08 August, 2011

TSX, Dow losses deepen - Business - CBC News

It is important to ensure that we be open to the needs of our neighbors, friends and family members during these stressful financial times. Advice is often worth the price it costs and is usually in great supply. Prudence and wisdom are virtues that are perennially in short supply. All believers need to pray for those in financial trouble, especially the unemployed with families who are approving (or have reached) the end of their Employment Insurance benefits. I have witnessed the human cost of these times in the lives of local families, those with jobs tend to have at least one parent living and working in another part of the country. Stock Market falls like we witnessed today wipe billions (if not trillions) of dollars from the economy as the valuation of companies experienced a free-fall, dropping over 630 points by the end of trading.

Things will not likely improve dramatically before the American's get their fiscal policies in order, something that is unlikely to happen given the chasm that separates the two political parties. Given the way that they are reacting in the wake of today's collapse (one of the 10 worst days in NY stock exchange history), there seems little hope of things improving before the 2012 election. They are in as deep and vicious a gridlock as I can remember with political opponents holding contemptuous opinions of each other. Right now, I doubt they could successfully organize a tea party without a fight breaking out!

Such is life for we who live north of the 49th parallel. As Pierre Trudeau once remarked, managing the Canadian economy was like being a mouse lying down with an elephant. Every twitch of the pachyderm causes concern in the mouse. When it shudders with a cold, the mouse runs the risk of losing its life as the poor pachyderm is plagued with a fiscal flu.

Stock Markets tanking across the globe... riots in the streets of London... these are not great days for the west. The Soviet Union may have fallen apart due to a financial collapse. Russia, under the Putin oligarchy is an economic power on the rise. The Americans... not so much. I wonder who really won the Cold War? Certainly seems less than clear at this point. That should provide plenty of fodder for the neo-cons to contemplate in the days to come. Maybe they might come to their economic senses and move towards a more balanced approach to US fiscal policy.

TSX, Dow losses deepen - Business - CBC News

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