Touchdown: Bank of Canada’s straight talk

We’re also hearing a lot these days about economic turmoil – and we don’t for a moment minimize what many folks are going through, especially in places like Hamilton, Oshawa and Windsor – there were some strong comments delivered to the House of Commons Finance Committee by Bank of Canada deputy governor Pierre Duguay, who says Canadians shouldn’t be spooked over “irrational fear” about our economy. “When there is a string of bad news, risk can be overstated. People hear bad news and that affects confidence, and that can amplify (economic problems)… We are going through a recession and because of fear, consumers are spending less, companies are spending less and that is antithetical to stabilizing the situation. It is very important to cut it off at the pass, so people can see recovery is coming.” It was a great message, effectively delivered, that Canadians need to hear. And it was timely. We count on Bank of Canada officials to tell it like it is. Even in the face of auto sector layoffs and the steel plant shutdown in Hamilton, when some people might take offence to Duguay’s suggestion that this is somehow a psychological problem, his point is well taken. Bravo.