Canada GDP Declines 0.3%: Largest Drop in Two Years

Mish’s foreword to a piece at Bloomberg –
http://globaleconomicanalysis.blogspot.com/2011/07/canada-gdp-declines-3-largest-drop-in.html

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CanuckDownUnder
Member
CanuckDownUnder

Re: the Chinese bubble, we came across a completely random ghost city anecdote last night.

We were watching Spoorloos, it's this Dutch show where they track down long lost relatives, and they were featuring a guy who was currently working in China helping build ships.

They were asking him about life in China. He said it was OK but primitive, they were always losing electricity and water. Then he started talking about where he lived – his apartment block had 32 units and the only people in the building were him and one other person. And it wasn't just his block, the whole area around him was full of empty buildings like that.

pipewrench
Member
pipewrench

wealth-inequality

I had no idea that the top 10% of wealth own 81% of stocks and 83% of financial assets.

Just with compound interest that number will be over 90% in a few years. This is not going to end well at all.

if you hear about another # whisperer throw it out because I did not that so few technically owned that much.

You cannot have a free and open society with that much concentration of wealth and power.

pipewrench
Member
pipewrench

@pipewrench:

sorry people, somehow this comment got crossed on a post to whispers from the edge of the rain forest.

funny this page was not even open?!

chip
Guest
chip
@pipewrench: "I had no idea that the top 10% of wealth own 81% of stocks and 83% of financial assets." The Wallenbergs in Sweden control half the market cap on the Swedish stock exchange. Is there's a free country? Wealth has always been concentrated in the hands of a relative few, because it is the relative few that are the inventors, tinkerers and wealth producers. What is key is income mobility; that is the ability of a hard worker or poor tinkerer to move up the wealth ladder. There was a recent survey of global billionaires for example that showed the percentage that were self-made, rather than inherited, was 80% in the UK, 68% in the US and about 2/3 in China, Brazil and India. It would be interesting to see a study on whether those who inherit wealth. I… Read more »
pipewrench
Member
pipewrench

@chip:

chip , agreed. now I am starting to understand that it has to concentrate because as humans we always want more and that it sooner or later falls apart because of corruption and greed. History usually keeps us in check due to memory but after 2 Generations past lessons are forgotten and we repeat the same stupid mistakes.

here is one for all of you to see that the market is free and food markets are not manipulated. Enjoy your property values.

http://thebureauinvestigates.com/2011/07/30/giant

rp1
Guest
rp1
@pipewrench: "You cannot have a free and open society with that much concentration of wealth and power." That is not true, because the amount of wealth in the world is not fixed, and the owners of it are not usually fixed either. The wealth grows and the owners should change over time. Another poster pointed this out, but as long as the economy is dynamic, with a high degree of social mobility and rising living standards across the board, there is no real problem. You should expect high concentrations of wealth. The inequality becomes a biting issue in two cases: you need enough opportunities for this to be fair, and for people who for whatever reason don't pursue those opportunities you want a rising baseline standard of living. With exponential growth these are always possible. If that growth were to… Read more »
registered
Member
registered

4 chip Says: "Wealth has always been concentrated in the hands of a relative few, because it is the relative few that are the inventors, tinkerers and wealth producers."

Nice try, but it ignores two very large elephants in the room; the dramatic SHIFT in wealth to the rich over the past three decades and that the bulk of that wealth hasn't come from manufacturing or productivity but financial services. Shifting money around. The latter was enabled by a dismantling of the regulatory frameworks first enforced after the Great Depression and in place over the period of America's greatest prosperity.

Anonymous
Guest
Anonymous

@rp1: What do you mean that wealth is not fixed? Do you mean there are more millionaires than there were 50 years ago? That's inflation.

Wealth only has value becauseit can be converted to resources and resources are definately finite.

Best place on meth
Member
Best place on meth

What an interesting week.

Agent Will has quit and left town.

Larry refuses to disclose any more stats – it's all of a sudden a waste of his precious time.

Ian Watt laments that the condo market is "soft". Hey, didn't Agent Will used to specialize in selling condos?

http://www.youtube.com/watch?v=sZvVA6RRFXE&fe

This is what the beginning of a real estate bust looks like.

604serf
Guest
604serf

We bears are so funny.

Agent Will leaves and we think it's a bearish sign. Maybe he's sold so many condos during this bubble he's decided to retire young…

Maybe Larry Y. is too busy handling multiple offers at 300K above asking to post stats that only loser, internet addicted, RE bear AKA poor a$$ basement tenants like us read…

registered
Member
registered

@10 Best place on meth: You have to give Mr. Waaaaaaat credit for an appraisal that doesn't conclude on forced false positive notes or suggest Asia is busy mowing lawns, just wait for fall.

Survey Says
Guest
Survey Says

@604serf:

Everyone knows that the only healthy market segment is SFH. Those properties are sold by chinese to chinese. White guys like larry and Will are shut out of the only hot and lucrative market. They get the condo scraps and condos are barely moving because HAM is not interested in them.

I would leave town too if I was will. Heck, as a buyer i'd love to move to seattle and get three times the house for my money. Alas, the wife has too much family here. Only when all the schools will be full of chinese speaking kids will she abandon ship.

betamax
Guest
betamax

604serf — thanks for the fantasy fiction.

Keeping An Eye On Th
Guest
Keeping An Eye On Th

Yes, the GDP numbers, what they actually tell you is we are in a recession, but it doesn’t show up in the stats because the understated inflation is presented as growth.

Fake recovery, just smoke and mirrors, the monetarist got to try out their theory, which is fair enough, as the Keynesians had their kick at the can for a while as well.

And then Bush and Obama tried a combo.

The question in my mind is the Americans find themselves in a mess, the Greeks are in a mess, and the common denominator is?

Patiently Waiting
Member
Patiently Waiting

@Survey Says: If you look at all the new condo ads in the local papers, its obvious the market will only get worse. Supply seems endless, even after years of stagnant condo prices.

I also found this opinion piece that has run in various Lower Mainland papers:

http://www.langleyadvance.com/business/Things+cou

Its a slapdown of NIMBY whiners who use phony arguements to oppose anything that is proposed anywhere in the Vancouver area. Local politicians and media must be fed up with the kneejerk reactions of greedy homoaners.

Best place on meth
Member
Best place on meth

@Patiently Waiting:

It looks like the A-holes at UBC used most of these arguments when the hospice was proposed.

"I paid a lot for this house, and you can't do this to my property values!" – CHECK.

"If you do X, it will turn this neighbourhood into a ghetto!" – CHECK although they put it differently, something about ghosts.

"I will move if you do this!" – CHECK.

"People will kill themselves, and it will be your fault!" – CHECK. They whined that people will get sick from stress, same thing.

Homoaner
Guest

I would like to start a petition against the bitter bears moving into my neighborhood. These bitter bears will bring down our property values because they refuse to buy and they are dirty, stinky subterranean basement dwellers who bitch and complain all day. It's bad feng shui.

Survey Says
Guest
Survey Says

@Homoaner:

Stop complaining. Mortgage payment is due next week.

Survey Says
Guest
Survey Says

@Survey Says:

Don't forget to collect rent from mortgage helper. Toilet needs fixing. Better get the plunger out or tenant won't pay.

Best place on meth
Member
Best place on meth

Garth calls the top in the Vancouver market.

"Well, in case you missed the news, Vancouver real estate’s officially topped, and has begum the greasy slide back to that dark, sad place we call ‘the mean.’ Post-riot Chinese money is ebbing, locals are emasculated by debt, the BC economy’s stalled and there simply are not enough idiots left to put down two million for a stucco-over-wood eyesore on a ‘premium flat’ lot the rest of the country would find suitable for an unscheduled whiz."

http://www.greaterfool.ca/2011/07/31/stupidity/

Hilarious Craigslist ad included.

bubbly
Member
bubbly

@Best place on meth: He *may* be right about the top in Van real estate (time will tell), but his comment about the source of US's problems is beyond stupid:

If the US has a giant problem, it’s not that it spends too much, but taxes too little. Anyone not blinded by ideology or poisoned by gold can figure that one out.

Riiight. Bailing out stupid banks, various idiotic "stimuli", idiotic wars and costly military bases in many countries – all very smart and necessary spending according to Garth. All that's needed is a little bit more taxes and all will be good. You must be "blinded" or "poisoned" if you don't see it.

Garth=Idiot

bubbly
Member
bubbly

@Mansur al-Hallaj: Wow! What a stupid article. Couldn't finish reading that crap.

But I am happy for you that you love paying taxes so much, even when the money is used to bail out irresponsible banks or to finance wars. Perhaps you should volunteer more of your money for these causes. Actually, if you are saving your surplus money instead of giving it to the government to "promote jobs" or some other activity it can't do, then I am calling you a hypocrite.

AG Sage
Member

@Keeping An Eye On The Pimps: The question in my mind is the Americans find themselves in a mess, the Greeks are in a mess, and the common denominator is?

Goldman Sachs?

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