Tuesday, September 18, 2007

Big Rate Cut

As everyone has heard, the U.S. Federal Reserve cut the overnight lending rate by 50 basis points, or 0.5%. The experts were somewhat surprised. I am surprised that they were surprised. Yet, their response was exactly what I had heard it would be, if there was a cut of that size. The experts are afraid of what lies ahead.

What does lie ahead? What does it bring for me and my family, the city and province I live in, and for Canada?

A person could theorize and hypothesize until the cows come home. Even with that, they could still not get it right. If any one person could predict what was going to happen, well, they'd be very rich. Perhaps that is why statements from Warren Buffet and the likes are well heeded.

I have no idea. That's why I started this blog. But here's what I could possibly see. Rate cut in the U.S. - U.S. dollar drops - CAN$ rises - CAN exports continue to fall (except oil) - things slow even further in export reliant regions of CAN - CAN economy slows - rate cuts in CAN - housing market????

I'm no expert. What do you think? Where will B.C.'s and Canada's economies be in 1 year from now? 5 years from now?