Re: Scary artickle - Sharky
in response to
by
posted on
Feb 03, 2009 01:49PM
Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta
Hi Sharky,
"I wrote once that people who are not involved in stock markets have in fact no losses and could now with lower prices buying more .For those who have money left they can buy houses ,cars and lots other things at super bargain prices.I hink it's mostly the fear and the wait and see attitude that people stop from buying because they see no end at current spiral down."
An article such as this one might help and give give you some perspective on how the entire American economy is being hit and not just those with exposure to stocks.
http://www.bloomberg.com/apps/news?p...
2/3 of the American economy was driven by the consumer. In the US a lot of consumers were borrowing against the new found wealth in their homes as prices were going up over the last decade in order to fuel home repairs, stock investments, trips and many other expenditures. Since the price crash not only are they not borrowing in order to continue to fuel the GDP, they now are saving more in an attempt to get out from underneath the lack of equity they now have in their homes. Those is stocks got double hit as they lost stock equity & home equity. It's not just the bank losses that are fueling the lack of spending.
For the 1st time I am starting to notice the effects here in the Toronto area. Just yesterday in one of our biggest malls I was shocked to see how many stores had closed since Christmas and just how empty the mall was (which was good for me as parking was a breeze). Since Christmas I am starting to notice less traffic on our major highways as well. Just today during morning rush hour in some snow (usually a recipie for disaster) I had a much easier time than usual and my commute was actually 10 minutes faster rather than the normal 40 minutes longer.