Recession incoming

[Heliian]

No recession yet.

[Squaretail]

Listening to the man talk, makes me wonder how he ever got elected.

I have to wonder if he is for one side of the argument like Trump is for the other. People vote for him because they get a kick how it makes the "snowflakes" on the otherside cry.

[rxl]

Listening to the man talk, makes me wonder how he ever got elected.

I have to wonder if he is for one side of the argument like Trump is for the other. People vote for him because they get a kick how it makes the "snowflakes" on the otherside cry.

What a wonderful basis for political action ...

[swordfish]

A determined person will always find work. Also in a recession, PIC time is king, the 4000hr laided off RJ FO will have a much harder time putting food on the table than the 1500hr Kingair Capt.

I really really wouldn't worry about it.

Agree, 100%

[rookiepilot]

THIS.....is (probably ) not the big one.

Yet to come.....inflation.

[Mr. North]

You are correct about inflation.

A decade plus of low interest rates has allowed inflation to run unchecked. Wages have not kept pace and the housing market along with the general cost of living continues to increase. The most effective means to bring inflation under control is to raise interest rates (perhaps aggressively), along with higher taxes and a reduction in government spending. It can be difficult to control inflation during periods of low economic growth, quite often the remedy results in a recession.

[derateNO]

Just wait until the Bank of Canada drops rates again because of the economy right now.

[privateer]

On cue

[piperdriver]

Another brutal day on the markets. If you turn on the TV it seems like mass hysteria, a run for the exits mentality. But my family and friends are still going on vacation I don't personally know one person that has changed their travel plans. People are still buying toys atv's, snowmobiles, vehicles the list goes on. I realize the world is a bigger place than just Canada but it just seems like a total disconnect between the media and reality. Any thoughts or insights on this from the people involved in the markets? Roockiepilot what are your thoughts on the market action recently?

[7ECA]

A reversal of some sort has been in the cards for a while now, historically the market tends to "correct" every five to seven years or so. These corrections can be slow to bottom out, though.

The current period of "growth" is unprecedented because it's been going on for a decade. Mind you, all signs have been pointing to instability for a while now with most economies barely meandering along even with record low interest rates. Quantitative easing has been a marked failure, and yet reserves just keep creating money out of nothing...

[ayseven]

Um. Money is created out of nothing. It is entirely arbitrary and not zero sum.

[rookiepilot]

Deleted

[rookiepilot]

Deleted

[palebird]

Here is the funny part:

There is no more stimulus. Europe shot it's wad some time ago introducing negative interest rates. They are toast. The EU is going to splinter and the Euro is going away. Good luck over there. Here we have no leader and the C dollar is being beaten on the head with a big stick mainly because of these ridiculous Liberal policies. Get your toilet paper here.. We are so close to negative rates and they are actually discussing going there. Once you go you cannot come back. Stupid. The US will be the temporary winner as the USD always has been and will continue to be, for the near term, a safe haven in a crazy world. You should be in USD right now. The Canadian economy as we knew it is gone. There is going to be a lot of unemployed people wandering the streets this summer.

[rookiepilot]

deleted

[Kosiw]

First world problems

[complexintentions]

First world problems

Economic disruption on this scale is actually more harmful to developing nations than it is is to the "First World". The poorest always suffer more during a downturn.

Only the naive would think a market collapse of this magnitude only hurts the "rich". Where do you think your pension is invested? How are you going to afford basic necessities like food when inflation starts to accelerate?

Something like 40% of Canadians only $200 away from economic pain in any given month. What happens to them when their job just - ends? Even if it's "temporary"? It's coming for many. A business can't survive with ZERO customers. And that will describe many in the short term. Fear does that to people.

Rookiepilot has good advice. Unfortunately, it's advice that needed to be taken a couple years ago. It's too late now for vast numbers of Canadians.

But hey. "First World problems".

[Old fella]

Early 1980’s anyone, I know because I was there. At one point the Bank of Canada rate hit 20%, inflation was calculated at 12%, imagine mortgage and general credit rates. GDP declined by over 5%, unemployment hit over 12% nationally. I had a young wife my age and a newly minted little tyke. I had a job - in aviation and managed to get by in the small house, small car, bit of grub on the table. Very little entertainment and absolutely no vacations on what average pukes do today. That was then and this is now, I didn’t bitch then and I don’t gloat now because I am retired with a DB pension, not a full one mind you but better than nothing.

[rookiepilot]

Yup. Wrong audience. Good luck, stay well.

[SkySailor]

Ok Rookienostradamus, no more prophecies. Instead, tell us how to defend our assets for the upcoming financial apocalypse.

I'll make it easy to start this....

You have a million bucks in Canadian cash. Whatta gonna do to preserve it? This also means inflationary concerns. Forget tax issues. Don't go on a rant about the current meltdown. Just informed, educated advice for all these desperate aviators looking to safeguard their measly assets.

Oh yeah, forget advice about using your cash to pay off all debt. Smart ones all ready know it. The rest, well, it's lost on 'em.

So c'mon Rook....

Bring it.