This is why I'm worried; Impact of US debt crisis ranges from benign to extreme:TD

[socialshockwave]

http://www.montrealgazette.com/news/world/Impact+debt+crisis+ranges+from+benign+extreme/5173961/story.html

"OTTAWA - Canada could come out of the rancorous U.S. debt-ceiling debate unscathed, but could face far more serious consequences if legislators fail to firmly resolve the issue, TD Economics said in a report Thursday.

``The impact on Canada could range from a hiccup in our base-case economic outlook, to one in which we are thrown back into a recession that could have a global reach,'' chief economist Craig Alexander warned.

TD lays out four possible scenarios:

* In a best-case scenario, the U.S. raises the debt ceiling and sets about on a credible deficit reduction plan. In this case, the Canadian economic outlook will be unaltered;

* If there is failure to pass a credible deficit reduction and the U.S. is downgraded, the Canadian dollar is likely to remain lofty, but likely not enough to further threaten Canadian growth;

* Should Congress fail to raise the debt ceiling by the deadline, U.S. economy could contract if it extends beyond a short period and Canada would see its growth pull down too;

* In the extreme case that the U.S. government misses a debt payment, the Canadian economy could be pushed back into recession."


I'm worried, and so is Canada - we're all watching this merry go round of "WHO CAN BE STUPIDER LOUDER" in Congress.