A number of economists suggest that problems in the United States and in financial markets looming internationally are likely to begin hitting Canada - now.

Nearly 130,000 jobs were lost in Canada in January alone, suggesting that the ‘echo’ of the economic collapse being seen to originate elsewhere may have finally hit Canada, an economy which many were saying was ‘economically resistant.’ Housing markets have begun diminishing to near pre-bubble levels, and a report released by the Bankruptcies Office suggests that bankruptcies are sitting at a point 50% higher than last year - all indicators point downward.

The bankruptcy statistics are the most worrying, consumer bankruptcy is an exceptionally costly and negative procedure which hurts the well-being of all involved - including the creditors, who are forced in to a negative-reinforcement scenario.

Charmaine Buskas, an economist at TD Securities said that the data “feeds” a pessimistic view of the economy, which may build a case for an increased rate cut at the bank of Canada; something many theoretical economists see as creating an even worse public perception.

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