Thursday, July 17, 2008

Blowin' Smoke

Why is it that the Bank of Canada's assessment of Canada's economy smells like some politician trying to blow smoke.

Ontario has been losing jobs left, right and center, and big ticket items like car sales are way off. The cost of simply putting gas in a car is high enough that people are beginning to cut back their vacation plans, and disposable income is starting to dwindle.

Food prices have been creeping up, and I expect that the prices will escalate even more rapidly as transportation costs make their way onto store shelves.

Add to that signs of softening in Canada's real estate market even in Calgary, and Carney's assessment that the economy is "robust" seems disingenuous at best, an outright fabrication - more of a political message than anything else.

2 comments:

Véro B said...

Carney is the "new kid," so we don't know him very well yet, but generally I don't find the Bank's announcements to political. We'll have to see if he's being overly optimistic or not.

ShadowPages said...

Let's just say that the signs on the street don't line up with what Carney and Flaherty were spouting yesterday.

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