The Financial Post reports in its Wednesday, Jan. 23, edition that Crescat Capital is betting against Canadian banks. The Post's Kevin Carmichael writes that on Jan. 22, Crescat published the provocative thoughts of Jim Mylonas, a strategist at BCA Research, the Montreal-based research outfit that once employed Stephen Poloz, the Bank of Canada governor. Mr. Mylonas said: "I think we're just on the precipice of embarking on a serious recession. It's not a matter of if, but when." The Post notes that there is little evidence the men and women in charge in Ottawa are willing to acknowledge the economy could be headed for a rough patch. Difficult times for the global economy are always problematic for Canada's economy. A downturn is by no means the mainstream view. The International Monetary Fund on Jan. 21 shaved its outlook for Canadian economic growth in 2019 to 1.9 per cent from the previous estimate of 2 per cent. The BOC sees an expansion of 1.7 per cent. Both outlooks are decent, if slower than the past couple of years. BDBC economist Pierre Cleroux says, "For the Canadian economy, it's going to be fine." He adds Alberta will struggle but "the rest of the country, the economy continues to perform well."
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