The Stay at Home Mother

What is going on with our loonie? The loonie had the biggest one-day drop on record today, falling nearly four cents agains the American dollar!

Even after recovering from its lowest point, the loonie was down 3.08 cents to 84.20 cents US early in the afternoon.

Canada's dollar has now fallen more than a quarter since hitting an all-time high of 110.3 cents US last November after a rapid three-month rise. It was during that time, I was kicking up my heels and booking a family vacation to Disneyland but now what are we going to do?...

It's nearly three years since Canada's dollar was below 84 cents US, on Nov. 21, 2005.

An economic note from Scotiabank said the loonie is "showing no signs of ending its losing streak against the U.S. dollar."

The loonie is also being sideswiped by rising demand for the U.S. dollar as the United States government tries to borrow heavily in global money markets to finance its $700-billion bailout of banks.

The loonie's plunge today happened despite a report from Statistics Canada that the country generated a record number of new jobs last month and more support for the financial system from Ottawa.

Finance Minister Jim Flaherty says the government won't allow Canada to be dragged down by instability from outside the country and promises to buy as much as $25 billion worth of debts from Canadian financial institutions.

If the loonie stays at current levels it will make imports of everything from Florida fruit to Boeing jetliners more expensive to Canadians and raise the costs of winter vacations in the United States. (sniff, sniff - good-bye Hawaii!)

Eveyone is scared that what is going on in the US, is going to happen to Canada.

Are you doing anything to prepare for any possible effects on our own economy?  Are you saving?  Have you changed your spending habits?

If you have any thoughts to share with other moms about the Canadian economy or on your own spending habits - leave a comment. 

(-info excerpted from the Canadian Press)