March 5, 2008, 7:00 am

Do We Have A Recession or What?

by: The Financial Blogger    Category: Investment, Market and Risk
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I was reading the newspaper yesterday (what’s new?). I only read 2 sections, no matter which newspaper it is. To my opinion, it is the only 2 sections with real stuff in it: Sports and Business (they may want to put them together one day as doing business is a hell of a sport anyway!). One small article caught my attention: Warren Buffet was giving a part of his wisdom once again.

Economy is slowing down (and so the US dollar) and the employment rate (while still being low) is increasing. According to what he sees, Buffet was declaring that the States are in a recession. He basically called the shot before the play is on. Technically, we can acknowledge that there is a recession once it is almost over. He was saying that we are in it and he didn’t know for how long we will be in trouble.

A few hours later, the Bank of Canada dropped their interest rate by 50 points. This shows some worries from the Bank as they usually play with only 25 points. The last time they did it was back in 2001 and you probably remember why.

I guess they are looking down south and they see big black clouds over our southern neighbour; no kidding, the storm is always coming our way! While I don’t think we are in a recession in Canada, we are definitely trying to avoid it by any means.

It is obvious like my son in my bed on a Sunday morning; the Canada’s economy is directly linked to the States (who is not anyway?). In Quebec for example, we never had such low exportation number to the USA for the past 20 years! I agree that it is quite alarming!

Once again, I think that our western’s oil will save us from the heart of the storm. However, it doesn’t mean that we won’t get a good drop of rain on our head!

I think it is time, more than ever, to save money, pile up until you find good investment opportunities such as rental properties, foreclosed properties and undervalued stocks. Always remember: rich people make money at any time, recession or not!

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[…] Financial Blogger writes about if Canada is facing a recession. […]

[…] recently wrote an article on the possibility of having a recession and the fact that the Bank of Canada dropped their interest rate by 50 points. Then, this Monday, […]