share market

[errolanderson]

Mallee . . . . this is a global meltdown in commodities stemming from the fallout in China's recession which is a direct hit on Australia, Canada and Brazil economies and currencies.

To me, the U.S. will be dragged down by China as well. Equity weakness is inevitable. Corporations will simply not be flush with cash that has for the past three years supported stock market gains along with QE.

U.S. banks would like nothing more than to see the Fed hike interest rates because banks make more money when rates go up. September 17th is the shout from bankers when the Fed will start to raise rates.

I doubt the current state of global markets will allow this to happen.

[cottonpicken]

Malle that is surprising but possible.

How the banking system will handle deflation is beyond me.

[Oliver88]

malleefarmer-
Saskatchewan is the only uranium mining province in Canada and is producing 20% of world supply.

Canada signed a free trade agreement with India in the past year or two to open up more trade with them, this will help for uranium.

[errolanderson]

you are right cotton . . . the banking system can't handle deflation . . . this heightens a risk of collapse to force a housecleaning so the green buds of a fresh economy can re-start.

Sep/Oct period may be quite interesting this year.

[bucket]

If cotton is right - shouldn't our politicians be talking about this as part of the election campaign?

[cottonpicken]

If I'm right?its simple math. Banks are heavily leveraged and small losses can topple them. Every situation is different. Canada nationalized half of the morgage system a long time ago through cmhc so the banks could lend with impunity unlike the us who nationalized Fannie and Freddie after the crisis. Then look at japan their whole system was basically recapped after the collapse through the central bank which is now what we are going through. The only reason the whole thing hasn't been flushed is the whole world is in crisis.

A little knowen story here in canada is that in the nineties we had a soverign failed bond bid bailed out in the last minutes then Cretian and Martin went to work and handed us a mouth full of austerity because they had to. Kind of like Greece but they moved us before the market forced us.

The whole thing is very complicated to explain in a few paragraphs. And I'm not to sure the politicians have their heads around it but in their defence it's a pretty fluid situation with multiple variables that change so outcomes are difficult to predict.

[cottonpicken]

Errol and everyone who gives a shit about this nonsence.

What happens to a 200 trillon plus global credit(bond) market if inflation ramps up after so many years of zirp(zero interest rate policy).

We are walking on a tightrope with deflation on one side and inflation on the other

[errolanderson]

bucket . . . no doubt the economy will be the hot topic where federal party leaders will continually barb one another. But the reality is; who ever is elected will have little impact on Canada's economic outcome.

This is a global problem. And many corporations may no longer exist by the time global economics actually begin to repair (IMO). This shake-up is now underway.