Recession looms in Brazil and Canada

Our economy receded for the first time since the ‘Great Recession’ as exports plummet. We’re number 2 after Japan! (in droppage).

The economy shrank at an annualized rate of 0.4 per cent in the second quarter, the first contraction since the Great Recession, and a sharp reversal from the 3.6-per-cent growth rate of the first quarter, Statistics Canada figures showed. It’s a sign that Canada, envied by many countries as a bastion of stability since the financial crisis, is not immune to global economic malaise.

In fact, among the Group of Seven club of rich economies, only Japan had a worse second quarter.

Sales abroad staged their steepest drop in two years, with exports plummeting more than 8 per cent on an annual basis. The high-flying Canadian dollar made it harder for businesses to sell their goods to weakening markets in the United States and Europe. Also, Japan’s natural disasters created havoc in the automobile industry, while wildfires in northern Alberta and maintenance shutdowns in the oil industry curtailed energy production.

But there’s a bright side to Canada’s performance. Company purchases of machinery and equipment in Canada soared at a 31-per-cent annualized pace in the second quarter, the biggest surge since 1996.

Here’s the article in the Globe and Mail, and here’s the take from Global Economic Analysis.

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Extremely rich Van h
Guest

So what,Vancouver won't be affected cos Chinese money will support this city which is a safe heaven.

Jocko homo
Guest
Jocko homo

Some troll likes to spout off about Chinese money and how that makes Vancouver different.

Sure, just like they made Qaddafi permanent ruler of Libya by selling him arms, they'll make local house prices high forever. Nothing could possibly go wrong.

pricedoutfornow
Guest
pricedoutfornow

Good link from the Irish Times. I feel like we're looking into the future of Canada. I hear some of these stories now "the mortgage is 1,900, it only rents for 1,000" and “They gave us €500,000 even though we only had a combined income of €55,000”. But for the most part Canadians (especially in BC) are still delusional about real estate and what that $800,000 debt REALLY means.

Sadly, I think things are about to change for many.

Jack
Guest
Jack
Off topic, but seems like Vancouver is the only place where housing prices don't fall. http://usa.chinadaily.com.cn/business/2011-09/05/… Land prices in Chinese cities fall in August Updated: 2011-09-05 09:35 BEIJING – Land prices and transaction volumes both declined on a monthly basis in Chinese cities amid a sluggish market last month, a research institute said Sunday. The China Index Academy (CIA), a Beijing-based company that studies China's property market, said in a report that the average floor price for residential land in 133 Chinese cities currently being monitored by the institution declined 9 percent to 1,619 yuan ($253) per square meter in August. Meanwhile, transaction volumes for residential land in the cities continued to drop last month to 20.18 million square meters, down 17 percent month-on-month and down 14 percent from a year earlier, said the CIA. The land market has become… Read more »
YLTN @ Work
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YLTN @ Work

So what countries could be immune? I think Norway could be pretty safe, lots of oil, sovereign currency, an island….

Jack
Guest
Jack

Another off topic.

Haven't seen this type of description in a while: "Seller would potentially like to rent back"

Charming, character Dunbar home on corner lot with great curb appeal, on quiet tree-lined street. Original woodburning fireplace & gorgeous oak hardwood flooring. Fully finished basement w/separate entrance, could be a great mortgage helper. Great neighbourhood in Kitchener & Lord Byng catchments. Seller would potentially like to rent back.

——————————————

Seller must like home and neighbourhood, but wants to cash out and find someone to pay king's ransom (house listed for $1,499,000)

registered
Member
registered

4 Jack Says: "Off topic, but seems like Vancouver is the only place where housing prices don’t fall."

The BCREA spent a lot of money and time creating that impression. It's false. The Teranet HPI shows that between Vancouver, Calgary, Toronto, Ottawa, Montreal and Halifax, Vancouver has the second worst history where long term consistency of increases are concerned, beat to the bottom only by Calgary. Halifax wins in this regard.

http://www.housepriceindex.ca/Default.aspx

Li Kai Shing
Guest
Li Kai Shing

I tink DisneyLand immune.

Unknown fact: many mascots are armed and trained like Navy Seals.

Not believe? Go up to Goofy or Donald Duck and tell them to F*ck Off.

After Waterboarding at Pirates of Caribbean ride …have to watch Bambi and Little Mermaid till sign confession.

vreaa
Member

Irish Times article archived as:

"Anecdotes From Our Future? – “They gave us 500K even though we only had a combined income of 55K”; “I would gladly hand back the keys of both houses”

http://wp.me/pcq1o-2T3

Unfair comparison? Similarities? Differences?

Some poignant and classic stuff: We fear we'll be hearing these stories out of BC later this decade.

For instance: “The mortgage is €330,000. The asking price for an apartment in the complex is €185,000 so we are €145,000 in negative equity”

Li Kai Shing
Guest
Li Kai Shing

Brazil:

Hoo Boy !

Much culture to share.

Import Hot Latin chicks, Macarena and Mardi Gras.

Erect tall statue of important historical figure on tall local mountain. ie Either Grouse or Little Mountain…or maybe Libby Davies when she lying down.

Any choices?

Best place on meth
Member
Active Member
Best place on meth

European stock market bloodbath today, Dow futures pointing to an ugly opening tomorrow.

Buckle up.

patriotz
Member

@Jack:

"Seller would potentially like to rent back”

Bad strategy. You can either sell for the highest possible price, or sell to someone who's willing to rent back to you. But not both.

I know what my choice would be.

bubbly
Member
bubbly

So the GDP went down *despite* the large increase in machinery purchases. These purchases are like a one time boost to GDP. Unless our export markets start growing fast, the next quarter could see a much deeper contraction.

N
Guest
N

@bubbly:

I suspect that the wording is poor or wrong and that the machinery purchases were Canadian companies using the strong loony to buy foreign equipment. I can't see a surge in domestic purchases at this time.

Extremely rich Van h
Guest

Don't be a crying baby.Canada is no more relying on US,and instead China is Canada's major customer.China will take up the gap left by filthy American.

Li Kai Shing
Guest
Li Kai Shing

Where is everybody?

Probably majority at Wreck Beach wearing thong (small size) while me and my concubines are racing down the untolled Highways.

The rest probably writing multiple offers on OV condos..sounds like a good deal.. remember buy now or be priced out forever sucking landlords fumes from basement suite.

Colonel M.Q. immigar
Guest
Colonel M.Q. immigar
My good friend Li Kai Shing told me about this VCI blog. He say much good advice available from demographic loser group that post regularly. aka I need to rent a basement suite to lay low form Navy Seals and Obama …errr…"temporary accomodation" till I can claim persecuted refugee and thus pole vault past those suckers who try to apply for Canadian citizenship through proper protocol. My needs are humble..basically a 100 acre basement suite with 10 ft thick walls capable of safe storage of gold , $30 billion in Cash ,a few tanks, jet fighters, and maybe a few Million barrels of oil. (Hopefully nuclear bomb proof, but that is negotiable). I know this is the norm is Surrey's Whally- Newton area, but I was hoping for something near Cambie/Oakridge…Burnaby if truly desperate. Anyone VCI – er been evicted… Read more »
The Leak
Guest
The Leak

we're heading into a global depression. Yup, depression coupled with deflation.

Colonel M.Q. immigra
Guest
Colonel M.Q. immigra

I see many VCI posters are CIA and Obama fans.

Can't handle truth as Jack Nicholson says.

Best covert operations happen in basement suite bunkers.

PS: anyone seen Osama ?

Not answering e-mails…should I cut off Ramadan card list ?

Boombust
Guest
Boombust

"PS: anyone seen Osama ?"

Oh. Him.

Didn't they get rid of him years ago, but played the boogie-man card just to play it safe?

Funny how he never came to trial.

Best place on meth
Member
Active Member
Best place on meth

@The Leak:

We never left the depression.

Just papered it over with trillions of IOU's for a couple years.

chip
Guest
chip

McGuinty just announced a $10,000 tax credit for companies that hire new immigrants.

As opposed to resident Canadians.

Call me crazy but if ten grand handouts are necessary for immigrants to find work here maybe the immigration policy needs a tweak or two.

anon
Guest
anon

McGuinty is trying to get re-elected as Provincial Premier. No control over immigration which is Federal. BTW- do you have a link to that, seems a little too bizarre.

bubba
Guest
bubba

Tomorrow I'll report/regale/bore you with RE from beyond Metro Vancouver,as I threatened previously.

====================================================

Politicians and promises?

bwhahahahahahahaha

When you have a dump after the morning coffee…try to imagine your Politicians' faces on turd before Mr Floatie is incognito,aka on their way to False Creek ……. past Bob Rennie and the OV condos.

They don't seem to understand that they have f*cked up royally…and its now rob Peter to pay Paul(Paypal?)shell game.

Through their (and bureaucracies) sheer incompetence/stupidity and individual vaselined assholes , combined with greed/ego,…… they have overtly eviscerated the evolved infrastructure that once supported the middle class.

Historically speaking, one could chronologicaly "CSI" demarcate this back to early 1900's…slow , steady but predictable decline.

Bob Rennie and Bill Slut have more credibility than your contemporary politicians.

jaymow
Guest
jaymow

Anybody know of a decent realtor that allows access to VOW? I'm researching property in Kelowna, but I can't get any price history from any of the realtors.

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