Monday, December 01, 2008

TSX soaring despite lack of "stimulus"

Because the federal government chose not to dole out extra umpteen billions of dollars, the economy has actually rallied. Banks are expected to lower their interest rates, since more public dollars from Canadian taxpayers aren't forthcoming, at least for now. The result? A six day rally on the Toronto Stock Exchange that amounts to a 20 percent gain.

It is welcome news for taxpayers. Spokespeople for the Canadian Pension Plan announced the CPP lost 8.5% from July 1 to September 30 this year. Managers of other public pension plans aren't saying much, but likely took a severe hit as well.

Ironically, the choice to not bail out corporations may have saved taxpayers from having to bail out pension plans as well.

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