Europian Recession

[simonvee]

What does everybody's opinion about the possible Europian recession, and if it does occur, it's impact on North America (U.S and Canada)?

[steaky]

This was one of the financial news last months:

http://www.torontosun.com/2011/10/26/canada-not-immune-to-euro-economic-collapse-carney

[qwerbilzak]

What does everybody's opinion about the possible Europian recession, and if it does occur, it's impact on North America (U.S and Canada)?

Canada's economy is based largely on commodity exports.  A recession in Europe will bring demand for commodities down, with filter-through effects for the entire Canadian economy.  But if China crashes, that will affect Canada drastically. 

[Baloo]

What does everybody's opinion about the possible Europian recession, and if it does occur, it's impact on North America (U.S and Canada)?

It is not a question of "if", it is happening now.

[newtone]

European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid.

The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon

[Baloo]

European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid.

The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon

I think that you will find, that little place to the south of us (USA) has quite an impact on our economy.
If you had not noticed, they are in deep ****.

[newtone]

USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.

Firstly Americans are risk takers, Canadians are not
Unlike Canadian banks, US banks werent as tightly regulated which is why they fell into this mess in the first place
US is a capitalist economy, the the dollar is mighter than God, Canada is more socialist.
US is more money hungry than Canada look at some of the large corporations, and also they are buying up quite a few Canadian companies.

USA cant afford to be in big trouble, its still a powerful country and shapes the future of many countries. Besides large corporations are still in business in USA, which is why its an excellent time to buy stocks of these companies for long term investment. US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper.

People thought the same thing about US during the great depression, US survived that and it will survive this too. Canada as usual will ride along with its friendly neighbour, strong and free!!

[Baloo]

USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.

The two economies are deeply intertwined, clearly, there is no easy possibility of economic "decoupling" from the United States in Canada.

I think that you underestimate the gravity of the situation facing the USA and Canada.

http://www.reuters.com/article/2011/11/23/canada-economy-carney-idUSN1E7AM15J20111123

U.S. borrows 42 cents of each dollar it spends and half the borrowing is 'from countries like China'
http://www.politifact.com/wisconsin/statements/2011/jul/15/paul-ryan/gop-rep-paul-ryan-says-us-borrows-42-cents-each-do/

The USA is far from strong and it is certainly not free.

At present (and for the near future) the strength is in Asia.

[newtone]

I understand the strength could be in Asia, but if Asia is producing, Americans/Canadians/European are the buyers (one cannot exist without the other), people in these countries have buying power, something that average consumers in markets of Asia dont have. People working in factories in the West can afford to buy latest tech gadgets for their kids, provide luxuries for their families. For example a taxi driver can afford to buy a atleast a $20,000 car for himself and afford a $300,000 house, live in a fairly descent neighbourhood send their kids to school and provide them with descent lifestyle, can a taxi driver in India think of having a house worth that much?  Historically mass economic migrations have always been the West and will continue to be in the future. If Asia were rising economically, politically, socially, ethically and Asian education had the same value of education in US or Canada we'd have a Chiavisa or Indiavisa immigration forum and everybody would be migrating to these countries instead. Recently Obama has sent troops to the Pacific rim to show off the presecse of Western economic and military power

Well Baloo lets wait and find out . I still think the West is the place to be

[steaky]

I understand the strength could be in Asia, but if Asia is producing, Americans/Canadians/European are the buyers (one cannot exist without the other),

Don't underestimate the buying power of the Chinese and Indians!  These are the one of most populous nations of the world.  Many can afford to buy a $300,000 or more house in Canada.  Nowadays, there are more people coming from Asia than the West.  Japan is part of Asia, but how do you explain that its credit rating was lowered by Moody recently?

[jay031]

USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.

Firstly Americans are risk takers, Canadians are not
Unlike Canadian banks, US banks werent as tightly regulated which is why they fell into this mess in the first place
US is a capitalist economy, the the dollar is mighter than God, Canada is more socialist.
US is more money hungry than Canada look at some of the large corporations, and also they are buying up quite a few Canadian companies.

USA cant afford to be in big trouble, its still a powerful country and shapes the future of many countries. Besides large corporations are still in business in USA, which is why its an excellent time to buy stocks of these companies for long term investment. US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper.

People thought the same thing about US during the great depression, US survived that and it will survive this too. Canada as usual will ride along with its friendly neighbour, strong and free!!

woow, interesting facts

[qwerbilzak]

USA is in deep trouble because US and Canadian economies are miles apart, although we share a border but there are lots of differences between the two countries.

You listen to newtone at your peril.  He is dead wrong.  Fully 75% of Canadian exports go to the USA.  http://www.state.gov/r/pa/ei/bgn/2089.htm   Canada's economy is more tied to the US than nearly any other developed economy is tied to any other in the entire world.

Firstly Americans are risk takers, Canadians are not

This is also nonsense.  Canadians are taking significant risk with regard to debt levels (which are in fact HIGHER than in the US), and the percentage of income spent on housing in particular. 
 
Unlike Canadian banks, US banks werent as tightly regulated which is why they fell into this mess in the first place
US is a capitalist economy, the the dollar is mighter than God, Canada is more socialist.
US is more money hungry than Canada look at some of the large corporations, and also they are buying up quite a few Canadian companies.

USA cant afford to be in big trouble, its still a powerful country and shapes the future of many countries. Besides large corporations are still in business in USA, which is why its an excellent time to buy stocks of these companies for long term investment. US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper.

This paragraph is so silly it hardly bears comment.  The 1% is a huge problem, not an opportunity, as Occupiers the world around and most others realize. 

People thought the same thing about US during the great depression, US survived that and it will survive this too. Canada as usual will ride along with its friendly neighbour, strong and free!!

Two important things ended the Great Depression.  1) Vast fiscal spending on programs to get people working and revive the economy.  The US is currently doing the exact opposite, cutting back everywhere.  2) A huge spending program called World War 2.  I'm assuming we don't want a World War 3, its economic benefits notwithstanding.

[newtone]

We are still far better than US when is comes to the economy:

http://moneymorning.com/2010/07/21/canadas-economy/
http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/469-canadas-strong-banking-system-benefiting-canadians


This is also nonsense.  Canadians are taking significant risk with regard to debt levels (which are in fact HIGHER than in the US), and the percentage of income spent on housing in particular.  I should state this risk is on corporate level not household level, IBM, GE, Microsoft, Apple, Ford, American Express. All
are American companies and these are Multinational corporations who invest highly in Marketing and R&D
I don't see many Canadian Multinational corporations other than RIM


This paragraph is so silly it hardly bears comment.  The 1% is a huge problem, not an opportunity,
as Occupiers the world around and most others realize.  ----> I guess Iraq and Afghanistan were never occupied,
I'll go back to sleep. America is clearly signalling its presence in the Pacific rim, those people in MSNBC just love to cook
up stories

http://www.msnbc.msn.com/id/45318987/ns/politics-white_house/t/obama-us-boost-asia-pacific-military-presence/

Two important things ended the Great Depression.  1) Vast fiscal spending on programs to get people working and
revive the economy.  The US is currently doing the exact opposite, cutting back everywhere. 
2) A huge spending program called World War 2.  I'm assuming we don't want a World War 3,
its economic benefits notwithstanding.-----> Lets wait an find out, we can argue in this forum until the cows come
home but thats not going to change reality.

[qwerbilzak]

We are still far better than US when is comes to the economy:

http://moneymorning.com/2010/07/21/canadas-economy/
http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/469-canadas-strong-banking-system-benefiting-canadians

There is no question Canada is far better off than the US economically.  This was not your point.  Your point was that Canada has nothing to worry about from the global/US recession, which is ridiculous.


This is also nonsense.  Canadians are taking significant risk with regard to debt levels (which are in fact HIGHER than in the US), and the percentage of income spent on housing in particular.  I should state this risk is on corporate level not household level, IBM, GE, Microsoft, Apple, Ford, American Express. All
are American companies and these are Multinational corporations who invest highly in Marketing and R&D
I don't see many Canadian Multinational corporations other than RIM

No.  This is consumer sector debt.  These companies have nothing whatsoever to do with Canadian consumer debt levels.


This paragraph is so silly it hardly bears comment.  The 1% is a huge problem, not an opportunity,
as Occupiers the world around and most others realize.  ----> I guess Iraq and Afghanistan were never occupied,
I'll go back to sleep. America is clearly signalling its presence in the Pacific rim, those people in MSNBC just love to cook
up stories

http://www.msnbc.msn.com/id/45318987/ns/politics-white_house/t/obama-us-boost-asia-pacific-military-presence/

Iraq and Afganistan have nothing to do with anything.  You said: "US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper."  I pointed out that this is a problem, not a benefit. 

Two important things ended the Great Depression.  1) Vast fiscal spending on programs to get people working and
revive the economy.  The US is currently doing the exact opposite, cutting back everywhere. 
2) A huge spending program called World War 2.  I'm assuming we don't want a World War 3,
its economic benefits notwithstanding.-----> Lets wait an find out, we can argue in this forum until the cows come
home but thats not going to change reality.

True.  I just want new immigrants listening to someone who has no idea what he's talking about claiming "European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid.  The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon" to know that this is complete nonsense and not make big moves based on such malarkey.  People come from a long way and through a lot of hardship to immigrate.  They should know the truth before deciding what they want to do.

[newtone]

Your point was that Canada has nothing to worry about from the global/US recession, which is ridiculous. ---> I didn't say Global/US recession, I said about the European recession which is what this thread is all about.

No.  This is consumer sector debt.  These companies have nothing whatsoever to do with Canadian consumer debt levels.----> Exactly so my point was about American companies taking higher risk with their resources I didn't say anything about Canadian consumer level debts

Iraq and Afganistan have nothing to do with anything.  You said: "US is run by 1% of the population that controls 99% of the people and as long as that 1% exists America will prosper."  I pointed out that this is a problem, not a benefit ---> How is it a problem? its all about control. I know Iraq and Afghanistan have nothing to do with anything, why did US attack them? Obviously some people had interest in profiting from war? Again its about control (1% of the powerful controlling the poor majority....remember history class?) and US presence closer to Asia and Middle East and now alliance with Australia to build its presence in Far East.....but anyway this is not the point of this thread and we could really go tangent with this issue.

True.  I just want new immigrants listening to someone who has no idea what he's talking about claiming "European recession will not effect Canada's economy, people will just buy more property in Canada with low interest rates, the Canadian economy is rock solid.  The only way Canada's economy will be affected is if China's economy collapses and I dont see the Chinese going out of business anytime soon" to know that this is complete nonsense and not make big moves based on such malarkey.  People come from a long way and through a lot of hardship to immigrate.  They should know the truth before deciding what they want to do. ---> Its is true that the Canadian economy is rock solid, its also true I know what I am talking about because like average Canadians I buy Tim Hortons coffee in the mornings and afternoons, have three meals a day, provide for a livelihood my family, access to free health care thanks to the Canadian social system, live in a modest dwelling, drive a descent car and have been able to save for my future. Why else would an immigrant want to come to this country? I am an immigrant my self and I agree with telling new immigrants the truth and set an example for them. Its rather unfortunate for someone to talk so confidently about vulnerabilities of Canadian economy without much knowledge, or knowing about spending habits of Canadians. Yes Canadians are in debt but that is something an individual can manage or control, you don't need government interference for that, neither has someone a gun to your head saying "spend, spend, spend". On this note I hope you get more educated with the Canadian economic system and the lifestyle if you are to make this your home in the near future. As I said before the Canadian economic system is different compared to US otherwise we'd be in the same mess as them.