Monday, February 23, 2009
Which country succeded in avoiding the World Crisis?
According to Wasshington Post, while the United States reels from the global financial crisis, with credit markets still frozen and stock prices careening from highs to lows, Canada has remained relatively insulated.Canadian banks have not gone shaky like their American counterparts, economists and other experts said. There is no subprime mortgage or home foreclosure mess. And while the United States fears a prolonged recession, Canadians have remained relatively sanguine, convinced that they are in a good position to weather the economic tsunami from the south.
Read the following article and answer the following questions:
1. Why did Michael Gregory, chief economist at BMO Nesbitt Burns, an investment firm, say: "We will be pulled down, not as deep, not as long"?
2. How are Canadian banks different from American ones and how did that help them avoid the crisis?
3. How does the World Economic Forum rate Canada's banks compared to those of Sweden and Luxembourg.