Canucks holding out hope

Published Saturday January 3rd, 2009
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Heart and determination will ensure that Canada weathers the economic storm of 2009, an optimistic Heather Touchie-Blakely predicted Friday.

The Nashwaaksis Middle School teacher's enthusiasm mirrors the findings in a recently released Canadian Press/Harris Decima survey that asked Canadians about their expectations for this year.

Fifty-eight per cent said they had an optimistic outlook, while 21 per cent had an outlook that was pessimistic.

"I think that we, as a culture, are going to face a lot of challenges with the economy and all that kind of thing and, I think, this is going to be when we see Canadians rise to the challenge. We'll see what we are really made of. I just have that feeling," she said.

Touchie-Blakely said the fact that 58 per cent of those surveyed responded with optimism is reflective of the character of Canadians.

"We have always had to work harder to live our dream," Touchie-Blakely said.

"Living in Canada is not the easiest place in the world to get rich quick. We Canadians pretty much pride ourselves on hard work, and I think people are optimistic because they know eventually that is going to pay off."

The poll also showed that most Canadians weren't prepared to put off major purchases. Seventy per cent said they intended to move ahead their plans.

Anthony Knight, CEO of the Fredericton Chamber of Commerce, said those figures reflect an optimism that's prevalent in New Brunswick's capital city.

While some troubling things going on in the U.S. are affecting many local companies, people in Fredericton continue to shop, spend and purchase, he said.

"Home prices are steady and employment figures are also steady," Knight said.

"There are some very positive signs that Fredericton will weather the economic storm that we're confronted with fairly well. We're excited about the prospects for 2009."

Early indications are that Canadian retailers have come through the holiday season with more sales than a year ago but with smaller profit margins. Statistics Canada won't be releasing its national tally of December sales until mid-February.

In a news release, Harris Decima senior vice-president Jeff Walker said there are mixed signals in the economic mood right now.

Many people have seen retirement savings erode over the past few months, and some have a heightened concern about job loss. On the whole, however, the deepening pessimism expressed by some financial analysts and media observers doesn't appear to be shared by the majority of Canadians, Walker said.

Longtime Fredericton resident Joe Murray, however, believes Canadians should be more cautious.

"I'm always cautious," said the 85-year-old. "I think the present generation has never seen hard times."

Murray said he has never witnessed things such as the big automotive companies screaming for financial assistance and threatening to close their doors if they don't get it.

It would be unprecedented if operations such as General Motors, Chrysler and Ford shut down, he said.

"I think that anyone who gives the whole situation a thought at all should be exercising a large amount of caution."

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The economy will rebound eventually. It may take a couple of years but it will rebound. However, I do see a couple of issues that have be mentioned in the articel above. One being the media. I work with a financial institution and see investors on a daily basis reacting to reports in the media. When the economy is doing well the average investor will ask for financial advice and follow what was given. When the economy is doing poorly the media becomes an individuals financial advisor. Stop listening to the media and stick to the basic principles of investing (i.e. take the emotion out of investing). Here is a quote to follow during tough economic times.

"When people are greedy be scared. When people are scared be greedy." ~ Warren Buffet

Lastly, providing assistance to the automotive industry. When I first heard of the idea I thought it was absurd. However, the more I read/research I am not totally against the notion. I do believe that without assistance our.....

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As It Is... Reader, Fredericton on 03/01/09 09:24:44 AM AST
...economy would falter further. However, I think we should proceed very cautiously before our government hands over money. For instance, the companies asking for financial aid obviously have had issues from a business process perspective (i.e. Cash Flow, etc.). What makes you think they'll change their business process is there is a bailout? Nothing. Our government should have a team analyze each business prior to providing any financial assistance. Then, draw up a contract outlining certain changes that need to be made and have the companies sign prior to receiving any financial aid. Each company should be made to allow further analysis to ensure the required changes are being met. Their is no question in my mind that these companies need to be held accoutable but if we do not provide assistence the economic implications would be astronomical. Just my perspective!
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As It Is... Reader, Fredericton on 03/01/09 09:36:19 AM AST
FIXING THE FUTURE REQUIRES ACKNOWLEDGING THE PAST

What did we do for twenty years?

http://pacificgatepost.blogspot.com/2009/01/myths-of-debt-to-be-corrected-for-2009.html

Now let’s get on with the correction.

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James Raider, V on 03/01/09 07:02:26 PM AST
Of course a teacher is going to be optimistic, she'll get a pension. I would suggest you go ask a 50ish person and ask them how their RRSP is doing.
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Happy Ranter, Fredericton on 04/01/09 08:06:17 PM AST
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