Canada Is Heading For A Hard Landing

Published by Filipe R. Costa on Sat, 12/09/2015 - 01:49 in
Canada

This article was originally published at Master Investor Magazine

Back in the old days, a collapse in mining meant that brokers, promoters, and mining entrepreneurs  not to mention the stockholders  had to move fast to raise cash. Their fancy cars went back to the dealers, and real estate agents put up For Sale signs in front of their handsome houses! No evidence of that now.

 Business Insider, July 27, 2015

The world’s economy is walking through a dark tunnel where the light can be seen but never reached. While most economies are not in recession anymore, the near-term prospects are so uncertain that we now omit the words prosperityboom, and expansion from our conversations, replacing them with the six-year-old recovery, which better describes an economy that seems to have improved, but where growth is moderate, financial markets are shaky, and employment creation is slow. After so many years of monetary intervention, central banks around the world are still undecided on the exact policy action they should adopt over the next few months. On the one hand, their economies are growing and creating jobs, but on the other hand, there’s a feeling that the disease is still active, and that major withdrawal symptoms could surface as soon as the treatment is stopped. As a consequence, central banks prefer to keep the status quo, as they fear being blamed for the next crisis. That explains why Carney and Yellen have been postponing the first rate hikes.

Read the full article: Canada Is Heading For A Hard Landing

Category 

Economics & Markets