Friday, September 12, 2014

This Just In....Big Banks Say Thomas Mulcair Was Right!



It's true.

And it's about that old saw...Dutch (notElm) Disease.

Daniel Tencer has the story in the HuffPo. Here is his lede:

Is Canada’s oil sector harming the rest of the economy? According to Bank of America Merrill Lynch, the evidence points to yes.

In a new report, the bank has come out squarely in favour of the "Dutch Disease" theory — the notion that Canada's oil and gas boom has driven up the loonie to the point it's hurting other export-dependent parts of the economy.

Ten per cent of our economy is due to energy. That’s a relatively small share, but when you look at our currency we’ve seen an increasing correlation between the Canadian dollar and the price of energy,” BofA Merrill Lynch economist Emanuella Enenajor, a former CIBC economist and one of the authors of the new report, told BNN....


How long before we start seeing attack ads aimed at the Bank of America on our TeeVees?



Anonymous said...

Well I did read? Mulcair is likely the most intelligent, of the lot of them. I think, Mulcair is the best leader of the opposition, Canada has ever had.

Mulcair certainly caught Harper in more than one lie in Parliament regarding, the Senate fiasco.

Anonymous said...

Here is an easy read on why the Loonie is impacted by a change in the price of crude oil. Unfortunately the other commodities Canada trades are affected when the Loonie changes with the price of crude.

Anonymous said...

Can somebody post a graph proving the correlation point please.

We'll look at causation later.

Anonymous said...

Here you go

RossK said...

Thanks Anon.