with deleveraging is taking place and it will have severe impact and have a lasting effect on the economy but there's still a lot of "hopeful" analyst predicting a rebound within 6mo to 12mo.

while we're in a deflationary environment, with fed printing like as if there's no tomorrow, could we be heading towards hyper inflation down the road?

inflation down the road is a possibility. But we are no where near that in the near or even medium future due to the ongoing asset deflation. D

gosh... deflation could mean massive job losses that could turn into severe recession. while hyper inflation eats away purchasing power. scarey though of zimbabwe inflation that doubles every 25 days into annual inflation of 2.2 million per cent. wow!! i dunno which one is better or worst.

Danielle, if i could recall... on BNN, you mentioned that canadians are out of touch and we are highly in debt just like americans. our banks are generally more prudent in their lendings but we still had 30-40yr mortagage since 2006 till end of october 2008. are we naive to believe canada will escape the credit crisis shockwave coming from america better than the rest of the world? and with real estate dropping 30%-50% world wide, do you see the same happening here in boom cities like victoria, edmonton, calgary, toronto, and esp vancouver?

btw, it takes about 75% of household income to service mortgages and housing expenses in vancouver :-(

How General Motors can save itself. Produce the Flintstone car. The perfect eco car. It will fly out of dealerships. It does not use any fossil fuels, does not emit any ozone destroying emissions, does not leave a footprint, well except when approaching a stop sign, and with no engine, or transmission, or braking system it will be cheap to make! The CEO is just not thinking!