"The chances are about 40 per cent, but the U.S. Federal Reserve is expected to cut interest rates and do so very aggressively to prop up their growth and keep them out of recession," Klump told CTV.ca.
"So while they're heading for a soft patch of growth it's an open question whether they'll enter a recession. My own thought is no, they won't."
There is a direct link between the economies of the two nations, which are each other's largest trading partner. If the U.S. demand for Canadian exports declines -- as the result of the strong loonie or a limping U.S. economy, for example -- the Canadian economy usually follows suit.
But even if the U.S. does slip into a recession, there's no guarantee Canada's strong real estate market will lose any steam. In fact it might do the opposite, Klump said.
That's because prospects for softer economic growth -- which is "the current sentiment in financial markets and the Bank of Canada" -- usually prompt the central bank to lower interest rates, which can make home ownership more affordable and more attractive, Klump said.
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http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080118/recession_housing_080118/20080120
Note: http://www.ctv.ca/servl...
U.S. Slowdown May Boost Canada's Real Estate Market
Posted on Sunday, January 20 at 11:05 by N SayContributed By
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- by MrPraxMon Jan 21, 2008 3:11 pm<p>...and that economist is "chief economist for the Canadian Real Estate Association" and he is clearly quite insane. <p>The corp media really doesn't care about it's credibility anymore does it? <p>Yeah Real estate is really attractive... <p><b>U.K. to Back Northern Rock Debt in Plan to Spur Sale</b> <p><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aIka92bktR6E&refer=home"> Bloomberg </a> <p>But But that's Britain...what about... <p><b>Moody's downgrades Centro's junk bonds</b> <p><a href="http://business.smh.com.au/moodys-downgrades-centros-junk-bonds/20080120-1n1r.html"> SMU</a> <p><b>Bond Issuers Face New Costs In Insurance Crisis</b> <p><a href="http://www.forbes.com/business/2008/01/20/financial-bond-insurance-biz-wallst-cx_lm_0121bond.html">Forbes</a> <p><b>Ambac Insurance Loses AAA Ranking at Fitch Ratings</b> <p><a href="http://www.bloomberg.com/apps/news?pid=20601087&sid=aoueh1XysDoc&refer=home">Bloomberg</a> <p>That's hot off the Presses... <p>I guess Gregory Klump didn't get a computer for Christmas. <p>Just in case anyone forgot... <p><b>Lax regulations put Canadian investors at risk: report</b> <p>Canada's regulation of public companies offers little protection to investors compared to the system in the U.S., a new study by business researchers at Queen's University has found. <p>Only 54 per cent of large companies traded on the Toronto Stock Exchange provided information to securities regulators last year about the checks and balances they have in place to prevent fraud, said Steven Salterio, who headed the study released Tuesday. <p><a href="http://www.cbc.ca/money/story/2007/10/30/ot-investors-071030.html">CBC </a> <p>...solid advice there Greg
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