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The Grass Is Greener

US Dollar Better Than Canadian Dollar
US Dollar Will Beat the Canadian

Yes, it all looks rosey, right now... markets are at record levels, rates are dropping, just like we thought they would, making stocks look even more attractive. No housing crash, no credit bubble, and everyone is happy. Ya, well, sorry to tell you this, Barbie, but Ken shacked up with his gay lover Arsenio, and crashed your Pink Corvette.

Some just are not drinking the Kool-Aid like they are suppose to, and can see that the light at the end of the tunnel, is actually a flame thrower.

Canada tends to act before the US, this is true, and according to this, our economy is not as strong, we're just not as big. The US tanker ship takes longer to turn around, and we have seen this before in monetary policy, so expect our dollar to take a hit. And rate cuts? Not so fast. The market has it baked in, but that was last week, all of a sudden their not too sure.

A mild reccession is coming, no its not here yet, we would hear more on the labour front if it were, but its coming. Rates will do nothing for 6 months, that is how long it will take for the recession to bake in, and policy makers come to their senses, and by then, it will be too late. The pendulum will be swinging in the oppostie direction. How bad it will be is uncertain, but it will be worse in Canada, as our debt levels fare exceed the overspending in the US. Remember, we did not have a housing crash, they did. A big one. "the Canadian household debt-to-income ratio soared to 184.5% in the first quarter of 2023."

In comparison, the US is at 121.5%, close to what they were just before the credit crisis. So ya, we are in deep shit, and nobody is talking about it.

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