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sunshine
07-01-2008, 09:17 AM
Do you think that the US downturn will result in more factory closures in Canada - not only in the auto sector...
Canadian
07-15-2008, 08:02 PM
Do you think that the US downturn will result in more factory closures in Canada - not only in the auto sector...

Yes, for sure. Canadian economy is very dependent on US, and when there is a recession there, soon enough there will be one in Canada. On a positive note, Canada is resource-rich, which will hopefully help weather the downturn...
dreamy
11-13-2008, 03:19 PM
The Canadian dollar now is cheaper again so they may postpone some factory closures for now.
Canadian
11-13-2008, 03:30 PM
The Canadian dollar now is cheaper again so they may postpone some factory closures for now.

I doubt it. Even though the Canadian dollar is cheaper than the US one at the moment, the consumer consumption in both Canada and US has weakened considerably, which will hurt producers.
bullish
11-14-2008, 08:02 PM
As soon as the stock market recovers, the consumers will be spending again, and all will be well.
Steven
11-17-2008, 02:08 PM
As soon as the stock market recovers, the consumers will be spending again, and all will be well.

The problem is that the stock market might not recover for a few years. Look at Japan's stock market that hasn't recovered yet from its former top.
invest
11-18-2008, 02:37 PM
The problem is that the stock market might not recover for a few years. Look at Japan's stock market that hasn't recovered yet from its former top.

Probably not. It's like the real estate market. It will take years to recover. This of course is too bad for everybody because all industries are connected somehow...
sunshine
11-19-2008, 03:08 PM
Do you think that the US downturn will result in more factory closures in Canada - not only in the auto sector...

I can answer my own question now. Today the big 3 automakers said they need some billions to fix their business. Well, this is easy, they will print some money and voilą. Don't you think this is wrong - very wrong?
Canadian
11-20-2008, 07:04 PM
I can answer my own question now. Today the big 3 automakers said they need some billions to fix their business. Well, this is easy, they will print some money and voilą. Don't you think this is wrong - very wrong?

Yes, this is wrong. Printing money will only fuel inflation in medium to long term. Everybody is scared of deflation now, with house values falling off a cliff, however the deflation scare will be very short-lived with all the new money pumped into the system daily.