Economy

When Goldilocks fed the bears

In a world where short-term interest rates are rapidly approaching zero, with the U.S. Federal Reserve mimicking Japan, and Britain and the European Central Bank expected to follow, the Bank of Canada’s successful approach of inflation targeting has reached a crossroads. Ironically, the BoC, along with other central banks, may be the victim of its […]

By Scot Blythe |December 19, 2008

7 min read

Canadians bring their money home

Canadian investors were not just pulling money out of the domestic markets in October; they set a record $12.3 billion in divestment from foreign securities. The sale of foreign bonds totalled $6.2 billion, with U.S. government bonds being the primary target for disposal, and with selling concentrated in shorter maturity bonds. Canadians sold $1.7 billion […]

By Steven Lamb |December 18, 2008

2 min read

Net worth hit by stock market tumble

It probably comes as no surprise to anyone on the front line of the financial advice industry, but Canadian household net worth dropped 3.2% in the third quarter of 2008, according to Statistics Canada. This is the biggest percentage drop in net worth since the Asian financial crisis of 1998. In dollar terms, the stock […]

By Steven Lamb |December 16, 2008

1 min read

Spillover but no crisis

With Iceland in bankruptcy, Hungary and Ukraine requiring a lending hand from the International Monetary Fund, and dozens of U.S. financial institutions in hock, Canadian financial institutions so far have proven robust. Still, they are not immune to spillover effects, says the Bank of Canada. Indeed, its Financial System Review, released yesterday, paints a picture […]

By Scot Blythe |December 12, 2008

4 min read