Potential Instability For Canadian Monetary Relations

David Tsegai By David Tsegai, 20th Sep 2011 | Follow this author | RSS Feed | Short URL http://nut.bz/5lgm2ha0/
Posted in Wikinut>Money>Investing

Is there any need for us to worry about the economic instability of our country, isn't the most distressing part over and done with now? Unfortunately, this is not the time to become confident with ourselves; the challenges facing the Canadian economy are more widespread that we comprehend.

Banks and such

The Bank of Canada predicts that the fall in economic growth is going to be a short-term problem and that the second half will be characterized by more rapid growth. This is based completely on a plausible but uncertain supposition that levels of energy charges will not rise, and that they’re more likely to decline. With the problems in Japan, it has been named as the origin or reason behind the most recent depression taking place. A perfectly valid reason, but underneath this problem the consumers are the individuals who determine our economy. There is no reason to reject that Japan is affecting both the Canadian economy and that of the rest of the world, but it not the fundamental problem. People are concerned about job security and their availability, as well as climbing prices together with the price of gas.

In the US before the depression, the Canadian debt, how much income a person has in comparison to how much debt, was only slightly lower than the Canadian ratio is at this time. We can say that the existing situation in the Canadian banking area is more stable and better predisposed for the debt shock. If it came, the effect of a fall in home prices caused by the recession would have significantly milder effects on banking sector profits than it had four years ago on the US one. This means that the Canadian economy seemingly wouldn’t need to carry the burden of bailouts that assaulted the US economy and US politics as well.

A point that you need to be aware of: in relation to the Canadian monetary status, in addition to bank stocks and real estate investment, is that Canada's economy is tied closely to that of the US. Thus, it doesn’t matter how strong and stable the situation on the domestic market currently is; US problems have the potential to hit us hard. Europe is also something which needs to be monitored, with countries such as Greece declaring bankruptcy, the problems confined to these areas could grow to become bigger problems which could affect Canada. Circumstances have a way of escalating and drawing other countries in with tightening of credit which could affect the property market, shifts in the equity market and the fall of commodity prices; all with the chance of devastating Canada's economic potential.

Tags

Canadian Economy, Investment Tips, Real Estate Investment

Meet the author

author avatar David Tsegai
Hi, I am David.

Recently, I opened my own Real Estate Agency and I must say, I love the job! If you want to know more about me and my job, check my website at http://calgaryrealestate.ca!

Share this page

moderator Mark Gordon Brown moderated this page.
If you have any complaints about this content, please let us know

Comments

author avatar Funom Makama
18th Oct 2011 (#)

Insightful, deep, nice and just what we need to read in such a community. My sense of values sometimes comes from such articles. Keep it up!

Reply to this comment

Add a comment
Username
Can't login?
Password