Wednesday, September 17, 2008

1st post

With increasing downfalls from company to company in the American market we've recently been exposed to the biggest collapse of major companies in a century. Merrill Lynch has recently been bought for 44 billion and Lehman Brothers has declared bankruptcy. Luckily AIG was saved by the Fed with a controlled loan of 88 billion dollars. A lot of people do not understand the implications of theses major company downfalls. Individually Merrill Lynch, Lehman Brothers and AIG spend over 150 million dollars in advertising. So with increasing demand for basic commodities such as energy and gas inflation is increasing. All this means to us is a lot less advertisements for anything from cars to medical supplies or drugs. So what now? Our Canadian market is stable and hopefully not entering into the next depression alongside our southern neighbors.

1 comment:

Paulol said...

I'm not impressed with the government stepping in a saving companies, it's supposed to be a capitalistic society, why would they get involved when it's partially, if not mostly their fault. I believe the Canadian economy is directly linked to the American, and if they fall we are not far behind them.