Remember that big recession that was going on somewhere else...

In the US and in Europe where they were sooo irresponsible - where they spent more than they made and let their house prices run away to extreme levels...ha ha... fools.


We had solid banks, a great Finance Minister and an even better Bank of Canada Govenor. We had China. We had things people need like gold and water and wheat and copper, we would never catch the Great Recession.


Well it's here!


The TSX peaked in early 2011 and it is down, down down from there.


China is not happy and looks to be backing off it's 15 year run of hitting Blackjack again and again. 


Our housing markets are at all time highs of lack of affordability,  our household debt has surpassed the spend-and-live-for-today Americans when interest rates are at all time lows. 


We have let a quasi-government outfit run by a very mediocre board run up a huge mountain of liability with inadequate over-sight and risk control (IMF's words - not mine)- I cannot even bear to type their name..


..and if it hits the fan...we cannot cut rates, coz they are already near enough zero, we cannot boost spending coz the Provinces are already laden to the gills with debt and some are having trouble selling their bonds - the biggest two that's who, and coming to a Province near us soon. The Fed's deficit is becoming 'structural' too, which means they are here to stay and any significant downward pressure on house prices will wipe out the CMHC's equity and the Fed's piggy bank will get raided.


In short, we have brought upon ourselves, the very thing we were chiding others for doing. 


But if you believe this guy, there is nothing to worry about.