The Recession and Canada

I am supposed to feel relaxed compared to my colleagues living in the US although I should still be sorry when there is less stability in the market. Last night I watched a commentary on the repercussions of the crash in American stocks outside of the US and I came to conclusion that I should be alert about certain changes but not alarmed. Apparently Canada is fortunate to be one of the fortunate countries to be less hurt by this recent economic storm. Here are ten reasons why.

1. Canada has less a banking system, which is not as much a risk taker as its American counterpart. This maybe due to our history of not being as much a gambler as our cousin is in remaining in perpetrating open ended conflicts and allowing the housing market to go wildly in debt.
2. Canada has other banking rules, which make it less vulnerable than those risk takers. We invest but the rules required by lenders is much more stringent, I understand.
3. Canada has fewer bank branches, which can be affected by the current drop in lending rates. This means fewer banks will lose less money on account of the faulty borrowing that has been going on.
4. Interest rates in Canada are likely to remain low compared to American counterparts but mortgage rates are expected to increase. Lower interest rates will invite more people to borrow and will stimulate the economy (as long as those people are solvent).
5. Canada is on the top of the list of the most stable banks. Sweden is second. Both these countries enjoy a relatively high standard of living and attract a good deal of foreign investment even during difficult times.
6. People have lost billions south of the border. Thankfully the amount of money lost through the Canadian system has been much smaller.
7. Our jobless rate is less than half of what it was in the early eighties when the recession was the worst since the WWII
8. There will be cuts in the demand for our commodities but those will be less in proportion than those felt by our American friends
9. Economic growth is predicted to be smaller but not negative as can be other harder hit countries
10. Banks will continue to cut interest rates to help vitalize economic growth through this economic slump