The R Word

That sinking feeling is coming on. The US economy is slowing and several well-respected economists have made their call. Leading off, Paul Krugman: The key point is that the forces that caused a recession five years ago never went away. Business spending hasn’t really recovered from the slump it went into after the technology bubble burst… Also, the trade deficit […]

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Lots of kindling

Are we headed towards a recession in 2007? Housing markets have begun to turn, interest rates are back where they were pre-9/11 and oil is near $80 a barrel. Nouriel Roubini puts the risk of a US recession at 50% for 2007. I like this approach – no one can predict the future so we must think ahead in terms […]

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Bubble bubble toil and trouble?

The bad news is starting to come in from south of the border. For those interested in following bubblemania, I recommend The Vancouver Housing Market Blog. The LA Times reports: The chief economist of the California Assn. of Realtors has stopped using the term “soft landing” to describe the state’s real estate market, saying she no longer feels comfortable with […]

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Bubble seeks air

This makes me nervous: Mortgages getting risky: CIBC HEATHER SCOFFIELD Globe and Mail Update TORONTO — Household credit is stable, but that statement masks the growing popularity of untraditional and risky mortgages, a new study by CIBC World Markets says. Household credit is growing steadily at an 11-per-cent annual pace, pushed by a 10.9-per-cent rise in residential mortgages for year […]

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Bubble bubble toil and trouble?

UCLA's Edward Leamer sees a slowdown for the US in 2006, as the real estate party comes to an end. He sets the context well: The discovery of the Internet set off a mad dash for the Web, and that powered the U.S. economy forward at breakneck speed from 1997 to 2000. Every business in America had to have a […]

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