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DEBT: The Economic Challenge for the Next President

Shortly after winning the 1992 presidential election, some commentators said that the problems facing the country were so large that Bill Clinton might end up wishing he had lost. At the time, the US was facing a budget deficit of $450 billion which was about 4.5% of GDP and an economy feeling the effects of…

Push for More Stimulus Ignores Risks of Japan’s Experience

This September has been an eventful month for China. Apart from defending its assertion to vast areas of the South China Sea, it also hosted world leaders at the G20 Summit to discuss ways to raise global economic growth rates. All of the political leaders agreed that they needed to ensure that they had to…

Has Vancouver’s housing market peaked?

Naveen Gopal from Pacifica Partners speaks to Business News Network's House Money host Greg Bonnell about why China's looming credit bubble will have a significant effect on the Vancouver housing market.  Please click below to watch interview.  

Vancouver’s Housing Bubble Fueled by China’s Credit Bubble

Many of us are under the impression that there is an endless supply of multi-millionaires in China who are intent on scooping up Vancouver properties at any price, often before they even hit the market. But the underlying source of the money does indeed have a limit, and we might be getting close to that…

Global Markets Trying to Overcome Economic Challenges

The chart below looks at the return of the stock markets from the ten largest economies in the world. It shows how far those markets have dropped from their prior high (peak level) and how long ago that peak was reached. The data shows that the US equity market has been the most stable but…

The Limits of Economic Experimentation

Pacifica Partners Spring 2016 Quarterly Commentary: There seems to be a steady concern amongst policy makers that the financial markets are losing confidence in monetary policy (interest rate cuts) and the ability of central banks to do much more to boost economic growth. As recently as last month, the Bank for International Settlements (the central…

Taking an Inventory of Investor Worries

The Pacifica Partners Winter 2016 Quarterly Commentary: Most years, financial markets tend to rally in the month of December. As the 2015 holiday season wound down, investors found that Santa had deprived them of their traditional yearend rally. Instead of a rally, investors were left showered with volatility to close off 2015 and clinging to…

US Consumers Riding to the Rescue Again

The Pacifica Partners Fall 2015 Quarterly Commentary: There are not many things in finance that one can find a near perfect consensus on. One that comes close to unanimity is the notion that the current regime of low interest rates globally has about run its course in being able to accelerate economic growth. Simply put,…

Mr. Xi Goes to Washington

One would have to go back a long way to remember when China’s place in the world was even up for debate. As Chinese President Xi Jinping came to the US for his first state visit last week and second visit as President of China, many are looking at China through a slightly different lens…

Low Interest Rates a Fading Solution

The last several months have served as a reminder to the global financial markets that the work of central banks is not done yet. Nearly six years after the last recession ended the world finds itself still guessing as to when interest rates will finally begin to rise.   As Europe is so clearly illustrating,…
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