Ancaster, ON

Bank of Canada governor Mark Carney said in a speech recently that the Canadian economy has deteriorated more quickly than he had anticipated, hinting strongly he will cut interest rates at the next meeting on December 9.

This is also the first time that the Bank of Canada has conceded that the Canadian economy could be headed for a recession. "Starting from flat growth in the first quarter of 2009 and the second quarter of 2009 ... recession is a possibility for Canada," commented Carney.

The technical definition of a recession is two or more consecutive quarters of negative economic growth. The Canadian economy contracted in the third quarter ended and is expected to contract again in the current quarter ended Dec. 31.

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

Each VERICO Broker is an independent owner operator.

I am pleased to announce that the grand opening of our Ancaster office is scheduled for December 1, 2008.

The new office will be located at 911 Golf Links Road in the Meadowlands area of Ancaster, Ontario.

We are excited about the opening of this new location and are looking forward to serving members of the community and the surrounding areas from this location. I would like to also thank our clients for their ongoing support.

Call today at 1-877-345-6265 to book an appointment to discuss your mortgage needs!

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

Each VERICO Broker is an independent owner operator.

Three times this month Toronto-Dominion Bank, Canada's second-largest bank, has been first to lower its prime rate following decisions by the Bank of Canada (the central bank) to lower its overnight rate. Toronto-Dominion's biggest rivals followed suit the same day.

For example, on Oct.8, TD Bank was the first to announce a cut that day with a statement at 1 p.m., followed by Canadian Imperial Bank of Commerce (CIBC) 43 minutes later. Royal Bank of Canada, the country's largest bank, was next at 2:32 p.m., followed by Bank of Nova Scotia and Bank of Montreal.

Two days later, the banks reduced their rates again following the federal government agreement to buy as much as C$25 billion of bank mortgages. TD was first, announcing a 15 basis-point cut at 12:31 p.m., followed by Scotiabank at 1:23 p.m.

The Canadian Banks broke with tradition on Oct. 8, lowering their prime rate by 0.25%, short of the Bank of Canada's 0.50% cut.

TD Bank led again on Oct. 21. following a 9 a.m. Bank of Canada announcement of a 25 basis-point cut. TD cut its prime rate 35 basis points at 4:15 p.m. Canada's five other largest banks followed over the next 48 minutes.

What does all this mean for the consumer? At the end of the day, none of these banks gain much advantage by cutting first because new rates don't go into effect until the next day.

Canada's six largest banks are now offering the same prime rate of 4 percent.

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

Each VERICO Broker is an independent owner operator.

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.