When it comes to borrowing money this isn’t normal. In fact, its as from normal as you can get. Interest rates are just above historic lows. Never in our lives has money been this cheap to borrow. As individuals there are some lessons we can learn from Greece.
More By Rubina:
The U.S., for the first time since 1945, had zero jobs created in its economy in August. It has prompted President Barack Obama to make an emergency speech to Congress about his plan to create jobs and help the more than 14 million unemployed Americans get back to work. It’s called the “American Jobs Act,” and here is why it won’t work.
Less Canadians are treating their homes like an ATM. The report by the Canadian Housing and Mortgage Corporation (CMHC) says, since new stricter rules were brought in last year by Finance Minister Jim Flaherty, refinancing activity of insured mortgages has dropped by 40%.
If you want to buy a standard two-story home in Canada, you will need to have a household income of almost $88,000 to afford it. These continued high prices are pushing one particular group of people out of the housing market, Canada’s youth.
It’s been a wild two weeks on the markets. Triple digit swings have left investors wondering where to put their money.
It’s a promise from Ben Bernanke. He will leave interest rates near 0 percent until at least 2013. For the first time ever, the head of the Federal Reserves admits the U.S. economic recovery has stalled and he will do anything to get it started again. The world order has changed dramatically in the last seven days. This is what’s happening.
On Thursday markets fell a heart stopping 4 percent, reminiscent of the dark days of 2008 and early 2009. In just two weeks the TSX has erased all its gains made in 2011. This time the risk is coming from the biggest economy in the world, the United States of America.
Have you seen how strong our Loonie is? Currently it’s trading at a multi-year high against the weakening U.S. greenback. One Canadian dollar gets you about $1.06 U.S. WOW! But, it also means more pain for Canadian businesses trying to sell goods and services outside of the country.
The Bank of Canada Governor Mark Carney, is leaving rates at 1%. I know why he’s doing it. But did anyone predict this? Even in the depths of the recession back in 2009 most economists believed interest rates would start to rise slowly but surely by 2011.
Its official, Canada’s employment picture is rosy and it seems we’re on the road to success. But have Canadians peaked over the fence? On the same day Canada’s figures were released the United States posted abysmal employment numbers.