Hang on tight - global stock markets are plunging setting in motion the largest nosedive since the Great Depression!
The selling that began last week has gained a brutal momentum as the contagion effect spreads from China where the Shanghai Composite is continuing to tumble as the countries economic bubble pops.
Hundreds of Billions of dollars have been wiped off the worlds's financial markets this morning. Are we heading into a repeat of the financial crisis of 2008, or even worse?
World leaders and experts are saying don't panic.
Folks like me that took a hammering in 2008 can only watch from afar at the macabre spectacle of strategic investments whittling away.The good news is that the American markets are crawling back after frenzied trading earlier in the morning.
I am watching the price of oil which slumped to a new six-year low below $39 a barrel. A year ago, a barrel of oil cost about $100. The combined impact of sharp oil revenue declines and lost investments will have a significant impact on the Newfoundland and Labrador treasury.
This year the provincial government posted an $8.1 Billion budget based on a blended approach of borrowing, tax hikes and modest spending increases to avoid shocking the economy. There There are 35 fee increases on everything from drivers’ licences to public swimming.
The government predicted a $1.1 Billion deficit based on an overly optimistic view of increased oil and commodity prices.The budget was anchored on an average price of $62 a barrel for oil.
At this rate the deficit is likely to be closer to $2 Billion with years of deficits, job losses and growing debt in the forecast.
My advice, do what the government has done, bury your head in the sand.
What a messy day!