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.
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
Posted by blogger at 12/19/2005