Thursday, August 16, 2007

It's like apples and oranges right now - Merrill Lynch on Canada vs the US

Financial Post
Wednesday, August 15, 2007

" While market turmoil and fallout from the subprime-mortgage crisis have fuelled worries about the health of Canada's largest trading partner, the effects on consumers in this country's economy are less clear.

"Any time the biggest economy in the world feels the pinch, the rest of the world economy feels it as well," said David Wolf, Canadian economist at Merrill Lynch. "Many Canadian consumers work at producing goods and services that U.S. consumers buy or use and if the U.S. consumer is less willing to spend, it can affect [Canadian businesses and products] but any impact would likely be minimal.

" We have a 33-year low on the unemployment rate and the U.S. does not.
We are seeing acceleration in wages and the U.S. has not.
Canada's housing market is in great shape, in contrast to the U.S.

It's like apples and oranges right now." "

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