I have been more exposed to this issue, as I had a plan to buy a house in Toronto and when ever i attempt to do this, and heard about people’s opinion, it was a mixed reaction. Some where under the impression that right now ie oct 08 to dec 09 is a buyers market and you go ahead with it, as you assumed right, this was the real estate broker’s opinion, but who would listen to him right!!
The next was my boss, a business owner and another friend of me, an entrepreneur who says yes we are heading into it, BIG TIME. Now they are business owners, that’s right they are always over cautious about the market, why…because their money is at stake. i was also told that when you see the Auto industry sinking in Ontario, that aims that at least Ontario is dragged along with the USA economy. Now that is something i can believe.
But surprisingly today in the news i saw a surge in the sales of automobile in Canada, since 2002. What is that!! Then another news Magna, a huge company in Ontario who manufactures automobile parts has a record loss! That is contradicting Now I am more confused.
There is constant news saying that Canada is not heading for recession, economic growth may slow down, but NO Recession. In return the argument was Canadian politicians are hiding the facts and they will eventually reveal that we are in fact heading for the big dip. And that the banks have already said that economy will slow down. If banks says it then it is recession baby!! At the same time governor general of reserve bank of Canada said we may not head to recession. hmmmm… confused again right
My conclusion, even if American economy is heading for recession because of the poor mortgage system, which in fact is true, Canada has nothing to worry about it. But it seems that even though this is true,
MOST OF US WANT RECESSION. We talk about recession , we save for the recession , we don’t spend, we sit and whine about the economy ..you know even if the economy doesn’t want to be in recession, we are making it go into recession, and since that is the fact, i think we will hit recession.
Now this is a pragmatic solution, recession, no recession, we all have to live. Live happily and spend wisely. Be frugal but never be spendthrift