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Yeah… it can…

I’m not a sophisticated investor and I certainly don’t fancy myself to be a financial analyst, but… here’s my arguement for the “economic crisis” in the U.S. washing up on Canadian shores despite Harper and Flaherty’s best attempts to say that “we’re safe”.

1. Take a peek at the performance of the TSX yesterday… a record all-time loss… the TSX is a Canadian stock exchange that’s heavy on commodities… yeah, that’s right… all of those natural resources that make “the fundamentals of our economy” strong (so they say…) The U.S. Congress acts… Canada reacts immediately…
2. If the American taxpayer is essentially “out of money” (meaning: credit)… how’re they gonna buy the stuff that we sell? If our #1 consumer can no longer tap into the equity of their homes (if they’re lucky enough to still have one), how can we expect them to keep on buying shit they don’t need with money they don’t have?
3. There’s a bit of truth to the idea that Canadian banks won’t get hit as hard as banks in the U.S., but don’t think for a moment that we won’t get hit at all. Sure, they have more banks (more small, “Mom & Pop” types of banks)… but the banks that have been “going down” are large banks. Really big banks. Meaning – Canadian banks are tied up financially with them. It’s inevitable. If you were really able to see what your pension/RRSP etc. was invested in, you’d probably start to understand quickly just how inextricably linked we all are to the U.S. economy.
4. Global markets and economies are being hit big time by all of this action in the U.S. Ireland has just gone into recession. The U.K. is nationalizing their banks quicker than the U.S.  Iceland is nationalizing too! Markets in Asia are collapsing… how can Canada *not* be affected?

All things considered…

On paper, it’s a good thing that the $700-billion “bail-out” package didn’t pass through Congress. Why? Because it’s an act of Socialism in a Capitalist economy.  But…

It ain’t over ’til it’s over…

This is the exact same Bush Administration that brought you an illegal and widely unpopular war. The same people that lie about *everything* and do whatever they please.

I’ll make a bet with you right now…

The U.S. economy will get some form of bailout that looks an awful lot like this massive bailout. Bush will address the Nation/World this morning and lie to us again and somehow his people will pull-off the incredible looting of the U.S. taxpayer… somehow… they’ve got “gumption”, y’know…

What you need to know about a “bail-out”…

Two things:

1. A bail-out does *not* help the tax-payer. It puts them in the very position that the banks want out of. A “bail-out” should be seen as “bailing” on the U.S. citizen. Don’t confuse this with “assistance”.
2. The government/banks want the U.S. taxpayer to buy up toxic debt. They want the tax-payer to buy shit that no-one, and I mean *no-one* in the financial world wants to touch with a ten-foot pole… does this make sense to you?

“Hey… this shit is toxic and worthless… you should buy it…”