Economy

Europe is on the verge of a collapse, and unless something gets done relatively soon, (perhaps as soon as the next few weeks), Europe is likely to experience their own 2008 scenario. The U.S. and Chinese economies are heavily dependent on exporting goods to Europe, and with Eurozone growth slowing as a result of the potential default in Greece, and then on to the rest of the PIIGS, a "Great Depression-like scenario" could very well play out. [In fact,] George Soros thinks we are headed towards another Great Depression and, you know what, he's right! What do you think? Is George Soros right? Are we headed for another depression? Words: 530

For decades, the governments of the western world have been warned that they were getting into way too much debt. For decades, the major banks and the big financial institutions were warned that they were becoming way too leveraged and were taking far too many risks. Well, nobody listened so now we get to watch a global financial nightmare play out in slow motion. Grab some popcorn and get ready. It is going to be quite a show. [Let me explain.] Words: 1075

The Age of Austerity has arrived with a vengeance in U.S. cities. City budgets shrank 1.9% in 2011 after 4.4% declines in 2010 and city revenues declined 2.3% this year for the fifth straight year of declines, according to the annual report from the National League of Cities. While tax revenue and state and federal aid decline, costs are increasing including pensions and health care. Cities have responded with layoffs, hiring freezes, pay cuts and service cuts. [A picture is worth a 1000 words so here are 11 charts that show just how bad the situation really is.] Words: 333

Canada, France and Switzerland stood alone among nine markets measured in recording annual price gains, based on second-quarter data, with inflation-adjusted price increases of 5%, 5% and 4%, respectively, compared to declines of 6% in the U.S., the U.K. and Australia, 10% in Spain and 14% in Ireland. In fact, Canada's home prices have escalated 44% since 2005 - with a high of 68% in Vancouver - and they are up 7.7% in the past 12 months! Words: 1244

The widespread stagnation in wages, rather than the level of unemployment, may offer a better explanation for the failure of economic growth to accelerate two years after the end of the recession. Workers’ ability to negotiate higher earnings won’t return until the job market strengthens, and flagging confidence has raised the risk that consumers may retrench. [Let us explain.] Words: 1018

Will global financial markets reach a breaking point during the month of October? Right now there are all kinds of signs that the financial world is about to experience a nervous breakdown. Massive amounts of investor money is being pulled out of the stock market and mammoth bets are being made against the S&P 500 in October. The European debt crisis continues to grow even worse and weird financial moves are being made all over the globe. Does all of this unusual activity indicate that something big is about to happen? Let's hope not - but historically, the biggest stock market crashes have tended to happen in the fall. So are we on the verge of a "Black October"? Words: 1200

Canada's size, political structure, and culture will enable it to – properly governed – be more resilient to world economic problems than any other developed country. [For one thing] we don't have the extent of political polarization that... [is currently the case] in Washington...and now exacerbated to new levels in these difficult economic times – and that will, in my view, cause the U.S. to continue down an increasingly rocky economic road. [Below I put forth Canada's economic advantages and disadvantages.] Words:1026

A predictive software program called Senturion, developed for the U.S. military and sporting a 85% accuracy rate, has concluded that Greece is going to default. [Let me explain further.] Words: 244

Rising education and medical costs, on-going credit card interest payments, well used personal lines of credit and large mortgage debt and home equity loans - most a penchant for living beyond their means - is keeping 75% of American households in some degree of debt. Take a look and then pass it on to your friends, neighbors and co-workers.

The latest economic data suggests that recession is returning to most advanced economies, with financial markets now reaching levels of stress unseen since the collapse of Lehman Brothers in 2008. The risks of an economic and financial crisis even worse than the previous one – now involving not just the private sector, but also near-insolvent sovereigns – are significant. So, what can be done to minimize the fallout of another economic contraction and prevent a deeper depression and financial meltdown? [Below I recommend 8 ways that would do just that.] Words: 1641