But, but, sell side analysts are so confident things are getting better by the day…
Economic outlook is worse than expected, which may make it tougher for the new Liberal government to meet some campaign promises. Here is a direct video link.
Tom Friedman’s latest NY Times OPED on the US presidential race is worth the time. Nice to see some adult thoughts for a change. See: Voters, You can have everything!:
“Not only do the tax-cutting plans offered by the leading Republican candidates create eye-popping deficits, but some Democratic tax hike proposals don’t quite add up, either. As the Washington Post economics columnist Robert Samuelson reported last week, a Brookings Institution study found that even if the top income tax rate were increased to 50 percent from 39.6 percent, it would cover less than a quarter of the deficit for the 2015 fiscal year, let alone generate funds for increased investment.
If we want to invest now in more infrastructure — as we should do — and make sure we don’t overburden the next generation to pay for all the retiring baby boomers, something will have to give, or as Samuelson put it: “If middle-class Americans need or want bigger government, they will have to pay for it. Sooner or later, a tax increase is coming their way. There is no tooth fairy.”
And finally, with carbon dioxide levels in the atmosphere having just reached heights not seen in millennium, if we want to “manage the unavoidable” effects of climate change and “avoid the unmanageable” ones, it will surely require a price on carbon — soon.
So enjoy the fun of this campaign while it lasts, because the next president will not be governing in poetry or prose or fantasy — but with excruciating trade-offs. The joke is on us.”
As in other countries, the institutions who have originated record levels of high risk loans have collected their rich commissions and fees up front and downloaded the risk of loss on to we the taxpayers. Brilliant business model for them.
Canada’s top housing authority has delivered some stunning warnings on threats facing Canada’s housing markets. CMHC chief executive Evan Siddall is warning that foreign investment could flee Canada, destabilizing housing markets in the process. And he also unveiled the results of internal stress-testing, showing insurance claims could balloon north of $13-billion if Canada suffered a U.S.-style housing crash. Here is a direct video link.
(co-host Mr. Taylor insists that none of this is cause for concern, the US and global growth are all improving and will keep Canada out of trouble according to him. Long-always Canadian stocks much Mr. Taylor?)
