Canada not immune to economic woes

Falling housing prices, rising unemployment and tightening credit are sweeping through Canada, as the U.S. credit crunch reaches across the border. "Canadian banks are borrowing and lending in the same credit markets as U.S. banks, so if the credit markets seize up in the U.S., they're going to seize up in Canada, too," said Christopher Ragan, an economics professor at McGill University in Montreal. Central Canada's manufacturing sector, having already lost 400,000 jobs since 2003, is bracing itself for another jolt as economic decline hits customers.

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