http://business.theglobeandmail.com/servlet/story/RTGAM.20090109.wflaherty0109/BNStory/Business/?page=rss&id=RTGAM.20090109.wflaherty0109
http://www.thestar.com/business/article/564381
This does not look good, especially when the man in the top position goes on record with such statement.
Nobody says which sector will be hurt the most. But it hurts to see that the downturn in automotive sector drags to whole country down.
I was watching CBC national yesterday, and some economist mentioned about investing heavily in infrastructure. I don't have much idea how economy works, but
- Does Federal and provincial government have sufficient money to invest heavily in infrastructure?
- It may provide employment to infrastructure and associated industries, but isn't it like hot air? We won't be manufacturing any tangible product, we won't be exporting anything. So how will we generate the income?
Maybe people who are planning to immigrate Canada may have to think to extend their arrival till things return back to "normal"
I guess Flaherty's comments only cements fears instilled in all by the once ominous goings-on in the market. Since you cannot avoid industry/sector dependencies, this will inflict pain on each one of us in more ways than one.
I guess that warm corner atop the subway vent at yonge-bloor is already taken.
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If you have a gun, you can rob a bank.
If you have a bank, you can rob everyone.
- Bill Maher
Quote:
Originally posted by meghal
I was watching CBC national yesterday, and some economist mentioned about investing heavily in infrastructure. I don't have much idea how economy works, but
- Does Federal and provincial government have sufficient money to invest heavily in infrastructure?
- It may provide employment to infrastructure and associated industries, but isn't it like hot air? We won't be manufacturing any tangible product, we won't be exporting anything. So how will we generate the income?
Maybe people who are planning to immigrate Canada may have to think to extend their arrival till things return back to "normal"
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I am a Gents and not a Ladies.
The last time when such massive infrastructure spending was taken by Govt was during the Great Depression (FDR's New Deal).
That process was overlapped by WWII.
It remains to be seen whether this time around similar infrastructure spending can get us out of depression or now.
The government has essentially exhausted all the tools of monetary policy so good ol' fiscal policy is the only resort left.
But the main diff. between the 1930s and now is that the US govt. didn't have a deficit of $1T then (and an overall shortfall of more than $50T if you account for underfunded social security and medicare).
Fiscal policy may not work for the US this time because of the massive debt they are already carrying.
And I don't think starting new wars is a valid option these days either (like it was back in the 1930s).
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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"
....the public health care system is being affected also. In a press release this morning, it was mentioned that there's going to be a reduction in the quality o services, longer wait times, people will have to travel loner distances or services and certain medical centers are already considering charging for services like Physiotherapy. There seems to be a projection that 5000 jobs will be lost this year in the hospitals and most hospitals are saying that they are running as efficiently as possible and there's no further room for making any cuts ! !
Damn this recession ! !
Recessions are opportune times for the govt. and companies to release bad news that was known anyway.
This impact on health care services hasn't happened overnight and it's not because of the recession by any means.
It's just that this is the perfect time for the Ministry to release this news.
It gets buried in all the "noise" around recession.
Similarly, recessions are perfect time for the govt to push through legislations and rules that they wanted to implement anyway but couldn't do so because of some resistence or another.
Under the blanket of recession, it becomes very easy to justify almost anything.
Recessions, like wars, are awfully convenient.
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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"
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