I get a little fed up reading the newspapers and hearing the messages that we on the brink of recession ... there is danger of another great depression .... tighten the belt!!! All this hyperbole does is to feed the fear of a nation and then we just end up believing the bad news and creating our own problem!
So some financial wizards in the US found a way to sell mortgages "on the never never". They made themselves a small killing for a short while and now they have created a US recession. Millions of home owners find themselves in a position where they owe more on their mortgages than their homes are worth, and the impact is huge. Personally I hope that the people who caused this misery will pay, in the same way that errant corporate CEOs paid for their sins in recent years. I really want to read about leaders of these financial institutions going to jail! But that is not the focus of this blog entry!
The good news is that we are in Canada! The Canadian dollar is strong, we did not indulge in the same kind of mortgage madness as the US and we are rich with oil revenues. Our economy is strong and there is no need for us to talk ourselves into a recession! The media talk doom and gloom all the time, because that is what sells. The problem comes when we start to believe it ourselves!
The US caused its own issues and the US economy is no longer the engine of the Global GDP. The emerging markets of India and China are driving demand in the world today, which means that we are no longer as dependant upon the US economy as a global indicator.
So my message to everyone, is that Canada's economy is strong, keep building, keep buying, keep investing and keep doing the things that have created this economy!
DO NOT LET OUR MEDIA TALK US INTO A RECESSION!!!