US Recession may affect Canada
I’m submitting the title of this post for the understatement of the year award. The United States of America is the worlds largest economy and Canada’s largest trading partner. With recent US job data not looking so hot, problems in the credit market and a housing slump that has left vacant eyesore properties in the hands of banks, 2008 is not looking like a really great year for the US economy.
Bank of Canada governer David Dodge commented earlier today on the potential fallout for the Canadian economy:
“The downside risks to Canada from slower U.S. growth in the first half of 2008 are probably greater than we estimated in October,†he told reporters on the sidelines of a meeting of the Bank for International Settlements in Basel, Switzerland.
The big question is how bad those downside risks turn out to be. If the US enters a recession (or is already in one) will Canada be able to avoid the same fate? What sectors of the economy are likely to thrive, where will we hurt and what happens to our super-hot housing market? It’s shaping up to be an interesting year.
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January 25th, 2008 at 3:52 pm
is this recession going to matter to canada, canada is becoming more and more rediculious, try living in edmonton alberta and feel the prices of rent and property go up constantly….Vancouver prices and cost of living are rediculious,
but the average person makes more money there in whatever field……you should see Edmonton, the wages in this province are very low and the price of housing and renting are going up and up….there is probably more homeless in edmonton than any other canadian city.
This country is becoming utterly rediculious, I hope that we run out of oil so the gas and oil companies have to change there ways to help this planet and global warming, I can’t wait for the day when we have no oil left, I will just laugh….people will have to ride there bikes and take the subway to work.
The world is rediculious and the world needs an overhaul.
January 9th, 2008 at 11:47 am
Anyone need this sign?
January 9th, 2008 at 11:40 am
The Edwardian houses in the West End built between 1895-1910 were mainly built during a speculative boom – and then many were converted to rooming houses….
January 9th, 2008 at 11:36 am
Benny Lava … As in “Minor Bun Engine Benny Lava”?
Great song.
*g*
January 9th, 2008 at 11:15 am
Comment by Anonymous
2008-01-08 20:51:41
Good info. However, Vancouver in real terms is rated much higher in the scale. What really matters is after tax income to housing prices.
We have two consumption tax. We have a much higher tax rate. And our mortgage interest is NOT tax deductible. Taking that into consideration, Vancouver should be much higher. I would say top 5 in unaffordability in the world. Most of the cities listed above Vancouver have lower tax rates.
January 9th, 2008 at 7:15 am
Globe & Mail: Housing market cools in December
http://tinyurl.com/yw9n5t
“The sharp decline in December housing starts suggests that a more significant downturn in housing activity may be in the cards for 2008,†said Ted Carmichael, chief economist at J.P. Morgan Securities Canada.
January 8th, 2008 at 11:55 pm
Gold up 37% since August!!!!!
All time high tonight again.
Better get some folks its going to $1,600.00
Those who listened to me a year ago are VERY happy.
January 8th, 2008 at 10:32 pm
Media reports quoted Dodge at a financial meeting in Switzerland as saying the “appreciation of [the] Canadian dollar against [the] U.S. dollar is clearly having a slightly greater downside impact on our domestic inflation than we had estimated last October.”
He also said the risks to Canada from slower U.S. growth in the first six months of this year “are probably greater than we had estimated.”
Greater then we had estimated, slightly greater then we had estimated, oh well the usual see Benny Lava note, we are already doing the same thing! Thanks krrish1 as you pointed out you really can’t trust what they say, crap October was TWO months ago! Just goes to show the comments from experts are self serving and meaningless!
On the other hand I have to commend you for changing from what many believed you to be; (in ignorant denial), I can now see you also recognize the total hypocrisy in these statements! Your comprehension of english is improving!
January 8th, 2008 at 9:38 pm
No recession seen in Canada
Canada will slow — rather than stall — escaping a recession this time, much as it missed the 2001 U.S. recession.
‘recessions’ — to say that the backdrop is ‘recession-like’ is akin to an obstetrician telling a woman that she is ‘sort of pregnant,’”
“You either are or you are not.”
http://www.cbc.ca/money/story/.....ssion.html