BoC: Recession over

[starseed]

http://www.cbc.ca/money/story/2009/0...-recovery.html

The recession is over, the Bank of Canada said in its quarterly Monetary Policy Report released Thursday. After shrinking since the last quarter of 2008, the Canadian economy will grow 1.3 per cent in the current quarter, the bank said.
The return to growth after three quarters of decline signals the end of the recession, defined as two consecutive quarters of shrinkage.
Growth will accelerate through late 2009 and by the first half of 2010, the Canadian economy will be booming with along with four per cent growth

Oh good, then there is nothing to worry about then.

Is this just a baseless rosy picture painted by a group trying to reignite consumer confidence? Or will the jobless rate slowly start to retract again? Does this mean the stimulus package helped? Was Harper right about the recession being shorter than expected?

I guess we will see after the summer.

[Phaneufenstein]

Haha just wait a couple of days until a conflicting report from BoC comes out

[Zarathustra]

Personally I'd rather hear optimism and good news from the Bank of Canada. If you want to hear that the world is ending, check out any of those 24 hour news channels.

[Shazam]

Yes, time to rack up that Visa again!

Gold plated doodads, here I come!

[Ducay]

Time to get a loan so I get them grillz I aways wanted

[Winsor_Pilates]

It has nothing to do with rosy news or doom and gloom. They're simply referring to rescission in it's technical definition and reporting the facts.

It's up to people to decide if it's rosy or still gloomy. Some people will always be gloomy and some people were never living like there was a rescission at all.

[BlackArcher101]

I see they are able to tell the future. Sure seems a bit preemptive doesn't it?

[Bobblehead]

Interesting thing to see is this projection:

Inflation, which has fallen with energy prices, will not increase to the target rate of about two per cent until the second quarter of 2011.

But "significant upside and downside risks remain to the inflation projection," particularly from the volatile loonie, the bank said.

[The Goon]

The glut of Michael Jackson memorabilia into the marketplace helped lift consumer spending to previously unseen levels, fixing the economy.

[Frequitude]

[photon]

Originally Posted by BlackArcher101

I see they are able to tell the future. Sure seems a bit preemptive doesn't it?

They always make projections about growth rates and stuff, it's based on trends.. so they can't tell the future, but they can extrapolate based on current trends.

I wouldn't bet on it, but it's useful information.

[Zarathustra]

For what its worth, the Canadian dollar has risen about 5 cents against the American dollar in the past week, and our dollar is up against pretty much every significant global currency.

[Slava]

FWIW I think that the BofC is right, the recession is likely over or very close to it. That doesn't mean that the job loss is over, or that there is no more pain for the "average" guy. It just means that rather than negative quarters we are going to see some positive growth again this quarter.

[photon]

Unemployment is a trailing indicator isn't it?

[Slava]

Originally Posted by photon

Unemployment is a trailing indicator isn't it?

Yes. Historically it trails for many months after the recession is over...which is horrendous this time around.

[BlackArcher101]

Originally Posted by photon

They always make projections about growth rates and stuff, it's based on trends.. so they can't tell the future, but they can extrapolate based on current trends.

I wouldn't bet on it, but it's useful information.

Indeed. Just I'm always leary using that projection which is shaky at best to say something like a recession being over. I really don't get this business/finance side of things, I'll stick with the science.