Gina Burgio

Rotary Club of Ancaster A.M.

presents

the 1st Annual Halloween Rocky Horror Picture Show Dance

Featuring Much Music Video Dance Party

• Must be 19 years or older(a licensed event)
• Costumes are optional
• Prizes for the best costume
• Door prizes, food, cash bar, and video dance party

SATURDAY, OCTOBER 25th, 2008

Time: Doors open at 8 pm

Cost: $35/Ticket

Place: Ancaster Rotary Community Centre

For tickets please call Hair by Nature 905-304-1324 or visit www. ancasterrotaryam.com

Proceeds from event are in support of the Ancaster Rotary Community Centre and Polio Charities.

Many people were wondering last week why the Canadian Dollar started to lose value against the US Dollar, when it appears that the USA was in greater crisis mode in comparison to Canada.

Well here is why....

Canada is one of the world's largest producers of oil and holds oil reserves second only to Saudi Arabia, which makes Canada very reliant on its most prized commodity. It is also the largest supplier to the world's biggest oil consumer - the United States. Therfore, rising oil prices tend to be good for Canada/bad for the U.S., while falling oil prices tend to be bad for Canada/good for the U.S.

As you can see from the chart above, price movements USD/CAD and Oil are inversely correlated from each other - meaning as oil trends higher, USD/CAD tends to trend lower and vice versa.

Since January 1988, USD/CAD and Oil have had about a 68% inverse correlation to each other. This is a pretty strong correlation.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

Each VERICO Broker is an independent owner operator.

Many people were wondering last week why the Canadian Dollar started to lose value against the US Dollar, when it appears that the USA was in greater crisis mode in comparison to Canada.

Well here is why....

Canada is one of the world's largest producers of oil and holds oil reserves second only to Saudi Arabia, which makes Canada very reliant on its most prized commodity. It is also the largest supplier to the world's biggest oil consumer - the United States. Therfore, rising oil prices tend to be good for Canada/bad for the U.S., while falling oil prices tend to be bad for Canada/good for the U.S.

As you can see from the chart above, price movements USD/CAD and Oil are inversely correlated from each other - meaning as oil trends higher, USD/CAD tends to trend lower and vice versa.

Since January 1988, USD/CAD and Oil have had about a 68% inverse correlation to each other. This is a pretty strong correlation.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

Each VERICO Broker is an independent owner operator.

In Canada, the Conservatives were re-elected into Government this Tuesday evening, with Stephen Harper maintaining his position as the Prime Minister of Canada. However, the Conservatives will once again have a minority gov't.

This is Canada's third consecutive minority government. It appears Canadian voters have opted for no major changes amongst their elected representatives during these tough economic times.

Last month, the US gov't announced that it was lending US$85billion to AIG (American International Group Inc.) in exchange for an 80% equity stake in AIG. The gov't has also increased its credit to AIG by another US$38billion. The Fed is in the process of also appointing trustees to oversee the US gov't's stake.

There have been mixed reactions in the marketplace regarding the US gov't taking an ownership interest AIG, the nations largest insurance company. AIG subsidiary, AIG United Guaranty, provides mortgage default insurance to lenders, including financial institutions in Canada since 2006. Canada Mortgage and Housing Corporation (CMHC), a corporation owned by the Canadian gov't, also provides mortgage default insurance to financial institutions in Canada and has been doing so successfully since 1954. Even though AIG has a broader portfolio is businesses and type of insurances products, CMHC has managed to operate well in the marketplace under Canadian gov't control. Hopefully AIG, now under US gov't control, will be able to stablize and be able to do the same.

I am of the belief that, long term, it was a wise move by the US gov't to take control of AIG, with a focus towards stabilizing the world financial system. This Insurer, along with Freddie and Fannie, provides the US gov't with a vehicle to convey that message and back up the banks, while minimizing the amount of dollars they would have otherwise had to injection into the system (well beyond the $700billion already planned) if they had stood back and watched those companies collapse.

Gina Burgio, Mortgage Agent
VERICO Designer Mortgages Inc.
Toll Free: 1-877-345-6265
Fax: 1-877-345-6256
Email: gina@ginaburgio.com

Each VERICO Broker is an independent owner operator.