Borrow Money Fast

America have always been able to boast that their dollar was stronger than their cousins in Canada. The economy in America has seen massive growth over the last 20 years, and although Canada hasn’t been doing too badly either, they have never been able to emulate the strength of their southern cousins. However, as people going on Canada holidays may have noticed recently, with the recession in full flow, Canadian money in closing the gap and their economy looks to be more stable than in the States.

Really two influences hold the key to how and why this situation has come about. To start with, America’s spending habits have long been a little less modest that Canada’s. Without getting into the strict economics of the situation, Americans have borrowed more money from banks than Canadians. This initially helped the economy grow somewhat, but has meant that as banks themselves struggle for credit, lots of people are finding themselves in trouble and unable to meet the payback demands from banks. This has led to an overall weakening of the American dollar.

Secondly, the GNP of America is heavily reliant on the oil and industry sectors. These are two sectors that have been hit heavily in the credit crisis and have left record numbers of Americans out of work and whole towns even struggling to make ends meet. There is simply less demand for industry products at the moment and as the oil markets become more and more competitive, they are being flooded by cheap oil from the Far East, who have resources too large for America to match.

This is good news of course for Canadians who are planning to go on American holidays, as they their money will go further than it has done for a long while. However, if you are an American thinking about visiting Canada, it’s probably best to stick to Alaska holidays for now.

Technorati Tags: America, Canada, dollar, economy, Finance