 |
     |
|
|
Strong dollar. Weaker economic forecasts. It's not a lot different than a discussion I listened to a while ago that kind of went like: everyone's optimistic about the economy, so why are we all so scared? Upshot: the economy at a macro level is doing great. Good growth prospects and all that other economic good stuff like productivity gains, etc., etc. Trouble is that "productivity gain" often means reduced income and labour force downsizing.
Why are we so scared when we're so optimistic? The optimism is at a macro level for companies and economies. The fear is from watching real people's economic situation deteriorate or disappear with a work-force reduction. Yin and yang. Here's a Globe & Mail snip whencefrom this notionette comes (Strong dollar has economists rethinking prospects for growth):
BMO economists said in a commentary yesterday that they have trimmed their growth projections for next year to 3.2 per cent from the 3.5 per cent they were calling for just six weeks ago -- even as the Bank of Canada's forecast was growing gloomier -- because of the soaring dollar. They also have trimmed their forecast for 2006 by a whisker, to 3.4 per cent from 3.5 per cent.Posted by Grayson at December 2, 2004 08:26 AM