Canada in recession?
 

Hi all,

According to BBC news last night, Canada is now officially in recession.

Just interested to know if they're saying the same thing over there?

:)

Re: Canada in recession?
 

Re: Canada in recession?
 

It'll be interesting to see what happens if Harper clings to power. The rest of the western world is pursuing Keynesian policies of economic stimulation which he rejects in favour of Reaganomics. One might expect that to lead disaster for Canada; surely Stephen Harper can't be right while the rest of the world is wrong? A stimulus package in the US might spill over the border but not if comes with protectionist measures such as repatriating American jobs. We may expect poverty but, at least, it'll be academically interesting poverty.

Re: Canada in recession?
 

Manitoba is still keeping its head above water, the province added over 2000 jobs in November. Though I doubt it will last.

Re: Canada in recession?
 

Judging by how busy all the shops are here in Kamloops, I would say that this so called recession is not affecting certain parts of Canada.
People are spending money here like crazy at the moment, the mall was packed last weekend.

Re: Canada in recession?
 

I think Harper may be right..Canada only expects a small contraction in 2009, so why go crazy with stimulus. I think the key to Canada is the American stimulus, as the majority of Canadian exports go this way. And the rate the US are printing money, one has to ask the virtue of such stimuli.

Re: Canada in recession?
 

I'm confused by this. Are you saying that Canada doesn't need a stimulus package because the US will provide it for Canada and, at the same time, that a US stimulus package won't work?

Re: Canada in recession?
 

Pretty much both. If stimulus works, the US will likely impact Canada more than $30Bn from Ottawa.

But whether the stimulus will work is anyone's guess. It seems Keynesian economics is winning out right now. But what is scary is the fact that the US is creating money to pay for stimulus..which IMO is very dangerous.

Re: Canada in recession?
 

How else can a state finance a reflation? It seems to me that the government has to print money and just has to be cautious about inflation and stagflation. Essentially they have to print money and give it to the poor; the people who are most likely to spend it. If that can be done by employing the poor to build something useful so much the better.

Re: Canada in recession?
 

Im in england first ive heard canada is in the s... slowed down a bit yes but recession i dont think so.

Re: Canada in recession?
 

Canada's economy is an extension of the US one, it just lags a bit in time. You may have heard that the US economy has some problems.

Re: Canada in recession?
 

That can't be right. Our Glorious Leader assured us during the election campaign that the fundamentals were strong and that the r-word didn't apply here. Surely he couldn't have been telling porkies?

Re: Canada in recession?
 

Was on the BBC News at Ten last night, apparently 'officially' in recession now. :)

Re: Canada in recession?
 

When he says "Canada" he means "parts of Alberta".

Re: Canada in recession?
 

It's the only way, but the problem is governments being "cautious about inflation"...as generally they tend not to be very good at it. The more debt laden the government then the weaker the recovery, when we eventually get to it.

Re: Canada in recession?
 

My neighbor owns a car dealership,,he,s having his best ever year:confused:
His theory is that the MB economy is less volatile as that of ON. and other parts of Canada:huh:

Re: Canada in recession?
 

I'd agree with that, Manitoba has small booms and subsequent smaller busts, and is probably one of the best positioned provinces to whether the storm. Alberta and Ontario rely heavily on Oil and manufacturing respectively, which have been hit hard.

Re: Canada in recession?
 

And coz i,m so wise i chose to live here,rather than those other oily places:rofl::rofl:

Re: Canada in recession?
 

Oh, OK. You'd know then.

R.

Re: Canada in recession?
 

I am due out in March on TWP to work in construction, would this be a foolish move at moment now this has been announced?

cheers

Re: Canada in recession?
 

Depends if you have a job lined up, how secure it is, where it is, what sector of construction it is......

The announcement doesn't change anything in day to day terms.

Re: Canada in recession?
 

It depends where

Some economic effects creep across Canada at the speed of molasses, some more outlying parts could take an extra few months before its felt, along with that it’ll probably take and extra few months to recover
If the US pull back some jobs some places will take years to recover
Maybe if you have some raw material that stay’s in high demand during the recession then that area may benefit but most commodities and industry will be impacted

Re: Canada in recession?
 

Its in Vancouver, I have a job offer with a Plastering company.

Re: Canada in recession?
 

Sorry to bang on again but I did a thread last week on Coming to Alberta - the gist of which was to proceed with extreme caution at the moment if you are coming, especially to Calgary, on a TWP. Judging by some of the comments on here it may apply to many other provinces too - indeed all of Canada. If you are single then it's probably not such a big deal but for people with families I would really strongly recommend a second thought. The other problem can be how long the TWP is for one/two years as the may not be renewed again - even if you employer wants to keep you - the powers that be can refuse to renew - it almost happened to us when we first arrived. If it is felt that Canadians are seeking jobs they will not keep temporary workers.

Re: Canada in recession?
 

German ridicule for UK policies.....

http://news.bbc.co.uk/1/hi/business/7776462.stm

Looks like the Germans don't think much of the British Keynesian solution so Harper may not be out of step that much.

(I don't quite follow some of the figures at the end of the BBC article. Surely the German figures are millions not billions?)

Re: Canada in recession?
 

Ich denke dass Herr Steinbruck mit einem Gabelzunge spricht.

(ouch, that doesn't sound at all right in German)

Re: Canada in recession?
 

try-- Herr Steinbruck spricht mit gespaltene zunge:rofl:

Re: Canada in recession?
 

I thought you lived in Kamloops?

Re: Canada in recession?
 

heck lets all borrow and spend that will get us out of trouble. I will borrow money to build an extension on my garage and put in a wireless network out as far as the shed. I will also resurface the drive and replace all the windows.... see it is only sensible infrastructure spending surely that is not wrong ?

I am not saying spending spree stimuli is a bad thing but many of the frenzy spending that the world is embarking on is like "one up man ship" who can brag about the biggest bail out package! Heck everyone seems to trying to out do each other to win the bleakest outlook description award.

Re: Canada in recession?
 

I work retail and see the same thing, lots of cash and debit, few credit cards, some days no credit cards.

Our sales are down quite a lot vs last year people just don't seem to be buying and you would never guess Christmas was in 2 weeks.

I am getting laid off on the 27th so count me in the unemployment in January.

Re: Canada in recession?
 

It would be good for the economy as a whole and good for you too, if you have the cash flow to support the repayments at the low interest rates now on offer.

Re: Canada in recession?
 

Ah, much better. thanks.

Re: Canada in recession?
 

bitte sehr

Re: Canada in recession?
 

I like to think we're to thank for that - the only province whose housing market isn't falling when we want it to, and all because it's our destination and we desperately need it to! (I'm sure if we'd chosen Vancouver then Manitoba would be crashing, hehe) :p

PS - I read that there were only 500 apartments to rent in Winnipeg in October (vacancy rate dropped to 1%) so God knows where we'll stay when we do get there! :confused::blink:

Re: Canada in recession?
 

Before all of this borrowing by Brown, the UK already had the 5th largest deficit in the developed World so the Germans may have a point. Wait another 6 months and watch inflation rise in the UK which will give the government another problem to deal with.

Re: Canada in recession?
 

And all the prudent, fiscally responsible Mr. Broown's "40% rule" financial jiggery pokery hasn't come to light yet. All the many tens of billions of pounds of PFI deals that do not appear on the government's books as liabilities will show up when the accounting rules change. They are trying to delay that evil day but it will come. Also, the blank cheque that they wrote to bail out Northern Wreck, said to be over 40 billion pounds. A done deal before the tax payers even knew about it and a lot of them still aren't aware of it. Ah well, it's only money ! Does anyone know what the Olymipic Games cost is yet ? Another financial gem to be sure.

Re: Canada in recession?
 

Also, much of the borrowed money was plundered from the pensions funds, so, if all of this does not work....

Re: Canada in recession?
 

Although the Germans have a good positive balance of trade I think they have a fair old budget defict already. (I'd have to check out actual figures though.)

Its been reported that what Germany doesn't really want is for this UK type injection of money to set a precedent for the EU as they, being the largest and most successful economy by some distance, will end up paying for it disproportionately as usual. It may well be that the riots in Greece right now are just the first signs of trouble in the weaker european economies which are bound into a currency kept high by the strength of the German economy. For better or worse the UK is able (or the markets force it) to devalue at times like this.

Re: Canada in recession?
 

Over in Victoria we had one article in the paper saying it was official, the government may go overdrawn a bit next year sometime, there was no plans to sink any money in and don't worry about it unless you have a lot of overseas investments. The banks here seem to be quite self sufficient.

I don't think the version of recession here is quite the same as in England where they wait till the country in bankrupt until announcing there might be a problem.

Re: Canada in recession?
 

Like the Romans said, "The people get the government they deserve."