$1 USD, that's like $1 CAD?

[Tatar Khan]

FED will bail out big banks in position like that since the private capital fund they created with other big banks to bail out each other depends on these big ones.

[Andrew]

Treasury Secretary Henry Paulson announces the biggest overhaul of financial regulations since the Great Depression on Monday during a speech at the Treasury Department.

Since the great depression? Even bigger than when Enron and a couple big businesses committed all that fraud?

At least the CEO of a failed bank is getting paid $2 million in compensation.

[Edric O]

At least the CEO of a failed bank is getting paid $2 million in compensation.

With perks like that, who wouldn't want to be the CEO of a failed bank? Sign me up! I can drive a bank into the ground better than the next guy!

[Kokiri-Mentat]

those new federal proposals seem more like FDR than Bush.  But I'm very rust on my FDR policy.  I hope this doesn't fail.  I still have to pay for grad school after undergrad.

[Andrew]

I hope this doesn't fail.

Just like every other recession lifejacket the administration and Fed bank has thrown at the financial system in the past 6 months? :P

Funny, they say "Oh this will fix this problem" everything is ok, then a month later they announce something else to try and fix the economy.

The $600 cheques being sent out is like the "Surge" of Iraq. Might work temporarily, but then what to do after that? How does borrowing $165 billion from China help the economy, when people will probably buy products manufactured in China with the money? Woot flatscreen tvs for everyone!

[Tatar Khan]

The idea behind the policies is that people will use the money to pay down their debts, at least that what they should do.

The problem is that FED can put an interest rate at 0 and it would not work. Banks are not reducing their rates because there is too much risk associated with lending.

I don't think there is anything they can do now. It has to run its course. But people expect the government to do something so they are doing something.

[Andrew]

Careers vanish after subprime 'free fall'

This story is about a couple. They both lost their jobs working in the subprime industry.

The two didn't say exactly how much money they made at their last jobs but Kent admitted they each had six-figure incomes.

Umm. They should have crap load of money saved up.

Today, they're trying to get by on his unemployment benefits of about $450 a week, which covers only about an eighth of the basic payments they owe every month.

where the hell do they live that $1800 a month is not much in benefits?

Their home equity line, mortgage, health and life insurance premiums alone cost about $10,000 a month. Still, they are trying to hang onto what they call their dream home with a view of the Pacific Ocean where they live with Mysti's 11-year old son.

Oh that explains it.

And they've made cutbacks: trading in Kent's Corvette for a Suburban and getting rid of the gardener, for example.

I feel so bad for them.

"We used to eat out a lot. Now we are the leftover king and queen," said Kent.

So maybe this recession is not a real recession (well technically yes), but just something that forces people to live within their means and the middle class not living like the high class. I bet they are struggling real bad, whatever shall they do without their gardener!?

Maybe Americans will stop spending money on crap they don't need. Although that seems to be what has propped up the economy lately.

[Tatar Khan]

Maybe Americans will stop spending money on crap they don't need.

They will as soon as they will see that their mom and dad can not comfortably retire. That seems to be the problem from what I see from my job in financial services. It is actually also same situation for ordinary people in Canada and US.

[Andrew]

Yah, I forgot to add that those people in the article probably don't own anything. So when bad things happen they lose what they didn't own.

Kinda reminds me of the Great Depression where everyone had bought everything on credit.

The babyboomers retiring will definitely mess up the economy. Although if I'm smart, I'll open up several retirement homes. They are in high demand nowadays. Several small old hospitals nearby are probably going to be converted to that once a new hospital is built.

That seems to be the problem from what I see from my job in financial services.

Personal financial planner? Or more to do with stock market stuff?

[Tatar Khan]

I can't call myself financial planner because to do that i need to work 3 more years and get special certificate. So the term used is Financial Representative.

And it is one of the things that I do. I also do Statistical analysis and I am trying to move into importing.

[Dunenewt]

Without getting to political, I can see the petrodollar getting replaced by the Petroeuro pretty soon.

[Khan]

I hope so, its getting towards 1.10 and hopefully the petroeuro will help keep prices down.

[Dunenewt]

I know a few countries already demand payment for their petrol in Euros.

[Andrew]

Analysts see 200,000 banking industry layoffs

That sucks.

[Andrew]

Euro hits all-time high against U.S. dollar

The dollar sank to an all-time low against the euro Wednesday with U.S. inflation coming in three times as high as expected in March, on top of escalating food and energy prices.

Does it really take a financial expert to know that was going to happen?

The US does not combat inflation. They combat, umm, low housing prices? :P

The euro rose because inflation overseas will likely muffle calls for the European Central Bank to lower its interest rate from four percent. The bank's primary mission is to combat inflation.

Win. That is how it should be done (and is done in Canada as well).

CAD was down to 0.98 cents the past couple weeks I think, but today went back up to 1:1 with USD.

Gas where I am at is at near record prices (excluding hurricane Katrina prices). Oil today hit yet another high, but again caused by USD dropping.

High gas and low USD is going to hurt Atlantic Canada tourism. why? US residents will stay away from Canada, as it is not a cheap vacation destination as it was >5 years ago. Canadian residents will stay away from Canada because it is cheap to go to USA and nearly every person has gone to cuba/dominican/mexico for a vacation this winter.

Sadly tourism people are still optimistic. With the recession in the US and growth in Canada stalling, I don't think the first thing on peoples minds are "lets take a vacation!" after they lose their homes.

Bank of England set to act on mortgage crisis

Trouble looms for Britons racking up

[Khan]

It doesn't help that almost every other advert is telling people to sort out their finance problems with more loans or credit with no credit or background check. Because if you're struggling the best place to go is someone who doesn't ask questions but charges 30%

[Andrew]

Bank of Canada cut interest rates by 0.5% this week.

Today the price of gas increased by 6.7 cents per litre (5.7% increase).

Current price is around $1.24 per litre. Today there were long lineups at every gas station, when normally on a non price adjustment day, they would be very easy to get gas. Most people were waiting 10 minutes at least. And of course these stupid people probably bought tim hortons while they were there, thus proving they are incompetent when it comes to finance. (the $2 they spent on coffee would have been enough to make up for the extra price increase of gas purchase)

At the middle/end of August 2007 the price of gas was $0.99 cents per litre. The highest price between may and September 2007 was $1.16 in May.

So hopefully the price of gas goes down, or else inflation will be very high.

Some analysts are predicting $1.40 per litre this summer.

I saw a news article on tv talking about food hoarding in north america already occurring.

Apparently the price of rice has doubled in a year.

[Tatar Khan]

I heard the other way around for the price of oil going down and so the price of gas reducing, we will see, it will all depend on situation with oil exporters.

Food prices are going up and it is a problem, the biofuels are not the only things that are hitting on the food prices. The fact that china needs to import more and more food due to reduction in agricultural land is playing a role, bad agricultural practices in India are not helping (the country needs land reform), Western agricultural subsidies that killed agriculture in many developing countries.

[Andrew]

Yah it is pretty sad when Canada is importing beef from south america. My local food big box stores have meat from south america, and we have a national beef processing plant within 30 minute drive and lots of feed cattle to supply it with. It makes no sense how it can be cheaper to import beef from south america to rural canada than grow locally when all the requirements for production are within 1 hour drive (from grain/feed->cows->ship cows to processing plant->ship beef to stores). :P

[Tatar Khan]

Listen have you seen the subsidies that go into cattle in Brazil, Uruguay and Argentina. There is no way to remove them without half of population of those countries going berserk (politics interfering with the economics) and subsidies are growing.

[Andrew]

Ontario could get equalization payments within 2 years: TD

Oil boom fuels whopping N.L. surplus

So Ontario may get transfer money, and Newfoundland is now rich (although still in 10 billion debt). Doubt anyone thought they'd live to see that day. According to cbcnews last time Ontario got transfer payments was 1982.

U.S. Federal Reserve poised to cut interest rates again

Woot higher oil prices since USD value should fall. Although according to market watch this has caused the USD value to go up since people are not expecting interest rates to go any lower than after this next cut. Meh, should be interesting to see if it does change again soon.

Still at near record high gas prices in Canada.

[Andrew]

It was just announced now that Gas prices in my province are increasing 6 cents per litre.

That is a 4.8% increase.

Looks like inflation will be extremely bad soon if this does not get better. Inflation is already high, a 5% increase in the cost of energy overnight will not help.

I can expect most gas stations to be lined up since this price change does not take effect until Midnight today. They were lined up the last time there was 5 cent price change.

Furnace oil up 10 cents, diesel up 11 cents.

[Khan]

How expensive does that make petrol in Canada? It can't be higher than the UK which averages about

[Andrew]

Not as high as Europe yet.

Now it is $1.297 per litre where I am. So do some conversions. In 1990 it was less than $0.60 cents per litre.

[Mahdi]

It was less than 60 cent s a liter in the mid 90's Andrew.  Don't your emember the big uproar when it hit 60 cents for the first time?  People were angry, protesting, complaing they were being gouged...