Wednesday, December 10, 2008

Not A Technicality Anymore

So much for the spin that this is only a 'technical' recession. It is now official....

"While Canada's economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity," the bank said in a statement.
It was the first clear admission by the bank that Canada is joining most major economies in sliding into recession, typically defined as two consecutive quarters of contraction, although Governor Mark Carney had hinted at it last month.

Funny but we have been in a global recession since September of last year, when the first British mortgage bank Northern Rock crumbled .

The past year has been one of collective denial by the powers that be.

And now they are suffering a collective flashback.

For example, the last time Canadian interest rates were as low as they are today was in 1958 when Canada was emerging from recession. The economy, valued at about $32-billion at the time, was carried higher by a huge investment boom throughout the mid-1950s. Growth rates reached as high 9% in 1955 and 1956.
Then the boom went bust. The unemployment rate, which was 3.4% in 1956 hit 7.2% in 1961; growth slowed to about 1% as business spending fell off a cliff.


SEE
Neo-Cons Have No New Ideas
Back To The Fifties
Here Come the Seventies
Wall Street Mantra

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