I know the market has been down 8 of the last 9 Mondays so no big deal right?
Uh no? Economists around the world think we are on the way to a depression never mind a recession.
After the market got hammered on Thursday, it more or less broke even on Friday. This was probably because most traders headed for the hills and regrouped over the weekend?
The market today lost anywhere from 1-2 % depending on where you live.
Factors to watch tomorrow:
1) Moody’s said after closing that last week changes to mortgages are good but maybe to little to late.
2) Moody’s downgraded 28 Spanish banks due to increases debt risks.
3) Greece’s Finance Minister resigned due to ill health. He had been on the job a whole week and suffered abdominal pain, nausea and dizziness.( How else would you feel after looking at their books)
Lets see what happens.
What do you think?
The last time the amrket dropped this much is the day after Harper got his majority government. But both of these drops are small compared to the big loss of Canadians wealth after Harper flipflopped on income trusts.
The Market dropped on May 3,2011 for sure
Here is a paste of the reason:”The Mideast is in turmoil, the U.S. is in turmoil and probably will continue to be as it figures out it has a long term economic problem. And you have the European debt crisis,” said John O’Connell, chief executive of Davis Rea Ltd.
Had the Conservatives not won a majority the sell off on May 2 would have been even worse.
Here’s another item from that day.
Majority government seen as market friendly
Most economists saw the Conservative victory as comforting for markets.
“From the perspective of the market and investors, a Conservative-led government represented the most benign scenario,” TD Bank wrote in a note by its economics department.
“The commitment to prudent fiscal management will be favourably received by markets and investors.”
The Conservatives won 167 seats, while the NDP will form the official Opposition with 102. The Liberals were reduced to 34 seats, while the Bloc Québécois is left with only four.
“Financial markets don’t like uncertainty … with the Conservatives securing a majority, the political scene is still one with Stephen Harper as prime minister,” Paul Ferley, assistant chief economist at RBC in Toronto said.
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