Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: James Hutton who wrote (251160)	6/1/2010 10:28:44 AM
From: Smiling Bob	Read Replies (2) \| Respond to of 306849

Don't count on it holding very long today One bit of news isn't enough. We've been ignoring good news and focusing on the bad. That hasn't changed We're closing below 10k

To: James Hutton who wrote (251160)	6/1/2010 10:28:59 AM
From: RetiredNow	Respond to of 306849

Canada raises interest rates Canada's becomes first G-7 country to raise interest rates since the global financial crisis finance.yahoo.com Rob Gillies, Associated Press Writer, On Tuesday June 1, 2010, 10:15 am TORONTO (AP) -- Canada on Tuesday became the first Group of Seven nation to raise interest rates since the global financial crisis, but said any further hikes would depend on global economic conditions. The Bank of Canada increased its key interest rate by a quarter point to .50 percent from a record-low rate of .25 percent. The bank said thus far the impact of Europe's sovereign debt crisis in Canada has largely been limited to a modest fall in commodity prices. It said the decision to raise rates still leaves considerable monetary stimulus in place. Economists widely expected the central bank to raise rates after the country's economy grew 6.1 percent in the first three months of this year, emerging from the global downturn faster than the U.S. Canada withstood the global economic crisis better than most developed countries. Canada has not experienced the failure of any major financial institution, and there has been no crippling mortgage meltdown or banking crisis due to greater regulation. "While Canada joined with other countries in taking interest rates down to virtually zero the sense of crisis was never as great here," said Avery Shenfeld, senior economist at CIBC World Markets. Shenfeld pointed out that the central bank didn't include the usual statement about further rate hikes being required. "They've left themselves an out to stop after one trivial move if financial markets and commodity markets continue to tell them that the global economy is going in the other direction," Shenfeld said. Canada's dollar fell 0.64 to US95.19 cents after the announcement. The central bank said economic conditions around the world are uneven and there's the possibility of renewed weakness in Europe. Royal Bank Chief Economist Craig Wright noted that although Canada is the first of the G-7 countries to raise rates it is a very modest move. The G-7 includes the United States, the United Kingdom, France, Germany, Italy and Japan. Wright said the bank's statement shows that further rate hikes are not assured. "It's probably well warranted given the uncertainties out there," he said.