Where are we heading? How are we going to find a solution to a problem whose extent is not known. Everyday, in Canada, we get to hear contradictory news. One day the PM says our economy is stronger than other nations facing recession and at the same breath the Finance Minister says that the economy is in bad shape and we haven't hit the bottom.
I guess we have to stop listening to the politicians and start listening to Bank of Canada that admits that ecenomy is much worse than thought out to be and incidently dropped overnight lending rates by another 0.25 basis points. A couple of banks have already announced that they will match the cuts. Prime rate now stands at 2.25%. For people who took Variable mortgages sometime ago when the rates used to be "minus prime", they will see thier amortization drop further. I expect that closed rates will also drop soon.