Accounting Scandals Essay

629 words - 3 pages

Summary of “Canadians' rapid debt accumulation to slow next year as housing market cools”
In the news “Canadians' rapid debt accumulation to slow next year as housing market cools”, the writer reports that low interest rates and an active housing market accelerate the accumulation of Canada's total residential mortgage debt this year. Recent housing market data shows a downturn in the market. There is lesser activity in resale home market. Home builders also reduce construction activity to avoid falling demand in houses. The cooling real-estate market decelerates the growth of the accumulation of Canada’s residential mortgage debt. The Central Bank will in increase interest rates in the middle of next year. A survey indicates about 84 percent Canadians could afford at least a $ 300 0rm 30 percent increase in their monthly mortgage payment, the average monthly mortgage payment is about $ 1,025.

Reasons ...view middle of the document...

S increasing employment rate indicates a slight recovery of North American economy. The U.S. economy affect significantly on Canada’s economy. 151,000 new jobs created in the U.S in October though the unemployment rate remains at 9,6 percent. The U.S government plan to inject an additional US$ 600 billion into the economy. The addition of extra money indicates the economy recovers slightly but it is still far from fully recovered. In Canada, the new creation of 3000 job in October make Canada’s unemployment rate drop to 7.9 percent last month. Full-time job increased while part-time jobs declined. Jobs increase mainly in the goods-producing sector and decrease in the service sector. Increasing employment rate and hourly wages indicates that Canada economy gradually recovers.
Reasons for choosing this article:
1) This article reflects the increase of jobs in the U.S and Canada
2) This article mentions slight recovery of the North American economy
3) This article implies the trend of global economy recovery

Summary of “Canadian dollar closes higher, backs away from parity with U.S. dollar”
In the news “Canadian dollar closes higher, backs away from parity with U.S. dollar” The Canadian dollar goes strongly against U.S dollar because of the release of the strong U.S employment news and the worse than expected Canadian jobs creation data for October. The U.S added 151,000 jobs instead of an expected gain of 70,000 though the unemployment rate was unchanged at 9.6 per cent. In Canada, Statistics Canada reported that 3,000 new jobs created, which is below the expected estimate of 15,000 jobs. The announcement of the U.S Federal Reserve that it will purchase US$ 600 billion government bond keeps the Canadian dollar going a little more stronger. The higher commodity price is also another drive of the strong Canadian dollars
Reasons for choosing this article:
1) This article mentions the strength of the Canadian dollar and how the U.S economy affect the Canadian dollar.
2) This article tells slight recovery of the North American economy and the steps the U.S government takes to bolster the economy
3) This article implies the trend of global economy recovery

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