OECD: Canada in recession

According to the Organization for Economic Cooperation and Development, Canada is in a recession and heading for a deficit. And who’s to blame? Ontario and BC.

Across Canada EI claims actually dropped month over month, except for in Ontario and BC where they surged 14% over the year in Ontario and 11.5% in BC. Ontario has the auto manufacturing sector to blame for the downturn, while here at home we’re seeing an alarming decline in forestry revenues not to mention the sharp downturn in the housing market where prospects are looking more grim with each passing month, particularly when it comes to downtown Vancouver condos.

Meanwhile in the financial sector Canadian banks have started asking Ottawa for a major cash injection to help stem a rising tide of bad loans.  BMO figures show bad loans have already exceeded the peak reached in 2001 after the dot com crash, and are well on their way to levels seen in the last recession almost 20 years ago.

The bright side? If you’re looking for temporary office space to sublease in Vancouver, it looks like you have lots of options right now.

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Sad for my friend
Sad for my friend
11 years ago

My friend bought a pre-sale condo in Penticton two years ago for $500K including GST. The deal is completing and it was appraised at $360K only. My friend has to finance at 95% and paying CMHC 7.25% over total mortgage amount (about $25K). He also has to come up with extra $130K ($25K CMHC could be added to mortgage) to finish the deal, which he doesn't have. He is totally screwed. Any one here lives in Penticton please check the development. I assume many speculators don't have the extra money needed to close the deal. What will happen to them?

Spectrum lover
Spectrum lover
11 years ago

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Kuroame
Kuroame
11 years ago

"I get the feeling you weren’t around during the late 60’s and 70’s – Vietnam War, FLQ, stagflation, wage and price controls, oil embargo, Watergate, Iran hostage crisis, etc."

No I wasn't. I also wasn't around for the great depression and WWII.

Alex Curylo
11 years ago

"I get the feeling you weren’t around during the late 60’s and 70’s" Difference is those weren't global bad times. This does look like the first global bad time since the 1930s. "Since the end of the early 80’s recession we have been spoiled. Well things get wonky every generation or so. But I don’t think we’re headed for Mad Max." Wee-eeelllll … you might want to not completely dismiss that possibility. If global credit markets don't get sorted out within three months, the commercial farm sector is going to have a hard time getting crops in this spring. And the one really big difference from 1929 that most people are missing is that back then before mass transportation and refrigeration, virtually all food was produced within a day or two's horsecart journey to the city. That is most definitely… Read more »

patriotz
patriotz
11 years ago

Realtors commissions are negotiable, and whether their clients are purchasers or sellers.

The client of a commissioned salesperson is the seller, only. A sales commission is an incentive to sell for the highest possible price. You cannot be an agent of the buyer if you are incented to act against the buyer's interests.

and in all probablity, some kind of war scenario.

Canada is already in a war scenario. If you're talking about a war between major powers, it's not going to happen, for the same reason it hasn't happened since 1945.

Even the US has decided that it has had enough of the war in Iraq, and people in authority have been saying that the conflict in Afghanistan cannot be settled by military force.

Raincouver
Raincouver
11 years ago

vanguy Says:

November 27th, 2008 at 5:07 pm

I guess i’m the rare bear who is excited about the Olympics.

Yeah, and you're going to get even rarer. A little more than a year from now we (globally) will be in the depths of a depression – and in all probablity, some kind of war scenario.

Yet, there are many Vancouverites that think the entire world will be focused on our 2 week sporting event. And we will be famous forever.

I knew this would end badly.

Patiently Waiting
Patiently Waiting
11 years ago

Oh yes, speaking of 2010. I heard some Whistler hotel spokesthingy say they are going to reduce accommodations costs for 2010 tourists, to ensure they still visit. So much for greedy homoaners who planned to rent closets for a thousand a night. I can't wait to see the disappointment :O)

richard1
richard1
11 years ago

hey, who registered my name????? oh well. maybe i'll just pick another name. if you want your name, i guess you'd all better register…

richard1
richard1
11 years ago

Whistler Buyer’s Market

And here i was thinking the olympics guaranteed rising real estate markets.

I find this bit ironic “He said the United Kingdom tour operators are reporting that their winter sales to all Canadian resorts are down, but they are down the least for Whistler.

McDonald said officials believe that is because of growing awareness of Whistler’s status as co-host of the 2010 Olympics.”

awareness is growing but sales are slipping. he he he.

Ulsterman
Ulsterman
11 years ago

In Florida they are auctioning off new condo developments. Look at what you get in some hick town known as West Palm Beach for the kind of money that you would spend in cosmopolitan Surrey Abbotsford for a similar property. "After a practice round of paddle-raising, bidding began on the first unit, a 1,180-square-foot two-bedroom, two-bathroom condo on the 12th floor with views of downtown West Palm Beach, Clear Lake and the ocean. “The last asking price was $511,000, and we have a minimum unbelievable selling price today, and today only, of $190,000,” Mr. Cullum rattled off in his auctioneer cadence. “Do I have a $190,000 opening bid? One-ninety! Thank you. Now, let’s get $200,000.” After a flurry of bidding, the apartment sold for $225,000 to a woman with a pink sweater tied around her neck, who ultimately purchased 19… Read more »

Ignatius
Ignatius
11 years ago

Over at PaulB's blog, we learn that this house (1830 S.W. Marine Dr. Van. West – http://www.lynnjohnson.ca/ActiveListings.php/Deta… went for $1,850,000 … or $1,000,000 below asking! Can those in the know (i.e. those with access to the RE info) post a "shave of the day" every day? It very useful – and more than a bit entertaining – to see what places are starting to sell for. Why pay $1,300,000+ for a house in Kits when a 5000 sq.ft. mansion on SW Marine goes for only $500,000 more??

Patiently Waiting
Patiently Waiting
11 years ago

"out" to dinner

Patiently Waiting
Patiently Waiting
11 years ago

"Since the end of the early 80’s recession we have been spoiled. Well things get wonky every generation or so. But I don’t think we’re headed for Mad Max." Yeah, the luxury spending in the last few has been quite disgusting. When I was a kid in the 70s and 80s, nobody renovated, families went to dinner only on special occasions, birthday parties were low-budget affairs with home-made cake and modest presents, and people thought nothing of driving 10 year-old cars. That was in middle-class North Vancouver. Its the renovations that really blow my mind. We'll never see anything like that again…thank God…a kitchen can last 30 years, you know. One thing, though, we don't have the safety-net of the 80s recession and the drugs are more dangerous. There is little to stop a downward spiral other than loving family… Read more »

NO -LYMPICS
NO -LYMPICS
11 years ago

Interesting extortion attempts by VANOC http://www.theglobeandmail.com/servlet/story/LAC…. QUOTE: As an official community partner, Port Moody would be allowed to display a special logo on its letterhead and business cards, and receive VANOC assistance in developing a plan to market itself around the Olympics. "But Port Moody is not a private corporation. We're a community," Mr. Trasolini said. "People feel it's a slap in the face. To the average resident in the street, it seems to be all about money and not about community participation. In my opinion, it does change the aura of the Olympic organizing committee." In West Vancouver, host of snowboarding and aerial events on Cypress Mountain above the city, it took a payment of $1-million to VANOC in order to secure the affluent enclave's designation as an official venue city for the Games. But the money did not… Read more »

NO -LYMPICS
NO -LYMPICS
11 years ago

re Olympics:

Just heard Gallager talk on the radio about suckers and their Olympic tickets to certain venues.

Some events won't even allow the spectators to see much (ie Bobsled and Luge…)

Ski Jump is boorrring( maybe they should let the females in it to spice it up ??? ).

Brittanny Originals
Brittanny Originals
11 years ago

patriotz – Ever seen how angry a spoiled child gets when they don't get their way? Whoa! I think some social unrest and higher crime levels are on the way as the candy store shelves become empty.

vanguy
vanguy
11 years ago

I guess i'm the rare bear who is excited about the Olympics.

Having said that, my favourite game to play with local RE boosters is to ask them to name the previous four Winter Olympics cities, and for bonus points the city after Vancouver.

Personally, I remember Turin, Salt Lake and then it gets fuzzy. I remember Sarajevo having alot of snow…when was that? Granted I did live in the UK during the Salt Lake games, and other than figure skating it didn't get much coverage.

patriotz
patriotz
11 years ago

The realtors I’ve worked with and referred at a local red white and blue franchise have always given me 25% of their commission back in cash, I never received a T4A slip for it.

That's because it's not income to you. It's just a sales rebate like what you get after buying a stereo or whatnot. It is neither payment for work nor return on investment.

Mold City
Mold City
11 years ago

Obviously the bitter bears already live in the basement.

That's funny because I could have sworn it was previously happy bulls referenced in #50 that where the ones that had to sell and move into their parents basement.

Just pointing out the delicious irony.

patriotz
patriotz
11 years ago

Anybody else feel like this is going to turn out to be much more than just a prolonged global recession/depression and may actually end up leading to a near or complete collapse of social order.

No.

I get the feeling you weren't around during the late 60's and 70's – Vietnam War, FLQ, stagflation, wage and price controls, oil embargo, Watergate, Iran hostage crisis, etc.

Since the end of the early 80's recession we have been spoiled. Well things get wonky every generation or so. But I don't think we're headed for Mad Max.

bdk
bdk
11 years ago

Mold City, they could park a trailer in the backyard of their parents' house.

Obviously the bitter bears already live in the basement.

Mold City
Mold City
11 years ago

bulls have thick coatings of fur and can withstand winters just fine.

Looks like you're correct:

replacement beef heifers on a restricted feeding scheme can be overwintered outdoors in Nordic conditions without negative effects on animal performance. Nevertheless, the outdoor winter housing facilities must protect the animals from becoming wet and dirty and thus should be equipped with a rain shelter to provide a dry resting area with sufficient bedding material available.

…And it's a good thing since many of them are about to lose their houses. You may want to start collecting sufficient bedding material and look around for a dry resting area so you don't become too wet or dirty John, I suppose an old SUV would fit the bill just fine!

Anonymous
Anonymous
11 years ago

Will this whole economic downturn thing affect us here, even now that we've joined the ranks of important places like Turin, Nagano and Salt Lake City Utah?

Maybe someday we'll get the summer corporate games and join really world class places like Montreal and Calgary.

Yes, I'm being sarcastic.

blueskies
blueskies
11 years ago

i've always liked big balloons…..

must be genetic

NO -LYMPICS
NO -LYMPICS
11 years ago

Islander…exactly my point.

Lack of flexibility moves to the bottom of the list.

If some firm states a set non – negotiable commission…fine…thank them and then go shop – around.

Its often like choosing betwen a dealership and a Ma and Pa garage to fix your car.

What is just " BS overhead " versus simply a quality cost – effective repair.