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This financial hurricane will hit Canadian shores

From Monday's Globe and Mail

The PM's claim that we're fundamentally stronger than the Americans is iffy at best ...Read the full article

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  1. Kim Feraday from Vancouver, Canada writes: What would be great is for the Globe and Mail to run a piece that critically analyzes the problems in the economy -- the gutting of the manufacturing sector (200,000 jobs or one medium sized factory ever day Harper has been in power) flat GDP and declining productivity (the worst in the G7 except for Italy) and the horrible performance of the markets and leading Canadian companies (RIM is the latest). What has Harper done to help solve these problems? Well other than allow his Finance Minister tell international investors that Ontario is the worst place in Canada to invest he's done exactly nothing. It's time for the G&M and other press to step up and do their job --- take a critical look at the government.
  2. Mason Jar from Canada writes: Capitalism to Kim - the government doesn't run the economy. That's why it's called a free market.

    But since you're so eager to pin blame- here's something for you:

    "In 1999, under pressure from the Clinton administration to offer more loans to minorities (who are traditionally underrepresented in the mortgage market), Fannie Mae began a program to extensively expand loans made to people with low to moderate credit."

    You can start there.
  3. Moe Unting from Calgary, Canada writes: Take a valium! Misery loves company. One gets the impression that people are hoping for a downturn in order to prove how evil Harper is. No one knows what really going to happen, especially with a trillion dollars on the table, rewarding the greed and the avarice, but they did it, lessor of two evils style. Canada is blessed with a highly educated work force and precious resources, conservative banking practices.
  4. Paul Wallnutz from Temporarily in..., United Arab Emirates writes: It is interesting that people are thinking that the the US economy is in terrible shape becasue they are going deeper into national debt to bail out their crooked financial industry. As a percent of GDP in 2007 Canada is still in much worse condition: Canada 68.5% vs. USA 60.8%.

    Harper's GST tax cut and spending spree has only made matters worse. Whay are we not making some sacfricies to pay down the national debt?
  5. Donalda Williams Clogg from Hudson, Canada writes: Kim Feraday that is a very interesting suggestion. Hope the Globe and Mail looks into it.
  6. iPhone from Canada writes: .
    For a more informed European perspective see the Financial Times of London's John Authers' on the Bailout and the implications. It is still not pretty... watch the Libor rates, Emerging Markets and European money markets... they are saying the US is still in big trouble even after paying the 'give away' to Wall Street.

    URL =

    Better still watch Dr. Michael Hudson at The Real News Network see:

    URL =
    content&task=view&id=31&Itemid=74&jumival=2422&updaterx=2008-09-28 10:47:22

    URL = 19:18:57

    Where is Ron Paul when you need him?
  7. iPhone from Canada writes: .
    Mr. Harper is the same as Mr. Bush in so many ways...

    But principally, he is devoid of vision. He can only think that 'free enterprise' somewhere will surely generate profit. He does not care why, where or how. Just reduce taxes, generate a deficit and isolate Ottawa is the mantra.

    Mr. Harper is a simple minded guy who studied last years' exams and got through a system (Friedman's Chicago academic and political systems) that did not expect much... in return for handing over control to US based interests.
  8. Kim Feraday from Vancouver, Canada writes: Mason Jar Wrong. The government sets the framework under which the market operates -- even Adam Smith understood this. And while Clinton may have started us down the path Bush has been the king of taking deregulation to the extreme. Combined with the disaster that is the Iraq war (another trillion down the drain) Bush has left the American economy in the worst shape since the depression. Why we would follow the same mode here is beyond me, most economists and 2 out of 3 Canadians. Instead Harper wants to follow the Bush policy of slash and spend. That is slash taxes especially for his rich oil buddies an start spending on things that will do nothing to move the country forward -- over $400 billion on the military, over $2 Billion building new jails to hold all the people he wants (like Bush) to put in them and reduce the things that would be good for the country (including attracting investment dollars. Things like education, infrastructure and healthcare (which was a major factor in the demise of GM and Ford, and stimulating markets in areas we want to compete (new green technologies, agriculture etc.) as opposed to the things we don't want (more subsidies for oil companies making record profits. Again I would challenge the Globe and Mail and other media to really take a critcial look at what is happening in our economy and Harper's record. If the press had done this with Bush five years ago America might not be in the precarious position it now finds itself.
  9. d p from writes: Not the best article...I was hoping for a little more research and insight; maybe even some analysis about how this could affect the various sectors of the economy, my job and my investments.

    All I got were a few points and the conclusion that this could affect Harpers hope for a majority.

    Maybe the author should have picked a better title.
  10. Canadian Woman from Canada writes: To add my voice to others here: How about the Globe and Mail and Canadian MEDIA in general, and Canadian journalists in particular, ask some hard questions of Harper and the other candidates regarding the U.S. (i.e. worldwide) financial collapse, it's effects on Canadians, and how they plan to handle both the fallout and future protections in the market? For a start. P.S. You might call it "hard-hitting journalistm". Or even, if taken further, "investigative journalism."!
  11. Allan b from Canada writes: Its not totaly Harbers or Bushs fault. The whole north american population has to take credit for the state of affairs we now find our selves in. It is our greed for stuff we really don`t need and using the credit card and bank loans to help us along with our greed that has caused this whole problem.
  12. Pan Gloss from Ottawa, Canada writes: A Paul Wallnutz from Temporarily in..., United Arab Emirates wrote:

    "...As a percent of GDP in 2007 Canada is still in much worse condition: Canada 68.5% vs. USA 60.8%." I guess if what appears to be an outdated wiki entry is your source. However the Canadian ratio you quote looks pretty close to the 1995-96 ratio (68.4%) but a few years of really large surpluses have passed since then. Any current federal finance fiscal outlook might be a more reliable indicator of how we stand relative to the great USA. I think we are lower than the US - been that way for sometime - and total government debt is in the 27% to 30% of GDP range. Most of the improvement in this indicator is gratis taxpayers and a "previous" federal administration. I think they may have been Liberals.
  13. Paul Wallnutz from Temporarily in..., United Arab Emirates writes: Pan Gloss from Ottawa: Actually my source was the CIA World Factbook...2007 numbers.

    Look it up simpleton.
  14. Peter Murray from Toronto, Canada writes: I don't know how you can say that the government is not at least partially responsible. One of the big assumptions in free market modelling is perfect information. Imperfect information distorts the market. Harper and Bush have been piling on the BS for a number of years. This has lead to an unwarranted consumer confidence (which you label greed) Harper to this day is still saying that all is fine?!?! Either he is smoking some really good drugs or he is hoping that he can hold it together for 2 more weeks until after the election and then suddenly wake up and say"OMG what has happened? We are in serious trouble. Let's privatize all so that the free market can solve all our problems like is has in Britain and USofA. So Alan I guess I am in total disagreement with your assessment and conclusion. Greed, or over exhuberance due to 2 governments that have mislead the populace as to the problem that has been brewing and going as far as exacerbating it with sub prime loans (In Canada lowering the downpayment minimum to 0%), (In the US not reigning in CDS which were originated to work around the 10% capital minimum requirement). The governments have a role in governance. Free markets invariably lead to massively imperfect information which they have a role in correcting. Dollars to donuts the smart money left highly leveraged CDS institution a year ago. If the government had properly regulated the elderly and middle class would not be getting screwed while the rich get richer.
  15. Les Caine from Canada writes: While Harper deemed an artificially quick election in his interests, would it not have an advantage for Canadians to get a better sense of the gathering economic storm and the shape of new American leadership?
  16. Michael Manning from Mississauga, Canada writes: Just once I'd like to read an article by Jim Stanford which does not forecast doom and gloom. Regardless of debt-to-GDP ratio, Canada is in better shape because we've been running surpluses for more than a deficit, reducing or debt service bill and allowing the feds to stimulate the economy by both reducing taxes and increasing spending. The federal government is NOT responsible for the loss of manufacturing jobs in Ontario; the market is. Consumers in Canada and around the world are choosing products made other places. If you drive your KIA to WalMart to shop how can you wonder where the manufacturing jobs went? Meanwhile, many manufacturers steadfastly refused to make the necessary investments to improve productivity while the dollar was low despite repeated pleas by both government and private-sector economists. However unfortunate the loss of manufacturing jobs may be, traditional manufacturing represents an ever-shrinking proportion of the employment market in Canada. Although we have some over-heated markets, we have not had a nation-wide real estate bubble, as in the U.S., which means we will not see the same rate of mortgage defaults and foreclosures. The Bush Administration, refusing to learn from history, has been trying to fight a war while slashing taxes. It is a recipe for disaster as Lyndon Johnson learned when he tried to expand the social safety net while fighting a war. Deficit financing in boom times is a disastrous policy that our government has, thankfully, avoided. This puts us on solid footing for weathering whatever economic slowdown comes our way.
  17. Kim Feraday from Vancouver, Canada writes: Michael Manning

    The government certainly does have a role to play in the shape of the economy. Throwing your hands up and saying it's the "market" is wrong. The government regularly invests in areas it deems important. Harper for example is spending billions subsidizing big oil. We need our government to invest wisely to make us more competitive. And while you may want to be a Walmart greeter most of the rest of us will take a pass. We need the government to spend in areas that will reinvigorate our manufacturing, invest in education and R&D to get us innovating again and provide the framework to commecialize products. The question we should be asking each of our prospective leaders is what is their vision to make this happen. If the government can't do anything as you suggest then we should just eliminate government altogether. I for one don't think we need to throw up our hands and accept the inevitability of the markets. I believe that the markets are there to serve our interests not the other way around. And I want my government to show me how it is going to lead us to a better country not one that's simply going to stand around and wait for the "inevitability" of the markets.
  18. Gardiner Westbound from Canada writes:
    Stanford, a Canadian Auto Workers union flack. The CAW is running a Stop Harper campaign.
  19. Still Learning at 78 from Canada writes: You Conservatives out there should vote for Jack, he has the best welfare plan for the disadvantaged. Beats taking the stockholders leap of faith from the office window. Don't say you didn't see it coming.

    Have a Good Day Everyone and may the grease money be returned to us.
  20. Peter Lucas from koloa, Canada writes: I still think Stanford's best was his piece advocating free washrooms as he saw in Australia. This piece says absolutely nothing, although he does indicate his knee-jerk support for the lefter leaning candidate Obama or ossama or whatever. Despite the fact that obama favours protectionism that would hurt the beloved CAW.
  21. W W from Canada writes: When the Canadian Auto Workers union starts blaming the provincial governments, including the Ontario Liberal government that is successfully chasing out of the province the last few remaining manufacturing businesses as we speak.
  22. W W from Canada writes: The Canadian national debt was mostly created by the Liberal governments and significantly reduced by the Harper government. And yes, it is larger than the US one as a percentage to GDP.
  23. W W from Canada writes: In retrospect it was very proudent by the Harper government to cut GST. In the comming financial storm the only hope is that the consumer will keep spending.
  24. W W from Canada writes: This is a good time for the Unions to recognise their responsibility for throwing us into this nightmare by reducing our productivity and ability to compete. If not for the Liberal subsidies for autoworkers they would already left Canada. But for how long the Canadian taxpayer can handle this? Preferential treatment for one particular sector is wrong and will hunt us later.
  25. W W from Canada writes: Peter Lucas from koloa, Canada writes: I still think Stanford's best was his piece advocating free washrooms as he saw in Australia.


    That is because in the climate where the manufacturing is leaving Canada, unionising the washrooms staff and creating thousands of new government employees is the only way for the unions to survive.
  26. W W from Canada writes: I am confused. The Ontario Liberal government takes money from other sectors and give it to the autoworkers. Why this doesn't help? Perhaps the Harper government is the only government that can't be bullied by the Unions. Expect more unions attacks.
  27. W W from Canada writes: Paul Wallnutz from Temporarily in..., United Arab Emirates writes: Harper's GST tax cut and spending spree has only made matters worse.


    Are you paying Canadian GST while living in United Arab Emirates? Or you just want us paying them. You are a funny guy.
  28. Steve I'm Not an Alberta Redneck from Calgary, Canada writes: Paul Wallnutz from Temporarily in..., United Arab Emirates writes: Pan Gloss from Ottawa: "Actually my source was the CIA World Factbook...2007 numbers."

    More disinformation from the CIA? Canadian government debt peaked at over 70% of GDP in 1995 and has declined by over half since. Much is attributable to economic growth. US fed debt has more than doubled since 2000. In 1994, we were almost twice US rate so any part where US has improved vis a vis Canada is Clinton's (or Harpo's) doing.

    Sorry but you are just a RW nut case with a typical dull axe to grind.

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