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Update from Goldman Sachs

Update from Goldman Sachs

Update from Goldman Sachs

There’s a document floating around the internet from Goldman Sachs.  Have you seen it? It’s a private client summary regarding the coronavirus.  1,500 companies dialed in to this call.  

For the record, Goldman Sachs has said the summary text was not authorized by them and it contains erroneous information which was not used during the call. Still, there seems to be a consistent message here. I wanted to share this with everyone because I do believe in much of what is being said.  Have a read. It’s a summary but a bit lengthy. I strongly recommend reading the entire summary as the message in the end is positive and is in line with historically recovery patterns.  

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US govt debt crisis and a slower Canadian economy

It seems US has reached a compromise on the debt ceiling and another crisis avoided.    President Obama and the Republicans have come to an agreement.   read more here.

We already knew the US was on shaky economic ground… no one really knew how a US debt default would affect Canada or the rest of the world.   It certainly wouldn’t be a good thing.

But before we can breathe a sigh of relief, Canada’s Gross Domestic Product (GDP) fell by 0.3% in May.  The largest single month drop since May 2009.  This unexpected drop is good news for those of us with mortgages.

Interest rates are expected to remain low for this year.   And a Bank of Canada rate hike is less likely in September or even October.

Enjoy the low rates.

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