I have constantly told my clients that the Canadian economy is not a mirror image of the economies of other countries around the world, particularly the United States.
While we shouldn’t turn a blind eye to what’s happening around our world, we shouldn’t allow ourselves to become gripped by fear while waiting to see if things are going to get worse.
Pierre Duguay, Bank of Canada’s deputy governor, is warning Canadians not to get spooked by “irrational fear” over the economy and says there’s a risk of overstating the global crisis.
Duguay says Canada should be prepared to hear a string of alarming economic news in the next few months. But that doesn’t mean we should panic.
And he says that justifies a “sense of urgency” in putting the federal government’s stimulus spending to work in the economy quickly.
Our government, reacting to economic woes, indicated they would introduce a stimulus package to help stir up activity across our provinces.
The Conservative government proposed spending $40 billion over two years to stimulate the economy, but no money will start to flow until April at the earliest. What? We need stimulus now!
Finance Minister Jim Flaherty has called for a free hand in spending $3 billion of the stimulus starting April 1, but opposition parties are asking for some oversight.
Duguay says it’s important to get the stimulus moving “so people can see recovery is coming and not have to worry about the future.”
The Bank of Canada has already stepped up to the challenge with their recent rate cut, and fortunately, the major banks quickly responded with their own reductions in interest rates.
As of the date of this story, my clients have access to the lowest rate in Canada! 3.5% for a five year, fixed/closed mortgage! An unbelievable opportunity to take advantage of a great rate before both housing prices and interest rates start to climb again… and they will!
Visit my website at http://www.BlairArmstrong.com or call 416-301-0222 for more information.
