The Federal Reserve System has long been the target of conspiracy theorists. It is the U.S. central bank and is in charge of the U.S. dollar, the largest and most important currency in the world. With that role comes some power. However, since the people in charge of the Federal Reserve (the Fed) are not [...]
The Canadian dollar (CAD) has been worth more than a U.S. dollar (USD) for many months now without letting up. This has forced Canadian businesses which export goods to the U.S. and other countries to make adjustments in their operations when possible because the strong dollar meant their goods were more expensive. Many export businesses [...]
Usually when we hear of the U.S. and Europe placing sanctions on some dictator-led country we often just roll our eyes and presume that it will not work. We have seen this happen many times in many places. North Korea is still led by a dictator, same with Iran and the same with Myanmar. However, [...]
U.S. Treasury Secretary Tim Geithner had an interview on CNBC earlier this week that helped inject a little bit of certainty in the market. He spoke about many issues, but it was when he spoke about the European debt problems that stood out in most people’s minds. He said with complete confidence that Europe would [...]
Greece is getting closer every day to defaulting on their debt. The entire world is watching and waiting for this inevitability to happen. Some investors and experts are actually saying that it would be good for the global economy if/when Greece defaults. Their reasoning is simple. If Europe allows Greece to default then it will be a [...]
It has never happened before. One of the three major credit rating agencies, S&P, has downgraded the United States’ credit rating from AAA to AA+. The impact on the economy is unclear until the first few days of next week when the markets open again, at the earliest. However, symbolically this is a huge deal. [...]
Two major players in the Canadian housing market both said this week that the housing market in Canada is due for a correction or a drop in the near future. Royal LePage thinks that the market will begin to decline within the next 6 months. CIBC also believes that the housing market will take a [...]
This past week the stock markets performed really well. Much of the gains in stock prices were attributed to Greece passing legislation to cut government spending. This puts them in a position to receive loans from the IMF to avoid default. However, most top economists and others knowledgeable about the situation think that Greece will [...]
Yes, if the U.S. government were to default on their debt it would be that bad. Frankly, I think it’s silly that I am made to feel compelled to even have to write a post about this obvious answer. Unfortunately, some lawmakers and their supporters in the U.S. are saying that perhaps it would not [...]
This week, two major infrastructure organizations in Canada are on strike. Both Air Canada and Canada Post are not functioning as usual because their unions want more money and better benefits. This happens with just about every union at some point, but in this case, the federal government has said they will legislate them back [...]
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