1. After reading this case, what have you learned or what can you say about the role of central banks (i.e., the Bank of Canada, Federal Reserve) in the proper functioning of the economy and the stock market?
2. History holds many lessons for individual investors. However, quite often the enthusiasm or panic of the time takes control of the decision-making process. The present-day mood of the market often causes investors to act in irrational ways. What, if anything, can the government and securities authorities do to try to limit the damage in bad times and dampen expectations in good times?
3. Research the S&P/TSX index and chart the performance in the past three months, six months, one year, and three years. How is it performing overall? What is the level of volatility? (Find articles to support your findings.)