Business
2009 In Review: The View from Canada
2009 In Review: The View from Canada
About this update from Aftermath Silver Ltd.
[{"type":"text","content":"\n2009 In Review: The View from Canada\n\n\n Dec. 22, 2009 (Baystreet.ca) -- The recession of 2009 was a worrisome event that spared no one, regardless of nationality, economic or social strata. It astounded even the most experienced economic experts, lowered expectations and made people wonder if it was ever going to end, and how consumers and investors would come out the other end. The recession offered up all sorts of parallels to the Great Depression of the 1930s, with one important difference; those in charge politically of the picture may have gotten a handle on the situation in time to remedy it. Certainly in Canada, the hardship was as acute as anywhere on earth, with the unemployment rate spiking almost monthly, until it peaked around 8.7% in August before tailing off marginally. The rate measured 8.5% for November, the last month in which figures were available. To stem the tide, Prime Minister Stephen Harper -- whose own job status was at times precarious -- proposed a series of stimulus measures, providing almost $30 billion in support to the Canadian economy, through infrastructure programs, business support programs, support for housing construction and the like. In all, the support amounted to about 1.9% of Canada's total economy. But after operating with surpluses for years, the Feds found going deeper into deficits a culture shock. One casualty of the financial carnage was the erstwhile electronics behemoth Nortel Networks Corp. (TSX:NT), which filed for creditor protection in January, while suitors were sought for its much-prized wireless and LTE technology divisions (the winner was Swedish giant Ericsson, while Avaya purchased Nortel's Enterprise business unit).The once-mighty Bombardier (TSX:BBD.B) was, until recently, a major Canadian defense contractor. With the latest restructuring, the company sold off nearly all of its military-related work in Canada. Military Aviation Services was sold to SPAR Aerospace and land-based defense products made by Urban Transportation Development Corporation ceased operations as Bombardier moved away from non-aviation defense products. Air Canada (TSX:AC.A) also faced uncertainty about whether it would survive. Both stocks can now be had for penny stock prices.Quarterly growth in Canada stopped chugging with the third quarter of 2008, and the economy is said to have shrunk b...