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Harper unfazed by market crisis

BRIAN LAGHI and DANIEL LEBLANC AND CAMPBELL CLARK

Globe and Mail Update

Latest comment posted at 2:33 AM EST 16/09/08

Any crash or recession would have happened by now, Conservative Leader says as TSX closes down 515.55 points ...Read the full article

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  1. J. Kenneth Yurchuk from Toronto, Canada writes: Steve, better consult your psychic hairdresser again, I think her crystal ball is a little cloudy. If have that much ballyhooed degree in economics, try dusting off your sheepskin, and have a look at what is going on south of the border. Major banks and trusts are failing.

    You've been too busy sucking up to the Republican regime to see what it is they are doing to the once mighty American economy, and too busy making policies to allow takeovers of Canadian Banks by US interests so they can do the same here.
  2. BeerBelly Buddah from Wpg, Canada writes:
    Of course he is 'urging calm' - a real news story would be if he was counseling PANIC!

    'Urging calm' simply proves our PM is not completely cranially challenged. Unfortunately, he is not capable of offering any thing beyond empty platitudes. A free market cultist, his fortunes are tied to Bay Streets fortunes. Today's downturn is further proof our national economy is in for a rough ride.

    Harper, aping that great political mind, Chauncey Gardner, has taken to proffering empty observations such 'our fundamentals are strong'. Empty pablum. His words will do nothing to see us through. Anyone who believes he's the best qualified gatekeeper to deal the coming recession is living in la-la land.
  3. B M from Barrie, Canada writes: I strongly believe that Canada will in fact weather the worst of the economic downturn. Canadian business are doing well, very well. Examples: RIM, Bombardier, CAE, the entire Canadian oil industry..... I think over the next 5-10 years we are gong to begin to see a drastic shift in the way we do business. Raw materials like lumber will be replaced with building materials created using recycled products. Auto manufacturere will be forced to change their designs or fail. We will begin to embrace alternate energey sources such as solar and wind power. New jobs will be created in industries that don't even exist today. Harper and the Conservatives are the only party with the vision and wherewithall to lead us into a new dawn.
  4. City Wok from Canada writes: Oh my darlings..couple of songs to keep in mind. 1. You ain't seen nothing yet... 2. The best is yet to come.... I'm no economists, and saw the crisis years before it happened, as well as the oil situation. You don't need to be anything to know this ship is going down. Sic Transit Gloria Mundi! :) 'Thus passes the glory of the world' And what will be to miss? Another video game, another flat screen tv...such grand advances for mankind aren't they! Another shiny bauble to keep us distracted....ahhh finally perhaps we can focus on life, rather then keeping up with insignificant neighbors and worrying about what shoes look good with some antiquated business suit.
  5. Fake Name from Canada writes: ' BeerBelly Buddah from Wpg, Canada writes: Anyone who believes he's the best qualified gatekeeper to deal the coming recession is living in la-la land.'

    Not that any of the other three / four clowns available to choose from are any better qualified...
  6. Erik D. from Canada writes: Well now Harper, who playing a false tune. In 2007 a Conservative Governement report showed that a carbon tax would have no effect on the economy (by the way, it also showed we can't hit Kyoto, so it seems to be a solid report). The conservatives were initially

    theglobeandmail.com

    Seems like Harper is indeed preaching misinformation about the Green Shift ... and the report's author was initially praised by the Conservative government...so why should we believe him when he says a market crash would have happened by now?
  7. Liberals are OK ............. If you cook em long enough from Canada writes: All I can say is keep selling. I'm picking up bargains galore.
  8. B M from Barrie, Canada writes: Absolutely, keep selling. I'm buying like a madman and this time two years from now....Freedom 45.
  9. J Smith from Canada writes: Instead of just telling us to be calm, why don't the conservatives give us some idea about their economic plans. While small little tax breaks make for good sound bites and vote buying they certainly don't offer long-term sustainable planning. Rather than the platitudes how about an actual plan.
  10. J. Kenneth Yurchuk from Toronto, Canada writes: BM and Libs are OK: You guys are about six months premature in your buying spree. There will be bargains, but this Markets got another 15% to shed before this 'correction is complete. Remember, you heard it here first.
  11. Jasper the Black Lab from Canada writes: If Steverino is 'urging calm' does that mean he is actually going to do the complete opposite - Panic? Because when he said 'no tax on income trusts' he did the exact opposite.

    we just can't trust Harper.
  12. vic w from Canada writes: Too bad, the market won't follow Steve's dictatorial ways.
  13. Rt. Revd. Malachy Egan from Halifax, Canada writes: The headline was supposed to read: 'MARKETS URGE CALM DESPITE HARPER CRISIS.'
  14. Johnny Test from Pork Belly, Canada writes: Absolute BS from Dion. Dumping a carbon tax when the economy is weak is the stupidest thing you can do! It will curb consumer spending and definitively plunge us into a recession! God what a dolt!
  15. Susan Rogan from Canada writes: It's probably a good time to buy stocks but I don't even want to play the game anymore.
  16. Don Adams, the Conservative Centrist from Canada writes: J. Kenneth Yurchuk....the second time I've agreed with you today! What's happening? I've bought a bit, but not quite the time yet :-)

    Looking for some real nice increases in 2 - 3 years! :-)
  17. bill k from Canada writes: You know the situation is even worse then anyone can imagine when leaders have to come out and tell the people everything is ok? That mean thing are going from bad to worse. Harper is to busy selling out Canadians to the Americans to know whats going on.
  18. stephen mcintyre from Langley, BC, Canada writes: The crash HAS happened, Mr. PM. What a spin-fest.
  19. Lum Barstrain from Canada writes: B M from Barrie, Canada writes: .... Harper and the Conservatives are the only party with the vision and wherewithall to lead us into a new dawn.

    ------------------------------

    Interesting pov.

    Serious question: What is that 'vision'?
  20. Lum Barstrain from Canada writes: Johnny Test from Pork Belly, Canada writes: Absolute BS from Dion. Dumping a carbon tax when the economy is weak is the stupidest thing you can do! It will curb consumer spending and definitively plunge us into a recession! God what a dolt!

    =================================

    Hmmm. Are you unaware of the plan to match increase carbon tax with reduced income tax? Or do you simply not understand that part of the Green Shift?
  21. Lum Barstrain from Canada writes: Liberals are OK ............. If you cook em long enough from Canada writes: All I can say is keep selling. I'm picking up bargains galore.

    ==========================

    LOL ... were they bargains at 12750? Are they still bargains at 12400?
  22. Marc S from Canada writes: Dion is right . Harper is an opportunistic idiot , who will say and do anything for power. Oh yes believe Steve, who along with his Edgar Bergan ( Flaherty) was telling us all how we were shielded from the chaos going on south of the border just one month before the election . Boy were they right ???? lolWhat do the cons offer other than fear and bullying tactics ?? I don't see the attraction with these people.
  23. Pablo W from Mid Ontario, Canada writes: Mr. Harper is urging calm. Tell me what influence on Wall Street or Bay Street does he really have. Do the brokers call Steve and ask for his advice ? I HOPE NOT.
    He may think that he can influence the markets but then reality plays a bigger part.
    The only way he will influence the market is by laws ( income trusts as an example).
  24. Steve D from Canada writes: Harper and Mcain both are economic geniuses. And I am the Wirard of OZ
    For the prime minister say he is not too concerned is an idiotic statement
  25. walt canada from lower bcwest coast, Canada writes: What is it with Dion,every where he goes he has his,what one can assume, is his wife following him or standing beside him.Is this guy so insecure or does she need to make sure he doesn't make a bigger fool of himself than he already is.Boy, and this is the person some Canadians want to be our head of state.
  26. L.B. MURRAY from !! from Canada writes: Just another ''empty platitude'' says some post above....

    Meanwile, it's still too early for us smart people to buy shares.... I'm waiting a bit and trying to think like a chess player... several moves ahead...

    As far as ChaneyBushHarper are concerned, I no longer believe one word coming from them.

    Thank you and good day.

    THINK. Now is the time to THINK and ACT SMART.

    THINK for yourselves and don't listen to any politician, especially now, today, in September 2008.

    -
  27. Catherine Wilkie from Canada writes: Flaherty as Finance Minister. And Harper is urging calm?
  28. B M from Canada writes: Lum Barstrain if you want details of the Conservative plan (including THEIR green plan) see here: http://www.conservative.ca/EN/4739/. It's all laid out. No hidden agenda, no hidden taxes...
  29. F Johnson from Canada writes: Jasper the Black Lab from Canada writes: If Steverino is 'urging calm' does that mean he is actually going to do the complete opposite - Panic? Because when he said 'no tax on income trusts' he did the exact opposite.

    ***************************************************
    If Harper hadn't killed off the income trusts they would have become a smaller version of the U.S. real estate mess being cleaned up in today's equity markets. Unless a company has a steady and stable income stream they should never become an income trust but many of the companies that chose that tax structure never even came close to meeting that criteria.
  30. Pete H from Canada writes: Lum Barstrain from Canada writes: Johnny Test from Pork Belly, Canada writes: Absolute BS from Dion. Dumping a carbon tax when the economy is weak is the stupidest thing you can do! It will curb consumer spending and definitively plunge us into a recession! God what a dolt!

    =================================

    Hmmm. Are you unaware of the plan to match increase carbon tax with reduced income tax? Or do you simply not understand that part of the Green Shift?
    Go ahead Lum, splain it to everyone, but I suggest you start with Mr Dion, he could use some talking points.
  31. Marc S from Canada writes: Pablo W from Mid Ontario, Canada writes:The only way he (Harper) will influence the market is by laws.....................The only laws Harper will be making after this election will be in his own household ! lol
  32. s c from Canada writes: I will admit that I am not a fan or Harper (or Dion) but the partisan postings above show that logic does not exist for many posters.

    Yes the markets are falling. Yes Harper is currently PM. No the two are not related nor could a Canadian leader of any party have any impact on global financial markets. We are just not big enough.

    One could debate whether right (conservatives) or left (liberals) are better in Canada. But comparing Harper to the Republicans, as a few posters have done, is way off base. Both the republicans and the democrats are further right wing than any party in Canada, including the conservatives.

    I am interested in knowing what each party would propose to help Canada if the financial conditions continue to fall. I have not hearing anything from either party yet.
  33. Randy McClure from Canada writes: The markets won't recover this time. This is just getting started. In october over 1/3 of the junk mortgages come due, and they will be higher than the value of the properties. People will walk away and then the sh-- storm will really start.

    Dion is on the right track. We need to cut taxes on productive endeavor and incentivize to get off of fossil fuels -- of course Harper's billionair oil buddies won't like that, but TOUGH. Fort MacMurray is not the capital of Canada. (Hear that Flaherty? You Ontario traitor. You are so out of office. Ontario jobs gone because your favoured the oil and gas sector and drove up the dollar. 200,000 manufacturing jobs gone since you came to power.) Incompetent voodoo economists. Deregulation true believers -- wreck the financial sector, wreck the meat sector, wreck the nuclear sector. Your policies are the same ones that have wrecked America. Not here. No more.
  34. Stephen P from Cambridge, Canada writes: What I find puzzling is that the Conservatives are still in opposition mode. They suggest nothing but find fault with what is suggested. The finance minister, JF, made a hash of Ontario's finances and has now found a way to turn a 12 billion surplus into a deficit in 2 1/2 years with nothing to show for it. These guys sound like Herbert Hoover in 1930.
  35. Brian Gregg from Outremont, Canada writes: The PM is bang on. People need to realize that the financial markets no longer have much to do with the economy. The economy is production and consumption - things that the stock markets no longer finances (much). A few financiers losing figures on a screen won't affect the rest of us a great deal.
  36. E T from Canada writes: The first serious gaffe. Harper just created a huge opening for Liberals to exploit -- and Prof. Dion actually had the sense to exploit it! Only an idiot can't see recession ahead because it hasn't happened yet. And having had Jim 'Bad-credit' Flaherty at the Finance helm these last few years does not make for credible stances on fiscal policy (can we say 'massive mortgage credit inflation', 'productivity-killing tax policy' or 'serious breach of trust on income-tax policy').

    I'm hardly convinced that the Libs are the answer to all that ails us, but if Prof. D. can shift the election debate to matters of real economic policy (i.e. thinking past three weeks from today), then I'll be one happy voter....
  37. Howard Young from Canada writes: IF Johnson from Canada writes: If Harper hadn't killed off the income trusts they would have become a smaller version of the U.S. real estate mess being cleaned up in today's equity markets. Unless a company has a steady and stable income stream they should never become an income trust but many of the companies that chose that tax structure never even came close to meeting that criteria.

    That would only happen if investors were dumb enough to buy into a company without stable cash flow generation.

    Like dividends, distributions are never guaranteed. Are you saying this is the reason why the government killed them off, to protect the public? Please do not try to give credit where credit is not due.
  38. Dr Demento from Canada writes: 'My own belief is if we were going to have some kind of big crash or recession, we probably would have had it by now.'

    Sure just pretend everything is fine as the house of cards comes crashing down around you . . .
  39. Marc S from Canada writes: s c from Canada writes: You are right about the partisan shots on this board but...............I was just pointing out that Harper is being an opportunistic idiot by suggesting calm.........as if he knows how much people are suffering from their losses ?? or as if he has ANY influence on what happens on a day to day basis in the market ?? A politician's only impact on the market is through legislation. Did you see any legislation being proposed by Harper ?? Any new idea's ??? Oh yeah, stay calm !!!!!!! The man has the gall to call himself an economist . ( If this is considered a partisan shot.....well hey......)
  40. Tom Charles from Canada writes: Nero fiddles while Rome burns.
  41. Ugo Corti from Toronto, writes: The subprime prime loan crisis is intimately connected to the unwinding of the derivatives market. Specifically, loans were repackaged into derivatives called collateralized debt obligations (or 'CDO's') and sold to both big and regional banks and investment companies worldwide. The CDO's were highly-leveraged -- many times the amount of the actual loans. When the subprime loan crisis hit, the high leverage magnified the fallout, and huge sums of CDO derivatives became essentially worthless.

    Read on....knowledge is power.

    http://georgewashington2.blogspot.com/2008/06/derivatives-market-is-unwinding.html

    Harper does not know what he is talking about...
  42. Johnny Test from Cascadia, Canada writes: Lum Barstrain from Canada writes:
    Hmmm. Are you unaware of the plan to match increase carbon tax with reduced income tax? Or do you simply not understand that part of the Green Shift?

    Even if that's true, people won't SPEND the money. They will hord it if they feel the economy is going south.
  43. r b from Calgary, Canada writes: Be calm: the Liberals have a plan:

    1. Implement the Carbon Tax onto consumers and corporations;
    2. Compensate for increased consumption taxes with lower income taxes for some Canadians.
    3. Compensate for lost revenues from lower income taxes with increased corporate taxes, but only for 'bad' corporations, and increased taxes for high income Canadians: definition of high income to be defined at a later date
    4. Compensate for increased consumer costs passed on to consumers by bad corporations and associated job losses by lowering more income taxes for yet more Canadians and easing Employment Insurance eligibility.
    5. Compensate for lost revenue from lower income taxes by raising taxes on 'bad' corporations and high income Canadians: high income defined as slightly less than where it was formerly defined.
    6. Compensate for yet more increased costs passed on to consumers and associated job losses by easing eligibility for Employment Insurance and pouring money into incentives to replace the now defunct bad industries with less bad industries...

    And so on.

    It has all been well thought out.

    And well modelled.

    What could possibly go wrong?
  44. Don Adams, the Conservative Centrist from Canada writes: Randy Maclure, wouldn't you be happier in Venezeuela working with Chavez? :-)
  45. Alistair McLaughlin from Canada writes: Some commenters here actually seem to be asking for a planned economy. What is it that you find so comforting about a government that thinks it can carefully map out economic growth? Personally I prefer governments who don't delude themselves. Yes, all leaders, regardless of party, will paint themselves as the best leader to 'guide us through tough economic times', but the reality is the only thing government can do is react, and usually quite badly. The best thing a government can do during economic slowdowns is batten down the hatches and do nothing. Creative policy ideas should be shelved for when the economy improves and the wiggle room exists to carry them out. Corporate taxes are drastically lower this year than last (15% compared to 21% plus a surtax before). GST is two points lower (should have been income taxes, but it is still a tax cut). A new investment savings account will come online in 2009. There's really not much more we can expect a government to do. Though they'll all promise us the moon, as usual.
  46. Joseph Freeman from Vancouver, Canada writes: Saying that things would have already collapsed if they haven't already is hardly an inspired comment. Sounds like a person peering tentatively at the cracked concrete beams aboe them after the building has just slid off its foundation more than it does an engineer's assessment.

    Perhaps it would be better to just explain the strengths of the Canadian economy and emphasize that Canada does not have the wide range of financial issues facing the US. At least those are facts that are essentially correct.
  47. steve allan from Canada writes: The stock market is dead and has been for the last year or so. It will remain a poor investment choice for years to come.

    By the way, why aren't gas prices coming down? Gas prices mimic the price of oil when oil is rising but they don't when the price of oil is falling. Clearly we're being gouged!
  48. BeerBelly Buddah from Wpg, Canada writes:
    His 'belief'? His 'belief'??

    What is Harper's belief founded on? A knowing that dares not speak its name... wizardry?

    My belief is if we were going to see any quality leadership out of this man 'it would have happened by now'!
  49. Mike Z from Saskatoon, Canada writes: Alistair -- excellent post.

    The government has a horrible track record of trying to manhandle the economy. This goes for both Liberal and Conservative governments.

    The best I can hope for is exactly what Harper is doing: calling for calm and restraint. Dion is exactly the worst I could hope for: calling for action despite a clear lack of understanding as to how the economy works, let alone how to 'fix' it.

    The worst part is that he thinks the economy needs to be fixed. He reminds me of King Xerxes, the ancient Persian king who had the sea whipped for misbehaving.
  50. Fake Name from Canada writes: ' Don Adams, the Conservative Centrist from Canada writes: J. Kenneth Yurchuk....the second time I've agreed with you today! What's happening? I've bought a bit, but not quite the time yet :-)

    Looking for some real nice increases in 2 - 3 years! :-) '

    My gut feeling is the best time to buy is going to be between three and nine months from now (varies a bit by sector). The banks will probably be amongst the first to start regaining value, once they turn out a statement indicating the subprime exposure has been dealt with. Still, ties to some of the US banks that are really flailing could delay that a bit.
  51. s c from Canada writes: Marc S from Canada writes: Did you see any legislation being proposed by Harper ?? Any new idea's ???
    -------------------------------------------------

    I will agree that neither Harper nor Dion are proposing anything. Harper's stay calm tells me nothing. Dion's blaming Harper for something that he has no contol over tells me nothing. Combined, it tells me that neither party has anything to offer.

    Dion upsets me the most. I didn't expect much from Harper. Since taking power, Dion has avoided almost all votes, been opopsed to everything and brought forward nothing but a carbon tax as a policy. I'm not confident that the tax cuts will even occur and if they do, they will be primarily aimed at people who pay almost no tax to start with. I would like to see Martin come back as I am no fan of Iggy or Rae either.
  52. Johnny Test from Pork Belly, Canada writes: steve allan from Canada writes: By the way, why aren't gas prices coming down? Gas prices mimic the price of oil when oil is rising but they don't when the price of oil is falling. Clearly we're being gouged! Hurricane Ike. However, that doesn't explain why the gas already stored in tanks at the local gas station went up though. It was already refined.
  53. ex pat nflder from calgary, Canada writes: I suspect the Canadian economy is just lagging the U.S
    economy. I suspect the U.S. will go into a recession and Canada will follow a while later. Canadas economy depends heavily on the U.S. There is a saying in investment circles that the trend is your friend. Well if you look at a graph for the TSX you can clearly see the
    trend is down.
    I suspect the direction of the economy is
    exactly the reason Steven Harper called the election right now. He thinks that the economy is headed in one direction: south!
  54. Chris Halford from Ottawa, Canada writes: Dion is absolutely right on this issue and it's too bad that not enough people seem to be listening. J. Kenneth Yurchuk has it nailed in his post (the first) too.

    Alistair McLaughlin
    -----------------------------
    You're joking, right? You don't really believe all this free market hoopla? We absolutely do need a government that has a direction, not one that just cuts taxes and says 'Look, I've cut taxes, everything will be OK now.' It didn't work for Mulroney, it didn't work for Mike Harris and it won't work for Stephen Harper either. Incidentally, are you sure you're right about those corporate tax rates?
  55. T. D. from Canada writes: just like south of the border, Nero fiddles while Rome burns ......

    time to rid ourselves of the US lapdog party before they bring us down with their buddies.
  56. The Central Screwtinizer from Ottawawa, Canada writes: AHHHHhhhhhhhh! the Bubbles are bursting, the Bubbles are bursting...run for your lives... A long time ago, a visitor from out of town came to tour Manhattan. At the end of the tour they took him to the financial district. When they arrived to Battery Park the guide showed him some nice yachts anchoring there, and said, 'Here are the yachts of our bankers and stockbrokers.' '...And where are the yachts of the investors?' asked the naive visitor.
  57. Fake Name from Canada writes: ' Marc S from Canada writes: s c from Canada writes: You are right about the partisan shots on this board but...............I was just pointing out that Harper is being an opportunistic idiot by suggesting calm.........as if he knows how much people are suffering from their losses ?? or as if he has ANY influence on what happens on a day to day basis in the market ?'

    If you can't afford to lose it, invest in something safer than stocks.
  58. Shawn Bull from Canada writes: I'll do as I always do when the financial market tightens and that is nothing. I will hold my stocks and mutual funds and weather the storm.

    This storm will last longer than others but it to will pass.
  59. Yvonne Wackernagel from Woodville, Canada writes: I cannot believe ANY intelligent person would believe Stephen Harper and people should consider it an insult that he would expect them to believe that BS. General Motors and all ancillary manufacturers jobs have not yet been lost; it will come into effect over the next approximately 9 months, just to give an example of what is to come! And, of course, there is the effect of the cost of EVERYTHING because of the increased cost of energy including fuel of all kinds.

    And please realize that Stephen Harper's strategy in this election is to drown you out every day with how well he is doing in the polls (fraudulent) which is certain to give him a majority. Do you believe him, when he has no plan whatever for a recession which he is trying to convince you is not going to happen? CAN YOU TRUST STEPHEN HARPER? HAS HE PROVED THAT HE HAS INTEGRITY? IF YOU DO, THEN -

    STEPHEN HARPER THINKS YOU ARE PLAIN STUPID.
  60. Peter Kells from Bytown, Canada writes: All is OK. Mr. Harper has the solution to all of our economic problems - we open up the banks and all other institutions to foreign investment. Now as he says, of course there will be limits on this for national security (read: any investor not from the US will be deemed a security risk). And at the end of the day we can have our banking system, airlines and all other industries completely owned and operated by our US neighbours. We can then harmonize completely with them - single currency, single central bank and on and on. Think of the money we will save by lack of duplication - one currency, one flag, one set of laws. Its a laissez faire economist's dream.

    In the long run the market will correct all and we will all be dead.
  61. G. Veneta from Calgary, Canada writes: Deny deny deny. How could anyone say this let alone think this? This meltdown in the ponzi scheme will be far reaching and more felt in Canada than anywhere as we have not diversified our trade with the U.S. to other markets and under Harper we would be one. What a time for our government to want to emulate the right wing policies of the U.S.! Dahhhhhhhhh...... Remember when Steve went to the U.S. and fawned at their 'beacon of light right wing policies under Bush'?!

    To ignore this and dismiss it is pure ignorance. Then again this is the government who blew the 12 billion dollar surplus they were left with from the Liberals. We have seen cuts everywhere but our income tax. Tell me, we pay the same and get less for what we pay to government. How is that a good thing? Any righteous righties care to explain that one? Pay more for less? Yup, the right wing way.

    Tory times are tough times. Tory times are hard times for everyone but big oil and their corporate cronies.
  62. Brian C from Canada writes: Looks like Dion has found some data miners in his big red spin machine.

    Conversation overheard in LPC war room:

    Let's see, if we take this data from this here to here, then it looks bad.

    Good. We'll use that.

    Ooops, it doesn't look bad here.

    Ok, then we'll use this data from here to here instead.

    Good, it's bad.

    Ok then, but, how do we explain where we got our data from?

    We don't. We're Liberal. Canadians love Liberals. They have to. We took all their money.

    Ummm..... but.... we're broke now.

    Oooo, that's bad. We need to get back to prosperity right away. Let's break out the 'hidden agenda' line again. It worked last time.

    Yeah, that's good. Canadians aren't that bright. They'll fall for it again, just like last time.

    But.... we lost the last election.

    Don't confuse me with the facts! I want action, not words.

    Hey, that's good! Get Dion to use less words. It's our only hope.
  63. A.J. Maynard from Canada writes: This is more than a market adjustment, it is a mess. US has a huge influence on what is happening financially in this country. Many corporations in Canada and the US are subsidiaries of each other.

    What the fallout of this financial news is remains to be seen, but it is unrealistic to believe that it will be business as usual for the Canadian economy. As for a recession, that does not become apparent for a few months as the fallout from this type of disaster becomes known.
    Are you sure Harper is an economist? I was thinking more a smooth talking hyprocrite and sorry to say liar.
  64. Pete H from Canada writes: Yvonne Wackernagel from Woodville, Canada writes: I cannot believe ANY intelligent person would believe Stephen Harper and people should consider it an insult that he would expect them to believe that BS. ..........
    And please realize that Stephen Harper's strategy in this election is to drown you out every day with how well he is doing in the polls (fraudulent) which is certain to give him a majority. Do you believe him, when he has no plan whatever for a recession which he is trying to convince you is not going to happen? CAN YOU TRUST STEPHEN HARPER? HAS HE PROVED THAT HE HAS INTEGRITY? IF YOU DO, THEN -

    STEPHEN HARPER THINKS YOU ARE PLAIN STUPID.

    Well Yvonne, the hidden agenda thing doesn't seem to be working, so lets move on to calling everybody who doesn't see things your way as STUPID. Good tactic there Yvonne, how to win friends and influence people, call them STUPID. You're old enough to have heard that better to be thought a fool then open one's mouth and remove all doubt.
  65. Armins copy of Swank from Canada writes: Just imagine this fun with a nice, healthy, Liberal carbon tax on everything!
  66. Brian C from Canada writes: To Yvonne Wackernagel who writes: 'And please realize that Stephen Harper's strategy in this election is to drown you out every day with how well he is doing in the polls (fraudulent) which is certain to give him a majority.'

    Yes, that's right Yvonne. Harper is controling all the media and polling firms now. That's right. He already controls the weather, the world price of oil, the US economy, and the US Federal Treasury. And, if we don't vote NDP, one month from now, he'll control the entire universe too.
  67. rick from river city from Canada writes: Yvonne Wackernagel from Woodville, Canada writes:
    STEPHEN HARPER THINKS YOU ARE PLAIN STUPID.

    no Wacky... that would be MAY'Fair' who thinks Canadians are stupid
  68. B M from Barrie, Canada writes: The ignorance of most of those posting here is unbelievable. A major investment firm in the states files for bankrupcy, the market responds and suddenly it's Stephen Harper's fault?? Let's be realistic. Harper never said the Canadian economy was fine. He said ' the fundamentals of the Canadian economy are fine'. The fundamentals...our banking laws, our trade laws are all in place and protecting us from the chaos going on in the U.S. The Liberal supporters are crying out for the Government to hand out fistfulls of cash so they can keep their flat screen TV's, half million dollar homes, and SUV's. The unions and the shortsightedness of the North American auto industry have caused the near collaps of the big 3, not Harper. I have neighbours complaining because some local businessman wants to put up a wind turbine on his lot and everyones complaining how ugly it will be. These same people rant and rave over fuel cost as they fill up their F350's and SUV's. Too many years of bleeding heart liberalism and free handouts has made people soft. You want something? Work for it!
  69. bill k from Canada writes: G. Veneta from Calgary, Canada writes 'Then again this is the government who blew the 12 billion dollar surplus they were left with from the Liberals. We have seen cuts everywhere but our income tax. Tell me, we pay the same and get less for what we pay to government. How is that a good thing? Any righteous righties care to explain that one? Pay more for less? Yup, the right wing way.

    Tory times are tough times. Tory times are hard times for everyone but big oil and their corporate cronies.'

    The CLOWNservatives can not be trusted. Harper will ruin Canada ever more then he has with his hidden agenda. The propagandist/spin doctors can say what they are not fooling anyone.
  70. E T from Canada writes: Well said, Alistair! You expressed half the truth of government and economics. I agree that you shouldn't try to plan the economy, but you CAN plan good economic policy. At a time when Canadian productivity can't seem to get a leg up, the central bank is expanding money supply at 5-10 times the rate of growth and tax cuts fail to secure long-term growth, we should consider just what kinds of things our fiscal policy encourages. What I want to see, from any party, is some intelligent tax and spending regime that will tend to reduce the income tax burden, increase the consumption tax burden and massively decrease the tax burden on corporate capital investment. What we get instead, is piecemeal, contradictory legislation (e.g. a decrease on consumption taxes, an increase on income taxes at the lower end, a federal giveaway for parents with no guarantee of productivity improvements and a new investment tax credit that benefits individuals, but not corporations who drive the productivity gains that allow individuals to amass capital to invest). I get the sense that there is no plan, only reaction. I don't want to vote for deft reflexes as much as I want to vote for intelligent leadership that can identify little problems before they become big ones.
  71. A S from Toronto, Canada writes: I can't believe I'm writing this but Dion looks good to me right now. His environment policy echoes an op-ed column in the NY Times re: moving beyond oil drilling, culture wars and looking to the future to tackle real issues. While I appreciate Harper as a leader who the heck is going to be his Finance Minister? Flaherty again? Forget it. The Libs, whether we like it or not, have a deeper pool of capable potential ministers, namely Iggy (aka would-be PM).
  72. b b from Ontario, Canada writes: Right, Steve: we should believe you when you say the economy is fine. Just like we believed you when you said you would leave income trusts alone; just like when you say you didn't really offer Chuck Cadman money; just like when you set the election date for next year... just like when you honored the Atlantic Accord; just like when your buddy Peter MacKay promised not to merge with the Alliance party so that he could win the party leadership.

    Yes, I believe you and your CONservative party... NOT! What I DO believe is that you people will do or say whatever it takes to win, not whatever is good for this country or this planet. That's a scary thought!

    Hopefully enough Canadians will see through your manipulation before this new election date.
  73. Paul Bunyan from Northern forest, Canada writes: Liberal plan: $250 M refit to make fuel efficient boats.

    Have you heard of sail boats. ZERO EMISSIONS.

    What a typical Liberal announcement - throw some crumbs to the east coast, and you know they'll bite and vote liberal.

    How's this for a plan Dion: we'll run our boats out of Newfoundland on the hydro Quebec is stealing from us......
  74. agent sixtynine from Canada writes: We need a carbon tax.
    That will fix everything.
  75. Rolter Lorf from guelph, Canada writes: YYvonne Wackernagel ,

    How can you possibly think that Dion has a more conceived plan?? like honestly. In principal i do agree with the carbon tax but I have heard little to NOTHING about the actual details.. Do the liberals even know what its implications will be? Exactly how much will income tax be lessened? The thing is we all have no clue and thats what scares me, harper is no idiot, listening to him speak of the economy clearly makes me more confident with his plans.. He understands gov't needs to be shrunk and have less of a hand in the economy and our prosperity as a country will show when we have less impediments to doing good business. If anyone is stupid enough to blame any of the recession on one government is merely ignorant of the facts.. This downturn in the economy is sparked by extenuating circumstances and MARKET FORCES... Any harper hating comments I always read on this place too much blame on current governments and less about whats going on in the world... Is harper to blame for the credit crunch? NOOOOOOO. Is he to blame for a spike in gas/oil prices? NOOOO I mean come on ppl these are market imperatives... Listen im not a crazy right wing guy here ( Im in line with the liberals on social issues) but with some of the lefty comments on here it just makes the hard NDP and left leaning liberals absolutely out to lunch on the economy.. like honestly .. what a joke... Get informed on the economy before you blame current governments for things that are completely out of their control. Like the NDP is just an absolute joke when it comes to the economy... Obviously the NDP promise the world in an election because they know they wont be elected.. easy for them to offer all these programs that no fiscally responsible person would actually commit too. Hah if they had their way we would have a deficit and current account balance worse than the states! And you all know what that is doing to the US economy.
  76. G. Veneta from Calgary, Canada writes: Agent 69. We need income tax cuts and to be taxed on carbon use. The governments own study said impacts to economy would be minimal. To invest in alternative energy will be to grow the economy in sustainable technologies. This is the 21c and sustainable technology is the only future.

    Get your facts straight. Or, do they get in the way of your 'beliefs' or brainwashing.
  77. Paul Rainsberry from Toronto, Canada writes: So Stephen is not concerned. How nice. My latest investment statement indicates I have lost $50K over the last few months of nothing to worry about or nearly 8 percent of my savings. Kind of a drag. Maybe I won't be voting for someone who is so well off he doesn't see that as an issue. Geez!!
  78. The Real PS from Canada writes: City Wok from Canada writes: ... I'm no economists, and saw the crisis years before it happened

    _____________________________________________________

    Well city, that's amazing, you saw it YEARS before it happened.

    To be blunt, it hadn't happened YEARS ago so I'm confused...
  79. trust us , stay the course , big oil will feed you from Canada writes: agent sixtynine from Canada writes: We need a carbon tax.
    That will fix everything.
    Posted 15/09/08 at 1:22 PM EDT

    Quite the opposite sir . We need more deregulation . SPP found even production of candy colours was hurting big business like Enron ! Do you realize that our slaughterhouses operate under oppressive red tape ?

    Bleeding heart liberals will shut down Alberta's fragile meat market . (those not owned by British , French or American multi nationals )
  80. A B from Calgary Area, Canada writes: Everything is alright.... El Presidente, King 'Steve' The Dictator says.... well I feel better now!

    Just knowing that King 'Steve' has the likes of Flaherty watching out for us make me all warm and fuzzy.... after all Flaherty's profession as an ambulance -chasing lawyer has really prepared him for the financial reins of this country......... NOT
  81. jamie yavis from Canada writes: Harper and world trade/banking understanding is like physics to a first grader.

    That said I would be the first person to jump on anything but Harper campaign ... but, but ... the other choices makes it so hard to do so.
  82. Bobby Dy from Canada writes: Actually, Harper, this will be a far more effective plan than the $12 billion that you frittered away on tax cuts to those earning the most (GST cuts). A good chunk of that money left the country. The income redistribution will stimulate the economy locally and help out those that need the most help in tough economic times. The federal government's own internal studies revealed that a $50/tonne carbon tax will have zero effect on the GDP. Dion's starts at $10/tonne and rises to $40/tonne. This will stimulate the economy because of the income redistribution to the poorest, who will spend locally. Your 'scary tax' claim is far less credible than the opposition parties 'hidden agenda' claim. At least with the hidden agenda claim, all that they have to do is cite your own public statements.
  83. Jim Roth from Victoria, Canada writes: The engines have stalled and the economic plane is in a nose-dive - Harper says 'I haven't felt a bump yet'.
  84. Bobby Dy from Canada writes: It is absolutely absurd for Harper to make claims about recessions and how we won't see one. It is already present in Ontario and Quebec. Meanwhile, with oil prices going down, Alberta may very well be in a for a bust cycle soon.
  85. agent sixtynine from Canada writes: G. Veneta, you are quite right.
    We need warehouses full of taxpayer funded, green technolgy that nobody is interested in purchasing.
  86. Don Jensen from Canada writes: harper says it won't happen because it would have happened by now! rotflmao. actually steve, it's happening now.
  87. Kublah Khan from Canada writes: Fascinating that it is the PM who comments on this, without a word from our Minister of Finance, Flaherty! Clearly Harper's plan is to keep Flaherty 'muzzled' during the election campaign. Harper does not want Flaherty opening his mouth during the campaign, since he has alienated so many voters from income trust investors, auto workers, Ontario citizens etc. etc. Harper thinks that if voters don't see or hear from Flaherty they may forget about him! Stephen, it will not work, we have excellent memories.
  88. Tor Hill from Canada writes: He could have added that our fundamentals are strong, but that is J. Flaherty's domain. He could also have added a bit to support his statement that a recession 'would have already happened to us.'
  89. liz fox from nanaimo, Canada writes: There is nothing complicated about the 'green shift' except the media portraying it as such. Read the blurb on the liberal website. Im amazed at those who still think we live in an unplanned economy!! All that 'free trade' imagery whereas behind it there are thousands of pages of rules and regulations and penalties and cross border agreements. The only thing thats left unplanned is the public good; for that you need government. The US is learning that right now and the lesson will surely spread to us, Harper is just hopng the hard part of the lesson will take until after the election....For those out there who still wonder why we should take responsibility for our share of carbon emissions by implementing a carbon tax while china supposedly continues to pollute, check out carbon group.com and read'China's Green Revolution' Following the Harper do nothing climate change plan is leaving us behind in the dust...literally
  90. jack sprat from Canada writes: Are you kidding me? Even in Calgary, housing prices are down about 25%. For sale signs EVERYWHERE.

    Is this guy in the same country? The same planet?

    How can we trust the Cons to manage the economy when this guy is this naive?

    Even the Merill Lynch chief Economist said the only way we avoided a recession was the increase in federal government jobs (remember Steve's record government spending). This guy projects a $6 billion DEFICIT for the year.

    BUt it's all cool Steve.

    Does he think Canadians are that blind...and stupid?
  91. Bobby Dy from Canada writes: jamie yavis, you got it backwards. Harper's grasp on Economics, thanks to his second-rate education at the U. of C. is like a first grader's understanding of quantum mechanics. Harper has proven that through his inept economic policy. With oil prices declining, Canada is now much more vulnerable than we were just a couple of weeks ago. It was only the strength of oil prices that was keeping the national numbers from revealing the true weakness in the economy right now. If oil prices fall much more, there is good reason to believe that we will be in deficit at the federal level thanks to Harper's runaway spending. He talks about other parties spending irresponsibly but they have $18.5 billion in pre-election spending to cancel silly programs and replace them with sound programs. That will still leave about half of it available for reducing taxes, eliminating deficit, or new program spending. That's lots of room to implement policy in the same way that Harper cancelled all of the Martin programs to direct to his priorities. The only people that we can't afford are the CPC.
  92. John Francis from Canada writes: We won't have a recession because if we had one it would have happened already.

    And this dude claims to have studied economics?

    When the recession does come do you want a Harris government in Ottawa?

    As oil continues to drop the negatives in Alberta will be equal to the negatives in Quebec and Ontario. Harper is hoping his sleight of hand will delay the problems till after October 14th.
  93. Royal City Pundit from Canada writes: Wot, me wory? Alfred E Newman's younger but dumber brother. Steve doesn't give a rats a** about anything but POWER! Be scared, very scared.
    • Posted 15/09/08 at 1:47 PM EST |