Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Commentary

Letter from the editor: It feels like Lehman again

By David Skok
A trader has his head in his hand on the floor of the New York Stock Exchange, Thursday, March 12, 2020. Photo: AP Photo/Richard Drew
Mar 14, 2020
A A
A Small A Medium A Large
Share

Share

This article is a preview of The Logic’s exclusive journalism.

Get complimentary access to award-winning reporting to navigate these unprecedented times. Sign up now.

I normally begin this column by saying I hope you’re having a great weekend. This morning, I’m just hoping you’re doing okay.

It’s been a somber few days as the stark reality of COVID-19 took hold, and the waves were felt in businesses, communities and in our homes.

Some of the difficulty I’ve had processing the past few days has been in separating two crises inextricably linked, but each posing its own unique challenge. First, the virus itself, which struck this week with reckless abandon, resulting in dramatic changes to how we live. Then, the disastrous collapse of the financial markets, which despite a healthy surge on Friday, ended the week well into bear territory and which will almost inevitably cause a recession. 

Each crisis requires a unique tourniquet to stop the bleeding. 

In the case of the virus itself, it seems like nothing short of a complete cessation of public activity will help to flatten the curve. This was brought home clearly during a conference call with The Logic’s subscribers on Wednesday afternoon. Helen Branswell, the infectious-disease reporter for Boston-based Stat, and a Canadian who’s covered emerging pathogens since the SARS outbreak of the early 2000s, advised that people should avoid contact with each other as much as possible. “It’s not going to be life as normal for a while, and we need to get ready for that,” she warned. 

Shortly after that interview, we began encouraging our own employees to work from home until the end of the month and have since made it mandatory.

In the case of the financial collapse, all week I’ve had the same feeling in the pit of my stomach that I had during the early days of the 2008 financial crisis. And I’m not alone. As one senior banking executive told me on Thursday, “It feels like Lehman again.”

It’s so much more than a supply-chain problem, as I heard some call it this week. As the CEO of a small business, I can already see the impact reduced spending will have on the economy. 

For example, we decided last week to cancel our first-ever Subscriber Summit, which was slated for June. Along with generating no sponsorship and ticket revenue for The Logic, it also means no revenue for the event organizer and host venue, no revenue for the airlines and hotels flying and accommodating our keynote speakers and no revenue for the caterers. It also means no wages for the travel, hospitality and event staff—which means less discretionary spending for all involved. 

Magnify our 200-person event by all the Collisions and Shopify Unites that have been cancelled, then add in every postponed sporting event and concert, the trillions lost in the energy sector and the savings wiped out in the last week, and you get a small sense of just how severe this downturn could be.

One big difference between now and the 2008–2009 crisis: that was a collapse of the financial system. This time, it’s a collapse of the social order. And this time it may be the financial system—with injections of liquidity from governments—that ends up saving the economy. 

It seems like nothing short of a stimulus package like those deployed during the Great Recession will ease the shock of what’s about to steamroll through the economy. 

In 2009, a federal stimulus package of $47 billion over two years helped lessen the blow. This time, the parliamentary budget officer estimates the federal government has the flexibility to permanently increase spending by $41 billion. In other words, even with the $10-billion stimulus announced on Friday by finance minister, Bill Morneau, the government still has room to act. As Scotiabank deputy chief economist Brett House told me on Thursday, “It is the risk of inaction, rather than the risk of action, which may prove dire.”

That’s a lot to process in just one week.

For The Logic, this is a galvanizing moment. We have already witnessed an immense desire from you, our loyal readers, for more coverage to help navigate you through this crisis. We do not take that responsibility lightly.

We have assigned our reporter Fatima Syed to cover the fallout of the crisis full-time, and you will have noticed an increased presence of COVID-19 in our Daily Briefing. We have also made all of our COVID-19 coverage available to non-subscribers. 

But it costs money to do the high-quality, trustworthy reporting that you’ve come to expect from us. If you like our journalism, please consider subscribing.

We’re keenly aware of the trust you’ve placed in us and our mandate is to be an indispensable part of your news diet over the coming months. To separate fact from fiction, to provide analysis not rhetoric and to give you the information you need to make smart decisions.

We’re all in this together, please take care of yourselves.

Get complimentary access to award-winning reporting to navigate these unprecedented times. Sign up now.

#COVID-19 #Letter from the editor

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Photo: AP Photo/Richard Drew

Most Popular This Week

A head-on shot of James Neufeld seated with others at a round table in a meeting room. Eleanor Olszewski is seated to his left. There's a laptop open in front of Neufeld.
News

For this Alberta tech firm, ‘Buy Canadian’ isn’t working as advertised

By David Reevely
News

Everything you need to know about the debate over stablecoin yields

By Claire Brownell
In this photo illustration, the Manulife company logo is seen displayed on a smartphone screen.
News

Manulife and Intact buck a global trend by reporting AI returns

By Anita Balakrishnan
A photo of Daniel Sax shot through a circular piece of ironwork on a stairway balustrade. He's looking off-camera, and is wearing a dark blue jacket bearing his company's logo.
The Big Read

Mining the moon. Selling nuclear reactors. For this Canadian, it’s all part of the plan

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: Canada’s wartime economic triumph can teach us something today

By Kevin Carmichael

Briefing

Nokia to spin out space communications business through Canadian SPAC deal

By David Reevely   |   Jun 19, 2026 | 4:11 PM ET

Ontario police aren’t reporting spyware use, senior privacy official warns

By David Reevely   |   Jun 19, 2026 | 3:37 PM ET

Magna founder Stronach found guilty of indecent and sexual assault

By Anita Balakrishnan   |   Jun 19, 2026 | 3:33 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

Manulife and Intact buck a global trend by reporting AI returns

By Anita Balakrishnan   |   Jun 16, 2026
In this photo illustration, the Manulife company logo is seen displayed on a smartphone screen.
Commentary: Quebec Ink

Quebec just found out what not having digital sovereignty really means

By Martin Patriquin   |   Jun 8, 2026
A yellow ambulance is pictured outside of a hospital in Montreal. A red sign in the foreground reads, “Urgence / Emergency.”
News

Canada’s surprise plan to buy Saab command jets leaves competitors seeking answers

By David Reevely   |   May 29, 2026
A closeup of a scale model of a jet covered in pixellated camouflage, with sensor equipment attached to the top of its fuselage. There are civilians and uniformed military personnel milling in the background.
The Big Read

Mining the moon. Selling nuclear reactors. For this Canadian, it’s all part of the plan

By David Reevely   |   Jun 12, 2026
A photo of Daniel Sax shot through a circular piece of ironwork on a stairway balustrade. He's looking off-camera, and is wearing a dark blue jacket bearing his company's logo.
News

Canadians could demand firms delete their personal data under new privacy bill

By Laura Osman   |   Jun 15, 2026
Evan Solomon in a suit and tie, gesturing with his left hand as he speaks, Several people sit and stand behind him looking in other directions. There's an orange curtain behind him lit from above.
The Big Read

We found every data centre in Canada

By Murad Hemmadi, David Reevely, Aleksandra Sagan, Chaimae Chouiekh, Martin Patriquin and Catherine McIntyre   |   Apr 8, 2026
Four vertical slices of aerial view photos. From left, a building in downtown Toronto housing several data centres, a picture of the Albertan wilderness where the proposed Wonder Valley data centre would go, a lit-up QScale data centre in Quebec, and a data centre at a Hydro-Quebec dam.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account