They are showing the Perfect Storm on TV.
Are we setting up for the Perfect Storm in Canada?
Exhibit one...exploding deficits like this one:
Exhibit two...completely oblivious to the foolish errors that took place south of the border, we are marching to exactly the same drum:
'The federal government has quietly given Canada Mortgage and Housing Corp. more financial muscle, raising concerns the multibillion-dollar agency is expanding at an unprecedented pace with little oversight.
For the second time since the beginning of 2008, Ottawa has raised the amount of mortgage insurance CMHC can have outstanding. The increase moves the cap to $600-billion, up from $450-billion and nearly double the $350-billion limit in place at the end of 2007.' Globe and Mail October 21st.
Insanity: doing the same thing over and over again and expecting different results. Albert Einstein
Wave one. The crisis hits. Governments and policy makers did nothing to prevent the onset, but now throw everything at it, everything they have.
We go deep into deficit.
The crisis is averted, for now.
Asset bubbles reignite..RE here, Gold and Oil worldwide.
Wave two hits. They have nothing to fight the fire with. How can a Provincial Government which has a $25 Billion deficit pay for it's regular programs, never mind expand??
We hit the Perfect Storm.
Is this scenario likely? Maybe. Not many economists are even mentioning it as a possibility. Yet it is very possible. All governments are facing increasing expenditure and declining revenue...and add to that the baby-boomer entitlement programs and it is hard for me to see how this can end well.