Let the Good Time Roll Yet Again

[Jon Miller]

Well, our economy is directly related to how willing the consumer is to go more into debt.

JM

[Kidlicious]

Originally posted by Jon Miller
Well, our economy is directly related to how willing the consumer is to go more into debt.

JM

I don' t think you understand what he was commenting on.

Countries that trade so much usually go through many of the same booms and busts.

[KrazyHorse]

Originally posted by Jon Miller
Well, our economy is directly related to how willing the consumer is to go more into debt.

JM

The standard quip was that when the US comes down with a cold Canada comes down with the flu. It happened in 1991, but not in 2001. What changed?

[Dinner]

I suspect high demand for raw materials out side the US made it unlikely that Canada would slip into recession even if the US bought less of their oil/wood/beef/grain/what not. Asia was able to make up the difference.

[KrazyHorse]

That was my first thought, but IIRC commodity prices were pretty low in 2001. The runup began in 2002/2003

[Zkribbler]

Originally posted by MrFun
You got something against Midwesterners boy!?

The Midwest is a good thing. It keeps people on the East Coast as far away from us as possible.

[Colonâ„¢]

Originally posted by KrazyHorse
I find it very odd that the US economy has displayed more volatility than the the Canadian economy over the past decade or so. Usually you would assume that a small country dependent on exports and resource prices would be more volatile.

The US is far more volatile than Europe also. My (somewhat speculative) explanation is that this is due to the relatively sluggish rate moves of the ECB. You may not accept that rate moves itself can be cause of volatility, but consider that a rigid ECB policy is pretty much a given because it tends to decide by consensus. Greenspans' policy has tended to be reactive rather than anticipatory. It also was asymmetric, lowering rates far quicker in the face of a downturn, than raising them in the face of an upturn. In any case, the explanation may lie with the US rather than Canada.

[LordShiva]

Originally posted by Colonâ„¢
It also was asymmetric, lowering rates far quicker in the face of a downturn, than raising them in the face of an upturn.

I think this sums it up, too.

[Odin]

Re: Re: Let the Good Time Roll Yet Again

Originally posted by DanS


The economy is only so-so. If you wish to keep us updated on the intricate details of a so-so economy, feel free. I'll probably even read it.

The economy is great if you are one of the Haves and/or Have-Mores. It sucks for everyone else.

[Kuciwalker]

Duh?

[Odin]

Originally posted by Kuciwalker
Duh?

http://en.wikipedia.org/wiki/Jobless_recovery

[PLATO]

Woohoo! Now maybe my HELOC will go down!!

/me crosses fingers that Fed will overreact and cut the discount rate!!