June 17, 2011

Dear Kids,
 
   There are so many sad stories about the business in USA today due to the bad economy.  How to turn around is another way to run the business.  There are so many hotels and restaurants got into big trouble nowadays because the people in USA have no extra money to spend because the poor job market.  There are so many people in trouble now.  Now is the deflation period, it means the money value is higher than before.  In Canada, the inflation is very terrible because the house market is jumping into a bubble like USA before 2007. There was so many money on the market before 2007 because of the banks were so easy to give out money, therefore, people were buying houses left and right without any consideration.  Most of the people are flapping the properties to make fast money at that time and most of the people couldn't afford buying a house because of the unfair market.  Therefore, year of 2008, Government was trying to suppressed the housing market value to stabilize the value.  At the same time, they found out the issues of the sub-prime mortgage scandal which means that the banks were giving money to the unqualified people and causing a lot of the forecloses for this market.  People who can own the house today are the qualified individuals.
    In Canada, the housing market is the same as USA before.  The only different of USA and Canada is the money to boost the price of the house in USA is coming locally and most of the money in Canada is coming from outside Canada.  Therefore, the inflation will affect a lot of local people because their salary will never chase the inflation.  As a result, there are a lot of people will loss the job because of the export market will be decreased.  After the job market is affected, people was layoff and the foreclosure will be increased.  In Canada, the local people will suffer a lot because they are lack of heavy industries instead of exporting the natural resources.  However, if the world is in recession, who can afford buying the natural resources with the high Canada dollars exchange rate.  In Canada, you need to be very careful and look into the problems around the world because the local peoples' life are very tough.
 
Love
Dad