Comments on: Credit problems in Canada

By: deathspiral

deathspiral — Thu, 09 Jul 2009 22:12:42 +0000

Mish has the numbers of unemployed millions higher than is being reported. I suspect the same here. The 'unable to collect' numbers are the real story. The growing welfare rolls and the underemployed are a big number. This is a good read to get an extrapolation going as to what is happening in Canada.

http://globaleconomicanalysis.blogspot.com/2009/0…

Current score: 2 (to vote for this comment, please visit the site)

By: NO -LYMPICS

NO -LYMPICS — Thu, 09 Jul 2009 20:13:59 +0000

Pope: I second BBY's motion. Please return the numbering system for posts. Thx !

Current score: 2 (to vote for this comment, please visit the site)

By: patriotzed

patriotzed — Thu, 09 Jul 2009 19:57:36 +0000

Oh one more thing - you are also ignoring elasticity of supply. What happens when house prices go up to twice normal multiples of income? You get whole towns of empty houses, like in the US or Ireland, that's what.

Current score: 6 (to vote for this comment, please visit the site)

By: patriotzed

patriotzed — Thu, 09 Jul 2009 19:55:47 +0000

It is possible to imagine an economy in which house prices are infinitely high in relation to incomes. How then could people afford to buy houses? They don’t; they inherit houses from their parents. You are making the fatal mistake of ignoring the rental market. Who in their right mind would buy or continue to own a house that they could sell for, say, $10,000,000 but could only rent for $2000/month. The answer of course is nobody. That is the reason why house prices always adjust to a competitive return on rental income regardless of how irrational owners are. Investors must become rational in the long run, otherwise they end up broke.

Current score: 12 (to vote for this comment, please visit the site)

By: No Longer Looking

No Longer Looking — Thu, 09 Jul 2009 18:35:55 +0000

Just a clarification: I think the "one" billion dollar signal is maybe for all tax revenue, corporate and personal. Or it could mean a one billion dollar deficit. Anyhow, I'll stop speculating when we get a straight-forward answer.

Current score: 0 (to vote for this comment, please visit the site)

By: BBY

BBY — Thu, 09 Jul 2009 17:54:45 +0000

Hey Pope, the comments no longer seem to be numbered Hope you can fix that. Thanks for your work

Current score: 4 (to vote for this comment, please visit the site)

By: No Longer Looking

No Longer Looking — Thu, 09 Jul 2009 17:41:57 +0000

Colin Hansen raised his index finger, indicating "one". That's one billion dollars less revenue from corporate income tax than expected. Holy carp!!! He couldn't say it.

Current score: 1 (to vote for this comment, please visit the site)

By: Olympimess

Olympimess — Thu, 09 Jul 2009 17:15:28 +0000

Oh boy, Vanoc desperate for eyeballs. Province cancels elective surgeries during O-Games so that patients " can watch the games". I thought forcing the schools and government buildings to close was scaping the bottom of the barrel. The reservation rate or (buyout) is only half of what we were told. This means few rich groups are planning on coming to Vanc for the games. El Nino is back ,that means no snow for the games, oh oh, can you say total bust. I don't doubt that the chidren will be forced at gun point to prove up the backdrops of the empty venues. Looks like North Flase creek is surrounded by shit on two sides. Homeless refuse to move and false Creek is reeking. Great investment dudes. Provincial deficit goes through the roof. The 500 milllion projection is falling away fast. Expect a real zoo when theres no money for anything EXCEPT Olumpic fatcats feasts. What is greggy Robertsons big idea, a 50 million dollar bicycle bridge. What an asshole.

Current score: 5 (to vote for this comment, please visit the site)

By: oneangryslav

oneangryslav — Thu, 09 Jul 2009 16:40:09 +0000

shitsinthefan Says: July 9th, 2009 at 2:45 pm I see that Warren Buffet is calling for a ’second stimulus’and predicting an 11.5% unemployment rate. I have been reading that approximately 15 million people in the US are currently unemployed. At 11.5% this represents 30.06 (or roughly double) million people from a population of 306 million. Is that right?

No, it's not correct; the denominator of the unemployment rate is not the total population, but some version of the total working-age population. 100 of 1 year-olds are unemployed, so it would be ridiculous to lump them into the unemployment rate. According to the US BLS, the total civilian labour force as of the second quarter of 2009 is about 155 million.

Current score: 4 (to vote for this comment, please visit the site)

By: Girlbear

Girlbear — Thu, 09 Jul 2009 16:40:02 +0000

Does anyone here recall what the Woodwards units were originally sold for at presale etc - a range? There are a bunch of them for sale again now on craigslist.

Current score: 2 (to vote for this comment, please visit the site)