Most Canadians think that the worsening financial crisis in the U.S. has little to do with us. Think again, especially if you live in Ontario and are hoping for some much-needed help from the Ontario Liberals in McGuinty’s budget next week.
“In practical terms, what happened this weekend [to U.S. investment bank Bear Stearns] has profound effects for Ontario”, writes Thomas Walkom in today’s Toronto Star. “In a real sense, Ontario is much more tied into the U.S. economy than any other part of Canada.”
Read: New York’s woes spell trouble here:
In Canada, the furor resulting from the near bankruptcy of the U.S. investment bank Bear Stearns has been dealt with as a business story, of interest to investors perhaps, but not to anyone else. Would that were so.
Most Canadians may have no personal experience with Bear Stearns or any of the other big U.S. financial institutions. But what happens to these New York firms ends up affecting us in very concrete ways. In particular, those hoping that, after years of cheese paring, governments will finally invest in things like rapid transit, housing or infrastructure may find themselves roundly disappointed.