| Loonie drops below 97 cents
The loonie tumbled to a four-month low below 97 cents (U.S.) Monday as traders looked past Tuesday's widely expected interest rate cut to how a severely a U.S. economic slowdown would affect Canada. "The idea that the global economy is decoupling from the U.S. slowdown is lying in ashes as you watch what is going on in global equity markets," David Watt, senior currency analyst for RBC Dominion Securities, said in an interview. The Canadian dollar fell 0.52 of a cent to 96.81 cents on Monday, its lowest level since at least the middle of September. The loonie, a star performer on the global currency stage in 2007, has taken a large hit since cresting at a record $1.10 in November. The diminished appetite for the Canadian dollar is being driven by the same issue that is walloping equity markets: concern the U.S.
Short sales increase as housing slump deepens
Investor Harold Stark paid $365,000 for a three-bedroom Boynton Beach townhouse last year. But the monthly mortgage payments soon started to feel like a noose around his neck.
His property's value dropped below what he still owed, $329,000. But rather than letting the townhouse fall into foreclosure, Stark worked out a deal in which he sold it for $285,000, and his lender, Chase Home Finance, forgave the difference.
"I got out of the quicksand, where I was sinking and sinking and sinking," the 74-year-old Delray Beach resident said last week. "It's such a burden off my chest."
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How you can survive a recession
Stockmarkets in turmoil, falling house prices and a warning this week from the head of the Bank of England that we should brace ourselves for a tough 12 months. All in all, the prognosis is not good. In our front-page article, we look at ways of benefiting financially from a possible recession. But for many people, it will not be making money out of a downturn that is uppermost in their mind - it will be how best to insulate their finances so they do not end up worse off. Here, Guardian Money offers advice on how to make your finances recession-proof. Mortgages The good news is that the US Federal Reserve's decision to slash interest rates this week puts further pressure on the Bank of England to take similar action here. That could mean lower borrowing costs for millions of mortgage-holders.
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