Sure signs that spring just around the corner.  Firstly, March break.  The airports are packed, and people working at the airports are exceptionally snarly. Second, baseball spring training is in the home stretch and soon the boys of summer will make their way home.  Thirdly, the Masters Golf tournament is weeks away.  And lastly, the Toronto Maple Leafs have begun their annual collapse.  Sports reminds us that spring is just around the corner, at least is does for me.

Another indicator that spring is just around the corner, not sports related, is the Federal Budget.  I suspect tradition will continue, which means Minister Flaherty will be sporting a new pair of shoes.  I wonder if the Finance Ministers actually does the shopping or is one of his flunkies responsible for picking out the perfect pair.  Be that as it may, Flaherty doesn’t have much wiggle room, so grand solutions for our sputtering economy should be tempered.  Government revenues are down (I really hate that term because when has the government ever earned revenue?) so spending cuts should be expected. Increasing taxes on an already over taxed population is not a solution.  The question that needs to be answered is which government programs will take the hit. Provinces and municipalities will wait with bated breath to see where infrastructure spending will be directed.  The government has made statements that we should not expect an equal distribution of spending on infrastructure.  It appears that some children will be more special than others to the ruling Conservative.   

Flaherty has his hands full trying to navigate Canada’s economy amidst all the uncertainty.  Now it appears that that he will factor insanity into his global equation.  That’s the only way I can explain the EU’s decision to tax bank depositors in Cyprus to offset their bailout.  Will this cause a run on the banks in Cyprus, and other European countries that fear that the EU may impose the same punitive measures in their countries?  Bold decision can lead to drastic mistakes, example – American government allowing Lehman Brothers to fail.  The course will probably remain the same – boring; and I suspect that’s what Flaherty will give us on Thursday.

Until next time,

Cheers.