canada can pump how much ever money they like into the system as long as no high quality jobs are created nobody will benefit.

I am surprised that such a large country has only one job market corridor from Kitchener to Bowmanville that can attract workers across the spectrum.

I have been to the Northern Alberta where they are absorbing people from all over the world (only in a band of skillset ) and where the salaries have been adjusted to accomodate the cost of living.

$CDN is directly proportional to the $global oil price.

I am impressed that Canada is still attracting new comers from our sub continent.
-) ratio of income to mortgage
-) weather


I really want young people 25 - 35 years age group to start seriously thinking as they have another 30 years of service to go as to what industry holds a bright future in this country and that will pay their hard work in terms of lives as well.