Sherry Cooper warns we are headed for recession
Sherry Cooper is a well respected economist that is certain, and when she talks people do listen. In a recent article she says the federal government must intervene in the Canadian financial markets even if…GASP we have to engage in deficit financing to do it. On the surface she is probably right. The easiest thing they could be doing that i am told they likely will is guarantee interbank lending. Most other central banks have done this at a minimum and we should to. She points out that if that was to happen then the banks would match the cuts to the prime interest rates that the bank of Canada has been doing and is expected to cut again on Tuesday by a further .50%. If this cut happens and the government comes through with the guarantee then you will see prime rate drop likely 1% next week. This will of course be welcome news for consumers, particularly mortgage consumersStay tuned
