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I would say that the Global economic situation is anything but stable. With the ongoing EU / Greece crisis, Russia's tanking economy/ Sanctions and now this crisis in China:
http://business.financialpost.com/in..._lsa=3551-1fa6
I would say that a steady hand is what is needed in Ottawa. Do ya really want to trust big spending activists to run our counntry in these difficult times?
Something the idealist of Canada and Liberals of Ontario fail to grasp.
We don't live in a bubble.
Have I not for a few years spoke about storm clouds on horizons and stormy sea's the past few years?
Yet here we are in debt up to our eyeballs, a sluggish economy, exploding hydro, PS that takes 55% of the budget, rising taxes/fee's, and more. The Itdealist of the world assume things can never get worse, before they get better nor have they fully realized the landscape changed in 2008.
We still have Boomers, peons without enough saved/pensions, interest rates (someday), and on and on (See SPs reasons for the downgrade)....And stuff like this be it CHina, Greece, Putin, the Mid East......that can blow the wrong way.
I was hoping you would jump in Jben. Can you give us a quick and dirty what affects a struggling Chinese market has globally? Have to say though the kind of of "non market" control over that stock exchange seems bizarre. Would they not have to operate like the rest of the world to have any credibility and demand?
Re China - about 3/4 of companies listed there of temporarily stopped trading - that's all that's kept the damage as minimal (30%) as it has been. All these developing country stock markets - may has well take your money to a casino. Outside of Europe and North America, Japan and Hong Kong, very, very few stock markets "operate like the rest of the world" and have credibility. Strangely enough they experience demand, which encourages their behavior.
The rebound came after China’s securities regulator, in its most drastic step yet to arrest the slump, banned shareholders with large stakes in listed firms from selling. The banking regulator said separately it would allow lenders to roll over loans backed by stocks.
The China Securities Regulatory Commission (CSRC) said on its website late on Wednesday that holders of more than 5 per cent of a company’s stock would be barred from selling for the next six months.
Shutting down stock markets won't make economic trouble go away,it merely delays the inevitable. China is about to get a crash course on what happens when government tries to manipulate an economy. After all,it's working well for the Greeks,isn't it?
Terry the potential ripple effects are way beyond me. At it's simplest.
Has much of a persons wealth is tied up there. Take the Condo markets here in NA, where its widely believed much of the boom in TO/Vanc can be attributed to foreign buyers. So if people are seeing their fortunes wiped.........
Consider also this.
http://www.firstpost.com/business/ch...w-2334326.html
http://money.cnn.com/2015/07/06/inve...ece/index.html
If we have learned anything since 2008, it's that bad things happen when...and, the dust hasn't settled and the winds can change...at any time.
What's really worrisome is that pretty much all countries are now up to the gill in debt, having
pump liquidity (via infrastructure projects and bailouts) into the economy to keep it propped up
in 2008.
I'm pretty concerned if there is a crash again, we don't have enough bailout money available
without entering a situation where we can no longer finance our debt. You can't tax people more,
you can't create jobs with no spending.
Some economists are predicting something much worse than the great depression. Economically maybe
not, but our ability to handle it, as we have become dependent on big corporations to feed us. The average
person in North America has no clue how to farm (including me for the most part, but my dad does!). So
if big corps fail and the grocery store shelves are empty, we end up with a pretty grim situation to survive.
During the great depression, people knew how to cultivate their own land, and survived on this. How quickly
could we go back to that skillset, for survival purposes.
I do hope they are wrong, and most of them making the prediction do as well. They are basically saying don't think
it can't happen, and be prepared for it. If it doesn't happen in the end, okay, so what, you now know how to grow tomatoes
and have $10,000 hidden in your mattress.
How many people own enough property to actually grow enough food? What about meat? my 40 x 140 ft lot in a subdivision doesn't have much pasture footage ( but i do have an herb garden...LoL), certainly will be losing weight if it comes to that. I have no debt but my retirement portfolio would likely collapse.
We're gonna be fine though. Sousa the Liberal Finance Minister said so right? It's all good, budgets balance themselves. Liberals couldn't be wrong or not telling us the truth could they?
Better start saving even more. :/
Terrym you can borrow a plot of mine if you help patrol the perimeter.
Sure things eventually are going to get worse but then maybe people deserve it - just look at the way they live and vote - the only bad thing is people who didn't vote for the spenders will also have to suffer - so what do you do - have enough cash on hand to buy things that are necessary - get enough land so you can at least keep from starving - and keep enough ammo around for when the mob starts coming to your house to take things from you -
If you live in the country you will be ok - besides the land to grow things - get firewood - hunt and catch fish from nearby waters you should be ok - there are a lot of animals and fish around that you don't eat today but can if things get tough - it is always a good idea to have extra seed saved so you can plant - have extra food in the house - extra fuel - I buy oatmeal and flour by the 50 lb bags - popcorn, potatoes, squash, rice and things like that can be kept for a long time - canned goods too - people living in a big city may be in for a rough time because they depend on others for the necessities of life -