Canadian Yield Curve, USA Recession

Mish is singular in noting the portend of recession, the inverted yield curve in Canada.

The Bank of Canada called the rate cut "insurance". Insurance from what? If they think it will halt a recession, it won't. The recession is here. There is no need to wait for another quarter of declining GDP to confirm. A Canadian recession is underway.

The Canadian dollar dropped to US$0.79, which means things in and from Canada are getting real cheap.

And comes a question from Cal:

On Jan 31, 2015, at 7:28 AM, cal wrote:

Hey John ...  I just watched your San Francisco lecture-  recorded just after the 2009 crash.Your videos are very informative but they were also done about 6 or 7 years ago.  This leads me to the question about what you see for today ? We are still in a statist caused depression - how have the importers/exporters weathered the crunch?  Are people starting to buy again or ... ?

Is it still a good season to begin an EXIM business now - or are people still bankrupting in the international markets ?

Thank you for your time.

Hey Cal...

These small businesses are too organic to worry about economic conditions... we change too easily to worry about anything that happens in washington or on wall street...

It's gotten far worse than 6 years ago (and it is not Obama's fault, it would be no different with Mccain) and when the crash does happen it will be much worse than last time...

Swizterland, Russia and Greece are taking the right steps; USA no...

But it doesn't matter, we are a row boat in the ocean ...  much more oppty out there than we need...  I don't care if there is 25% unemployment, we'll sell to the 75% employed.

You did say bankrupt...  meaning more debts than income, unpayable, and that is one area I have some contemporary things to say in week eight of the seminar...

Otherwise, not much change...  compete on design.

If anything the pendulum is swinging back...  McD sales down... big chains closing stores.... good for small biz...  getting better, swinging our way.

John

Feel free to forward this by email to three of your friends.

Bookmark this post --- Email this post