Updated: Fri Oct. 24 2008 5:08:46 PM

CTV.ca News Staff

Growing concern about a deepening global recession pulled North American stock markets lower Friday after a rollercoaster week which also saw the Canadian dollar take a record plunge.

Toronto's S&P/TSX composite index opened down nearly 700 points Friday, but thanks to an afternoon surge, it finished the day 37.62 points lower and closed at 9,294.09.

The early declines were led by drops in the energy sector as the November crude contract on the New York Mercantile Exchange fell.

The tumbling price for crude came despite a decision from OPEC Friday to cut output quotas by 1.5 million barrels a day.

By 4:30 p.m. ET, oil had risen slightly to US$63.66 a barrel.

However, any fleeting optimism in the market was dampened by an announcement from Chrysler that sagging sales would force the U.S. automaker to slash 25 per cent of its workforce starting next month.

Meanwhile, the TSX Venture Exchange slumped 27.04 points to close at 830.96 Friday, and the Canadian dollar was also down, dropping 1.08 cents to 78.56 cents US.

Eric Lascelles, an economist with TD Bank, said the falling numbers mirror the grim realization that the world's economies are indeed heading into a recession.

"There's been this steady, almost glacial-like movement towards the acknowledgement that there's not just a U.S economic slowdown but there's an outright U.S. recession," Lascelles told CTV Newsnet.

"There's just a lot of economic pessimism being plastered on top the credit crunch woes that have existed for some time," he said.

"I don't think we've seen the worst of it ... it's clear to me that we're still in a very precarious time."

In New York, the Dow Jones index closed down 312.3 points to finish the week at 8,378.95.

Before markets opened, the Dow Jones industrial average futures fell 550-points -- the maximum allowed price change -- forcing trading to be halted.

While many economists agree the world is heading into recession, Scotia Bank economist Warren Jestin called the current market situation an adjustment.

"I think what we're really in is a period of structural change, where we may have one or two quarters of declining activity, or we may have one up, one down," he told CTV Newsnet.

Still, he pointed out that slumping sales for cars and homes, combined with shrinking business investment, aren't good signs.

"Certainly, businesses are hunkering down for a fairly long and protracted setback, so business investment is softening - that exacerbates the problem," he said.

Also in New York, the Nasdaq composite index fell 51.88 points to end the week at 1,552.03.

Overseas, Japan's Nikkei 225 stock average lost 9.6 per cent while Hong Kong's Hang Seng closed down 7.8 per cent.

In Tokyo, Sony stock fell more than 14 per cent Friday after the electronics giant slashed its annual profit and sales forecasts citing poor demand.

The forecast was one of several triggers that frightened investors, prompting them to dump shares.

In Europe, London's FTSE 100 index was down 262.16 points or 6.4 per cent to 3,825.67 in afternoon trading, while Frankfurt's DAX 30 lost 7.16 per cent and the Paris CAC 40 gave back six per cent.

The British government announced Friday its gross domestic product fell 0.5 per cent in the third quarter -- placing the country at the brink of a recession.

Meanwhile, trading on the Russian stock market has been halted

Benjamin Reitzes, an economist with BMO World Markets, said the panic over financial markets has crested, but markets are now dealing with a lingering hang over.

He added that Friday morning's big losses were due to bad news from markets overseas.

"Sony warned, Samsung warned, Toyota warned that their sales would be lower; Air France gave some negative news as well," he said.

When asked if global markets have bottomed out, Reitzes said instability will continue for several financial quarters to come.

"It doesn't appear that we've necessarily reached the bottom yet. There's no real way to tell - we'll have to wait and see," he said.

Comments are now closed for this story

Shamaro
We are going to have to expect the stock markets to roll around like this for sometime to come.

To be honest with you, I think the BoC predictions are a little to liberal. I believe we won't start seeing an improvement in the economy until late 2011 or even 2012.

But than again, I could be wrong.

stevo
What goes up must come down...and then we start again hence the term business CYCLE.

MHB
I think that the whole world is entering a dark tunnel. People lost their trust in a financial system that is mainly based on trust so the system is bound to collapse. I feel that no amount of pumped money will help reverse this scenario. My heart goes to all who are now seeing their money evaporate. I learnt my lesson and I do not trade in the vicious jungle called the stock market anymore!. A new system has to be established instead of the current proven-to-be corrupt financial system!.

gregnb
Its amazing how OPEC cuts oil production by 1.5 million barrles when the price is plunging, but when the price was $150 in the summer, they wouldn't output more barrels to offset the price.

Jack
All of this would be somewhat easier to take if I wasn't so peeved at the price of gas. Where is the reflection of the price of oil in the price being charged at the pumps? Are we that stupid? This has to be investigated!

George
Shamaro it's Friday and on most Fridays the market goes down. If the market does not pick up till 2012 then CN better get out the box cars so folks can travel the country just like in the dirty '30's. Too bad the big bank buildings don't have opening windows otherwise we may get rid of some of the problem. All the bankers and learned economic types could take the leap of their lives.

Nostradamn
People saying "it will get worse" and others telling them not to say stuff like this because it creates panic are crazy. What we say here on a CTV board doesn't do anything to the global markets and they still go down. Wake up people, it is time for a change. Time for the working MIDDLE class to stand up for their rights and take back what the rich have taken away. This was all predicted and a time shift is coming. No one can stop it. 2012

Joe Pistone in woodbridge.
I agree with shamaro !

Vince R
I think the same... markets are a bit crazy right now... keep buying and hold.

Steve in Aylmer
Inflation rates rise and the massive selloff`s continue, has the first tsunami wave just hit the shores.

This is an unprecedant situation so noone can correctly predict where we are and how we`re gonna out of this. The economic system is flawed. The folks with massive market investments are in reactive mode and most are bailing out.

Be calm, stay brave, wait for the signs...yeah right.

BR
I think selling off is a mistake. If your portfolio is sound then you should hold and wait.
Panic selling only adds to the problem.

theseus
There will be a bottom and there will be a recovery.

The Market and Financial economy is volatile, in total meltdown even.

The real economy is not quite the same thing.

people will still need to live somewhere, eat, wear clothes, transport themselves and work.

We are going through the first real crisis in the new global economy. This crisis demands new thinking and new regulations.

I don't quite see the sky falling yet.

Emergencey regulatory provisions required NOW !!
I haven't heard ANYTHING from regulators about dealing with the hedge funds and the practice of shorting these markets.

It seems the greedy manipulators continue to be allowed to go unchecked. This is ruining the markets while our governments do NOTHING.

Governments are not representing and protecting the people while allowing manipulators to have free reign.

Bill
Jack said:

"All of this would be somewhat easier to take if I wasn't so peeved at the price of gas. Where is the reflection of the price of oil in the price being charged at the pumps? Are we that stupid? This has to be investigated!"
It's all about unfettered, wild-eyed greed, which is what precipitated this whole mess in the first place. The big oil company execs are still engaging in profiteering, the same way that the big bank execs have been, to the point where the whole system is threatened with collapse. Our world leaders don't seem to have the will or the intestinal fortitude to rein it in...mostly because a lot of them have been in on the take in one way or another.

JR - Ontario
So not only are Canadians retirement savings getting hammered on the stock exchange the price of oil has dropped to less than $65 a barrel however I noticed gas WENT UP this morning to just over a $1/L. If I recall when gas was that much barrel gas was about $0.75/litre, while I know there is nothing that can be done with the markets, who's overseeing the fleecing Canadians are taking at the pumps. I loath regulation and government intervention but this is truly gouging!!!
Wheres the press to jump all over this.

Paul in Ottawa
What is going on in the stock market is totally about people's emotions, not about the actual performance of the economy.

Neil
My wife's grandfather kept all of his money in his top dresser drawer. Didn't trust the banks....That might be the safest place for our money now....Every government around the world, opec, futures speculators etc etc have all tried to curve the loses, we're just going to have to ride out the storm and in 5-6 years investor confidence will be at an all time high again. Guaranteed....

stop whining about gas prices! ottawa
listen if you want the price of gas to go down, stop driving so much. get rid of your SUV and get a fuel economy car (I see an awful lot of SUVs on the road in Ottawa, why is that). change your habits. North Americans have gotten very spoiled and we are paying the price. I try to hardly use my car anymore. I take the bus to work from home now, though I used to park at the OC transpo park and ride, I decided to not even do that since it wastes gas, unless I need the car after work. stop whining about gas prices. you want it to change, do something about it other than whining!!

LG
To those who make comments like "the rich are getting what is coming to them" and cheering the stock market breakdown, bear in mind that the ones who suffer the most in this scenario are the poor worldwide...including the working poor here in Canada who have the least job security of all. Charitable organizations have seen their operating budgets dwindle and the prices of food skyrocketing world wide...very good organizations who are teaching excellent practices about food, health and economics to the people who are displaced by war, violence and famine. The image of greedy financial executives pining at their lost millions is minute compared with the real suffering of those whose lives are deeply affected by the market decline.

Martin
Jack said:

"All of this would be somewhat easier to take if I wasn't so peeved at the price of gas. Where is the reflection of the price of oil in the price being charged at the pumps? Are we that stupid? This has to be investigated!"

You won't have to investigate too much. Oil prices are down, sure, but so is the Canadian Dollar. Net gain = zero.

Kevin P
...and now there is no trust.

There are serious problems with many countries, but especially considering the amount of money that the world governments have printed and made available, this roller coaster is mostly emotion driven. Fear is a scary thing in stocks. Rational and extremely profitable stocks like Encana that yesterday announced 4 times higher profits should be soaring, not tanking. Does anyone think for a second that even if we went into depression, anyone will stop burning natural gas?! All rational thought has been thrown out the window.

I guess we'll all just crawl in a hole to stay warm.

People that are this emotional to buy one day on speculation just to sell 2 days later at a loss because the sky is falling should put away the paper, turn off the news, and just stay in GIC's and Canada savings bonds. Better for your heart 'cause this is rapidly becoming the biggest roller coaster ride in history!

Hang on people! :)

Lex luther
With the gouging still going on and the Gov not doing anything, than we the people must do it. Fill your takes and leave, dont pay. After enough people try this, than maybe the Gov will start controlling the prices or get bigger court houses to cover the petty theafs.

Mike in Calgary
People...the price at the pumps is in direct relation to the falling dollar. Canada does not produce much gas, we produce Oil. We ship our Oil to the U.S. for them to refine it for us, and then we buy it back in US Dollars. When the dollar falls, we pay more for Gas. It's a fine Balance between what we sell for and what we buy back at. Canada needs to build it's own refineries so we don't have to depend on the value of the loonie to regulate prices.

Chris
To Mike in Calgary

Yours was one of the smartest comments made on here. People don't realize that there are more things affecting the price of gas then just the price of oil. Its unfortunate that our dollar is getting our gas prices but thats that. We all have the choice to change our commuting/vehicle choices. Well perhaps some don't but many do. Either way its good to here everyone's opinions.

Peter
I see opportunity in everything! Let them drop so i can buy in and wait for 2015, the next top of the market!!

Sara
I blame of course the US, but I also blame the media.

The more this is talked about, the more people panic. When people panic, they make decisions like selling off stocks and making fewer investments. People also make less big purchases when they panic, screwing over other parts of economy and retail sectors.

I'm not saying "if we stop talking about it, it will go away", but the reality is, the MORE we talk about, the MORE people are panicking.

Stop making it the number headline each night!

Big Jim
Instead of filling the tank and taking off like Lex Luther suggests, don't fill your tank, put enough gas in your tank to get you were you have to go. I only put in $20 a time. I figure it can sit in there tank, they are always whining about low supply.

Vijay
I totally agree with MHB
the days of middlemen with no real output and huge cut are finally over Only to see if we see trim and fit mkt after all these burnign of fats or total meltdown of system and a black hole

Concerned Citizen
WHO SAID PRICES OF OIL IS FALLING DOWN. COME TO CANADA AND YOU WILL SEE THE FUEL PRICES INCREASE IRRESPECTIVE OF WHETHER LOONIE GOES UP OR DOWN, CRUDE OIL GOES UP OR DOWN.
THE BIG PETROLEUM COMPANIES HAVE DECIDED MINIMUM $1 PER LITER, SO YOU WILL FIND GAS PRICES IN CANADA HOVERING AROUND $1 EVEN IF CRUDE OIL DROPS TO $1 PER BARREL.
WELCOME HOME MR. HARPER WE COULD NOT EXPECT ANYTHING LESSER THAN THIS FROM YOU

Michael (Ottawa)
Politicians are simply not doing their jobs. They play... while we pay.

Now is the time we should have been protected by actions taken a long time ago but it is too late.

The best way to combat high prices is to STOP PAYING FOR IT.

Here in Ottawa we have way too many luxury 4X4's and luxury trucks ('NEW' one's) being driven around unnecessarily. They do not NEED them.

Just because people can afford a luxury 4X4 doesn't mean it is a prudent choice if you don't NEED it.

We have finite oil resources and conspicuous consumption is irresponsible, unwarranted and wasteful.

Bruce
I don't understand something: Why do we even have stock futures? It kind of seems like Vegas for the stock market to me and seems to be put to use to start fake bubbles (i.e. housing & oil) and create mass panic (i.e. now). What does it provide that is desirable for the health of the markets? Mutual funds make sense to me but this really doesn't. If someone can explain I would appreciate it. Thanks.

Plunge Protection Team
will intervene late in the day to make it seem like market rally.

Interference in "free" market.

Proving the market is RIGGED.

If you can't afford gas for your car . . .
Park it.

Take the bus.

The world doesn't owe you a lifestyle.

fitzz
Buy low and sell high!

NOW is low.

John Tamas
John

While the entire world is trying to find solutions to this financial mess the oil OPEC chooses to not try and help the situation by letting the price fall to do their part to help the world economy. Instead they are only concerned with making more billions by playing with supply. When is enough profit enough. The sooner we end our dependance on their oil the better. Than they can drink it themselves.

Toast
Im 21 and I just started trading so Im pretty new to the game, now that all this mumbo jumbo happend I dont even know what to think...talk about a bad time to start!!!

Pete
Where is all the selling coming from that is making the market tumble? Are you selling? Are your family members selling? Are your friends selling? Most people I ask say they're holding firm, but there continues to be great selling pressure in the markets. So, who is continuing to sell day after day that is making it fall?

US going out of business sale
Great time to buy. Snap up some bargains from deadbeat scofflaw USA.

Blair Elllis
MY BIGGEST QUESTON IS IF OIL IS NOW $62 A BARREL THEN HOW COME GAS DOESN'T DROP AT THE SAME RATE AS IT FOLLOWED OIL UP THE PRICE LADDER- OH WAIT WE AREN'T BEING GOUGED BY OIL COMPANIES- ITS THE REFINERIES THAT ARE, WAIT AREN'T THE REFINERIES OWNED BY OIL COMPANIES?

BLAIR

John Reid Huntsville
It seems so strange to me that the robber barons that run the US banking system that orchestrated this worldwide recession/depression as they have done many many times in the past are still sitting on their ill gotten gains chuckling at the stupidity of the people that trusted them.
And to top it all off the governments world wide are now trying to repair the damage on the backs of the same people who have lost so much to the supposed free enterprise system - for gods sake lets stop the horse feathers and recover as much money as possible from the people who orchestrated this massive fraud and gave themselves multi million dollar bonuses for coming up with the way to steal the working mans homes, savings and pension.
That at least would be a start towards building some trust back into the system along with regulating it to prevent another reoccurrence of this type of fraud that has been done so many times before with the aid of the politicians that are supposed to protect the people from this sort of thing.
Crucifying the blue collar worker and allowing the robber barons to keep their ill gotten gains and add insult to injury by making the victims pay is only going to increase the distrust between the working class and our kleptocratic governmental system.

LJ
Mike in Calgary

Check your facts: major refineries all over Canada to supply Canadian Market and U.S. market. ie Alberta, SW Ontario, Montreal and East Coast.

Rodney
I think it would be great if we would actually heard more of the positive news about the markets. It seems that when things are going well for a few days then we don't hear about it any more then when the TSX takes a hit it's all over the news. Remember everyone - market fluctuations are normal. This is a great buying opportunity if you have the extra money. Markets ALWAYS come back. Don't worry!!

pp
Dear Jack

OPEC is a cartel they can do what ever they want - it's collusion - and it's not illegal where they are (Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela).

They have the world over a barrel - an oil barrel.

They can decide on what price to set and how much to produce and they know that they have no real competition and that they can pretty well do as they wish.

Yes Canada is an oil producing country but unlike the middle east where their oil gushes to the surface and is cheap to collect / process, here in Canada it's like squeezing oil from a stone - lots of money to produce and process. We can really only compete if Oil is over $80 barrel. When oil goes down to $40 a barrel again Alberta will be hurting...

And once that happens Canada is in deep doo doo economically speaking...

Dennis
All you people that are complaining about greedy stock market players do so because you didn't have the nerve or means to do it yourself, I know if I was able to I would have. Th etrouble with all this, and I have said this for some time, is that a false economy was built up on paper and electronics, money being another form of paper, and when it came under pressure the thing folded like a house of cards because there was nothing substantial to hold it up.
A comment on the price of gas at the pumps, I hope it stays high, the oil Comanies are keeping it high to retain their profits, if they start to loose money and shut down what does that do to the western, and Canadian economy, look further than the nose on your face.

grant
I cannot believe that
some people are using
the dollar as a reason
gas is still high,I
guess they forgot it used to be 64 cent US.

JKW
In as much as I wish I could agree with "stop whining about gas prices" from Ottawa, I must respectfully disagree with his/her assesment as to why gas prices are so high in Canada.

I wholeheartedly agree that Canadians must embrace mass-transit options that are widely available and start purchasing vehicles that are more environmentally friendly and fuel-efficient.

The reason I disagree that oil prices are a result of the vehicles being driven is that in Europe, where small cars and hybrids are driven en masse, fuel prices are far higher than here in North America. It's been that way for decades. It's more to do with government regulations and taxing policies on the industry.

Environmentally and socially Canada would be better off if fuel was taxed even more, offering more available funding for mass-transit options and other social programs.

I did not vote liberal in the last election, but I wasn't someone too stupid to see that the Green Shift was in fact a revenue neutral plan. That kind of program is something that needs to be embraced for the betterment of Canada - as they say "If you don't have your health, you don't have anything" and guess what - if we don't do something drastic soon to improve and protect the environment, we and our children will not have our health and economic matters won't matter anyway.

Look to scandanavian countries where taxes are higher than anywhere else yet the environment is clean, poverty is almost nil, more than half the population owns more than one property and the population is incredibly well educated. It doesn't take much to realize that their social agenda is the way to go.

Settle down, give it a year or two, the markets will rebound and we'll greed our way to turmoil again!

trick
Im soo sick of hearing about the stock market going up and down, I wish the market would just crash and burn. Its on life support, somebody pull the plug allready and put it out of its misery.

Mike from Ottawa
To all of you 71% who voted that a weak loonie will help the economy and slow down the spiralling stock problems, recession, etc....... YOU are the loonies!!!! Canada, the banana republic with a 75 cent dollar!!!!

Again, this is for and only for noncreative exporters and punishes everyone, and there are many, who pay salaries and for gas and oil, etc. etc. etc. here in AMERICAN FUNDS!!!

Guess the regular guy and his family will weather the winter right inside of their home away from the U.S. currency run hot spots anywhere south.... that is IF they can afford to heat their house. Pathetic!

Bewildered in Toronto
I am reminded of being at a horse race where the ground opened up and half the field fell into the crevasse.

Fortunately, my horse - a come-from-behind-specialist - jumped the hole and finished second... which was fine since I had put a Place bet down.

The stock market, was, to my mind, so wildly out of sorts (price to earnings) that adjustments such as what we are experiencing were inevitable.

The stock market, after all, is no more than a pimped-up, tricked-out casino.

"Round and round she goes...."

oldie
I think it must be the younger folk...those under 40 that are panicking. I don't believe they have lived long enough to really experience a down time or understand what it takes to survive a downturn. I think this is a good learning experience that nothing in life is guaranteed and self sufficiency whereever possible (no debt) is best.

Ron
People who balme the media and "panic" for this have to start doing some reading. The problem here is not that the common guy next door is watching the news, its about banks overextending themselves and asset valuations being wildley out of control. Its about world-wide monetary policy that has been out of control for almost a decade.

Blame irrational "herd" behaviour all you want, but when you lend out more money than you have to people who arent likely to pay you back...at some point, your bank account will adjust to reflect this. The markets and world economies are now in the process of this adjustment.

Alex (Toronto)
The government has been just sitting back and saying things are fine, until the news gets bad and they have to react. The government needs to start thinking creatively, not just reactively. The greatest threats to our economy come from outside our borders. If our financial system is strong (and it's been stable forever, plus the cushion of profits in recent years), then it's not enough to sit on our laurels. Canada needs to take positive steps to help shore up the financial systems in other countries. We need to identify leaders and laggards, and we need to organize the former to help the latter.

Or we could just sit around and wait for Obama to take power in the US. He is not short on leadership and initiative.

This isn't the 30's
Governments will probably pacify people by establishing easy-to-get wireless Internet and much cheaper cell-phone rates. People can cry together on the telephone and write educational blogs.

Worried Sick
Just lost $2000 in my Mutual Funds.Don't know what to do now.Was think of withdrawing them all and putting the money in a jar and burying them in my son's backyard but then they might turn into dust after a few years....but then again they are now slowly turning into dust.Somebody says putting them in the top drawer is a safe way.... and take a chance on somebody breaking into my place???

F.T
Im glad i have no money to loose. When your poor its fun to see the "rich" get all flustered. Welcome to everyday of my life

To The Ones That Needed the High Life
It's a cycle and it;s happened before and will again. The ones that are in panic ar the people that have been living beyond their means and using credit to maintain there way of life. The best thing that can happen to these many is to start to lose everything and maybe just maybe they will learn that you need to live within your means - no SUV for the wife, big screen TV's, jet set vacations, and so on. It doesn't matter if you blame the US housing market or whatever, the improper use of credit and the "need" for everything has brought this on. To those that live within their means this is a good time to buy and increase their wealth - to the ones that now are in trouble - I say good on you.

James
Circling the drain, circling the drain, circling the drain. I think we are about to get flushed right down the hole.
I think it was too much to think that the world economies could withstand the "credit tsunami" that has been building for several years now. We are in uncharted waters right now and there will be a big thud as we all land hard. There is too much blame to go around and nobody wants to accept their share, except for Alan Greenspan. He deserves his share.
I just went to the recyclers today to clear my baby barn out of refundables, a twice yearly chore. This may become a more common thing for me to do in the near future as thngs get really tight. Today, however, I am going out for a drink and toast the memory of my parents and be happy to know that they will not experience another depresson. See you all on the other side!

Bottom feeders beware!
People are demanding governments to do something. They will respond by putting tracking chips into people in exchange for rations. They will also use chips to minimize fraud and the black market and to maximize tax revenues. This will be in response to the corporations that are using chips to keep "bottom feeders" from even getting in the door.

John W.
I am glad that Mr. McGuinty solution to the problem cutting back on programs that Ontarians need.

Goes to show this is how the Liberal Gov. When in power got their surplus health systems? who needed a health system now we have huge health system problem and chretien's taking credit for the banking systems, where was any election promise you made done? Cut to the GST promised by liberals in 1993 never happened.

Glad to see McGuinty is cutting Education programs and nurses that a great idea...

pp
Dear Mike from Ottawa

You don't see the GLOBAL picture here:

Here is how the lower loonie works:

-> loonie goes down our exports are thus less expensive for other counties to buy.

-> This is especially important right now as countries cannot afford more expensive imports.

If they see Canadian goods are cheaper to import than from another countries then they will buy from Canada.

-> This now means that WE (Canada) are actually selling produce,

making companies happy as they are making money,

making workers happy as they are making money,

making retailers happy as they are making money.

It is all about MAKING MONEY.

If your stock is too expensive, no one will buy it. The higher to CDN$ the more expensive it is for foreign countries to import. Companies cannot sell stuff and they go under, thus people loose their jobs... NO MONEY is made by anyone...

BUT if it is inexpensive and cost competitive then they will come - in droves - to buy our goods!...

The down side is that our own imports now become more expensive - so if we need to reimport gas / oil then we pay through our noses... It's all about checks and balances.

I hope the dollar stays at 80 cents, it makes Canada HIGHLY competitive in the Global Market....

Joe
JR - Ontario,
You are upset with $1 gas? I am still paying $1.16 here in BC and I know other places here are even more than that. This is an absolute outrage. Do these billionaire jerks think that taking oil off the market is going to get me to drive more? There is no demand because people are not driving. Gas should be in the .70 range with oil where it is now. Perhaps then demand will increase. I hope these oil companies tank because they have no shame in stealing from hard working blue collar workers.

JT in Vancouver
EVERYONE RELAX!
It's too late to sell, in most cases! Those who are still invested need to stay put and ride it out! This panic-driven selling is only compounding the problem and causing a snowball effect!

Take a breath and relax!

MM
Hey don't worry be happy!

Remember the wise wise words of our PM. "We are not in recession and we will not run a deficit, so elect me.
ummm yeah, whatever, yet another lie.

Kevin
Mike in Calgary
People...the price at the pumps is in direct relation to the falling dollar. Canada does not produce much gas, we produce Oil.

There are at least 21 oil refineries in Canada. Most of them are working between 50 to 70% capability. We do refine our own gas. Why do you think the PetroCan station in Calgary ran out of fuel? They had a problem with their refinery.

We ARE being ripped off by the oil companies and our respective provincial and federal governments are doing jack about it. Look at the price of diesal. It is only refined once compared to 3 times for gasoline, yet it is more expensive than gas. Why? because more people bought diesal powered vehicles in the last 2 years in order to cut their fuel costs.
Grades of gas are determined by how much of what additive is used in order to increase the octane level. You can do the same by adding an over the counter octane booster to your tank of gas for less.
Yes, we are being ripped off and we all still have our heads in the sand and our pants down around our ankles.

DeeSingh
Dear fellow readers, i am agreed that loonie is falling and thats is why we cant see any change in oil price at pumps. But thats not what happened when loonie was going up. Price of gas at pumps was increasing with price oil in global market. I 100% positive that oil companies had increased there profit window at time price of oil was high and want to keep the same profit window even after the drop in oil prices. now it looks me that they are even making more then ever becuase crude oil price down but they kept price at pump same as before.Our government needs to investigate. I voted for conservative this time and if they dont do any thing for this drama then i wont for them again as we might have election any time.

Valley lad.
lol @ fuel.
There are many factors that go into the price of fuel besides the price of crude.
Just becasue crude comes down, does not mean you will see fuel come down. BUT if crude skyrockets we get bent over and violated the next day. Why is that? rofflecakes.

Ted
Hope people finally abandon right wing fundamentalists thinkers like Bush and Harper with their witch hunts against innocent people and cozy relationship with big oil and arms sellers - and look what they've done to the little guy. Brace yourselves people, Harper is going after health care next, but I'm sure the media will give them all the support they need.

JH
If anything positive can be gleaned from this situation, it's that OPEC can't just crank prices when their coffers get a bit too empty. I get a kick out of consumers saying "so what if you cut oil supply, there are more important things going on" ... priceless.

derek day
No-worries, the markets will recover after this shift. People need to hold in it to stop it from dumping. If overseas investors holded tight and took advantage of the lower dollar, our markets would rise. Making a global recession relitively short, and with all the bad press of global panic it stops the skeptical capitalist from buying while dumping stocks they assume will be bad, which are not. The stocks still bring profit because everyone dumps stocks before they go into the red. When somebody buys a stock, it's because they think it's going to go up and the person who sold it to them thinks it's going to go down. Somebody's wrong, even a disciplined investor should see potential in a shifty market. Money is on paper not stacked up in your home. If we stand in it, we can turn it around. But November should be the deciding factor for wallstreet, that election is looking like it will help it rise at first, then tank. The hardest job in the world is looking like it will go to a well spoken, inexperienced man, who was hyped by media, and has everyone talking. That party elected the wrong leader as far as performance in office, but the right leader to bring new numbers of bias voters to the polls. Thats whats going to affect the world the most in all areas. The next President will be another drone, Bush too was a drone, its just who runs this ones controls? Hillary would of been a much better leader for that party and made it two safe choices for a educated American voter. Sry for placing politics with this subject, but they
go hand in hand. Give it 200 or so days after the election.

Reality Check
Selling right now is doing the opposite of saving yourself some loss. If you look at the people who have money they are buying up all of these undervalued stocks. Alot of these companies are worth more than their current price reflected on the market. selling at this point locks in your loss what you should do is wait until prices rebound a little.

Another thing is, the only way as a consumer you will punish the oil company for being greedy twits is by only putting the amount of gas you need to get by in your car. If demand drops even lower then so will prices eventually. buying up gas when it drops just brings the price right back up.

with lower gas prices also brings lower food prices because it will cut the amount of ethanol needed which alot of crops are being sold for because it brings in more money when oil is at a premium.

greed is what got us here. if you start living simply and not trying to bilk everyone for everything they have it will improve. Houses have gone up to about 200-300 percent over 10 years and it also has a strain on the wallet.

Its a cycle, the more someone starts charging the more the other person does too. It was only a matter of time before it bit us back.

What did we all expect when selfishness is now the standard of people. No one cares about anyone else anymore. Which fosters greed and wrecklessness.

MuskyBuck
After reading posts here for a while, I feel as if I'm on a burning ship....and everyone on board is argueing over who started the fire, while the ship continues to sink, no one makes a move to put it out.

My opinions are exactly that but the reality of our situation is based on my understanding of global economics and the recent Canadian Centre for Policy Alternatives 500 page report on Harpers last government.

Clearly written, this report alarmly points to Harpers inability to see the future.

It details a systematic move away from innovation and technology to a service based industry that rests all of our exports on resources to benefit the US.

We see our dollar intrinsically tied to our now solely resource based economy which most Canadians don't realize has happened since Harper took power.

And while 500 pages is too much to read for most, all one needs to do is see what is happening the world over to understand how much our government has retarded our countries innovation.

In Australia they have just announced a billion dollar program to build electric car recharge stations all throughout the country.

In Japan the government has already begun a program to outfit every home with the Panasonic Hydrogen fuel cell, which will reduce energy costs at 30% per home as well as lowering carbon emissions.

In California, Governor Schwartzenneger has given Tesla Motors (a progressive electric car making company) 10 years of no taxes on the company in return for setting up the companies base in California.

While here in Canada we have a government that believes it is 1950.

The world will not wait for us, they will outpace us and begin trading knowledge and technology and here in Canada we will expand the Tar Sands.

We as Canadians choose to ignore reality that times are changing.

Dave C., Ottawa, Ont.
Dave in Ottawa.

To Mike in Calgary.

We are paying more for the gasoline refined in the USA BUT, The American refineries are purchasing the crude oil from Canada at an offsetting lower price as well! The price at the pumps should be 1 cent/litre per dollar a barrel.

ie. $70.00 a barrel = 70 cents per litre at the pump.

We are being gouged. No question!

Denis
I totally agree with Jack, when is the price at the pump going to reflect the dramatic price drop of the barrel of oil. It sure was reflected quickly when the price was going up. What about diesel prices, this is an outrage, this product is not even refinned and it's still more expensive than gas. The story was that the only reason why diesel went up is because our eastern counterparts use oil to heat their homes and that when the winter of 2007 was over that we would have seen a dramatic price drop. Well I'm still waiting to see that price go down.

Not panicing
James - I love your comments, please keep writing
People you haven't actually lost it until you cash it in....

Ali
Worried Sick; You have only lost money if you cash out. Hold tight, the market will eventually come back, you'll regain the lost $2,000 and then some. Now is not th time to panic and is not the time to sell.

JP in Ontario
Hey kids, pp and Denis are both precisely right in their statements.
First a comment on the price of gasoline, it is not directly related to the crude FUTURES prices you keep hearing and are quoting. Buying power of the Canadian dollar, transportation costs (which stay high while gas is high), weather forecasts, and the decisions of the Oil Company accountants all affect the price. Money Talks.
Now, as for the market situation...there was a comment on the false economy I think, this is also precisely true. We have observed countless companies, Countries, and individuals recording record profits recently. Poverty rates have dropped in many places, or stayed the same in others. Where did all this new money come from? The value of gold has skyrocketted in recent years. What does this tell you? Demand is HIGH. Why? Everyone wants it. Therefore, no one has enough. Therefore, what are all these record profits being based on? Money requires gold backing.
I have said before, this is a market correction. It will take time, and many will lose. On an individual basis, you dont lose till you sell for less than you bought...so hold on, and ride the tide. Make sound judgments, and well based decisions from now on. Do research before investing.
To the person asked who is selling? Big companies and firms, both of whom have vast, widespread holdings, tens of thousands to millions of dollars range, movements of those kinds of sums of money/shares cause ripples, which as others do the same become waves. Have faith folks, we will weather this storm.

KJ in Kingston Ontario
Gas prices are so high because the oil companies are greedy, the stock markets are in turmoil be cause investors are greedy... The very idea of balance and stability -- of having NO GROWTH is seen as abhorrent -- so there's pain or there's gain. Population, income, consumption, lifestyle and prosperity won't endlessly increase.

JP in Ontario
Another thought here folks, in regards to the credit problem that is the catalyst for the current market situation...it wasnt just mortgages, that was a large part, but, a lot of the companies we are hearing about going under, they were/are relying on daily loans to operate, and cover the cost of expenses. This is the "money market" we have heard about. If you have, or are starting a business bare this in mind. Confidence among the banks is down, and as such, their willingness to lend is down with it. Do not establish, or allow your business model to fall in to a situation where you are forced to rely on regular loans to cover operating expenses, because when your profit drops, as they likely will in this market, you wont cover your loans, and then you are done. I apologize for getting off topic their, but it is relevant. "Recessions, Depressions...and Economists' Jokes" is a helpful article.

Nikalas
According to another news site Americans drove 15 billion less miles this month compared to last - down 5.6% - oil price and gas prices continue to fall -
oil companies are concerned about low demand.

Looks like we've cracked the code - not that it was a big secret to begin with. The masses are seeing solid tangible results against these greedy big wigs by the flexing of our collective muscles!

Dean
I wonder how bad the economic situation would be if the media would stop over-reporting and sensationalizing the situation? In the rush to get a headline, I believe the media and certain "economists" just want to see themselves on t.v. and this pushes certain types to rush off and panic. Warren Buffet seems to be loving these times because he's buying like crazy right now. He's the richest guy in this hemisphere. Shouldn't we be following his lead? The media should stop letting sensationalism get in the way of a balanced and factual story. On the other hand, it wouldn't sell papers if things weren't over dramatised I guess.

5th generation Canadian
I see blame being placed on governments, regulatory bodies (or lack thereof), politicians, media, etc. and every one of them must take a share of the blame. But, let's not forget to leave a very special place on the dart board for the CEO's and COOs who greedily bled their companies dry with millions and millions in compensation & bonus packages, etc.

RECESSIONS 101
A recession is no big deal. Apparently few reporters were around when we had recessions on average every 5 years and are over hyping the significance of a recession. If all we get is a recession get on your knees and be thankful.

IN the meantime all this media fear mongering will do is to make matters worse through the daily sensationalism.

It would be a good idea for journalists to go meet up and spend a couple of hours discussing recessions with an economist. They would come to understand that recessions are a welcomed and good thing as they blow the froth off a heated economy. This go round is a financial credit crisis which is having spillage into the regular economy and in doing so helping to push some countries into recession, some worse than others.

If we want to make matters worse then just keep creating an atmosphere of fear and dread and the will precipitate people taking measures that they would otherwise not have taken and if enough do so we too will have a recession and if we do it enough we will have a more moderate recession etc etc. Fear mongering is irresponsible in times like these. Calm is good - moderate is good.

Prof. Pye Chartt
@ "MuskyBuck":

While it's admirable that you've taken the time to read a 500-page report, I think it's fair to say that, these days, anyone can grab a verbose "analysis" out of thin air (written by a banana group) that suits their political slant.

Pointing a big finger at Harper for, supposedly, not single-handedly turning our country into an innovative, high-tech oasis during one brief stint as PM is silly in and of itself. What about his parliamentary predecessors?!

Moreover, the notion that the direction of every facet of our economy falls into the lap of a PM fails to acknowledge that in a capitalist society the government doesn't run the show, private enterprise does. If you like the idea of Central Planning, move to Cuba.

Given that Ontario ranks #2 in terms of North American manufacturing (behind only California), your sole North American example (a state investment encouraged by the Governor of California) points directly and profoundly to the idea that Ontario Premier Dalton McGuinty needs to get his tired act together and step up his efforts.

I agree with you: our manufacturing base is rooted too deeply in a bygone era. Passionately blaming Harper, however, given his federal position and the brevity of his tenure, is entirely off the mark, indeed.

Eric in Oshawa
Maybe the media and all the pundits should stop talking about all the gloom and doom. Maybe that will allow things to stabilize.

I say hang in there and if you can buy and hold.

Gaill (Hamilton)
The markets are going to remain volatile until the US election and probably past. If Obama wins, I'm sure Warren Buffet will be able to pay increased capital gains, but many will not. Listening to WBEN radio in Buffalo, the talk is all about this election being a referendum on capitalism vs. socialism. Americans are getting more nervous at the thought of higher taxes which may ultimately affect the way they vote. It's all very interesting to say the least.

LG
Dean you are 100% right! Look at the headline - "TSX closes lower on growing economic worries". How much? A mere 37.62 points. Does that mean the market is healthy? No - but clearly the media is HYPING this situation. How about this for a headline? "TSX closes close to even on day" Not sensational enough, apparantly.

~`Joe Canadian~`
How can the WTO defend "Made in China"? They've poisoned our foods with melamine and our products with lead. They are responsible for the deaths of our beloved pets.

China has the cheapest slave labour pool of 1.5 billion in the world. How can Canada with 35 million compete with that? We can't..do the math.

Communist China "falsely" devalues its currency to attract foreign investment thus causing a huge imbalance and advantage at the expense of other countries. They have no labour/environmental laws and abuse human/animal rights.

Yet the WTO does nothing to hold communist China accountable for how it has damaged the health/safety and economies around the world.

The only ones benefiting off "Made in China" are greedy multi-nationals, their CEOs and shareholders. They could careless about the masses they feed the toxic stew to.