Friday Free-for-all!
It’s Friday, and that means it’s time for the Free-for-all, our open topic discussion and news round-up post. Here are a few stories I’ve noticed lately to kick off the conversation:
-Olympic Village may cost Vancouver taxpayers $875 Million
-Property assesments basically unchanged from last year
-Property tax inequality?
-Banks: ‘business as usual’ as economy slides into recession
-Vancouver-based Teck-Cominco cuts 1400 jobs
-Central bank to ’stress test’ for risk
-Canadian pension plan solvency at record lows
-US pending home sales plunge to record lows
-Manhattan luxury housing feels the pinch
-Want to write for Vancouvercondo.info?
So what are you seeing out there? Post your thoughts, links and anecdotes here and have an excellent weekend!
note: any conversation on Vancouver, real estate or economics is allowed, please keep it civilized. When posting articles please only quote pertinent points and link to the original instead of pasting the entire article here. Pasting a link into your comment will automatically create a clickable hot-link.
(13 votes, average: 4.54 out of 5)
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January 8th, 2009 at 10:09 pm
January 8th, 2009 at 10:22 pm
james grant says
“there are risks to creating a trillion or so of new currency but that is tomorrows worry. frostbite victims tend not to dwell on the summertime perils of heatstroke”
January 8th, 2009 at 10:47 pm
And my coworker, the one that has been trying to sell his place since late August, just reduced the price on his property another $20K. That’s an 18% reduction since list, which also puts his property at 18% below assessment. I hope this last reduction gets him an offer, he *really* needs to sell. At 18% below assessment you’d think somebody would be all over it, just goes to show how reluctant buyers are - or they can’t get the financing.
January 8th, 2009 at 10:51 pm
“The news from Vancouver’s Olympic Village is becoming dire. And next Thursday is the day this billion-dollar financial minefield could blow up for the world to see.
That’s when the companies that are building Vancouver’s billion-dollar Olympic Village hope to access more of a $750-million construction loan from Wall Street, to keep constructing the crown jewel of Canada’s 2010 Winter Olympics.
But suddenly, there’s a problem in getting that money. The city might have to offer as much as half a billion dollars in loan guarantees as security, significantly more than the $100 million it has already put up to keep the Olympic Village construction going.”
January 8th, 2009 at 11:07 pm
Average Mortgage Rate Hits 5%, Lowest in Decades
“The Federal Reserve’s plan to coax mortgage rates lower is working: rates on 30-year fixed loans fell for the 10th consecutive week to the lowest levels in decades, according to a recent Freddie Mac survey.”
http://www.nytimes.com/2009/01.....r=1&hp
Oh, wait a minute, maybe I should include the second paragraph…
“What is not clear, however, is whether rates are attractive enough to lure a significant number of home buyers back into the ailing housing market.”
Yowch. Lowest rates since Freddie Mac’s tracking started in 1971, and it may not bring people into the market. Not a warm fuzzy thought if you’re in a hurry to sell, I’m guessing.
January 8th, 2009 at 11:10 pm
January 8th, 2009 at 11:23 pm
/fixed
My financial advisor keeps HOPING the market has bottomed. Working people HOPE their jobs are safe. Politicians HOPE all the money they’re stealing from me to give to their corporate pals will pull us out of the ditch.
None of this HOPING has any basis in reality.
January 9th, 2009 at 12:15 am
January 9th, 2009 at 2:18 am
January 9th, 2009 at 3:34 am
I actually politely send them to this url:
http://www.youtube.com/watch?v=qI6DJ0VkBMQ
If they are smart enough they will get it..
January 9th, 2009 at 6:59 am
Thursday = D - Day ?
Its got to happen sooner or later.
I seeem to recall that Vancuver has used up most of its available cash on hand. The rest of its so called assets are locked up in Real Estate.
So how can Vancouver provide loan guarantees of $500 Million?
Isn’t its annual City budget approx. $ 1 billion?
FROM Canadian Federation Of Independent Business
Report to City of Vancouver Feb . 2007
http://www.fcei.ca/legis/bc/pdf/bc08100.pdf
QUOTE:
City spending drives property tax increases. CFIB is concerned that for the past number of years, spending has exceeded the sum of inflation and population growth combined. For example, the City of Vancouver’s operating budget in 2000 was $610.9 million. In order to keep pace with population and inflation growth, the budget should have increased by 17.1 per cent between 2000 and 2006 (see figure 6). While an operating budget of $715.4 million in 2006 would have kept real per capita spending at 2000 levels, the actual budget for 2006 was $813.3 million. Had the City kept spending in check over the past six years, it could have reduced annual tax revenues by $97.9 million, making a significant difference to the tax load faced by businesses.”
In 2007 the City Budget was approx. $840 Million
If the financing costs are pegged at approx. $50 Million just to pay the interest…OUCH for the Principal payment on an asset that has all the indications of missing all fiscal projections by a huge margin.
The Local Gov’t Act allows City to enter into such Private Sector Ventures. However Local Gov’ts must not run deficits, they must run a balanced budget.
My understanding is that re: A-N-Y Loan the Local Gov’t wishes to acquire , it must first seek the approval of the voters in a referendum. (I realize Vancovuer has their own Charter but my guess is they are also obligated to do this)
I highly doubt the Vancouver Council will go cap in hand to the Voters… that would expose this scandal even more.
(ONLY) SOLUTION: HIGHER Property Taxes !!!
Between now and say March -April 2008 …the sh*t will hit the fan in Vancouver (if one sees how this breaks down into simply digestible terms)
Unless Vancovuer sell or mortages off some of its RE assets into a declining RE market…all indiciations Vancouver taxpayers will get whacked with a MAJOR tax increases. Business which already get hit hard by property taxes will BAIL from Vancouver.
Premier Campbell’s neck etc will be on the line. They have already given Vancouver an OVER budget almost $1 Billion Trade and Exhibition Center.(cost = approx Vancouver entire annual operating budget).
To Be Continued…..
January 9th, 2009 at 7:38 am
I feel the chances of this working out well is roughly the same as the chances of Kits beach being wall to wall bikini babes today! (Or speedo studs, so as not to offend)
Also, something is up with Chipman’s blog. Last night I could refresh and get new comments after some posts here asking what’s up, now my blog bookmark leads to his main site, and his links to blog show 403 error. I hope it is just technical, it is so cowardly to just shut in the night without a word.
But do expect a lot of businesses to do just that this year and next. Unless the aforementioned miracle happens.
January 9th, 2009 at 7:55 am
As noted previously…Vancouver will be drafting its budget in March and April 2009 . However the Olympic Village mess may hit the wall on Thursday.
Vancouver is in a pickle re: this one single Olympic Village deal to the tune of what amounts to its annual operating budget .
Campbell is also in a pickle .
My guess is he wants to help out…but he won’t or can’t. And he better not.
My view is the City of Vancouver is caught BETWEEN
(i) the ” rock ” of enacting its legislated right to engage in a Private Sector venture versus
(ii) the “hard place” re: legislation that states it must have a balanced annual budget.
Forget the Feds…they have enough trouble all over Canada.
If Premier Campbell intervenes in ANY way…he will open the floodgates of pissed - off citizens and angry Local Gov’t Councils.
They will demand that Campbell assist them in their own Local Gov’ts Private Sector venture.
As I said, Vancouver Trade and Exhibition Center is 100% over budget, the Province kicked in another $ 400+ million..total cost is now almost $1 Billion. They will claim its is not Vancouver’s . ..but who cares? ….it is built with BC Taxpayers money, IN Vancouver and will benefit Vancouver.
Enough BC Gov’t funding of Vancouver white elephants. Time to spay and neuter them, at least wean them off our BC Gov’t tax dollars
In essence you , the Vancouver taxpayers, are or will be obligated to:
—fund a project that is only 1/3 sold in a collapsing market ,
—fund a project which was projecting high - end prices at the ass -end of False Creek .
—you can NOT cancel the project…
—it has to be completed by Oct. 2009,or IOC penalties kick in.
—given the current and foreseeable market,a profit will not be realized
—this glut of product you are obligated to help finance affects YOUR OWN property value ie (lots of)Supply versus Demand(low)
— City won’t cut their losses and “fire- sale” the project …. yet your own Local Gov’t implies it will hold on till the market gets better (LOL), thus incurr even more financing costs ?
—Now political ego kicks in (ahhhhh!!!) at YOUR expense.
—No wriggle room….really no way to delay this till after the Olympics…the money has to be sourced NOW and the funding secured NOW to complete this certifiable ” Grade A ” white elephant , all has to happen VERY VERY soon.
–In just over a year…after the 2010 (5) ring circus leaves town….the Olympic Village will look like an RE cemetery, a monument to this disaster.
–The Brits will crap…they are already feeling this pain (4) years ahead of the 2012 games they so called “won” . Vancouvers 2010 fiasco will be a constant reminder.
Some sympathy Vancouver, , that’s it.
However, just don’t dare ask me, in the capacity as either a B.C or Canadian citizen, to help pay for what is YOUR problem. As I said in an earlier post,I highly doubt you would have shared the Olympic Village profits with the rest of us, you CANNOT have it BOTH ways.
Vancouver Taxpayers…good bloody luck, you are going to need it. This is the “PERFECT STORM” before, during and after 2010.
Waxing philosophically …What would it be like if you had voted down 2010 Olympics ?
Hindsight is 20/20 err 20/10 ?
January 9th, 2009 at 8:16 am
QUOTE:
” I feel the chances of this working out well is roughly the same as the chances of Kits beach being wall to wall bikini babes today!”
Funny you said that.
I just got back from my jog down at Kits with Sam Sullivan, , and these posters were being handed out by concerned Kits area citizens. (see link below).
http://www.alittlesomethingfor.....6/Scam.pdf
(These were seen in the general area of Kits beach).
I guess that miracle to cancel the Perfect Storm due to hit Vancouver is here. Call Bob Rennie and make an offer (before John snaps them up) !!!
Oh yeah….. and Esther Lo will be coming back to work for the City !
January 9th, 2009 at 8:17 am
Just joking on the latter! Sheesh, lighten up. If he was to abscond he wouldn’t tip anyone like that.
Speaking of ways to cheat, either people or taxpayers, check out the clever way UBS is dealing with the IRS.
The IRS has been pressuring Swiss bank UBS to release records of Americans they suspect of having undeclared money. Lots of it! UBS has closed the accounts, and sent the clients a cheque, all nice and legal. If the client CASHES the check, the IRS has the paper trail they to bust their asses. So the client has to choose, go to jail, or kiss off their ill-gotten gains. I think UBS gets to declare the money abandoned in a year, and keep it.
Clever, eh?
January 9th, 2009 at 8:24 am
re: rob’s blog.
yes, i had the same concern this morning.
however if you click around at other parts of his site, you get the same error message. so i’m hoping that it’s just a technical, not-ready-for-prime-time problem. and we’ll all regain access to our daily fix.
January 9th, 2009 at 8:24 am
VANCOUVER Absolutley showing no respect to it’s opponents cities,Sitting out dumbs are patting their foreheads in jolted dissappointments,All dumbos are asking themself a very comman single question and that is Why were we waiting for that long?.to save money/make money?.but what happend?.Condo prices? are picking up and home prices?. are also picking up Did you ever have to make up your mind before Owners vs Renter Combat Call your realtor today and say good bye to three year of false speculations because hey VANCOUVER REAL ESTATE NEVER GO DOWN.
January 9th, 2009 at 8:38 am
http://vancouver.en.craigslist.....;bedrooms=
January 9th, 2009 at 8:46 am
QUOTE:
VANCOUVER Absolutley showing no respect to it’s opponents cities,
“opponent cities” ?
Yes ,very clever,VB2, that IS the future.
The Metro Vancouver area will evolve into feudal ” opponent city ” states.
SkyTrain will have border crossings at City limits with armed guards set up.
Vancouver will be bankrupt by May 2010.
Vancouver Property can be had for the contents of a homeless person’s shopping cart.
What wise old VancouverBoom2 is actually implying is a “future prediction”.
“Vancouver Real Estate Never Go Down “is because it will be worthless…can’t go below zero(unless they , mostly ex-Rich Asians , pay you to take it).
PS:
I want first dibs on Casa Mia and Stanley Park !
January 9th, 2009 at 8:46 am
Well the sad thing is it seems that trade shows are a thing of the past and not the future or even present. The internet has really changed the way things get done for many businesses. If you are in business where do you get your new information about a product or service? Where are you going to provide information to future prospects?
The internet has Fucked up many of “old ways” of doing things and fundamentally changed most businesses. Things that seemed rock solid like newspapers now seem to be on the endangered list.
Is there a future in trade shows and conventions? Is the Vancouver convention center going to be a failure in more ways than just cost overruns?
January 9th, 2009 at 8:54 am
The unemployment rate was 6.6 per cent, the highest level since January, 2006. This is up from 6.3 per cent in November, when 70,600 jobs disappeared.
“Today’s dismal data offer additional strong evidence that the Canadian economy has quickly waded knee-deep into recession,” Douglas Porter, deputy chief economist at BMO Capital Markets
And from our PC Peanut Gallery:
‘My own belief is if we were going to have some sort of big crash or recession, we probably would have had it by now.
Stephen Harper, September 15 2008.’
January 9th, 2009 at 9:03 am
January 9th, 2009 at 9:05 am
Yes, the ones in the 800s like this one:
http://vancouver.en.craigslist.....54254.html
January 9th, 2009 at 9:07 am
January 9th, 2009 at 9:09 am
(Tourism) Richmond had wanted to build a Trade and Exhibition Center, it had been planning one for over 10 years, but recently pulled the plug (NOV. 2008) with a formal letter to the City stating as such ie its a dead duck.
The letter to the City stated that its offshore financing had dried up and it was also dependent on 20 acres of Federally -owned land and only IF it came out of the ALR. The capital costs were over $ 100 Million,( as per usual the costs kept increasing from the original cost ) and years ago Richmond Hotels were permitted to levy a room tax to help fund it.
Surrey was also in the process of planning one (I recall 400,000 + sq, ft.) in the Cloverdale area.
Don’t know its current status.
January 9th, 2009 at 9:13 am
Looks mighty painful:
http://en.wikipedia.org/wiki/Yucca_brevifolia
January 9th, 2009 at 9:14 am
Don’t worry the Realturds, mortgage brokers and home builders will hold their annual conferences there allowing the convention center to turn a profit, those guys are loaded…what?
January 9th, 2009 at 9:17 am
January 9th, 2009 at 9:35 am
January 9th, 2009 at 9:17 am
NO -LYMPICS: You’re a sexist pig.
Translation:-
—-You have already e-mailed the “link” onto 100’s of others.
—-You are all down at Kits beach in your speedos holding binoculars.
January 9th, 2009 at 9:36 am
So, I was watching BNN and they were saying that this quarter would be the best time to buy a new Japanese car. Reason being the C$ is falling so the current incentives are temporary. Is this just hype or is there truth to it?
January 9th, 2009 at 9:39 am
i find this bit interesting… “Construction layoffs drove the decline, as the sector lost 44,300 full-time jobs to register one of the sharpest monthly drops in more than three decades. ”
January 9th, 2009 at 9:42 am
January 9th, 2009 at 9:46 am
Wake up specuvestors, we are in the worst real estate crash in the last 75 years, how much more money will you bleed before you have to declare bankruptcy?
January 9th, 2009 at 9:59 am
a lot of these apartments are down
by over $100K from the selling prices that the flippers got.
nice building but that kind of haircut has got to sting……..
January 9th, 2009 at 9:59 am
January 9th, 2009 at 10:03 am
I understand that car leases are no longer an option, so they have to push the loans. Don’t fall for the pressure. Cars will be much cheaper in the future, I believe, because they will include more widely distributed hybrid technology.
From a question-answer with Jeremy Cato:
http://www.globeinvestor.com/s.....2/GIStory/
“Mark Armstrong writes: Many are excited about the Chevrolet Volt and the move towards electric cars. Unfortunately, at the rumoured price of $40,000 it will fail, if it even sees the light. Is this technology really that expensive? If GM is truly believe this is the future, surely they’d make it affordable to the masses, even if it is initially a loss leader.
Jeremy Cato: Hi Mark:
There is that rumoured $40,000 price tag, though nothing is official yet. For the consumer, though, it will be much less. The U.S. Government has already passed legislation for a subsidy program to the tune of $7,500 and the Volt qualifies. So right off, say that $40,000 is real, for the consumer the price will be $32,500. There may also be state and local subsidies to push the real cost down even lower.
The technology is expensive for three reasons:
1. The batteries. Probably worth about $10,000 per car, though the cost should go down a lot once volumes go up.
2. Up front research and development. GM said in its statement to Congress that it’s investing $750 million to develop the Volt. First-year sales are project to be about 10,000 units, ramping up to 60,000 in the second year. GM has to build in its costs to the pricing.
3. Contingencies: The Volt’s batteries and many other technologies are completely unproven. Therefore, GM must build into the pricing structure the worse-case scenario for warranty costs, depreciation and so on. This is just the way business is done.
I would expect to see the price tag of Volt-like technology drop dramatically within two year of launch in 2010. GM wants to make it affordable for the masses, but as you well know, it can’t afford loss leaders right now.”
January 9th, 2009 at 10:07 am
Yeasrs ago I listened to an interview on the radio re the Olympics. An investigative reporter named Andrew Jennings had written a book titled ” Lords of the Rings”.
Sequel is “New Lords of the Rings”.
http://joeclark.org/lords.html
Basically the Olympics is promoted as some altruistic event masking a rather corrupt underbelly full of hidden agendas. Cutting to the chase…much like getting a backstage pass to a rock concert…the Politicians in host-victim Olympic cities are awe -struck and arm -twisted into hosting this 2 week Olympic party.
The Olympic movement breaks it down (2 )ways
(i) IOC sees the given host-victim cities star-struck politicians as the KEY and THE KEY to the vault…as convincing this disproportionately empowered minority of elected representatives is all it takes.
(ii) The Host-victim City’s citizens wil be converted into long -term “cash -cow slaves” and obligated by these star- struck elected representatives to pay and pay dearly for this Olympic party.
Litany after litany of host-victim Olympic cities have lost and lost big time. They have been left with massive debt and the Olympics have not been the long term and comprehensive economic generators as they have been promoted within the bidding cities…only a select few groups benefit from the Olympics in almost formulaic fashion.
–Why does each new host-victim city feel it is different?
–There is NO historical evidence to suggest that it will be any different.
–Why do they continually ignore this ?
–When will the world wake up and gang up on the IOC? ….its almost like their main agenda is to wreak economic havoc throughout the world.
==============================================
The same insidious lobbying side show happens with Trade and Convention Centers.(To be continued…)
January 9th, 2009 at 10:07 am
January 9th, 2009 at 10:26 am
I agree, it is wishful thinking. Just a quick look at headlines today and we see:
Job losses mounting, with Flaherty expecting massive job losses for 2009;
Building permits drop 11% in value in Nov from Oct. lowest in 21 months;
Millenium approaching deadline on financing;
Ya… I think we’re about ready for another bubble or two. Why not, eh? lol!
January 9th, 2009 at 10:31 am
So I’m guessing it’s safe to call this as the “Vancouver wakes up after the kegger in a pile of its own sick” moment?
January 9th, 2009 at 10:38 am
1) Sell a mega-project to a country that needs “development” (usually some form of massive infrastructure nightmare). By appealing to a small cadre of powerful people at the top of the economic pyramid who will benefit with contracts, leaving everyone else to “suck it”.
2) Get them so massively in debt to build these “developments” that they will spend the next 2-3 generations trying to pay it off (at the expense of the people at the bottom who never wanted the f-ing thing in the first place).
3) When the country can’t pay (and it’s purposefully designed so it’s not a possibility) dictate different terms: military bases, political decision making etc).
So where are the Olympic People chomping on their over-sized cigars: “I love it when a plan comes together.”
January 9th, 2009 at 10:40 am
January 9th, 2009 at 9:59 am
Just how much are the IOC penalties? If the city is about to blow its (our) brains out on a massive loser condo deal, perhaps simply paying a penalty is a better choice?!?
======================================================
That IS the problem with the IOC Mafia:
You may never know till the sh*t hits the fan, but by then it’s too late !
The Host City has effectively entered into a quasi P-3 venture , a business agreement with the IOC.
Provincial legislation allows the City to do so, , and they may not be obligated to disclose any of such contracts details due to weasel- words like “Confidentiality” , ” Business/trade secrets ” etc.etc.
Concurrently ,…the IOC would impose the same restrictions on releasing such contact info. That last thing the IOC wants is the Public being made aware in technicolor that they have been sold down the river. We need to maintain this G-L-O-W of being deemed ” a World Class City ” blessed by the benevolent IOC into hosting the Olympics (at least till the IOC bandits leave town in late Feb. 2010 ).
In a rather perverse way “I feel quite confident ” that the IOC would make absolutely sure that the penalties for Non Completion /Breach of Contract in anything Olympic -related will be to such a degree of severity the Host-Victim City will not even think about it. Hence, and cost overruns to be incurred will pale in comparison to F*cking with the IOC’s Olympic baby. Add to that your stooopppiiidd politicians who will not let reality get in the way of their egos.
Or ….put it this way, if you were the IOC , would you not do the same ?
January 9th, 2009 at 10:57 am
A ONE - TWO punch
(1)Mega projects to create a debt ridden enslaved society
(2) Exacerbate it, if not camouflage it with false hope to enslaved citizens specuvestors with sub -prime and 0/40 loans
The bubble bursts only after the cream “froth” was skimmed by the vested interests.
Your Economic Hit Man story made me recall a CIA operative who broke his silence on how they work Gov’ts(mostly 3rd world dictatorships). He stated that the US tries a 3 stage approach:
(i) to co-opt the leadership with bribes,
but if that fails
(ii) stir up crowds (say a few hundred to a few thousand) hired to give the “appearance of revolt” against the leadership, then put it in the media…
but if that fails to overthrow them
(iii) outright assassinate them
January 9th, 2009 at 10:58 am
Coopers Lookout alone has a dozen or more being advertised by Prompton.
H&H completed. Elan, Raffles. Flagship is completing… Mariner. Firenze, Espana, TV Towers 1,2,3, the list just keeps piling on.
Boom, boom, boom! Anybody???
January 9th, 2009 at 11:12 am
January 9th, 2009 at 11:13 am
http://stats.bls.gov/news.release/empsit.nr0.htm
Statistics Canada disclosed Friday that the rate jumped to 6.6 per cent last month from 6.3 per cent in November, as the economy bled another 34,400 jobs, and federal Finance Minister Jim Flaherty warned that the country is facing a “difficult year” and “continuing job losses
The CDN numbers are 58% higher than the numbers the government had been suggesting in the lead up. The US numbers indicate a cascading effect down. YIKES.
January 9th, 2009 at 11:20 am
yeppers
looks like rentals are imploding
January 9th, 2009 at 11:20 am
January 9th, 2009 at 11:21 am
January 9th, 2009 at 11:21 am
” The plunge in construction full time jobs is the most in 30 years”. Heres the full article
http://www.globeinvestor.com/s.....9/GIStory/
January 9th, 2009 at 11:22 am
These seem to be like a Wayne Gretzky Rookie Card..everyone has to have one…
It seem to be on the Must Have list in order to be a World Class City
As Post # 20 Van - Zee says…
QUOTE:
Well the sad thing is it seems that trade shows are a thing of the past and not the future or even present. The internet has really changed the way things get done for many businesses. If you are in business where do you get your new information about a product or service? Where are you going to provide information to future prospects?
The internet has Fucked up many of “old ways” of doing things and fundamentally changed most businesses. Things that seemed rock solid like newspapers now seem to be on the endangered list.
==================================
People and businesses may stay lean and mean, and no longer able to afford these “Trade Exhibitions” or “Conventions”
It seem that all over the world especially North America, these things have grown like weeds. The market is oversaturated with them .
We were in Penticton in the fall of 2007…and lo and behold, they have a Trade and Conventions Center. We were there on the Nov. the place was empty except for a Remembrance day ceremony. Penticton is pretty dead in Nov. when the sun goes on holiday.
Nanaimo , anothe small town has built one.(BTW: deal tied to the Millenium group)
My view is the local Tourism industry takes cue from the IOC and simply bamboozles the Local Gov’t that Tourism is a green and growing industry which will create lots of jobs(after the other well paying jobs have disappaeared). The Politicians (who love such large monuments with brass plaques proudly displaying their names as their legacy) drink this special “economic salvation” brand of “Trade and Convention Center kool -aid”.
What they have in common with the Olympics is that they tend to be major white elephants.
However, once they are built, their design and intended use is hard to change, the Tourist industry has again recieved a massive subsidy from the local taxpayers, knowing full well the building won’t be torn down,sold or converted from the original use, as THAT that would be a major political embarrassment to the kool -aid drinking politicians.
Like the internet and a dying newspaper, these Trade and Exhibition centers may be displaced by new technology such as video conferencing etc..whether it be by Go Green zeitgeist, or by pure and simple economics and tax law changes .
January 9th, 2009 at 11:23 am
Are you next in line to get laidoff? Is that why you ask?
You’ll get 2 weeks, and companies are entitled to give you nothing if they wanted to do that. They’ll just give you the pink slip and make you sit there for 2-4 weeks.
January 9th, 2009 at 11:24 am
Hmmm yeah, its tempting to replace my 8 year-old car but its still running fine. Best keep every penny because I’m not layoff-proof.
January 9th, 2009 at 11:26 am
http://www.financialpost.com/story.html?id=1159942
I noted yesterday that a famous TV financial commentator had increased her ( Suzy Ormand) nessecary savings number from 2 to RIGHT MONTHS) . Seems like the recession circus is coming to town.
January 9th, 2009 at 11:26 am
January 9th, 2009 at 11:31 am
http://finance.yahoo.com/news/.....13641.html
January 9th, 2009 at 11:33 am
http://www.telegraph.co.uk/foo.....lkers.html
January 9th, 2009 at 11:45 am
Who cares why I ask? The question is how statistics track layoffs. From what I can gather the definition of unemployment is people that have been looking to work in the past 4 weeks and are not employed. From that definition, unemployment numbers will take a few months before being registered in the statistics because many people being laid off will be on severance and not necessarily actively looking for work.
The real stat to look at is whether employment is decreasing. Unemployment is a lagging indicator for the reason I mentioned, notwithstanding that layoffs are lagging indicators in themselves. The fact that December unemployment is markedly higher shows that October and November job losses are finally starting to be recognized as people are now needing/wanting to look for work after a few months of paid introspection. With all the layoffs being announced in December and more through January, look for unemployment to increase more in the next few months.
January 9th, 2009 at 11:58 am
If you can write all that, you should be knowledgeable about severance. You’re just trying to confirm what you already know.
The big bad ugly numbers will be coming in March and April. Then when you get to May, nobody cares anymore because we’re all off on vacation for the summer.
January 9th, 2009 at 12:01 pm
70% of Vancouverites are jobless. Those numbers mean jack to Vancouver. Just go down to Richmond and check out the number of people enjoying dim sum grabbing the Tsing Tao Daily enjoying life. Nobody works in Vancouver, those that do just kill time in offices. I’ve worked in big tech companies in Vancouver and I’ve seen 80% of the employees surfing the net while the other 20% are the suckers holding up the boat and will continue to do so. Even I’m at home today enjoying life “working” from home.