Record and unsustainable trade deficits. The mother of all housing bubbles. Entitlement programs run amock. Massive budget deficits. A war that won't end. Consumer pullback as the housing ATM closes.
Ah-choo.
Times are good in Canada, really good. Now watch out.
The story is not quite as simple as that, of course, since we're talking about an economic forecast that takes into account factors from all over the globe. But this is the essence of a sobering new warning from chief economist Clement Gignac at the National Bank of Canada.
Gignac paints a persuasive picture that 2006 could well be the year in which our luck runs out as years of accumulated financial excesses in the U.S. economy start to come unwound, beginning with the deflation of a housing bubble that may be stretched to its limit.
December 19, 2005
Ah-choo! Other countries worries about the US catching a cold (as our excesses unwind in 2006)
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1 comment:
the beauty of blogging - especially since you can see the whole arc - rampant unchecked speculation, nay-sayers and contrarians seen as idiots, then the soft numbers come in, then the sudden change in mentality, then the decline
and finally, after capitulation, the recovery
as long as google doesn't go out of business (host of blogger) this site will be here for those future harvard MBAs to read as they prepare their paper on the buble
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