500,000 U.S. Job Losses

Sometimes all you can really say is “ouch.” Over half a million jobs lost in November in the U.S., bringing the total jobs cuts this year to 1.9 million. A couple of weeks ago when David Rosenberg said he thought there would be 3 million U.S. job losses before this crisis is over, that sounded excessive. Not anymore. I am making a personal rule to stop doubting David’s forecasts about how bad this could get.

What does this mean to Canada? It means there’s a broad-based consumer recession happening in the United States
and that will have serious implications across almost every sector of the Canadian economy. that doesn’t mean we’re going to have a million job losses, but it certainly mean we’re going to take a hit. In fact, those losses are just beginning to roll in – with 71,000 cut in November, a terrible number, especially bad in Ontario.

Our economy has a few things going for it, but the stock market’s deep recent losses tell you that the market is still expecting things to get sigificantly worse before they get better. On the brightside: if you’re in a secure job, with a manageable debt load and some savings, the next year is going to be a fantastic year to get amazing bargains. Houses, cars, electronics…you name it.

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