fed moves - flaherty budget update.....

tomorrow the fed reserve in the US will likely reduce the interest rates by 1/4 of 1 percent
this has caused the canadian dollar to spike in anticpation near the 1.05 level.
and finance minister James Flaherty will spew more information tomorrow after the market close - will he destroy the market further like the trust unit debacle of last halloween..or will he reduce personal and corporate taxes.
my bet is he will propose lower taxes of some sort - since they are raking in a surplus of 1 billion per month or more.
wait and see
greygoose out....

topsy turvy which way to go ....?

In the past few months we have seen the US subprime debacle spill over to our own mortgage market. Many of the lenders who dabbled in subprime in Canada have pulled in their horns, cutting back on loan to values - increasing interest rates or ceasing lending altogether.
In the meantime the Canadian dollar (doubloom) has exceeded par against the US dollar.
The problem is this will hurt our manufacturing companies in Canada as they find it difficult to compete when our exports are expensive in the eyes of our trading partners - especially the US.
Recently the jobs numbers showed a major increase in new jobs which has once again raised the spectre of 'Inflation'...duh.... no kidding
just check your pocket book after you pay auto expenses - hydro - food costs etc -
Rumour has it the bank of canada may increase rates to slow the loonie and the economy hopefully - this anticipation is welcomed by the lending institutions as they are raising interest rates in advance of any move - from 5.79% to 5.99% as of tomorrow.
Keep watching - see if they raise again when the bank of Canada moves......