April 30 is Tax Day in Canada, that means investors tend to sell their mutual funds or position to pay for any taxes owing. TSX got clocked for 200+ points yesterday as oil,gold and commodities got a pasting dur to the FED spin of the last 25 bps cut to 2%. What a joke-2% or 2.25% -does it make a difference when the shadow financial system is creating credit north of 10%. The Treasury for Toxic waste program allows the banks to hold onto their poor investments-just like Japan in the 1990s.
Cdn Feb. GDP dropped .2% in Feb.-worse than expected-likely to lead to another rate cut by the BoC late in q2 -probably 25 bps
Japan announced it was not biased to raising rates in the near term-despite inflation rising above 1%. They do not want to risk the same mistake they made in the mid 1990s-raising rates too early and snuffing out the recovery.
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