In the wake of continual bad news from the U.S. economy, CEOs and business leaders on the COMPAS business panel believe that the repercussions for Canada will be serious, especially for exporters. Yet, they oppose by 2:1 easier government-supporter loans to exporters facing a credit crunch among their clients south of the border.
Panelists were asked for their opinions about various bailout proposals, including several from a group of top economists led by Nobel prize-winner Joseph Stiglitz. By large margins, panelists embrace the following perspectives, in descending order of enthusiasm:
A bare majority believes, with some observers, that bad accounting is a key problem and new accounting rules should require that assets be recorded at their original purchase price and not at their claimed market value.
No majority support emerges for the idea that "the real issue is not bad mortgages but a bad real estate market so that any taxpayer subsidies should help home owners, not investment houses." Meanwhile, a majority opposes the idea that "U.S. financial institutions need a bailout because it would be a mistake to allow hedge funds and other major investment houses to go bankrupt."
These are the key findings from this past week’s Internet survey of CEOs and business leaders on the COMPAS panel. The weekly business survey is undertaken for Canadian Business magazine under sponsorship of BDO Dunwoody LLP.