Friday, November 21, 2008

What rally?

I don't understand this at all. This "market meltdown" makes no sense whatsoever. Look at today's Toronto Star.

The headline in the centre says "Toronto stocks rally".


Yet, look below to the TSX figures. They are all down! Er, where is the rally?


Then you have the main headline:

"Toronto inflation rate tumbles"

The caption says "Canadian consumer prices hit a 50-year low in October."

Yet we are in a recession and are supposed to be too poor to buy anything!

And we are told the Canadian economy are stable while the US economy is in deep trouble, yet it's our dollar that's down!

Someone is getting rich by trillions and it's not me.

6 comments:

•°¤*(¯`°sαєє∂α°´¯)*¤°• said...

ahaha... gee mezba.. dont worry. maybe you'll be the one getting rich by the trillions someday, then people like me can come take an interest free loan. :D

oh and havnt you ever heard the line: "the rich get richer and the poor get poorer". i live in america, and life is sucking here right now. so enjoy canada.. xD

GeekiSiddiqui said...

yeah the headlines confused me too. The inflation rate though, that doesn't really surprise me. I had a discussion about this just a few weeks ago and....well we confused ourselves quite a bit, but we came to the conclusion that we did expect deflation :P And I don't know who is saying the economy is stable. I don't think its as bad as the States but it still really sucks. ....I want some of those trillions.....

Megan said...

We like to think that we're immune from what's happening in the states...and superior :) Some people do, anyways. Whole lot of wishful thinking going on there!

mezba said...

Saeeda, ah those trillions. I heard the saying "there's always someone who profits from a disaster". I suspect something like that is happening here. All of a sudden one company fails (Lehmann Brothers) and there is a world wide recession.

Geeki, lol at your explanation. Someone once told me economists are those that take what works in practice and tries to apply it to theory!

I sort of understand why the US$ is up (every one looks at it as a safe heaven and there is lot of foreign direct capital investment in the country), but still!

Megan, Canada and US are more intertwined than Canadians realize. Maybe that's why now there's pressure to have a free trade deal with the EU.

Anonymous said...

There is probably two reasons why the Canadian economy is hurting.

1. Because of the recession in the US ( and the rest of the world ) the commodity bubble has burst which hurts the Western provinces.

2. The global recession is hurting the rest of the economy (i.e. manufacturing)

The realignment of the currency is probably due to the flight of capital from other nations (not Canada) into the US in the form of treasuring notes.

I'm not sure why the inflation. My guess would be the shift in commodity price didn't propagate through the rest of the economy yet.

The TO stock exchange is tied more to commodities then anything.

mezba said...

Thanks for the explanation.