It's Over?

Despite forebodings yesterday from Paul Krugman, today's employment numbers in the U.S. and Canada would seem to indicate that the economic downturn has bottomed out and that both economies are on the mend.

Yes, inventories are being drawn down and yes stimulus dollars have driven much of this. But in Canada in particular, stimulus dollars will continue to drive growth and our energy sector will underpin growth as world demand increases.

As Krugman notes today, however, the danger is now that stimulus efforts will be curtailed or even rolled back as a free-market government here and a timid one in the U.S. switch their focus to an as yet non-existent threat to inflation.