Wednesday, December 06, 2006

Canada Catches Boom Pneumonia

It is widely believed that when the U.S. sneezes, Canada catches pneumonia. That's a very catchy notion but it's simply wrong.

Just as Canada avoided following the U.S. into recession following the bursting of the dot-com boom, Canada will be less impacted by the cooling of its housing boom.

The slowing housing market in the U.S. is the main catalyst behind the softening of the U.S. economy and it’s going to be painful due to the unprecedented role that housing has played in the American economy over the past few years since 2000.

Yes, we have also experienced a booming housing market, but Canadian households' reliance on real estate is currently half of the rate seen south of the border.


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