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Old 10-11-2007, 03:24 PM
ahnuld ahnuld is offline
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Join Date: May 2005
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Default Re: Trade Idea Generation. the process of writing and thinking..LETS D

Also in terms of canada, iv heard some economists thninking we need a rate cut despite the inflationary pressures from alberta (jobs at an all time high in eastern canada now too).

The thing is that the high dollar acts like a 3-4% rate increase on business this year so by next year we might be in the start of a major recession. People are asking for rate cuts now. Tough trade off between potential inflation and saving the economy. My guess is the BOC wont change a thing and well have slight recession next year with very low inflation rates. Since I doubt much money is coming into canada for equity investment purposes anyways, and commodity prices might increase, the C dollar should stay strong vs the USD.

Risk is if hillary clinton wins and changes nafta, that could really hurt canada all over. Not sure what impact that would have on the dollar however.
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