The Bank of Canada released its annual Financial Stability Report on Thursday, which gauges the resilience of the Canadian financial system and highlights key risks that could undermine that resilience.
“A cascading series of events could cause a sharp loss of investor confidence and lead to a spike in demand for liquidity or rapid asset sales.”
The impending review of the North American Free Trade Agreement and the oil shock from the Iran war are risks that could hit the economy hard.
In other words, they have to resolve the issues with the United States. Carney would like business deals with Europe and China would replace the United States, but that isn’t likely to work.
This is why Mark Carney was in New York City this week looking for investors.