Detroit’s woes will spread

In the weeks since Detroit formally filed for bankruptcy, some Canadian officials have been pooh-poohing the suggestion that the Motor City meltdown might affect us.

Oh, don’t worry, they say. Detroit is a special case that won’t spread. Besides, we have a completely different system here in Canada. Those U.S. problems can’t hurt us.

Well, that’s demonstrably wrong. Detroit’s bankruptcy is already rippling through world financial markets and is driving up borrowing costs for everyone. And it will affect us, too.  (more...)

Detroit’s woes will spread