Harper: 'Don't Worry, Be Happy' - Part Deux

Following up on this post from yesterday whereby Harper proclaimed to not accept the conclusions of a report issued Wednesday by Merrill Lynch Canada economists David Wolf and Carolyn Kwan, which warned that it's only a matter of time before the "tipping point" is reached and the housing and credit markets crack in Canada.

Well, Harper is beginning to look alone, bewildered and lost in the desert as he keeps on singing "Don't worry, be happy" to the gathering vultures:

Canada won't be immune from aftershocks

Canada's top central banker says the world's economies would be at serious risk without the US$700-billion bailout of the U.S. financial sector that's being put together by the American government.

(...) Carney said Thursday that other countries may need to follow the Americans' lead with similar government rescue packages to help out their domestic financial institutions.

He also said Canada is in better shape than most to weather the storm, but will not be immune from the aftershocks.

(...) Carney predicted the coming months will bring more losses and significant consolidation in the U.S. financial industry and that the repercussions will be felt beyond the American borders.

Carney suggested that the turmoil and the seizing up of credit will have the impact of slowing global growth, and particularly the U.S., beyond what the bank had forecast in July.

"Any slowdown in the U.S. economy would have consequences for Canada, but the current situation poses particular problems," he said.

(...) Carney said there's no credit crisis in Canada but that the economy has already felt the effects of a slowdown in the U.S. economy, pointing to a drop-off in exports of Canadian-made vehicles.

The Bank of Canada also thinks economic growth globally, and particularly in the United States, will be even slower than it forecast in July.

So, to put all of this in perspective:

Bush in Nov. 2007: "The U.S. economy has some strains but its underpinnings remain strong and resilient."

Bush in Feb. 2008: "I don't think we're headed to recession. But no question, we're in a slowdown."

Bush in Sept. 2008 (last night): "Ultimately, our country could experience a long and painful recession."

Harper in April 2008: "Canada's economic fundamentals and the oversight of its financial system remain strong."

Harper in July 2008: "Canada's economic fundamentals remain strong."

Harper in Sept. 2008: "At the moment there are problems in the Canadian economy, but we aren't in a recession."

Anyone notice a pattern here?

That's because this is what incompetents do - deny, deny, deny reality ... until all Hell breaks loose and utter catastrophe looms just around the corner, if it has not already descended upon our sorry heads.

But hey - don't worry, be happy, eh?