Whitchurch-Stouffville Newspaper Index

Stouffville Tribune (Stouffville, ON), June 17, 1995, p. 20

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p20wkeriiief stux economy may be headed towards another recession is the r word making a comeback thats what everybody is asking as vir tually every economic number being reported shows a downturn the econo my is crumbling especially in the unit ed states our biggest economic partner because our economy is so dependent on exports to the united states the canadian economy is very open to an immediate recession the real question is how do we react to this news so we can protect ourselves and our assets and secondarily how can we prosper because of it a recession by definition is two back- toback quarters of negative economic growth the first quarter of the year did indeed productive negative numbers the second quarter which ends when the month comes to an end looks right now as though it will also be a negative that means that unless there is a major turnaround in the north ameri can economy that we will enter a reces sion at the end of the month you have to understand that every time theres ever been a recession that interest rates have fallen its a simple matter of economics if you lower interest rates theres less incentive to leave your money in the bank you have a tendency to spend your money buying goods that help spur on the economy the low interest rates are not attractive for hoarding money lower interest rates of course also make it more attractive for business people to borrow to expand their opera tions that expansion ends up creating jobs which gives those out of work pur chasing power the flip side of course for politicians and central bankers is that if the econo my looks like it is going to slip into a recession you should do whatever you can to stimulate the economy to prevent the negative impact the problem is that the economy is like the biggest speeding train there is if theres a car on the train tracks you can try as hard as you want but it will take forever to stop thats why the federal reserve in the us and the bank of canada have to finally come to grips with the situation and lower interest rates weve talked about it before there have been doubters who have said the economy is still growing it isnt it is kennedy farm market greenhouses 0ww f j great selection still available custom sphagnum moss hanging baskets flower towers hanging bags perennials annuals 11574 kennedy rd north of 19th ave visit us today 8871130 a portion of the proceeds will be donated to north america canada shaolin kung fu institute nonprofit organization the world famous shaolin temple monks in a kung fu performance at g massey hall 178 victoria st toronto on june 23 24 1995730 pm 382818vir ticket master 4168724255 rrcxsriasrmn presented by north amirica jegfisqgw f princess bimiai design studio canada studio aiuuisvm kwansitonirrrmj your money brian costello stagnating in the us nonfarm payrolls have taken their biggest drop in more than four years unem ployment insurance claims are on the rise and the leading eco nomic indicators have fallen for the third month in a row the only way to stimulate the economy is to lower interest rates that will happen both in canada and the united states the question is how do you benefit from a decline in rates or even prosper the easy answer is to buy interestsensitive investments things that rise in value when rates fall the federal reserve in the us must now lower inter est rates after pushing them too high the bank of canada has to come to grips with the fact that if the american economy is slip ping into oblivion that we wont have as many demands for exports that will in turn slow down our economy as well that will remove and pressure of expected inflationary increases with no inflation fears interest rates will fall some will argue that inflation is rising as a result interest rates should follow and there is some inflationary increase of late but it will be shortlived a slowdown in the north american economy will result in further cuts in interest rates in anticipation investors should buy the right invest ments borrowers should bor row for the proper term preferred shares income mutual funds equitybased mutual funds bond mutual funds will all rise in value as interest rates fall further r a a s s h c 0 a r lb e n t 1 t l e sb s e p a l e t a w n 1 e s t w a l l y b b 1 1 a n a n t s s a e c d t s c p r e p 0 t 1 m e c 1 s k e s s s s s 1 r e u a p a l e l l r l y 1 e l 1 0 g s a r e e l c h 1 br ohr bsle m a s k e d s u r h e v oha x 1 t e s e n s e d 0 r s p a n k s l a w sb e 0 e n b 0 u n t y b 1 l 0 k e h a l 0 br tb e k e s be 0 a s s u m e obhg a ibbj a n g r 1 e r k 1 d p a r k m a n sfl e c r u p a n s n e h a e n s t 1 s a m a b r a n 1 e 0 e r a l a m 0 e e n u e b r m g a ybh l 0 u h n a a rb s c 1 1 f 1 s r in rhf a rb n c a ab p 0 t t r e a 1 l s t a l s n a f u s e ah 1 r hflk e d e r l l 1 n t fly n n m e l 0 a m a e v 1 n c e fit in e d p a t e n t l y s 1 c k l e s te t s s c 0 r s e s e p a s s e l 137331 mmm v m0 brampton s vqtrkma 6all as often as you like talk as long you like now all economist sun readers can call these areas ifrei 1 call as often as you like talk as long as you want never pay long distance to these areas again call free today another community service provided by 9052942200 fax 9052941538

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